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MILLS' VODAFONE CONCERT STILL AT PLAY!

By The Daily Searchlight
Thu, 05 Nov 2009 | Print | E-Mail | PDF | Graphics Version
Politics

The tragi-comedy that is the story of a $900 million (nine hundred million United States dollars) investment by Vodafone PLC into the acquisition of seventy percent shares of Ghana Telecom yesterday took another interesting twist when government announced, unilaterally, that it was going to 're-engage' with Vodafone PLC on the already concluded Sale and Purchase Agreement of GT to Vodafone!

It did not define what to “re-engage” meant, whether it would be a re-negotiation of the sale and its attendant conditions, or a revocation of the sale with the view to replace it with a new one.

However, it was setting up a “re-engagement team” whilst also creating a 'Joint Working Team' to join Vodafone in the running of Ghana Telecom tom implement the findings of an audit it was yet to commission!

The decision(s) is the latest in a long-lasting series of twists, turns and comedies involving the sale of GT's 70% shares to Vodafone, and came as a surprise to many level-headed industry players, who wondered whether the ruling National democratic Congress (NDC) was interested in protecting Ghana's integrity as an investment destination.

“This would send a very bad signal to international investors about our country as an investment destination,” Deputy Minority Leader and former Deputy Minister for Communications Opare Hammond told a radio station in Accra yesterday, soon after the announcement was made.

This was after the Government had yesterday issued a third official commentary on the Inter-Ministerial Review Committee it set-up to review the sale of 70% of GT to Vodafone.

The response, the third after two positions expressed by Communications Minister Haruna Iddrisu and Deputy Chief of Staff Valerie Sawyer on behalf of government, said that was going to re-open negotiations into the Vodafone sale.

This was contained in a press statement signed by the Chief of Staff at the Presidency, J.H. Martey Newman.

The press release stated that the Government of Ghana has reviewed the report of the Inter-Ministerial Review Committee it set-up in furtherance of a campaign promise to review the sale of seventy percent (70%) of Ghana Telecommunications Company (GT) to Vodafone International.

The statement said that 70% stake was divested for nine hundred million US dollars ($900m) under a Sale and Purchase Agreement (SPA).

Government said that it had accepted the recommendation that in future, negotiations involving government must be handled by a team of technical experts and negotiators. In addition, copies of all government agreements would be lodged with government archivists as required by law with a second repository lodged with the Attorney General. Ministries, Departments and Agencies (MDAs) that retain copies must superintend the execution and implementation of the respective public agreements to ensure that the best interest of Ghana is protected.

The statement further said that Government has after a careful review of the findings, also accepted the recommendation of the Committee to re-engage with the management of Vodafone International and ensure that there is compliance with the country's laws.

“This process of re-engagement is without prejudice to any legal suits pending before the courts of Ghana,” the statement said.

“The re-engagement would also include issues relating to the operation of the National Fibre Optic Backbone which is considered a strategic national asset by many Ghanaians. The National Communications Backbone Company (NCBC) which is managing the Fibre Optic Backbone will enable Government promote its key ICT policies and must be an open-access network that serves the whole country with competitively-priced services that will enable the rapid development of e-Government, BPO and other ICT Industries and Services,” the statement said.

By this action, Government stated that it is looking forward to the realization of the true value of the fibre-optic backbone and a consideration of its policy objectives in order to arrive at an outcome that benefits the people of Ghana.

The statement set out that as recommended by the Committee, Vodafone GT would be expected to provide detailed reporting requirements based on audited accounting and reporting principles for the attention of the 're-engagement team'.

Also to be considered, Martey Newman continued, is the possible return of some GT investments including landed properties and the Telecom Emporium to the Government of Ghana.

“Government would also ensure a conclusion to the processes that have already started for the decoupling of the Ghana Telecom University from the rest of Vodafone GT's operations,” the statement said.

They said that they have also taken note of the Committee's findings in relation to the appalling financial state of GT before the SPA which the Committee attributed to gross mismanagement, financial malpractices and irregularities by Telenor/Telecom Management Partners (TMP) and later the three-member Interim Management Committee (IMC).

“Government will institute investigations into and an audit into the management of GT by the TMP and the IMC led by Engineer Dickson Oduro Nyaning. Accordingly, Government would set up a Joint Working Team to engage with Vodafone to ensure that the decisions outlined are implemented. Government wishes to acknowledge the public's interest in the matter of GT's sale and the insistence that the national interest must be protected at all times. We therefore congratulate the Justice Emmanuel Akwei Addo Committee for the good work done and the commitment to safeguarding the National Interest,” the statement concluded.

The Daily Searchlight
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