Why reject US$1bn Rektron investment? Minority questions minister’s alleged deal with Telecel

The Minority in parliament has raised concerns over government’s handling of AT’s (formerly AirtelTigo) future, following reports that the Minister of Communication and Digitalisation, Samuel Nartey George, has rejected a US$1billion investment proposal from Afritel/Rektron in favour of a deal with Telecel.

They accused the minister of presiding over a chaotic and opaque process that threatens a critical national asset and places thousands of jobs at risk.

At a press conference in Accra, the Minority caucus described the minister’s actions as demonstrating poor corporate governance and jeopardising the entire telecommunications industry. They therefore demanded an immediate halt to the proposed transaction with Telecel and called for a comprehensive parliamentary inquiry into the matter.

The opposition further outlined what they termed a “pattern of oscillating, inconsistent and incompetent” policy decisions by the minister, which they claim have plunged the state-owned telecom company into uncertainty and reduced its value.

Recounting AT’s history, the caucus noted that the company was formed through a 2018 merger and later acquired by the state in 2021 for a symbolic US$1. This move, they said, was intended to preserve over 500 direct jobs, protect the interests of 5.1 million customers and maintain competition in the telecom sector.

The long-term plan, they explained, was to secure a strategic private investor to recapitalise and revitalise the business.

The Ranking Member on Parliament’s Communications Committee, Mathew Nyindam, stated that a transparent process led by Deloitte Ghana had shortlisted several potential investors. Afritel/Rektron, he said, had proposed an initial US$150million investment for an 85 percent stake, with a total commitment of up to US$1billion over five years to modernise AT’s network and launch nationwide 4G services.

Mr. Nyindam lamented that since Mr. George assumed office, he has displayed a lack of policy direction – initially pledging government investment in AT, then announcing a strategic partnership with Afritel/Rektron with a signed memorandum of understanding (MoU) before backtracking to seek advice from the Attorney-General and finally shifting toward a merger with Telecel.

“This is not merely about the sale of a company; it is about protecting a national institution. We express our deep concern over the rejection of a substantial, long-term investment from Afritel/Rektron in favour of a merger with Telecel – a company that has a record of unfulfilled investment promises and significant debt,” Mr. Nyindam said.

The Minority questioned the minister’s judgment, pointing out that Telecel had pledged only US$50million toward network upgrades post-merger – a fraction of Rektron’s offer.

They further criticised what they described as government’s misguided attempt to create a duopoly to compete with MTN, warning that it would reduce consumer choice and disadvantage low-income Ghanaians who rely on AT’s affordable tariffs.

Safeguarding a strategic national asset

The Minority underscored the need to safeguard AT, warning that the proposed merger could jeopardise the livelihoods of 300 full-time employees, 200 contract staff and more than 10,000 indirect workers.

They cautioned that a potential shutdown under the pretext of force majeure could also terminate the World Bank-funded US$50million Digital Infrastructure Venture (DIV) Project. The project, they noted, connects more than 900 district offices, hospitals, police stations and other public institutions using AT’s network infrastructure. Its collapse, they warned, would severely impact public service delivery nationwide.

Mr. Nyindam further cautioned the Telecel Group that any acquisition of AT through “unlawful, non-transparent or irregular means” would be considered illegitimate and could face “review, reversal and possible legal action” under a future government.

The Minority concluded with four demands: an immediate suspension of the ongoing transaction with Telecel; a full parliamentary investigation into the deal; disclosure of all related agreements and reports; and an urgent government intervention to address the service disruption caused by tower company ATC.

They also called on President John Dramani Mahama to rein-in the communications minister and ensure decisions regarding AT’s future are taken through a transparent process that protects this vital national asset.

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