Ghana Court Adjourns Vodafone Case

Ghana’s Supreme Court yesterday announced its decision to adjourn to 9 March 2010 the case concerning the sale of national PTO Ghana Telecom (GT) to the UK's Vodafone Group. The decision was taken by a nine-member panel which ruled the High Court, which handed the case to it, had not fully complied with the rules of the court, GNA reports. In a statement the Supreme Court said: ‘We find that the trial High Court did not comply with rule 67 of CI 16. We hereby order the High Court to comply within 14 days.’

In October 2009 CommsUpdate reported that the committee set up to investigate the sale of a 70% stake in GT to Vodafone recommended that the government consider renegotiating the Sale and Purchase Agreement. At the time, Dr Valerie Sawyerr, the Deputy Chief of Staff of the committee said that Ghana’s government should in particular reconsider Parties to the SPA; compliance or otherwise of the SPA with the laws of Ghana, particularly the NCA Regulations and the Internal Revenue Act 592; value for money/ Transaction consideration; retention of the National Fibre Optic by the Government of Ghana as a strategic national asset; decoupling of the Ghana Telecom University from the transaction (already done); and return of GT investments to the Government of Ghana such as the Telecom Emporium.

Earlier the same month a leaked Ghanaian government report claimed that last year’s sale of the incumbent fixed line operator was ‘unconstitutional and illegal', and did not represent good value for money.

Team Recommends Change In GT - Vodafone Sale Agreement

The committee set up to investigate the sale of a 70% stake in Ghana's national PTO, Ghana Telecom, to the UK's Vodafone Group has recommended the government to consider renegotiating the Sale and Purchase Agreement, according to Ghana News Agency reports.

In a press statement published last Friday and signed by Dr Valerie Sawyerr, the Deputy Chief of Staff, the committee said that Ghana's government should in particular reconsider Parties to the SPA; compliance or otherwise of the SPA with the laws of Ghana, particularly the NCA Regulations and the Internal Revenue Act 592; value for money/ Transaction consideration; retention of the National Fibre Optic by the Government of Ghana as a strategic national asset; decoupling of the Ghana Telecom University from the transaction (already done); and return of GT investments to the Government of Ghana such as the Telecom Emporium.

Earlier this month we reported a leaked Ghanaian government report which claimed that last year's sale of a 70% stake in the country's incumbent fixed line operator GT to the UK's Vodafone Group was 'unconstitutional and illegal', and did not represent good value for money.

In July 2008 Vodafone confirmed that it had agreed to acquire a 70% stake in GT for USD900 million on a debt-free, cash-free basis. The deal implied a total enterprise value for GT of approximately USD1.3 billion, with the state retaining a 30% stake in the company. However, the leaked report alleges that the fixed line operator was undervalued and that the actual price paid by Vodafone was less than USD267 million.

Further, it accuses parliament of acting unconstitutionally in approving the deal without due process, and alleges that as a result of 'a complicated series of financial arrangements' the actual price released was far less than the stated asking price.

Leaked Ghana Report Claims Vodafone Deal Was Illegal

A leaked Ghanaian government report, seen by the BBC, claims last year's sale of a 70% stake in the country's incumbent fixed line operator Ghana Telecom (GT) to the UK's Vodafone Group was 'unconstitutional and illegal-, and did not represent good value for money.

In July 2008 Vodafone confirmed that it had agreed to acquire a 70% stake in GT for USD900 million on a debt-free, cash-free basis. The deal implied a total enterprise value for GT of approximately USD1.3 billion, with the state retaining a 30% stake in the company.

However, the leaked report alleges that the fixed line operator was undervalued and that the actual price paid by Vodafone was less than USD267 million. Further, it accuses parliament of acting unconstitutionally in approving the deal without due process, and alleges that as a result of 'a complicated series of financial arrangements' the actual price released was far less than the stated asking price.

Vodafone Ghana To Cut 950 Jobs

­Vodafone Ghana is to make around 950 staff redundant before the end of the year, as its ongoing voluntary redundancy programme comes to a conclusion. The staff being made compulsorily redundant will be offered the same terms though - being three months salary for each year served with the company.

The lay-off to be implemented at the end of November will affect all departments and could also lead to the closure of non-core departments.

Mr Emmanuel Dakwa, Chairman of the local Communication Workers Union (CWU) of Vodafone, criticized the redundancies, saying that the company was wrong to announce the job cuts without consulting it.

"It was wrong for management to have held a press conference without recourse to internal arrangement with union on how to roll out that redundancy programme," he told the Ghana News Agency.

"It is very sad that whiles we are going round the country educating union members about voluntary redundancy, management decided to hold a press conference in our absence and announced a compulsory redundancy programme, of which we had no prior notice," he added.

Just over 900 staff have already accepted Vodafone's voluntary redundancy programme. The company still has around 3,000 staff.

Since Vodafone brought 70% of Ghana Telecom in August 2008, it has created more than 7,000 direct and indirect jobs in sales and distribution throughout the country.

Ghana Telecom Rebrands To Vodafone

Ghana Telecom has been rebranded as Vodafone Ghana and launched a brand new website. After buying a 70 per cent shareholding in the Ghana Telecommunication Company in August 2008, partnering with the Government of Ghana, Vodafone says that it has made significant investments to improve the performance and to expand the capacity of its networks. Vodafone has also signed a multi-million dollar deal with Huawei Technologies to bring its 3G network services to the Ghanaian market.

David Venn, Chief Executive Officer of Vodafone Ghana, commented: "Today's announcement is the next step in a telecommunications renaissance across Ghana. Vodafone will offer the most reliable and cost effective services in the Ghanaian market and we will set the benchmark for customer satisfaction. Our customers should expect an excellent network as the basis for these services and we are committed to delivering it."

He added: "I would like to thank all Ghanaians for the welcome we have received and the tremendous interest they have shown in Vodafone since we arrived here in this market. We have also invested in the social fabric of Ghana, deploying community booths, supporting National Farmers day and helping the educational funds of a number of the traditional areas. I look forward to announcing similar initiatives in due course."

Vodafone Ghana, originally the Post and Telecommunications Department of the Civil Service, went through several transformations before being renamed Ghana Telecom in 1996. It was divested first to a consortium called G-Comm Limited led by Telekom Malaysia and was later managed by a Norwegian management services company known as Telenor Management Partners (TMP).

It employs close to 3,400 Ghanaians and is a major source of employment in the communications industry.

Glo Mobile Blames Environment Body for Delay in Ghana Roll-out

Ghana's newest mobile network operator, Glo Mobile has complained that it is suffering problems in rolling out its network due to delays in securing permission from the Environmental Protection Agency (EPA) to install its towers.

Glo Mobile is owned by Nigeria's Globalcom and was awarded a GSM operator license last June.

Mr Idowu Olumodeji, Head of Technical-Rollout at Glo, told the Ghana News Agency that the company had had to push back deadlines several times because the EPA had not issued permits for masts. He noted that to date Glo Mobile had submitted over 500 applications for permits to mount masts and other infrastructure in most of the regional capitals, but EPA was yet to issue a single permit.

Mr Olumodeji, who sounded frustrated, said Glo had asked EPA not to wait for all the applications to be complete but to issue permits for those which were complete but the EPA had not been co-operative on that either.

Mr Olumodeji said Glo had millions of dollars worth of equipment sitting at its warehouse waiting to be deployed - as soon as the EPA issues the permits.

For its part, the EPA has only just completed a draft document on the rules for installing base station towers in the country. The document, seen by the GNA calls for more use of co-location on towers to curb their spread - and will ask the telecoms regulator to make co-location mandatory where viable.

“The telecom operators are quick to blame the permit agencies like EPA for the poor quality service. Meanwhile they have not been able to take a single action on co-location since they started discussions on it years now,” said Mr Ebenezer K. Appiah-Sampong, Director of Environmental Assessment and Auditor of the EPA.

The country already has five operators, and according to figures from the Mobile World database, the country had 11.3 million customers at the end of last year. That figure equates to a population penetration level of just 48%.

The five operators (and market share) are: MTN (57%), Tigo (25.7%), Ghana Telecom (14.4%), Kasapa Telecom (2.8%) & Westel that was acquired by Zain (2.4%)

Ghana Telecom Staff Prepare for Retirement

­Staff at Ghana Telecom who have taken advantage of the firms recent offer for voluntary redundancy are to benefit from a customized Transition Support Programme which has been developed to help them to manage the change effectively as they seek different jobs after they leave the firm.

Around 850 jobs, out of a total workforce of 4,000 are to be cut in the voluntary program.

Last August, Vodafone completed the acquisition of a 70% stake in state-controlled fixed-line and mobile operator Ghana Telecom for US$900 million on a debt-free, cash-free basis. The Ghanaian parliament approved the sale, despite criticism from the opposition party who believe the shares are undervalued and said that the deal isn't in the national interest.

The programme, which will take the form of counselling and Training is designed to help the staff to obtain a deeper appreciation of the change to enable them make a smooth transition to a new life.

In a statement, Vodafone said that it is concerned that the staff are equipped with basic skills to plan and manage their personal finances better, with particular reference to their disengagement packages. Those desirous of setting up their own businesses will be taken through basic entrepreneurship training, while those seeking regular employment contracts elsewhere will be helped to prepare themselves for a job search to enhance their chances of securing interviews in the organisations they wish to work for.

According to estimates from the Mobile World subscriber tracker, the mobile network ended last year with just over 1.6 million subscribers - equating to a market share of around 27%. 

Vodafone Ghana Restructures, Offers Package for Retirees

Vodafone has started a reorganisation at Ghana Telecom following its acquisition of a 70 percent stake in the operator.

Vodafone said during the course of this restructuring exercise, management had noted a widespread desire and intention on the part of a significant number of members of staff to sever their employment relationship with the company if a beneficial package is arranged and offered to them for consideration.

As a result, management has decided to facilitate the disengagement of such employees who are looking to voluntarily end their services with the company by offering a voluntary disengagement package. Employees who wish to leave will thus be supported with a severance package and a Transition Support Program to adapt to life after GT.

New Regime May Review Ghana Telecom Sale to Vodafone

The Minister designate for Communications in the new Ghanaian government, Hon. Haruna Iddrisu has hinted that his ministry would review the sale of Ghana Telecom to Vodafone International.

He said though he would have to contact the Presidency for approval before his Ministry would embark on such a move, he was hopeful that the government would support the idea.

Speaking in an interview with The Chronicle in Accra yesterday, Mr. Iddrisu said the review was not meant to revoke the Sale and Purchase agreement that Vodafone International signed with the government of Ghana, but to ascertain whether the contract was a genuine one.

"My brother, I am not saying that we are going to take the deal from them but we are going to make sure that Ghanaians get value for their money," he reiterated. He was emphatic that government was going to evaluate and review most of such transactions that were executed by the former government.

The National Democratic Congress (NDC), while they were in opposition did not approve the $900 million Vodafone deal in Parliament, on the grounds that though they were not against the sale, the “secrecy” under which government was going about the process raises suspicions, and that some procedures did not conform to the Public Procurement Act.

The NDC questioned the basis upon which government decided to choose Vodafone Plc UK, as the sole investor to acquire majority shares in GT, while they were not part of the companies which showed interest in the deal. The Minority questioned the basis by which government exclusively negotiated with only Vodafone PIc UK, without considering other bidders who were likely to offer higher bids than Vodafone, and address the socio-economic needs of the country.

Prof. John Evans Atta Mills, the then flag-bearer of the NDC, who also joined the agitators who called for a transparent and better deal to dispose of GT to foreign interest, was or the view that the then government created a false impression about the opposition’s protest against the sale of GT.

The Minister designate for Communications, who was at the fore front for the demand of transparency in the sale of GT, told the paper that among his priorities as a Minister would be the setting up of a National Information Technology Council, to serve as an advisory body for the Ministry of Communications on Information Technology (IT).

He, said it was his plan to all citizens of Ghana, including the rural folks beneficiaries of IT.

Mr. Iddrisu indicated that there would be a lot of experts in the area of information technology, who would assist the Council to impact their knowledge for the growth of IT.

Touching on some of the reforms he intends to bring to the telecommunication industry; he gave the assurance that monies paid by Ghanaians would be worth the services rendered by the communications industry.