On 25 July this year, the High Court of Zimbabwe handed down an interim order against Econet in response to Trustco’s application for an interdict. The order basically compelled Econet to resume Ecolife operations with Trustco. Ecolife, a mobile phone based life insurance product that the two implemented in partnership with First Mutual Life, had been suspended following termination of the agreement. You can read more about the fallout between the companies here, here, and here.
Econet appealed the 25 July High Court order to the Supreme Court.
Yesterday, Zimbabwe state owned daily newspaper The Herald published an article revealing that Trustco lawyers obtained an order allowing Truscto to resume Ecolife operations with Econet pending the determination of the Econet Supreme Court appeal.
Today, we received communication from Trustco today confirming that they have been allowed to execute judgement as handed down by the High Court in July. The Trustco contact we communicated with says the court order was served to Econet today and all things [Ecolife that is, will be] back to normal shortly.
A 17 October Johannesburg Stock Exchange SENS announcement also confirms the developments. Here’s an extract:
Following a purported appeal by Econet in respect of an order obtained by Trustco Mobile (Pty) Ltd on 25 July 2011, the following order has been granted by the High Court of Zimbabwe on 12 October 2011:
“First Applicant (Trustco Mobile (Pty) Ltd) and Second Applicant (Trustco Group International) are hereby allowed to execute the judgment” as “handed down in HC 6065/11 on 25 July 2011, notwithstanding First Respondent`s (Econet Wireless (Private) Ltd) appeal under S.C. 171/11”
There have been reports in the press recently that Econet is contemplating handing over Ecolife to First Mutual Life. According to a report in the Herald, Econet will “assess the capacity of FML to underwrite the scheme when it decides to cut all ties with EcoLife following the problems with Trustco.
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