Malaysians Sue Ghana At The hague

...They are demanding $350m
A high-powered government delegation led by the Minister of Communications and Technology, Albert Kan Dapaah is in Kualar Lumpur, Malaysia to arrange a settlement with Telekom Malaysia in the protracted dispute with Ghana over the Malaysians? share in Ghana Telekom. <> Telekom Malaysia has filed a suit at the International Arbitration Court in the Hague demanding $300m for the 30 percent share they acquired in 1997 for $38 million. The Malaysians also claim that they were promised a further 15 percent share for which they paid $50m out of an agreed sum of $100 million. The suit was originally filed at a London Arbitration Court but the Malaysians have transferred the case to The Hague.

Kan-Dapaah?s delegation, according to usually reliable sources at the ministry will plead with the Malaysians for an out of court settlement. Should the arbitration fail, then a team of lawyers led by attorneys from the Attorney General?s Department and Ghana Telecom legal brains would sort it out with Telekom Malaysia at The Hague.

Under the agreement under which Telekom Malaysia invested in the state telecommunications company, Ghana has the first option to buy out the Malaysia share. But insiders say the $300 million listed is out of reach of HIPC Ghana.

The Malaysians are said to be furious about the way they were kicked out of the management contract for the control of Ghana Telecom only for the Ghana Government to contract Telenor Management Partners of Norway to take up the lucrative contract currently netting Telenor International in Norway $150,000 per month and providing $15,000 a month per person jobs for seven Norwegians.

The case was listed for hearing at The Hague yesterday. Meanwhile cash-strapped Ghana Telecom are struggling to replace obsolete equipment brought in by Telekom Malaysia which have seriously undermined the operations of GT throughout the country in recent times. In Kumasi and many parts of the Ashanti Region, calls are simply not going through. The One-touch cellular reception is marked by constant cut-offs.

The huge outlay on Telenor and its seven management staff is proving a serious strain on resources of GT, according to senior Ghanaian management officials Agenda spoke to. For instance, while the company struggles to pay its 3,900 Ghanaian staff the equivalent of $100,000 a month, Ghana Telecom has been forced to fork out $150,000 to service the Service Contract and an extra $100, 000 outlay as wages to the seven expatriate Norwegian staff.

Under the contractual agreement, Telenor?s services ?shall include but not limited to the following: Implementation of the Business Plan of GT including the responsibility to fund the roll-out plan through vendor finance and other financial instruments.?

Aside of its main function TMP (Telenor management Partners) shall provide the following services to the Board of Ghana Telecom: ?Administrative services involving management, operations, planning policies and procurement and/or supply of all necessary personnel, including but not limited to specialized technicians and managers, and others being below such level of expertise, whether for short or long term periods.?

In addition to the $150,000 service fees paid to Telenor International in Norway and about $100,000 paid as wages to the seven expatriate staff, ?an annual Success fee shall be payable by GT to TMP for specialists seconded by and/or contracted to TMP but working for GT over and above the three Executive Officers.?

There is another clause asking Ghana Telecom to pay professional fees for specialist services provided from time to time in accordance with usual charge out rates approved by the board.?