... Partners Suit Holds it to ransom
... GT?s 4000,000 Roll Out Plan In Danger
When Telekom Malaysia bought 30% into Ghana Telecom, in deal worth $38 million dollars, it was hailed by then National Democratic congress Government at the time as an example of a South ? South Co-operation needed to move the Third World forward.
Now the marriage of convenience is on the rocks and Ghana Telecom is worse off for it.
According to the EVENING NEWS, while Telekom Malaysia has taken Ghana Telecom to the International Arbitration claiming $300 million dollars for the $38 million investment, its local collaborators G. Com, have issued a writ at an Accra fast Track High Court seeking perpetual injunction restraining Ghana Telecom from accessing local and foreign loans it has contracted to improve on its operations.
The two litigation activities have paralysed Ghana Telecom putting its expansion programmes in jeopardy. Under the President?s Policy on International Communication Technology (ICT), Ghana Telecom is mandated to provide 400,000 lines to hook major schools and district capitals on the national telephone network.
--- EVENING NEWS
Malaysians Block $210 Loan GT?s 4000,000 Roll Out Plan In Danger
The Government?s plans to extend Internet Services to Senior Secondary Schools in all 110 districts, as part of the massive roll out programme for Ghana Telecom to extend telephone services to virtually all parts in the country is in jeopardy.This is because an injunction has been placed on Ghana Telecom by its Malaysian partners restraining it from accessing a loan facility to enable the nation?s premier telecommunication provider to undertake the expansion programme.
To fulfill the programme of providing a minimum of 400,000 fixed lines in the ext two years and to improve the quality of its services, Ghana Telecom says it has successfully arranged for a locally syndicated loan package of $60million together with a Chinese facility of $150million arranged by the Alcatel Shanghai Bell.
However, the expansion programme has been derailed by the court action instituted by the Malaysian dominated G-Gom, which holds a minority 30% of GT shares, with Government controlling the majority 70%. In the original writ filed on December 24, 2003, G-Com is seeking a perpetual injunction restraining GT from accessing the loans until and unless some concerns raised by it are ?adequately addressed.?
Subsequently, it filed another motion for an interim injunction, which effectively put the work on hold until the final determinator of the case. G-Com Ltd is a consortium of investors led by Telekom Malaysia, which owns 25% shares in GT. The other 5% of GT is owned by the other members of the G-Com consortium, who are all Ghanaians.
The Ghanaian shareholders are Dr. Nii Narku Quaynor of NCS, Alhaji Mohammed Said Seidu Sulemana of Sulana Engineering Co and Michael Attipoe of Giant International Ltd. They each hold an equal share. In 1996 G-Com paid $28m for its 30% GT stake. This translates to about $1.9m paid by each of the three Ghanaians with Telekom Malaysia paying about $2.3m.
G-Com?s acquisition of shares in GT was facilitated by Law Trust Company, an Accra-bsed firm of solicitors, with Alban Bagbin and Larry Adjetey, as partners. The Law Trust are also representing G-Com in the present Fast Track Court case against GT. GT is represented by Bentsi Enchil & Co, supported by Lexcom Associates, its external solicitors.
In a press released dated 11 March, the Board Chairman of GT, Nana Antwi Boasiako attributes the delay in the commencement of the roll out programme primarily to the court action, assuring the public that GT has not abandoned the roll out programme,? but regrettably ?until he matter is determined by the Fast Track High Court it cannot access the funds to enable GT commence the roll out programme.
A five-year GT management agreement with Telekom Malaysia, which expired on 20 February 2002, was not renewed by the Kufuor administration, after the new government granted the Malaysian firm a 3-month extra stay.
On 16 December 2002, Government signed a Management Services contract with a Norwegian company, Telenor. After what was described by the Communication Minister at the time Felix Owusu Agyapong as ?very difficult negotiation with Telekom Malaysia, a new Board of Directors was established which reversed the old anomalous situation which had the 30% Minority owner controlling four seats on the seven-member Board with Government controlling just three.
Under the current structure, Government appoints 6 members and G-Com appoints 3 members.
The 3 Malaysians are Joseph Salang Gandum, Christian Defaria and Gazali Harun.
WHO owns the GT shares?
(Acca Mail) -- "Recently, it was widely reported that the 'Malaysians have sent GT to court'. A correspondent says the Malaysians are being egged on by Ghanaian collaborators. He also asks whether the three Ghanaian shareholders have paid up and whether their GT transactions were above board. G- Com Ltd., a 30% shareholder in Ghana Telecom (GT) is seeking a court injunction to restrain GT from accessing a local syndicated loan package of US$ 60 million and also a US$ 150 million facility provided by Alcatel Shanghai Bell (ASB) of China facilitated by President Kufuor's foreign policy initiatives . Needless to say, these financial arrangements which G-Com's court action seeks to overturn are urgently required to support GT's roll-out expansion programme which will help transform the telecom landscape in Ghana.The curious aspect of the legal action by G-Com, lies in the fact that G-Com Ltd., which is a consortium of investors led by Telekom Malaysia which owns 25% shares in GT, also has on board 3 blooded Ghanaians namely:
" Dr. Nii Narku Quaynor of NCS " Michael Attipoe of Giant International and " Alhaji Mohammed Said Seidu Sulemana of Sulana Engineering Co.
