Mobile Money

Safaricom Sues Data Company After $200K M-Pesa Loss - Reports

Safaricom has reportedly sued East African Data Handlers, a company it had hired to manage its mobile money payment platforms, following the massive loss of clients’ money amounting to $200 000.00.

The cash was lost over two years ago in transactions that were conducted through the operator’s Buy Goods and Lipa na M-Pesa platforms.

In the case that is to go to court later this month, Safaricom said that it had engaged the company in the business of data management and recovery back in March 2016.

In the deal, the data firm was to recruit merchants to the Buy Goods platform, and it received lots of money from transactions conducted through the service.

However, in breach of the agreement, the data company allegedly failed to remit the funds collected from merchants, and some users informed Safaricom demanding payment of the various transacted amounts.

The telco has accused the firm of failing to reconcile payments received on the M-Pesa platform and also failing to settle the merchants’ accounts directly after receiving a request for withdrawal.

Safaricom said that this had exposed it to losses and terminated the data firm’s contract in the wake of the controversy.

In reply, East African Data Handlers have accused Safaricom of illegally and wilfully allowing its employees access into the back-end of the aggregation system. Employees of Safaricom made irregular transactions without notifying the data firm, East African Data Handlers further alleged.

The two parties are scheduled to exchange documents and appear before the court on February 19.
 

Credit: This article originated from www.businessdailyafrica.com





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