Vodafone Stays
The hullabaloo about the Vodafone International deal is now over, as government decides not to abrogate after all the contract divesting 70% of the Ghana Telecommunications Company (GT) to the UK telecommunications giant.
Government is however eager to see the return of certain assets which under the divestiture were taken over by Vodafone, including the Telecom Emporium.
Government has by the contents of the white paper showed an obsessive interest in the decoupling process of the Ghana Telecom University College from Vodafone.
A government White Paper released last night, on an inter-ministerial review committee set up to take another look at the deal in which the UK conglomerate purchased majority share in GT to the tune of $900 million, has put paid to a worrying period of wrangling about the economic sense or otherwise in the action by the erstwhile Kufuor Administration in okaying the deal.
In a press release signed by J.H. Newman, Chief of Staff, government accepted the recommendations of the committee but explained that much as the contract would not be abrogated-a signal which appeared to have gained currency earlier-a system of re-engagement would be undertaken as regards sections of the deal.
The deal was undertaken under a programme called Sale and Purchase Agreement (SPA).
Towards the re-engagement exercise, government has indicated the eventual setting up of a Joint Working Team to engage with Vodafone.
Having carefully looked at the report on the divestiture, government, according to the white paper, would ensure that there is compliance with the laws of Ghana in the re-engagement procedures.
“This process of re-engagement is without prejudice to any legal suits pending before the courts of Ghana,” the white paper stated.
Some areas which would see officials of Vodafone sitting around a roundtable would include the National Fibre Optic Backbone project which the incumbent government considers a serious strategic asset and therefore requiring a special treatment.
A successful delivery of this project, the white paper maintains, will go a long way in ensuring of the nation's ICT dream.
Government has put its weight behind the recommendation that reporting requirements, based on audited accounting and reporting principles, be made available for the consideration of the re-engagement team.
On the appalling financial situation which informed the divestiture by the previous government and which the Mills' committee attributed to gross mismanagement, financial malpractices and irregularities by Telenor/Telecom Management Partners and later the 3-member Interim Management Committee, investigations are to be undertaken, the white paper served notice.
The bedrock of the white paper appears to be the recurring government intention in ensuring that the laws of the land are complied, a suggestion that the previous arrangement was fraught with legal shortcomings.
A case in point is “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.”
By A.R. Gomda