Telecom Coys Owe KMA Billions Of Cedis

WITH THE exception of the Multi Telecommunications Network (MTN), all telecommunications companies operating in Kumasi are owing the Kumasi Metropolitan Assembly (KMA) huge sums of money in default of payment of property rate in respect of the erection of masts. A total of about ¢15 billion, the equivalent of GH¢1,500,000 stands in the name of the four companies in the records at the accounts department of the KMA.

TRUTH is informed that Vodafone owes the KMA ¢6 billion (GH¢600,000) followed by a ¢5 billion (GH¢500,000) debt by TiGO with Kasapa owing ¢1.5 billion (GH¢150,000).

Our reliable sources said Zain, like the other companies owed KMA but could not give details of amount owed. The amount quoted by KMA could have been bigger but for the fact that KMA made 2006 the cut off point waiving those beyond 2006. The outstanding figures represents property rates fixed by the Assembly for the companies since 2006 on the strength of the Local Government Act which by gazette empowers the Assembly to fix rates based on the Land Valuation rates.

In the face of the default, the KMA has given the affected companies two weeks to settle their debts or have their offices closed down. They would have to settle their bills before they can operate again should the offices be closed down.

Even though TRUTH sources at KMA say that TiGO is negotiating to settle its debt by May 15, 2010, Madam Faustina Ofosu Ntiamoah, the Ashanti South Regional Manager of TiGO when contacted stated that she did not want to comment as to whether TiGO as a company owes the KMA or not. She said she strongly believed that there was lack of communication between the two parties and could not discern why communication broke between the two sides. According to her, TiGO is a law abiding company which would always do the right thing. Mr. Hamid Issah, the Supervisor of Zain network on the other hand mentioned that what they owed KMA was not property rate but rather fees for outdoor advertisements.

However, he said those fees had been forwarded to the headquarters in Accra and was certain it had since been settled. TRUTH has also sighted Vodafone response to KMA demand notices in a correspondence signed by Mr. Jacob Quarmson, Head of Estates at Vodafone headquarters pleading for reconciliation of figures quoted by KMA because they (figures) do not correspond with theirs (Vodafone.) Meanwhile, when TRUTH got to the premises of KASAPA at about 10 o’clock last Thursday morning, the main entrance was locked with a huge padlock and a chain with some of the workers stranded in front of the office. None of the workers and the security personnel were willing to comment on the issue not even the security man on duty that morning.

By Sebastian R. Freiku and Frank Mensah