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UTL-logoChinese vendor ZTE has launched legal proceedings against Uganda Telecommunications Ltd (UTL) over alleged unpaid fees totalling USD6.74 million relating to the design, planning, integration, operation and maintenance of the telco’s backbone network dating back to 2007.

UTL defaulted on its debt as the payments were inconsistent and intermittent, leading the pair to sign a repayment agreement, which would see UTL pay back USD6.74 million, with the final payment due by 30 April 2012.

UTL has reportedly admitted to signing the repayment agreement, but is yet to file its defence. As previously noted by Another Chinese equipment supplier, Huawei, filed a lawsuit against UTL in December 2012 seeking USD13 million in relation to failure to make payments for equipment and services provided in 2005-2009.

Credit: Telegeography