The founder of Brolaz South Africa, a company specializing in the construction of a cellular base infrastructure, accused Huawei of driving the company out of business by failing to make timely payments for the work done, thus costing 232 permanent employees on work.
Ivo Lazic said that Brolaz, which has built thousands of mobile sites in South Africa and elsewhere in Africa since its inception in 1989, is the pioneer of the towers disguised as palm trees for Vodacom – went to the wall in 2016 "as a result of the actions of Huawei Technologies "".
"As a direct result of Huawei's failure to meet its payment obligations in due course, Brolaz South Africa has cash flow problems that eventually force her to join a voluntary liquidation on March 11, 2016," Lazic said. As a result, 232 permanent employees are losing their jobs, along with "many hundreds of" contract staff and subcontractors.
Huawei's dispute dates back to 2015 when the Chinese company received a contract to supply equipment for a base station and MTN infrastructure. Huawei then entered into an official contract with Brolaz South Africa to build the infrastructure.
"Implementation started in early 2015 and Huawei from the very beginning failed to meet the terms of its Brolaz contract … and as a result, it broke the Brolaz cash flows," Lazic said.
He accused Huawei of late and incomplete delivery and the lack of infrastructure elements needed by Brolaz to embed sites. This, he said, did not allow him to supplement the elements of the work in order for the payments to be made under the contract. "Huawei's promises to correct their default and amend the contract to allow for payments have not materialized."
In addition, he said the issue of incomplete orders from Huawei to Brolaz led to the modification of orders to correct initial orders. This "has invariably taken months to be issued by Huawei and did not allow Brolaz to be paid for work." There was also a delay in issuing Huawei work completion certificates, contrary to the terms of the contract, he said, again preventing Brolaz from paying for the job.
There were also late payments, non-payment and short payment of Huawei due invoices "no reason", Huawei's internal follow-up took months, he said.
"Brolaz's invoices, delivered to Huawei by signing, are claimed to be" lost, "leading to the imposition of new Brolaz invoices, which again slows the payment," added Lazic. "Changes that have led Huawei's contract to offset Huawei's failure have led to extensive credit and re-invoicing exercises for Brolaz, which have further delayed payments."
He said Huawei's promises to speed up the payment of long-term invoices did not materialize. "Brolaz's official requests for Huawei to observe the contract terms agreed have been neglected. Huawei resorted to harassing tactics, threatening to cancel Brolaz's orders unless he continues to build Huawei sites, although Huawei has violated the contract. "
The matter has been the subject of arbitration between Brolaz's liquidator and Huawei for the past three years. "Huawei has not yet paid part of its outstanding obligations and seems to intend to delay the arbitration process," Lazic said. "It seems that Huawei uses delay tactics to pull the issue out and thus exhaust the liquidator's financial reserves."
In response to BROLAZ's statements, a Huawei spokesman in South Africa said in an e-mail message to TechCentral that Huawei "has co-operated with Brolaz and its liquidator in 2016 in an effort to reconcile discrepancies between Brolaz's invoices and proof of work" .
"Brolaz opposed Huawei's proposal to work together to solve the problem and chose to pursue a legal path."
She said that all Huawei payment terms and processes "are provided in all of our contracts with suppliers." – © 2019 NewsCentral Media