CJA opposes sale of GT

Accra, July 24, GNA - The Committee for Joint Action (CJA) on Thursday expressed its opposition to government's intention to sell 70 percent of Ghana Telecom (GT) to Vodafone International Holdings B.V. for US$900 million without regard to national economic, political and strategic interest.

The group said the transaction was being carried out in such haste as to deny Ghanaians the opportunity to discuss its full significance. However, sources close to GT have stated those opposed to the sale of company do not have the full facts on the ground, such as the Company's financial position.

The source said GT was "just living from hand to mouth" and struggling to survive the current competition because all the other networks had international leverage in one form or another, and it was vital for GT to have that kind of international partnership. The source said Vodafone was not only going to bring in capital and technology but also to increase the international call spread on all its international circuits.

Mr Samuel Okudzeto Ablakwa, a member of CJA, speaking in a press conference in Accra, maintained that the sale of GT had been justified by false claim by government that Ghanaians did not have the expertise to manage the company.

The group said they found it extremely strange that a government which was able to find as much as US$186.4 million for the celebration of the country's independence anniversary, the decoration of the President and his friends with medals, the purchase of two presidential jets and the building of a presidential palace claimed that it could not find creative ways of servicing GT's US$400 million indebtedness. Mr Ablakwa said the government had not told Ghanaians the whole truth about transaction, adding that, assets of GT were made up of GT fixed lines and carriers services, Onetouch Mobile Services, SAT 3-Fibre-optic gateway and exZeed call services.

He said in addition, the government was handing over the fibre-optic network of the Volta River Authority and the National Fibre-Optic Backbone, which was not yet completed and was financed with a Chinese loan.

Mr Ablakwa said by this transaction, Vodafone would become a private monopoly in the fixed line business and the biggest telecom player in Ghana.

He said the conversion of a public monopoly into a private monopoly in a country with a very weak regulatory framework was inimical to the interests of the people.

The group said as part of its mobilizing effort they intended to hold public forums across the country to facilitate meaningful discussion of the deal by Ghanaians, adding that, the CJA was firmly committed to mass mobilization to reverse the "obnoxious deal". The source said the international roaming calls which Areeba was routing through GT and providing substantial revenue to the company were virtually gone.

It said with the takeover of Areeba by MTN all its international calls were now re-routed through their partners in London and this had affected GT revenue substantially.