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ZTE Sues Uganda Telecom for Unpaid Invoices

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China's ZTE is reported to be suing Uganda Telecom for USD6.74 million in unpaid invoices covering contracts dating back over the past five years.

ZTE won a contract worth USD3.4 million in 2007 to supply hardware components, and the order was increased over time to USD6.7 million.

However, the firm alleges that Uganda Telecom repeatedly failed to pay invoices on time and that an agreed schedule of deferred payments was also breached.

The Chinese firm is seeking to recover $6.7 million owed on the contract, general damages and interest at 23 percent from the date of the cause of action till payment in full.

Uganda Telecom has declined to comment.

Last December, rival Chinese vendor, Huawei launched two separate lawsuits for USD10.25 million and USD2.78 million for outstanding bills covering equipment and services supplied between 2005 and 2009.

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Tags: zte  uganda telecom  Uganda