Ivy Benson
25 June 2009
THE MULTI-million Ghana cedis legal suit filed against Millicom Ghana Limited, operators of TIGO mobile services by two of its distributors began in earnest at an Accra Commercial Court yesterday, with the defendant company conspicuously missing from court.
The case, which was scheduled for hearing, saw only the plaintiffs' representative and its counsel, without counsel for the defendant company, even though, Millicom Ghana Limited was served with hearing notice. However, the court presided over by Justice Margaret Insaidoo went ahead and received evidence from the plaintiffs.
In his evidence-in-chief, a director of the plaintiffs, Mr. Anthony Kwabla Amegashie noted that in 2005, an official of the defendant company, Mr. John Afriyie, Sales Director of Millicom Ghana Limited approached his company, Mobile Telecom, with the request to acquire expertise to be able to mass produce recharge vouchers for the telecommunication mobile company.
Responding to questions from his counsel, Mr. Egbert Faibille Jnr, Mr. Amegashie pointed out that on receiving the request, his company made available computer hard wares to enable it produce and print vouchers for the defendant company.
Witness noted that samples made to the sales director was accepted and was then authorized as the printer of the defendant company's printers, adding that equipment bought to ensure efficient operations were all at the cost of Mobile Telecom.
Mr. Amegashie asserted that in 2006, he received an e-mail from the defendant dated Nov, 23, 2006 and signed by the then chief operating officer of Millicom Ghana Limited, Mark Procter and emanating from the e-mail address of Mr. Rexford Peasah, the southern sector manager of the company, reducing the commission of dealers from 10% to 9%.
Furthermore, witness noted that in July 2007, defendant communicated to its dealers that it was introducing a new marketing system whereby dealers in the country would be divided into zones, which he duly accepted in writing, and established an office in Tema on the advice of Mr. Allen Quaye, the Sales Director of defendant company.
An appointment letter indicating his territory was noted as "Tema Municipal, which includes Adenta, Ashiaman and Dodowa. It covers the right side of the Accra-Aburi Main Road, heading towards Aburi. It also starts from Nungua barrier and the right side of Spintex road heading towards Accra, up to the Coca Cola company area," plaintiff told the court, in addition to part of the Volta region.
Mr. Amegashie indicated that he incorporated Express Telecom, in which he is a director, on the advice of the chief operating officer of Millicom Ghana Limited, Mr. Percy Grundi to take up the challenges in the system of distributing and dealing in products of the defendant company. Additionally, witness told the court that his company started printing the products and distributing it to assigned territories, until it signed a dealership agreement with Millicom Ghana Limited, on November 1st, 2007.
The agreement, witness noted, barred dealers from dealing with other telecommunication companies, either Millicom Ghana Limited, adding that a clause in the agreement frown on territory evasions.
However, witness indicated that products are found in other territories either than where it was supposed to be located by virtue of the actions of consumers, which could not be controlled by the dealer.
According to witness, there were Lebanese who have entered the business and as a result their connections with Defendant Company and other dealers had created unfairness to other dealers, who are not of Lebanese lineage, adding that the Lebanese companies were told to monitor the effectiveness of the other dealers and report back to them.
Witness asserted that he had received communication from Defendant Company withholding 1% of its commission effective January 1, 2009, from any dealer having more than 10% of its products and services found in other territories.
Witness then told the court that Defendant Company was advised by the dealers to make its concerns public since they do not have the capacity to control behaviours of consumers, but the company did not do anything in the respect.
Witness pointed out that in January 7, 2008, he transferred an amount of GH¢185,535.00 into defendant's account for the supply of recharge cards but the latter refused to supply the products to his company until January 15, 200, when he received a letter terminating the contract after making a purchase of recharge cards.
Case adjourned to July 14, 2009 for continuation. Meanwhile the plaintiff was requested to serve the defendant company with a hearing notice the second time.
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