Telecel teeters on brink of insolvency

Zimbabwe's beleaguered mobile network operator Telecel Zimbabwe's finances are in a sorry state amid indications the company is bankrupt.

The company reportedly has management inefficiencies, high director fees and is riddled with hefty management fees paid out to its foreign shareholders.

Since its inception in 1998, Telecel has gone through major changes in shareholding at an international level.

The original shareholders were led by Rwandan-born Miko Rwayitare, before the company was bought by Orascom from Egypt, which later sold to Vimpelcom, a Russian company that is now trying to dispose of its 60% equity stake in the operator either to Isabel dos Santos' company, Unitel S.A, or Africa's largest mobile operator MTN of South Africa.

Isabel is Angolan president Jose Eduardo dos Santos' billionaire daughter.

The company's protracted wrangle over the 40% equity stake under the Empowerment Corporation is still dragging on and currently in the courts, although Telecel chairman James Makamba has recently promised to bring it to finality.