Between them, the 3 Ghanaian Directors own the remaining 5% shares of the 30 % shares in GT which G-Com bought in 1996 at a paltry US$. 38 million Has the US$ 38 million been paid to the Government of Ghana? Each of the 3 Ghanaians should pay $1.9 million to Government. Have they?
Why is G-Com up in arms against GT and for that matter the people of the sovereign Republic of Ghana who own the remaining 70% shares in GT? In line with the Government of Ghana's sector reform programme, the telecom industry was liberalized and in the process GT among other things was privatized.
In order to inject financial resources and technical expertise and also ensure that GT operated as a viable commercial entity, the Government of Ghana entered into a Technical Service Agreement (TSA) with the Telekom Malaysia the lead company in the consortium of investors.
"Switches installed by Pernec of Malaysia for both fixed and cellular networks as well as construction of towers by Vitraco of Malaysia, were of inferior quality and account for the numerous problems and poor quality telephone handsets supplied by Sapura of Malaysia which did not have the basic facility like redial button."
Under the Telekom Malaysia led management, the 3 Ghanaian Directors in G-Com referred to earlier in this article were handsomely and adequately rewarded with very juicy non-competitive contracts which ranged from the supply of telecom equipment and logistics to the installation of office automated systems as well as execution of Customer Access Network (CAN) projects. Telekom Malaysia also benefited immensely through the transfer of millions of dollars to Malaysian companies such as Sapura, Vitraco and Pernec which handled all manner of supplies and service to GT.
The legacy the Malaysians left behind can be attested to by all objective Ghanaians and especially by patronisers of GT service which greatly deteriorated in the 5 years period of mismanagement under the Telekom Malaysia-led management.
Switches installed by Pernec of Malaysia for both fixed and cellular networks as well as construction of towers by Vitraco of Malaysia, were of inferior quality and account for the numerous problems and poor quality telephone handsets supplied by Sapura of Malaysia which did not have the basic facility like redial button.
At the expiry of the TSA in February 2001, contractual targets in respect of improvement in call completion rates, fault clearance and telecom service installations , to mention a few had not been met . It was of little wonder therefore that that G-Com did not have its 5 year mandate extended due to their abysmal performance and failure to meet contractual targets as enshrined in the TSA.
The non- renewal of G-Com's mandate for the control of GT must have come as a big jolt to both the Malaysians and their Ghanaian counterparts whose grand design to milk GT dry suddenly came to a screeching halt. The spate of international arbitration initiated by G-Com as well as the court injunctions G-Com is seeking to restrain GT from accessing both local syndicated financing and more importantly the US$ 160 million facility by Alcatel Shanghai Bell bear ample testimony to G-Com's frustrations.
In their attempt to deny GT's access to financial resources that will enable GT embark on its expansion programme, G-Com has found a willing ally in Law Trust, an Accra-based legal firm whose political linkage to the National Democratic Congress (NDC) is well catalogued.
In all their endeavours, the Malaysians have been actively supported by their Ghanaian collaborators.
"The non- renewal of G-Com's mandate for the control of GT must have come as a big jolt to both the Malaysians and their Ghanaian counterparts whose grand design to milk GT dry suddenly came to a screeching halt."
Through feature articles via the internet, they have desperately sought to portray the Ghana government in bad light as investor-unfriendly and GT as a telecom entity destined to collapse. By lending support to foreigners whose avowed aim is to restrain GT from accessing the much needed financial resources, which will help transform the telecom landscape in their motherland, the Ghanaian partners in G-Com and their political bed mates in the Law Trust are in effect attempting to deny their kith and kin the benefits of telecom services which will bring about an improvement in their socio-economic wellbeing If G-Com is allowed to pursue its agenda to its logical conclusion, the clock of progress will be turned back and GT will not be the same again.
The 400,000 lines which should be provided to serve educational institutions and facilitate government's vision of an ICT programme which will bring internet connectivity to the people of Ghana and leap frog the country into the ICT global village , will not be achieved if the G-Com programme is allowed to materialize.
The people of Ghana will benefit immensely from the financial arrangements that have been concluded to enable GT play its key role in national socio- economic development and G-Com must not be allowed to succeed, because if it did it will deny schools, industry, government machinery, business concerns etc., the improvement in the telecom sector which the funding is being sought for.
