The Minority Caucus in Parliament has strongly objected to the government’s plan to merge or sell state-owned telecom operator AT (formerly AirtelTigo) to Telecel.
They described the move as an “unholy alliance” that will rob Ghanaians of a vital national asset which is AT.
Addressing a press conference on October 15,, Ranking Member of the Information and Communication Committee Mathew Nyindam, said the caucus objects to any such arrangement.
“We wish to unequivocably object to any deal with Telecel by way of merger, absorption, acquisition or whatever term the minister seeks to place on such ‘unholy alliance’,” he stated.
He said the Minority views the proposed transaction as technically, operationally and financially unconscionable, warning that it is a scheme to dispose of a national asset simply to fill private pockets.
The caucus further argued that Telecel does not possess any technical advantage or expertise over AT’s staff and management, adding that the company has a record of unfulfilled commitments.
“Telecel promised during the acquisition of Vodafone to invest US$500 million was not honoured and same fate awaits AT should the government agree to any merger or alliance. Telecel has indebtedness of over US$400 million,” he said.
They then claimed that Telecel’s primary motive was just to benefit from AT’s customer base.
“It is our reasonable believe that Telecel only seeks to benefit from the over 3 million customers of AT and only seeks to sour their customer base to over 10 million without cost.”
He also questioned job security assurances, noting that although the Minister of Communications had said Telecel would absorb AT’s 300 full-time employees there are no assurances and comfort from Telecel regarding this.
The Minority warned that the merger could also jeopardize the $50 million World Bank–funded Digital Infrastructure Venture (DIV) Project, which uses AT’s network as part of its backbone for nationwide connectivity.
“A shut down under the pretext of force majeure means the DIV project ceases to exist. The implications of this are that the over 900 service centres will lose a dedicated and reliable high-speed link to support their operation and thereby widen the public service delivery gap in the country,” they warned.
The Minority further alleged that Telecel’s Group CEO, Moh Damush, had recently been in Ghana making concerted efforts to finalise the deal, adding that the company had been engaging in public initiatives to gain goodwill, including a donation of cervical cancer screening equipment to the Korle Bu Teaching Hospital through the Ghana Medical Trust Fund.
“We are also sending a strong and unequivocal caution to the Telecel Group that any attempt to acquire a strategic state asset through unlawful, non-transparent, or irregular means will not only lack legitimacy but will also attract severe consequences in the future,” he said.
The further warned, “It is our position that the whole transaction is unconscionable and failure to desist from engaging is at Telecel’s own risk.”
The Minority is demanding an immediate stop to the ongoing consolidation, acquisition, or merger process involving AT and Telecel.
