Samuel Nartey George, Minister for Communication, Digital Technology, and Innovation, has launched a scathing critique of the previous government’s acquisition of Airtel Tigo, as “ill-informed and reckless” move.
At a press briefing in Accra, George lambasted the reported $1 transaction, denouncing it as “disingenuous and unpatriotic”.
George highlighted that when the company was acquired, its debt portfolio stood at a staggering $400 million, with revenues woefully inadequate to cover monthly overheads.
He noted that the company’s infrastructure was antiquated, and previous operators Bharti and Milicom had failed to inject significant investments over a five-year period.
“The core and dealing platforms have reached the end of life, and both Bharti and Milicom, which operated Tigo, had failed to make meaningful investments in both companies over the preceding five years,” Sam George explained, underscoring the dire state of the company’s infrastructure.
He argued that the acquisition was not in Ghana’s best interest, reflecting a catastrophic failure of leadership.
“The decision to step in at the time can best be described as ill-informed and reckless. It was an abdication of responsibility by the then administration and minister to the best interest of Ghana,” he asserted, emphasizing the gravity of the situation.
George revealed that following a debt restructuring agreement, AT’s current debt portfolio stands at $200 million. However, the company continues to incur monthly losses of GHS20 million.
“Today, after a debt restructuring arrangement, the debt portfolio at AT sits at about $200 million, rising every month as the company makes a monthly operating loss of GHS20 million. The bleeding needs to be thrashed, and urgent steps are underway to engage the company’s creditors in negotiating haircuts to ensure the company’s viability,” he said, highlighting the urgent need for reform.
George reassured the public of the government’s commitment to stabilizing the company, protecting jobs, and ensuring its long-term survival.
“I will be updating the nation in the course of this quarter on the policy directions the ministry will be taking as the sole shareholder to ensure the security of the jobs of employees and the long-term survival of the business,” he stated, outlining the government’s roadmap for reform.
