Vodacom Tanzania Says Police Arrest MD Over Network Use

DAR ES SALAAM (Capital Markets in Africa) – Police have questioned several Vodacom Tanzania Ltd. employees, including Managing Director Hisham Hendi, over alleged fraudulent use of network facilities, the company said.

“No formal charges have been preferred against these employees, but we have been advised that they may appear in court today,” the company said in an emailed statement. Hendi was named head of the Vodacom Group Ltd. unit in March after months of leading the company in an acting capacity.

He and eight other employees were arrested on a request by the Tanzania Communications Regulatory Authority, according to police commander for the commercial capital Dar es Salaam, Lazaro Mambosasa. TCRA’s acting Corporate Communications Manager Semu Mwakyanjala did not pick calls to his mobile phone.

Vodacom, which is market leader by a slim margin, listed on the Dar es Salaam Stock Exchange in 2017 following a directive by President John Magufuli’s government. Other telecommunications companies are yet to meet the requirement to offload at least a 25 percent stake to local shareholders.

The run-in is the latest between Magufuli’s administration and international companies. In January, Bharti Airtel Ltd. agreed to cede a portion of its stake in its local unit to the state following months of protracted negotiations after the government claimed the operator acquired its initial shareholding illegally.

Source: Bloomberg Business News