NDC sold Ghana Telecom without capital input

"We weren't required to invest in Ghana Telecom", says Malaysian MD.

The Public Agenda writes that as events leading to the privatisation of the Ghana Telecom (GT) came to a climax in 1996, the then NDC government, dangled to the Ghanaian public-the huge financial infusion a strategic investor would bring into the country's telecommunication industry, as one of the benefits of privatising the company.

"The strategic investor would bring money to expand and upgrade the business and make it a real market leader", the government listed this among four benefits that the country was to derive from privatising Ghana Telecom.

Four years after taking over Ghana Telecom, the strategic shareholder, Telekom Malaysia, says injection of foreign capital into the company, was not part of the conditions for buying the 30 per cent stake in Ghana Telecom.

"Our role was basically to help out in the development of the industry. Apart from what we paid in equity, no other condition on capital was stated", the Malaysian Managing Director of GT, Dato Abdul Mallek Mohamed said of their role as strategic investor.

Dato Malek Mohamed told the Agenda that they had not brought in any capital for the company apart from the $38 million they had paid to the government to acquire the 30 per cent stake in the company.

For their 30 per cent stock, the strategic investor was handed absolute management control. Aside that, four of the seven-member board of GT are appointed by Telekom Malaysia.

The other benefits the government listed for the need for a strategic investor was that the investor would bring his management expertise to bear on the management and operations of the company.