Samuel Nartey George, Minister for Communication, Digital Technology, and Innovation, strongly condemned the previous government’s purchase of Airtel Tigo, which is now known as AT. He calls the action “ill-informed and reckless.”
At a news conference in Accra on Wednesday, April 9, the Minister denounced the alleged $1 deal that was utilized to buy the business, describing it as “disingenuous and unpatriotic.”
“The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase of $1. Nothing could have been more disingenuous and unpatriotic,” Sam George said. “When the company was bought, its debt portfolio stood at $400 million, and its revenues could not meet its monthly overheads.”
He pointed out that the company’s infrastructure was out of date and that over a five-year period, the previous operators, Bharti and Milicom, had not made any substantial investments.
“The core and dealing platforms have reached the end of life and both Bharti and Milicom, which operated Tigo, had failed to make any meaningful investments in both companies over the preceding five years,” he explained.
Sam George argued that the acquisition was not in the country’s best interest and reflected a 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.
The Minister disclosed that AT’s current debt portfolio is $200 million as a result of a debt restructuring arrangement. Nevertheless, the business still reports GHS20 million in losses each month.
“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.
He gave the public the assurance that the government will work to stabilize the business, save jobs, and guarantee its long-term viability.
“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,” Sam George stated.