How come the parent company of both Singtel and Starhub can
allow this to happen? Temasek Holdings owns 63% of Singtel and
indirectly owns 63% of Starhub.
All this legal issues will ultimately put a financial strain on the
respective companies and will also affect shareholder's return
indirectly.
But on the bright side, it shows that government-linked companies
are operating independently and free of govermental linked
influences.
SINGAPORE : SingTel has won a court appeal for damages against
StarHub Cable Vision (SCV) after a three year legal battle.
SingTel had sued StarHub for using its network to serve 120
non-residential properties, in breach of their network lease
agreement.
The agreement allows StarHub to serve only residential homes.
The High Court found StarHub in breach of the 1995 agreement but
dismissed SingTel's claims for unspecified damages in April last
year.
StarHub defended itself by saying that the contract did not
specifically prohibit it from serving commercial properties.
The next step is for the court to assess the damages due to
SingTel.
"We are pleased that our appeal is successful and the court's
decision is unanimous. SingTel runs a business and we have to take
care of our shareholders. This appeal is about keeping our business
in order and protecting our shareholders' interest. We will let the
court assess the damages," said Peter Heng, director of Corporate
Communications at SingTel.
Meanwhile, StarHub's Head of Corporate Communications Jeannie Ong
said the telco is disappointed to learn about the court's
decision.
She added that it is not appropriate for StarHub to comment further
as damages are still to be assessed by the court.
- CNA /ls
