Analysts rubbish Telenor Agreement

Although the Ghanaian Government has completed its management consultancy agreement with Telenor Management Partners for the management of the beleaguered Ghana Telecom, Telecommunications analysts have concluded that the for the provision of advisory services to GT is a bad deal that is not in the interest of the company and the country.

Details of the agreement points to the possibility of wasteful exercise under which Ghana Telecom will be doling out millions of dollars to the Norwegians and their associates by the end of the three-year contract period, with a possible extension.

In addition to the agreed management fee of not less than $150,000, the Norwegian managing director, his chief finance officer, chief technical officer and others, all totaling at least 17 will be paid salaries pegged on Norwegian salary levels.

This will be in addition to the provision of first class residential accommodation, cars and supporting services. Joy FM can confirm that these conditions are a far departure from what pertained under the Telekom Malaysia agreement.

Apart from the Malaysian managing director whose accommodation and transportation was catered for by the company, all other Malaysian staff were fending for themselves. Analysts say, the vendor financing system used by the Malaysians to accrue millions of dollars and condemned by the NPP government has been offered the Norwegians under section 4:2:1 of the agreement.

The use of vendor financing according to our analysts is not in the interest of the company, and will only afford the Norwegians who are not expected to inject any capital into the operations of Ghana Telecom another opportunity to rake in millions for themselves.

Meanwhile, Telekom Malaysia has asked for $90million to $100 million for its 30% stake in Ghana Telecom Co., according to the New Straits Times, citing an unnamed source in Kuala Ghana Telecom, are believed to favour a lower price for the stake, the paper says.

Government-controlled Telekom Malaysia is trying to sell its Ghana Telecom stake, probably back to the Ghana Government, after its management contract was not renewed last year, the report adds.

Telekom Malaysia is also seeking the return of $50 million deposited as half-payment for an additional 15% stake in Ghana Telecom in 2000 and $8 million as interest on the deposit, the paper says.