... Partners Suit Holds it to ransom
... GT?s 4000,000 Roll Out Plan In Danger
When Telekom Malaysia bought 30% into Ghana Telecom, in deal worth $38 million dollars, it was hailed by then National Democratic congress Government at the time as an example of a South ? South Co-operation needed to move the Third World forward.
Now the marriage of convenience is on the rocks and Ghana Telecom is worse off for it.
According to the EVENING NEWS, while Telekom Malaysia has taken Ghana Telecom to the International Arbitration claiming $300 million dollars for the $38 million investment, its local collaborators G. Com, have issued a writ at an Accra fast Track High Court seeking perpetual injunction restraining Ghana Telecom from accessing local and foreign loans it has contracted to improve on its operations.
The two litigation activities have paralysed Ghana Telecom putting its expansion programmes in jeopardy. Under the President?s Policy on International Communication Technology (ICT), Ghana Telecom is mandated to provide 400,000 lines to hook major schools and district capitals on the national telephone network.
--- EVENING NEWS
Malaysians Block $210 Loan GT?s 4000,000 Roll Out Plan In Danger
The Government?s plans to extend Internet Services to Senior Secondary Schools in all 110 districts, as part of the massive roll out programme for Ghana Telecom to extend telephone services to virtually all parts in the country is in jeopardy.This is because an injunction has been placed on Ghana Telecom by its Malaysian partners restraining it from accessing a loan facility to enable the nation?s premier telecommunication provider to undertake the expansion programme.
To fulfill the programme of providing a minimum of 400,000 fixed lines in the ext two years and to improve the quality of its services, Ghana Telecom says it has successfully arranged for a locally syndicated loan package of $60million together with a Chinese facility of $150million arranged by the Alcatel Shanghai Bell.
However, the expansion programme has been derailed by the court action instituted by the Malaysian dominated G-Gom, which holds a minority 30% of GT shares, with Government controlling the majority 70%. In the original writ filed on December 24, 2003, G-Com is seeking a perpetual injunction restraining GT from accessing the loans until and unless some concerns raised by it are ?adequately addressed.?
Subsequently, it filed another motion for an interim injunction, which effectively put the work on hold until the final determinator of the case. G-Com Ltd is a consortium of investors led by Telekom Malaysia, which owns 25% shares in GT. The other 5% of GT is owned by the other members of the G-Com consortium, who are all Ghanaians.
The Ghanaian shareholders are Dr. Nii Narku Quaynor of NCS, Alhaji Mohammed Said Seidu Sulemana of Sulana Engineering Co and Michael Attipoe of Giant International Ltd. They each hold an equal share. In 1996 G-Com paid $28m for its 30% GT stake. This translates to about $1.9m paid by each of the three Ghanaians with Telekom Malaysia paying about $2.3m.
G-Com?s acquisition of shares in GT was facilitated by Law Trust Company, an Accra-bsed firm of solicitors, with Alban Bagbin and Larry Adjetey, as partners. The Law Trust are also representing G-Com in the present Fast Track Court case against GT. GT is represented by Bentsi Enchil & Co, supported by Lexcom Associates, its external solicitors.
In a press released dated 11 March, the Board Chairman of GT, Nana Antwi Boasiako attributes the delay in the commencement of the roll out programme primarily to the court action, assuring the public that GT has not abandoned the roll out programme,? but regrettably ?until he matter is determined by the Fast Track High Court it cannot access the funds to enable GT commence the roll out programme.
A five-year GT management agreement with Telekom Malaysia, which expired on 20 February 2002, was not renewed by the Kufuor administration, after the new government granted the Malaysian firm a 3-month extra stay.
On 16 December 2002, Government signed a Management Services contract with a Norwegian company, Telenor. After what was described by the Communication Minister at the time Felix Owusu Agyapong as ?very difficult negotiation with Telekom Malaysia, a new Board of Directors was established which reversed the old anomalous situation which had the 30% Minority owner controlling four seats on the seven-member Board with Government controlling just three.
Under the current structure, Government appoints 6 members and G-Com appoints 3 members.
The 3 Malaysians are Joseph Salang Gandum, Christian Defaria and Gazali Harun.
WHO owns the GT shares?
(Acca Mail) -- "Recently, it was widely reported that the 'Malaysians have sent GT to court'. A correspondent says the Malaysians are being egged on by Ghanaian collaborators. He also asks whether the three Ghanaian shareholders have paid up and whether their GT transactions were above board. G- Com Ltd., a 30% shareholder in Ghana Telecom (GT) is seeking a court injunction to restrain GT from accessing a local syndicated loan package of US$ 60 million and also a US$ 150 million facility provided by Alcatel Shanghai Bell (ASB) of China facilitated by President Kufuor's foreign policy initiatives . Needless to say, these financial arrangements which G-Com's court action seeks to overturn are urgently required to support GT's roll-out expansion programme which will help transform the telecom landscape in Ghana.The curious aspect of the legal action by G-Com, lies in the fact that G-Com Ltd., which is a consortium of investors led by Telekom Malaysia which owns 25% shares in GT, also has on board 3 blooded Ghanaians namely:
" Dr. Nii Narku Quaynor of NCS " Michael Attipoe of Giant International and " Alhaji Mohammed Said Seidu Sulemana of Sulana Engineering Co.
