…over alleged defamation claims
Moorosi Tsiane
ECONET Telecom Lesotho is facing a M12 million lawsuit from DDKM Technology and Civil Works (Pty) Ltd, which accuses the telecommunications giant of damaging its reputation and costing it lucrative business opportunities.
In papers filed before the High Court of Lesotho this past week, DDKM is seeking M8 million in defamation damages and a further M4 million for loss of business. The company alleges that Econet made damaging claims about its work quality and reliability.
According to court documents, the dispute stems from a 2024 selective tender issued by Econet for the construction of 18 base receiver stations under RFP No. ETL/RFP/CTO/May/2024. Remakaota Holdings (Pty) Ltd submitted a bid in August 2024, proposing DDKM as a sub-contractor. However, the bid was unsuccessful.
DDKM states that when Remakaota sought reasons for the rejection, Econet allegedly indicated during a debriefing that the bid had been turned down partly because the proposed sub-contractor “has never completed any project awarded to it in the past” and produces substandard work.
“It is important to note that the bid was rejected by Econet and, upon receipt of the rejection, Remakaota Holdings demanded a debriefing and reasons for the decision. The reasons provided by Econet during the debriefing form the basis of the current proceedings. Among the grounds cited for rejecting the bid was that Remakaota had proposed to subcontract a company that had never completed any project awarded to it,” court papers read.
DDKM has strongly rejected these claims, describing them as “factually incorrect” and “opinions devoid of any factual foundation”. The company argues that the statements were defamatory and portrayed it as “a very incompetent service provider” unfit to be trusted with projects.
“DDKM avers that the statement communicated by Econet to Remakaota Holdings is factually incorrect and/or consists of opinions devoid of any factual foundation. DDKM further avers that the said statements are defamatory in nature as they portray it as a very incompetent service provider that should not be trusted to deliver on any project. They further paint it as a company that could compromise any entity that engages its services,” the papers state.
The company further contends that the remarks had immediate and damaging consequences, claiming Remakaota lost confidence in its capabilities, leading to the collapse of their business relationship.
“A direct consequence of the feedback was that DDKM lost the confidence of Remakaota Holdings, and its esteem, reputation and good name were severely damaged,” reads part of the court papers.
DDKM also highlights the limited size of the local telecommunications market, noting that its client base is largely confined to three key players — Econet, Vodacom Lesotho and the Lesotho Communications Authority — making any reputational harm particularly severe.
“The circle is very small, and any damage to reputation quickly permeates through the entire industry and can ruin a company in a short period of time,” the company argues, adding that its business fortunes have sharply declined since the alleged remarks were made.
The firm further claims that attempts to resolve the matter amicably were ignored. Instead of responding to a letter of demand, Econet allegedly warned Remakaota against sharing details of the debriefing and threatened legal action.
“Applicant avers that it issued a letter of demand to the respondent, seeking compensation for defamation of character arising from the facts detailed above. The respondent did not respond to the demand. Instead, it wrote to Remakaota Holdings, advising it not to disclose the contents of the debriefing or the reasons for the rejection of the bid to the applicant, and threatened legal action,” the papers state.
DDKM is now asking the court to compel Econet to pay M8 million for defamation and M4 million for loss of business.
Econet has yet to file opposing papers. We will update the story as soon as the telecommunications giant has done so.