Business / Companies
Vimpelcom officials' jet in for talks over Telecel licence
05 May 2015 at 08:10hrs | Views
Global Telecoms Holdings and VimpelCom officials will meet Government today to find an amicable solution to the Telecel Zimbabwe licence debacle.
Potraz last week granted Telecel Zimbabwe a special 30 day licence to wind up operations on the basis that the company has failed to comply with the country's indigenization laws and to pay for its licence fees.
Appearing before an ICT parliamentary committee, ICT Minister Supa Mandiwanzira, said Telecel Zimbabwe still has a window to survive and can continue operating once they adhere to the country's requirements.
Mandiwanzira said on 30 April he received a letter from the chairman of Global Telecom Global also signed by the CEO of Vimpelcom which read 'We are requesting a meeting with you on Tuesday May 5 in order to discuss an amicable solution to our dispute.'
Mandiwanzira said representing Vimpelcom at this meeting will be the most senior representative of Global Telecoms Holdings SA who is the chairman of the Board and the MD as well as representatives from Vimpelcom Group Head of Mergers and Acquisitions.
Mandiwanzira said the cancellation of operations is not mainly based on licence fees, but non-compliance to the Potraz Act which in tandem with the Indigenisation Act stipulates a 51/49 percent shareholding in favour of locals. He said an agreement had been reached in 2013 which required Telecel to pay at least $14 million as an initial payment for the licence while the remainder will be paid over a seven year period. However, at the signing date, Telecel only managed $8 million and took more than 19 months to settle the balance.
Mandiwanzira said Global Telecom Holdings who are the 100 percent shareholders of Telecel International had also made an offer to government that it buys the 60 percent shareholding in Telecel
He said government accepted the offer but Mandiwanzira could not confirm if the issue could also be part of the meeting to be held today.
Potraz last week granted Telecel Zimbabwe a special 30 day licence to wind up operations on the basis that the company has failed to comply with the country's indigenization laws and to pay for its licence fees.
Appearing before an ICT parliamentary committee, ICT Minister Supa Mandiwanzira, said Telecel Zimbabwe still has a window to survive and can continue operating once they adhere to the country's requirements.
Mandiwanzira said on 30 April he received a letter from the chairman of Global Telecom Global also signed by the CEO of Vimpelcom which read 'We are requesting a meeting with you on Tuesday May 5 in order to discuss an amicable solution to our dispute.'
Mandiwanzira said representing Vimpelcom at this meeting will be the most senior representative of Global Telecoms Holdings SA who is the chairman of the Board and the MD as well as representatives from Vimpelcom Group Head of Mergers and Acquisitions.
Mandiwanzira said the cancellation of operations is not mainly based on licence fees, but non-compliance to the Potraz Act which in tandem with the Indigenisation Act stipulates a 51/49 percent shareholding in favour of locals. He said an agreement had been reached in 2013 which required Telecel to pay at least $14 million as an initial payment for the licence while the remainder will be paid over a seven year period. However, at the signing date, Telecel only managed $8 million and took more than 19 months to settle the balance.
Mandiwanzira said Global Telecom Holdings who are the 100 percent shareholders of Telecel International had also made an offer to government that it buys the 60 percent shareholding in Telecel
He said government accepted the offer but Mandiwanzira could not confirm if the issue could also be part of the meeting to be held today.
Source - online
