Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      Starlink satellite anomaly creates debris in rare orbital mishap

      Starlink satellite anomaly creates debris in rare orbital mishap

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Malatsi buries Post Office's long-dead monopoly

      Malatsi buries Post Office monopoly the market ignored

      18 December 2025
      China races to crack EUV as chip war with the West intensifies

      China races to crack EUV lithography as chip war with the West intensifies

      18 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Telecoms » SA firm accuses Huawei of driving it out of business

    SA firm accuses Huawei of driving it out of business

    By Duncan McLeod13 February 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The founder of Brolaz South Africa, a company that specialised in the construction of infrastructure for cellular base stations, has accused Huawei of driving the company out of business by failing to make payments timeously for work done, in the process costing 232 permanent staff their jobs.

    Ivo Lazic said Brolaz, which had built thousands of mobile sites in South Africa and elsewhere in Africa since its establishment in 1989 — it pioneered the towers disguised as palm trees for Vodacom — went to wall in 2016 “as a result of Huawei Technologies’ actions”.

    “As a direct result of Huawei’s failure to timeously honour its payment commitments, Brolaz South Africa experienced cash-flow problems that finally forced it into voluntary liquidation on 11 March 2016,” Lazic said. This resulted in 232 permanent employees losing their jobs, along with “many hundreds” of contract employees and subcontractors.

    Promises by Huawei to remedy their non-performance and to amend the contract to allow for payments to be made did not materialise

    The dispute with Huawei dates back to 2015, when the Chinese company was awarded a contract to supply base station equipment and site infrastructure to MTN. Huawei then entered into a formal contract with Brolaz South Africa to build the infrastructure.

    “Implementation commenced in early 2015 and from the outset Huawei failed to honour the conditions of its contract with Brolaz … and as a result crippled Brolaz’s cash flow,” Lazic said.

    He accused Huawei of late and incomplete delivery and non-delivery of infrastructure items needed by Brolaz to build into the sites. This, he said, prevented it from completing elements of the work to allow for progress payments to be made in terms of the contract. “Promises by Huawei to remedy their non-performance and to amend the contract to allow for payments to be made did not materialise.”

    Delays

    Furthermore, he said issuance of incomplete orders by Huawei to Brolaz resulted in variation orders to correct the initial orders. This “invariably took months to be issued by Huawei and prevented Brolaz from being paid for completed work”. There were also delays in issuing work completion inspection certificates by Huawei, in conflict with the terms of the contract, he said, again preventing Brolaz from being paid for work completed.

    There was also late payment, non-payment and short payment of due invoices by Huawei “for no reason”, with Huawei internal follow-ups taking months, he said.

    “Brolaz invoices delivered to Huawei under signature were claimed to be ‘lost’, resulting in new invoices having to be raised by Brolaz, which again delayed payment,” Lazic added. “Changes brought about to the contract by Huawei to compensate for Huawei non-performance resulted in extensive credit and re-invoice exercises for Brolaz which further delayed payments being made.”

    He said that promises by Huawei to expedite payment of long-outstanding invoices did not materialise. “Formal requests by Brolaz for Huawei to comply with the agreed conditions of contract were disregarded. Huawei resorted to bullying tactics, threatening to cancel orders on Brolaz unless it continued to build sites for Huawei even though Huawei was in breach of contract.”

    The matter has been the subject of arbitration between Brolaz’s liquidator and Huawei for the past three years. “Huawei has still not paid any portion of its outstanding debts and seems intent on delaying the arbitration process,” Lazic said. “It appears that Huawei are employing delaying tactics in order to drag out the matter and thereby deplete the financial reserves available to the liquidator.”

    Huawei responds

    In response to Brolaz’s allegations, a Huawei South Africa spokeswoman said in an e-mail to TechCentral that Huawei “had co-operated with Brolaz management and its liquidator in 2016 in an effort to reconcile discrepancies between Brolaz’s invoices and proof of work”.

    “Brolaz opposed Huawei’s suggestion to work together to resolve the issue and opted to pursue a legal route.”

    She said all Huawei’s payment terms and processes “are stipulated in all our supplier contracts”. – © 2019 NewsCentral Media



    Brolaz Brolaz South Africa Huawei Ivo Lazic MTN top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEOH silent on why Microsoft pulled partnership
    Next Article Xerox named a leader in contractual print and document services

    Related Posts

    China races to crack EUV as chip war with the West intensifies

    China races to crack EUV lithography as chip war with the West intensifies

    18 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Vodacom follows MTN with post-paid price hikes

    Vodacom follows MTN with post-paid price hikes

    11 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Digital authoritarianism grows as African states normalise internet blackouts

    Digital authoritarianism grows as African states normalise internet blackouts

    19 December 2025
    Starlink satellite anomaly creates debris in rare orbital mishap

    Starlink satellite anomaly creates debris in rare orbital mishap

    19 December 2025
    Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

    Trump space order puts the moon back at centre of US, China rivalry

    19 December 2025
    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}