The Rwandan government has reportedly begun insolvency proceedings in the country’s commercial courts against telecoms operator Rwandatel, which is 80% owned by Libyan government investment vehicle LAP Green Networks.
According to a report by local daily The New Times, which cites Registrar General Louise Kanyonga, the decision to liquidate Rwandatel – in which the state holds the remaining 20% stake – comes after audited reports found that the company is in financial difficulties.
‘We were in receipt of their audited financial statements for the financial year 2009/10 in which the auditing firm concluded that the company was technically insolvent,’ Kanyonga said, adding: ‘Based on the powers given to the Registrar General by the Insolvency law to institute insolvency proceedings, an application was made to the commercial court in Nyarugenge [on Monday 11 April].’
Earlier this month telecoms regulator Rwanda Utilities Regulatory Agency (RURA) revoked Rwandatel’s mobile concession due to its failure to meet licence obligations, though the operator’s fixed telephony and ISP permits remain operational. In a separate development, the government last month froze all Libyan-owned assets in Rwanda to enforce United Nations (UN) sanctions following unrest in the North African nation.