Minority voices concern about Telecel takeover of AirtelTigo , alleges secret dealings

Concerns have been raised by the Minority in Parliament regarding the proposed Telecel takeover of AirtelTigo. The Minister of Communications and Digitalisation, Samuel George, was accused and this is because he declined a $150 million investment offer from Rektron/Afritel in favor for an alternative of what they term as a “more secretive and questionable” merger deal.

During a press conference in Accra on Wednesday, October 15. Matthew Nyindam, the Ranking Member on Parliament’s Communications Committee, stated that there was lack of transparency in how the minister managed transactions,  inconsistencies, and conflict of interest. Matthew Nyindam warned that the deal may bring about the breakdown of the one and only telecommunication company of Ghana.

Matthew Nyindam  drew to attention that “The way the minister handles transaction lacks transparency and proper direction. It has a lot of inconsistencies and self-interest, and risks handing over a critical national asset to a private foreign company without accountability.”

The proposal by Rektron/Afritel’s was much better deal than the arrangement of Telecel as per the Minority. The group highlighted that “Rektron’s proposal went beyond the initial US$150 million capital injection, outlining a long-term investment plan of up to US$1 billion to expand AirtelTigo’s network, modernise infrastructure, and strengthen 4G and 5G capacity over a five-year period.”

They claimed that the Rektron/Afritel deal also covered technology transfer, the establishment of businesses locally and a greater Ghanaian contribution in the telecom value chain.

The Rektron/Afritel offer was allegedly sidelined by the minister and approved a Telecel arrangement amounting to just US$50 million which was a move the Minority said “defies logic.” Matthew Nyindam questioned that “How does one reject a US$150 million investment proposal with a billion-dollar expansion plan for a deal that brings only US$50 million to the table?”

Accusations was brought against the minister by the Minority due to the mismanagement of and non-performance of contractual duties.

Matthew Nyindam again said “We have established that the Minister of Communications and Digitalisation failed to honour a US$5 million payment commitment to the American Tower Company (ATC), a key service provider to AirtelTigo.”

He said  the failure to pay resulted in the interruption of service and significant financial loss.  He alleged that “Because of the minister’s failure to pay ATC, several tower sites were shut down in September, forcing the customers of AirtelTigo to roam on Telecel’s network. This led to an estimated GH¢7 million loss in revenue to AT within that month alone.”

The Minority went on to accuse the minister for failing to uphold the past assurances made to AirtelTigo staff and management about partnerships and investment opportunities.

The group highlighted that “After announcing a deal with Rektron/Afritel and appointing KPMG as transaction advisors, the minister suddenly shifted to a merger plan with Telecel without any consultation or clear justification.”

Concerns was also raised about why the minister had deleted official posts about the partnership formed on both the Ministry’s social media pages and Telecel’s LinkedIn account after facing public outrage.

They said that “Why announce a merger publicly only to pull it down later? The secrecy and confusion surrounding this deal raise legitimate concerns about what the minister is hiding.”

The Minority said that the past performance of Telecel did not build confidence. Due to that the company did not fulfill it US$500 million investment promise at the time it acquired  Vodafone Ghana and is owes around US400 million currently.

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