The Kumasi Metropolitan Assembly has locked up offices of two mobile telecom service providers, MTN and Tigo for non-payment of property rate. Officials say the two companies have since 2009 failed to pay about six hundred thousand Ghana cedis between them, owed to the city authority. Spokesperson for KMA Chief Executive, Clement Kigeri warned the assembly will apply similar measures to other defaulting companies. According to Mr. Kigeri, MTN and Tigo have taken entrenched positions, challenging the legitimacy of the assembly to charge them such fees. He explains by virtue of the Local Government Act 462, Section 34, the assembly is mandated to issue business permits and collect levies from business entities in the city. While Tigo owes the assembly three hundred and twenty five thousand eight hundred and ninety four, MTN owes three hundred thousand, one hundred and seventy-seven Ghana cedis. Mr. Kigeri disagrees to suggestions the decision to lock up offices of the two companies amounts to selective justice. According to him, the assembly will reopen the offices only when the companies settle their indebtedness. “They’ve taken a position; they appear to suggest that we (assembly) do not have the power or the mandate to charge these fees. And we are referring them to the Local Government Act, 462, if you read section 34, it says that the assembly has the power to charge fees on facilities that have been provided by the assembly or for granting permit or license for installation of facilities and this mast that I am talking about, it is the assembly that grants the permit’’, he explained. “If you own a business in Kumasi and know very well you are required to pay property rate and you decide not to pay; we will force you to pay, if not, we will lock up your business.” Northern Sector Corporate Service Coordinator for MTN Isaac Vroom-Minnow told Nhyira News the company has outstanding issues on taxation to settle with the National Communications Authority and the Local Government Ministry. Isaac Vroom-Minnow, meanwhile, indicated that discussions are ongoing with the KMA to reopen the company's office for business. “We are under a certain authority, that is the NCA, and the KMA is under a certain governmental ministry. Between the two, there have been some challenges which have to do with payment on property rate on masts.” According to him, there have been efforts to address those challenges to promote congenial business atmosphere between local assemblies and telecom service providers. “Until those challenges have been sorted out properly, it becomes a little difficult for operators to respond appropriately or to pay levies to the local assembly or the local government assembly. “As I am talking to you now, I have just received text messages that say that the offices have been opened by KMA”, he said. Story by Ohemeng Tawiah, Nhyira Fm-Kumasi, Ghana