Government has re-emphasized its determination to offload 70 percent of its interest in national telecoms operator, Ghana Telecom, to UK-based Vodafone. At a meet-the-press encounter today, Communications Minster, Dr. Benjamin Aggrey Ntim explained that presently, it is the only way out to salvage the ailing national asset. Describing the company present state as a definite source of worry for any investor, including the government of Ghana, the minister said GT’s total assets had risen to $552 million by May 2008, against its total liabilities of $586 million. “Again a look at the working capital of Ghana Telecom reveals a similar trend. In 2007, a negative working capital of 188 million dollars was recorded and by May 2008, this had risen to 199 million dollars,” he said, stressing that the situation is rapidly leading to Ghana Telecom’s insolvency and a total collapse if no immediate action is taken. Dr. Aggrey Ntim said an obvious consequence of failing to embark on an immediate rescue mission would see GT’s current value further eroded. Explaining why the national communications backbone infrastructure was added to the Vodafone package, he said considering the high indebtedness of Ghana Telecom, and the deteriorating circumstance of the company, the declining valuation figures necessitated the aggregation of other state communications infrastructure that also required investments to build. “This is why consideration was given to the transfer and management of the national communications backbone in this offer.” He dismissed accusations of lack of transparency in the bidding process and said at any given time, local telecoms companies were offered the opportunity to acquire the national asset, just as the Ministry of Communications gave all the telecoms companies in the country the opportunity to submit proposals for the management of the national communications backbone infrastructure to the benefit of all industry players on an open access model. Dr. Aggrey Ntim maintained that while the government was not under any obligation to accept any particular bid, several companies, including three that were shortlisted based on comparative offers, fell short of government’s expectations. He also assured that government was committed to an open and fair transaction and would wait on parliament’s consideration, and hopefully, ratification of the sale and purchase agreement. He also criticized the 1997 sale of 30 percent shares of GT to Telecom Malaysia for $38 million by the then NDC government, and said even though the company was the minority interest, it treated the government of Ghana as though it was the minority, beside failing to pay any dividend whatsoever for the five years duration. It was that bad corporate faith that informed the NPP government’s decision not to renew Telecom Malaysia’s mandate when it fell due on February 17, 2002. “Government did not find it expedient to renew the mandate”, he said. “It is perhaps worth stating that Even though Telecom Malaysia at the time of their departure had not paid any dividend to the people of this country, they sought to price the equivalent of their 30 percent share value at nearly a hundred million dollars,” explaining that the government of Ghana eventually had to pay $52.2 million to the company after the matter went to international arbitration. Author: Isaac Yeboah