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Nigeria: Transcorp Halts New Investment in Nitel/M-Tel
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This Day (Lagos)
16 May 2008
Posted to the web 16 May 2008
Efem Ekanga
Caro
Transnational Corporation has halted any further investment in the Nigerian Telecommunications Limited and the Nigerian Mobile Telecommunications Limited for thirty days.
According to information received yesterday night, the decision stemmed from a huge gap found in the first national carrier's billing system and its process of collecting bills from corporate and individual subscribers.
Sources close to the company disclosed that an interim report by the accountants found that following the gaps in the billing system, billions of naira owed to the telecommunication had not been collected.
Some accountants and consultants working under the Group Treasurer had about two weeks ago started l ooking through the company's accounting process as a result of claims by NITEL customers that they suffered huge losses during a recent strike by NITEL workers.
Transcorp Vice-President, Mr. Adedayo Ojo, confirmed that the corporation had suspended further investment in the telecom company where it has 51 per cent equity for a period of 30 days.
According to him, "The management of Transcorp has suspended further investment in NITEL for a period of 30 days. The 30-day period is to enable the company to close the gaps found in its billing system."
The decision taken by the company is going to affect mainly the salary of the workers of the telecommunications company which has been contentious for some weeks now.
Transcorp had been engaged in borrowing money to pay NITEL workers' salaries as a result of the inability of the company to generate enough money to fund its operations, even salaries.
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The failure of Transcorp to meet salary payment agreement in April had resulted in strike action which led to the shutting of the undersea cable popularly known as SAT-3 that links Nigeria with the rest of the world. Workers of the telecommunications company had blamed the inability of the company to meet its financial obligations to the failure of Transcorp to pump in money to revitalise the telecom firms it took over in November 2006.
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