Between them, the 3 Ghanaian Directors own the remaining 5% shares of the 30 % shares in GT which G-Com bought in 1996 at a paltry US$. 38 million Has the US$ 38 million been paid to the Government of Ghana? Each of the 3 Ghanaians should pay $1.9 million to Government. Have they?
Why is G-Com up in arms against GT and for that matter the people of the sovereign Republic of Ghana who own the remaining 70% shares in GT? In line with the Government of Ghana's sector reform programme, the telecom industry was liberalized and in the process GT among other things was privatized.
In order to inject financial resources and technical expertise and also ensure that GT operated as a viable commercial entity, the Government of Ghana entered into a Technical Service Agreement (TSA) with the Telekom Malaysia the lead company in the consortium of investors.
"Switches installed by Pernec of Malaysia for both fixed and cellular networks as well as construction of towers by Vitraco of Malaysia, were of inferior quality and account for the numerous problems and poor quality telephone handsets supplied by Sapura of Malaysia which did not have the basic facility like redial button."
Under the Telekom Malaysia led management, the 3 Ghanaian Directors in G-Com referred to earlier in this article were handsomely and adequately rewarded with very juicy non-competitive contracts which ranged from the supply of telecom equipment and logistics to the installation of office automated systems as well as execution of Customer Access Network (CAN) projects. Telekom Malaysia also benefited immensely through the transfer of millions of dollars to Malaysian companies such as Sapura, Vitraco and Pernec which handled all manner of supplies and service to GT.
The legacy the Malaysians left behind can be attested to by all objective Ghanaians and especially by patronisers of GT service which greatly deteriorated in the 5 years period of mismanagement under the Telekom Malaysia-led management.
Switches installed by Pernec of Malaysia for both fixed and cellular networks as well as construction of towers by Vitraco of Malaysia, were of inferior quality and account for the numerous problems and poor quality telephone handsets supplied by Sapura of Malaysia which did not have the basic facility like redial button.
At the expiry of the TSA in February 2001, contractual targets in respect of improvement in call completion rates, fault clearance and telecom service installations , to mention a few had not been met . It was of little wonder therefore that that G-Com did not have its 5 year mandate extended due to their abysmal performance and failure to meet contractual targets as enshrined in the TSA.
The non- renewal of G-Com's mandate for the control of GT must have come as a big jolt to both the Malaysians and their Ghanaian counterparts whose grand design to milk GT dry suddenly came to a screeching halt. The spate of international arbitration initiated by G-Com as well as the court injunctions G-Com is seeking to restrain GT from accessing both local syndicated financing and more importantly the US$ 160 million facility by Alcatel Shanghai Bell bear ample testimony to G-Com's frustrations.
In their attempt to deny GT's access to financial resources that will enable GT embark on its expansion programme, G-Com has found a willing ally in Law Trust, an Accra-based legal firm whose political linkage to the National Democratic Congress (NDC) is well catalogued.
In all their endeavours, the Malaysians have been actively supported by their Ghanaian collaborators.
"The non- renewal of G-Com's mandate for the control of GT must have come as a big jolt to both the Malaysians and their Ghanaian counterparts whose grand design to milk GT dry suddenly came to a screeching halt."
Through feature articles via the internet, they have desperately sought to portray the Ghana government in bad light as investor-unfriendly and GT as a telecom entity destined to collapse. By lending support to foreigners whose avowed aim is to restrain GT from accessing the much needed financial resources, which will help transform the telecom landscape in their motherland, the Ghanaian partners in G-Com and their political bed mates in the Law Trust are in effect attempting to deny their kith and kin the benefits of telecom services which will bring about an improvement in their socio-economic wellbeing If G-Com is allowed to pursue its agenda to its logical conclusion, the clock of progress will be turned back and GT will not be the same again.
The 400,000 lines which should be provided to serve educational institutions and facilitate government's vision of an ICT programme which will bring internet connectivity to the people of Ghana and leap frog the country into the ICT global village , will not be achieved if the G-Com programme is allowed to materialize.
The people of Ghana will benefit immensely from the financial arrangements that have been concluded to enable GT play its key role in national socio- economic development and G-Com must not be allowed to succeed, because if it did it will deny schools, industry, government machinery, business concerns etc., the improvement in the telecom sector which the funding is being sought for.
