The Minority in Parliament has raised concerns about the proposed Telecel takeover of AT (formerly AirtelTigo), accusing the Minister of Communications and Digitalisation, Samuel George, of rejecting a US$150 million investment bid from Rektron/Afritel in favour of what they describe as a “less transparent and questionable” merger deal.

Addressing a press conference in Accra on Wednesday, October 15, Ranking Member on Parliament’s Communications Committee, Matthew Nyindam, said the minister’s handling of the transaction was marked by secrecy, inconsistencies, and conflict of interest, warning that the deal could lead to the collapse of Ghana’s only wholly state-owned telecommunications company.

“The minister’s management of this transaction lacks transparency and proper direction. It is riddled with inconsistencies and self-interest, and risks handing over a critical national asset to a private foreign company without accountability,” Mr Nyindam stated.

According to the Minority, Rektron/Afritel’s proposal offered far more value than the Telecel arrangement.

“Rektron’s proposal went beyond the initial US$150 million capital injection, outlining a long-term investment plan of up to US$1 billion to expand AT’s network, modernise infrastructure, and strengthen 4G and 5G capacity over a five-year period,” the group noted.

They explained that the Rektron/Afritel deal also included provisions for technology transfer, local job creation, and greater Ghanaian participation in the telecom value chain.

However, the minister allegedly sidelined the Rektron/Afritel offer and endorsed a Telecel arrangement valued at just US$50 million, a move the Minority said “defies logic.”

“How does one reject a US$150 million investment proposal with a billion-dollar expansion plan for a deal that brings only US$50 million to the table?” Mr Nyindam questioned.

The Minority also accused the minister of causing financial losses to AT through mismanagement and failure to meet key contractual obligations.

“We have established that the Minister of Communications and Digitalisation failed to honour a US$5 million payment commitment to the American Tower Company (ATC), a key service provider to AT,” Mr Nyindam said.

He said the non-payment led to service disruptions and major revenue losses.

“Because of the minister’s failure to pay ATC, several tower sites were shut down in September, forcing AT customers to roam on Telecel’s network. This led to an estimated GH¢7 million loss in revenue to AT within that month alone,” he alleged.

The Minority further accused the minister of backtracking on earlier commitments made to AT staff and management regarding partnerships and investment options.

“After announcing a deal with Rektron/Afritel and appointing KPMG as transaction advisors, the minister suddenly shifted to a merger plan with Telecel without any consultation or clear justification,” the group said.

They questioned why the Minister had deleted official posts about the merger from both the Ministry’s social media pages and Telecel’s LinkedIn account soon after public backlash.

“Why announce a merger publicly only to pull it down later? The secrecy and confusion surrounding this deal raise legitimate concerns about what the minister is hiding,” they stressed.

The Minority said Telecel’s own track record did not inspire confidence, pointing out that the company had failed to deliver on its US$500 million investment promise when it acquired Vodafone Ghana and is currently indebted to the tune of US$400 million.

They described the proposed Telecel merger as “technically, operationally, and financially unconscionable,” warning that it would undermine competition, threaten jobs, and destroy value.

“AT is a strategic national asset that must be safeguarded. We cannot allow a deal that jeopardises 300 employees, 200 contract staff, and over 10,000 indirect jobs,” Mr Nyindam said.