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Serkan Okandan, acting chief executive of Mobily, confirmed that Zain Saudi Arabia owes the company SAR 2.2 billion, according to a report published by Al-Riyadh newspaper.
Okandan not only confirmed the amount mentioned in the arbitration case brought forth by Mobily, he also asked Zain’s president over for a cup of “Turkish coffee” so that he could personally hand him invoices as proof for the amount, the report said.
In 2008, Mobily had signed a SAR 2.2 billion agreement with Zain Saudi, an affiliate of Kuwait’s Zain, to provide services including domestic roaming and site sharing. Mobily, Saudi’s second-largest telecom provider, said it received irregular payments from its smaller rival.
Last week, the company filed an arbitration case against Zain to collect its dues.
Zain, however, dismissed the allegations. The company said it owes Mobily SAR 13 million, according to its unaudited records.
Okandan said the 2008 agreement between both companies clearly outlined the prices and terms of payment, as well as the means to resolve disputes.
He said his company previously held several meetings with Zain Saudi in order to collect its dues, but left the discussions to no avail.
Mobily will determine whether or not it will terminate its agreement with Zain after the arbitration ruling, he added.
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