Gov’t Shares In Vodafone Not Sold …Ursula Debunks Minority Lies

The Minister responsible for Ghana’s Communications and Digitalization, Mrs. Ursula Owusu-Ekuful has stated emphatically and denied earlier reports suggesting that, the Akufo-Addo administration intend to sell its 30 per cent shareholding in Ghana Telecommunications Company Limited also known as Vodafone Ghana.

She told Parliament on Monday that Vodafone Ghana, which holds 70 per cent of the Ghana Telecommunications Company, transferred its stake to the Telecel Group in February 2023.

The Minister made the disclosure in her response to a question by South Dayi Member of Parliament, Rockson-Nelson Dafeamekpor, and Member of Parliament for Tamale South, Haruna Iddrisu who wanted to know from the Minister whether Government has any plans to sell its shares in Vodafone Ghana.

Haruna had earlier said, the billion-dollar asset that belongs to Ghana has been sold on credit for a paltry US$100 million.

He lamented further over the telecom sector which used to be an avenue of revenue for the government but has withered away, demanding an explanation from the Communications Minister.

“Mr. Speaker on my own accord, I want the Hon. Minister of Communications to come and respond to this House, whether it is true that Ghana’s 30 percent stake in Vodafone Ghana has been sold to the majority holder, on credit for less than US$100 million and what the state of that transaction is, as an economic transaction within the meaning of Article 185 of the 1992 Constitution and probably also to update this House on the withering away of Ghana’s telecom landscape and this trend,” he had said.

Mrs. Owusu-Ekuful noted that under the shareholders agreement, the consent of the minority shareholder (Ghana Government) was not required for Vodafone Ghana (the majority shareholder) to transfer or to sell its shareholding in Ghana Telecommunications Company Limited; saying “consent is not required under the terms of the shareholder’s agreement”.

She further explained, “Mr Speaker, the government of Ghana has no plans of selling its 30% shareholding in Ghana Telecommunications Company Limited. Vodafone Ghana, which holds 70% has transferred its stake to the Telecel Group in February 2023. Under the shareholders’ agreement, the consent of the minority shareholder is not required for Vodafone Ghana to transfer or to sell its shareholding in Ghana Telecommunications Company Limited.”

Mr Dafeamekpor asked the Minister a follow-up question whether she would be able to tell the House the value of the 70 per cent share that Vodafone Group Plc got in transferring its share in Ghana Telecommunications Company Limited to Telecel Group.

“Mr Speaker, the question was specific, as to whether Government has any plans of selling its shares in Vodafone Ghana Ltd. The answer has also been specific, that (the) Government has no such plans,” she said.

“If the Honourable Member requires any further information, I suggest that he files a substantive question to which I will come and give a response. I do not have that information at the top of my head. Thank you, Mr Speaker,” she responded.

In 2016 Ghana granted Vodafone International Holdings (VOD.L) approval to sell its 70% stake in Vodafone Ghana to Telecel Group, the country’s telecoms regulator said on Monday.

The National Communications Authority (NCA) approved the sale after Telecel submitted a revised financial and technical proposal in December. The NCA had turned down an initial sale plan submitted by Vodafone Ghana early last year as it did not meet required regulatory standards

The NCA said that the revised proposal provided more clarity on the funding required for the transaction and met the regulatory threshold.

Warning to broadcasters on DTT platform

In another development, the Ablekuma West lawmaker has warned that television signals to homes and offices might be shut down from 2024 if broadcasters decline to pay for the usage of the Digital Terrestrial Television (DTT) platform.

She stressed that despite numerous notices, some media houses have been reluctant to comply with payment obligations.

“None of the broadcasters on the DTT platform pay for using it as I speak and this situation cannot continue in our current economic state,” she said.

“GIBA is not a broadcaster hosted on this platform. So I don’t know in which capacity they would be acting. They have constituent members who are broadcasters on the DTT platform but none of them have paid a pesewa to date for being hosted on the platform so it is not correct any member being hosted on the platform has paid for it.”

The Communications Minister warned that if payments are not made, there is a risk of the platform being shut down due to non-payment of operational expenses, potentially leading to a disruption in TV broadcast signals.

“Government says it cannot continue to pay for it so if they do not pay for it, unfortunately, we may find ourselves in a situation where we cannot receive TV broadcast signals because the platform will be shut down for non-payment of the operational expenses that it is incurring,” the Communication Minister stated.

Digital Terrestrial Television is a technology for terrestrial television where television stations broadcast television content in a digital format.