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NetOne compelled to pay $20k levies


THE LEGAL case in which Mberengwa Rural District Council is demanding $20 000 in development levies from NetOne after the network provider defaulted on paying the levy and for operating without council permit after setting five base stations in the local authority’s area of jurisdiction has been further deferred to December 30.

Own Correspondent

The case was heard before Zvishavane Civil court presided by resident magistrate Story Rushambwa.

Mberengwa council through its lawyer, Hebert Tafa is demanding NetOne pay $20 000 in development levies in terms of Section 96(1)(a) and (e) of rural district council act that stipulates that a rural district council can impose a land development levy upon all persons or businesses who become owners of land or one making an undertaking on specified business on rural land within the council area.gavel31

The court heard that NetOne refused to pay development levies arguing that they did not have council permits, therefore, were not eligible to pay development levies.

However, by that virtue Mberengwa argued that according to law any company or person operating or conducting business within a rural district council’s jurisdiction without permit becomes illegitimate.

NetOne is alleged to have been compelled by the rural authority to apply for a permit as a prerequisite, but efforts were fruitless, as the network provider remained adamant.

NetOne, represented by Wellington Magaya of Coghlan, Walsh and Guest legal practitioners, told the court that their position was supported by the fact that they had erected base stations on private property that did not belong to the rural authority.

It was heard that the base stations were erected in Zimbabwe Mining Development Corporation Sandawana Mine premises on agreement with the emerald mining company.

The other base station was erected at Mberengwa Hotel premises that belong to the Hall family.

However, NetOne agreed to pay for the other three base stations that were erected on land under the jurisdiction of Mberengwa rural council.


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