By Tabora Bojang
The Minister of Communication and Digital Economy Lamin Jabbi disclosed to lawmakers yesterday that government is set to sell 80 percent of its shares in Gamcel to a company called YCell for D6.7 billion.
According to Minister Jabbi, eight companies had submitted proposals to buy the shares and two local companies DK Telecom and Y Cell were considered the strongest contenders after initial review. But he said following an evaluation of technical and financial submissions by both DK and YCell by a committee comprising key stakeholders including Office of the President, Ministry of Justice and Ministry of Communication and Digital Economy, Y Cell emerged as the most responsive bidder with an investment proposal of D6.7 billion.
He said this was tabled before the cabinet and a directive was issued for his Ministry to engage Y Cell for final negotiations with the green light on contract signing to be subject to further cabinet approval.
On concerns raised by lawmakers on the dangers of selling such national assets, the minister stated that the move is part of efforts to revive Gamcel and modernise its network infrastructure. “We are just selling majority shares to the investor who is ready to invest in the revival of the company,” Jabbi said. On how much shares the government is retaining after the arrangement, he said; “We are looking at 80 percent for [YCell] the company investing the D6.7 billion and 20 percent to be retained by the government. The first direct payment we expect for the 80 percent of the shares may go close to or above D800 million and the remaining D6 billion will be invested into the infrastructure and for that too, it is a market share approach.”
Gamtel
Minister Jabbi further disclosed that a private company is set to take over Gamtel in a public-private partnership worth US$50 million, which he said was approved by the cabinet.
He said the private company taking over Gamtel will build, operate and transfer but he did not disclose the number of years. Jabbi further noted that this PPP arrangement “does not include any government guarantee” and there is a requirement for a performance bond with independent experts to be appointed to monitor and supervise implementation.
Over 600 staff to be laid off
Minister Jabbi disclosed that as part of this restructuring and privatisation, over 600 staff from both Gamtel and Gamcel will be removed. He told lawmakers that the first phase of the staff layoff was completed in June with 486 staff compensated with an amount of D210.6 million, in addition to the payment of their 6 months’ notice, amounting to D32.8 million.
He said plans to compensate an additional 155 staff are ongoing with consent forms to be signed by affected staff with D29 million approved to be released for payment.
He stated that a special office was established to receive complaints of affected staff and take up appropriate actions.
