Telecom Malaysia sues govt.

As the battle for supremacy over Ghana Telecom (GT) rages on between the Ghanaian Government and representatives of Telecom Malaysia, the latter in its desperate move has finally sued the government.

Sources close to Telecom Malaysia told the paper that the company has had to resort to legal action because of frustration over the way and manner in which the Communications and Technology Minister, Felix Owusu-Agyapong (MP) had handled the affairs of Ghana Telecom ever since the contract period expired.


Telecom Malaysia’s affidavit, which was filed last week at an Accra High Court by its lawyers, Kudjawu Chambers, is seeking to restrain Ghana Telecom from reconstituting its board of directors.


But the Minister, in a reaction to the legal twist told the paper that; “nobody can stop them from taking legal action.”


Presently, GT board is made up of four Ghanaians and three Malaysians known as class A and class B shareholders respectively. Ghana Telecom, of which the Ghana Government owns 70% and, Telecom Malaysia 30%, is seeking to reconstitute the board to enable Ghana have six representatives whilst Telecom Malaysia will have three representatives.


“According to our sources at GT, Telecom Malaysia is willing to accept the reconstitution but on condition that the interest of the class B shareholders (Telecom Malaysia) will be protected.

The source stated that the fear of Telecom Malaysia is that if they allow the reconstitution of the GT board it is possible the representatives of the Ghana Government on the board may reject any proposal from Telecom Malaysia.


Another fear of the class B shareholders over reconstituting the board is that the Ghanaian representatives on the new board will have a veto power in view of their way through all matters,” the paper said, adding, “the government will want to use the reconstitution to boot Malaysia out of Ghana Telecom and bring in new investors.”


According to the paper, Telecom Malaysia also suspects a ploy by the government to send all Malaysians out of GT.


The minister in his reaction stated that, the chairman of Telecom Malaysia led a delegation to see the president about the impasse. During the discussion, the chairman admitted that Telecom Malaysia had not been fair to Ghana on the issue of the representation on the board.


According to the minister, Telecom Malaysia in a letter to the Ghana Government stated that Ghana should have six representatives. That offer is what government is taking steps to effect.

Mr. Owusu-Agyapoong said whichever way one looks at the agreement; it is not proper for the majority shareholders to have only three representatives on the board.


He disclosed that the inability of GT to perform has resulted in a penalty of $44 million being slapped on it adding, “look at how long one has to wait before getting a telephone,” for instance.


He also failed to train Ghanaians to take over from them as was enshrined in the five-year-contract agreement with the excuse that they have not found good Ghanaians.


The minister said any decision taken on GT must be one that can add value to the company and that one must think of the opportunity cost of decisions taken. Owusu-Agyapong stated emphatically that government is going ahead to search for a new operator who has money to make GT more viable and efficient.