Communication Minister Sam George has launched a scathing critique of the previous government’s handling of Airtel Tigo, now AT, revealing a staggering $200 million debt burden and labeling the acquisition as “ill-informed and reckless.”
He outlined the dire financial state of the company during a press briefing on Wednesday, April 9, painting a picture of a telecom sector facing significant challenges.
“The telecommunications sector has not been without its challenges,” George stated.
“The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase value of $1. Nothing could have been more disingenuous and unpatriotic. When the company was bought, its debt portfolio stood at $400 million, and its revenues could not meet monthly overheads.”
He further detailed the company’s deteriorating infrastructure, noting, “The core and billing platforms have reached the end of life, and both Bharti Airtel and Millicom (Tigo) have failed to make any meaningful investments in both companies over the past five years.”
Read Also: Full text: Speech by Communication Minister Sam George during media briefing in Accra
George described the decision to acquire AT as “an abdication of responsibility to the best interest of Ghana.”
He revealed that after a debt restructuring, the company’s debt still stands at $200 million, with monthly operating losses of GHS20 million.
“The bleeding needs to be triaged,” he declared, announcing urgent steps to negotiate “haircuts” with creditors to ensure the company’s viability.
Looking ahead, Mr. George pledged to update the nation on policy directions the Ministry will take as the sole shareholder.
“I will be updating the Nation in the course of this quarter on the policy directions the Ministry would be taking as a sole shareholder to ensure the security of the jobs of employees and the long-term survival of the business.”
The post AT’s $200m debt: Sam George blasts ‘reckless’ $1 purchase first appeared on 3News.
Read Full Story
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS