Awaiting the Green Light: Hannam Investments’ AirtelTigo Takeover Deal Still Awaits Parliamentary Approval
The Ministry of Communications and Digitalisation is yet to secure parliamentary approval for Ghana’s joint venture agreement that will see the private takeover of the A.T. Telecommunication Network formerly AirtelTigo Ghana.
In November last year, Sector Minister Ursula Owusu-Ekuful led her outfit to facilitate the agreement between UK-based Private Equity firm Hannam Investments and A.T. network which the government acquired for just a dollar after previous multinational investors sold off the firm to the government.
However, despite a directive from the Speaker of Parliament, Alban Bagbin for the deal to be subjected to a parliamentary approval process, the Ministry of Communications is yet to officially comply with the directive.
Parliament’s Communications Committee confirmed these details with some of the Minority members on the committee expressing displeasure over the situation.
It is unclear if sector minister Ursula Owusu-Ekuful will engage the Parliamentary Select Committee in the coming days but any further delay could breed a legal tussle.
Critics of the agreement cite Article 75 of the 1992 Constitution which requires that a treaty, agreement, or convention executed by or under the authority of the President shall be subject to ratification by an Act of Parliament; or a resolution of Parliament supported by the votes of more than one-half of all the Members of Parliament.
According to a publication by A.T. the Joint Venture will achieve the following key objectives:
- Enhanced Telecommunication Infrastructure: Hannam Investments through the Joint Venture will invest in state-of-the-art technology and infrastructure upgrades to create a leading 4G mobile telecom network focused on fast, reliable, and secure data provision to the consumer.
- Competitive products and services. The commitment to launching innovative, consumer-centric products and services and ensuring consumers access to the latest advancements in telecommunications technology.
- Social commitment. In addition to the provision of leading and advanced telecommunications and services to the consumer, the joint venture will ensure a positive future and job security for employees of AT and stakeholders that amount to over 10,000 Ghanaians. The joint venture will lead to the creation of jobs and make a meaningful contribution to the economic growth of Ghana.
Vice President of Policy Think Tank IMANI Africa, Bright Simons is amongst some members of civil society who called for additional scrutiny of the deal.
“Because Hannam Investments is domiciled overseas, the transaction, even if masked through a locally incorporated special purpose vehicle (SPV), would be subject to Parliamentary ratification under a Ghanaian law that requires the government to seek parliamentary approval for major international business transactions”.
He also noted that should the Ghanaian Parliament choose to exercise stringent oversight, as contemplated by the constitution. Hannam will need all his SAS tact to maneuver through the minefield of committee enquiries aiming to get to the bottom of this sweetheart deal. And, perhaps, thrice the dose of charm he has used so far in ministerial chambers.
Source: Joy News