Telekom Malaysia wants it's $50mil back

Telekom Malaysia, chairman Md Radzi Mansor has hinted that Telekom is still in talks with the government of Ghana to recover a 50 million United States dollars deposit, following the termination of the deal to acquire an additional 15 pct stake in Ghana Telecom.

The deposit made during the NDC days suffered a jolt after the Kufour administration decided it was not prudent to go ahead with the deal.

Telekom still retains, with its joint venture partner, a 30 per cent stake in Ghana Telecommunications even though its technical assistance and management contract expired in February. Under the technical assistance agreement, Telekom had substantial management influence and board representation.

Even though Radzi insists “We’re still there. We’re still trying to resolve this issue,” Telecommunications minister Owusu-Adjapong is emphatic that only the Malaysian managing director will stay on as an employee of Ghana Telecom.

The Telekom boss told a press conference last Tuesday in Kuala Lumpur that it is unlikely his outfit will increase its stake in Ghana Telecom, and cautioned that the company will keep its options open on whether to sell its existing 25.5 per cent stake.

Analysts say if the Government sells a stake to another foreign telecommunications company, the investment “will not be as conducive as before”. Telekom’s five-year exclusive telephone concession in Ghana expired on February 19. A three-month “smooth transition” period ended last week, on May 18.

The Government is currently in talks with strategic investors for the purchase of part of its 70 per cent stake in the national phone provider after deciding not to renew Telekom’s five-year technical consultancy agreement and exclusive telephony concession.

A tender document had invited bids from investors with “financial resources sufficient to expand Ghana Telecom’s fixed network by a minimum of 400,000 lines within three years”. Ghana currently has some 240,000 fixed lines.

It is believed that six entities have applied for shares in GT, among them Vodaphone and British Telecom. Muhammad Radzi had said late February that Telekom might consider selling its 25.5 per cent stake in GT “at the right price” but declined to say whether Telekom has been approached on its stake in GT.