Telecom all over the world is a very viable business venture. SIERRATEL therefore has the potential to generate huge amount of money for government and the people of Sierra Leone. The ongoing privatization of SIERRATEL by NCP will sell out 90% shares to the would-be private owner and government of Sierra Leone will retain only 10%. You may wish to ask the following questions:
1. How much is the would-be private owner investing into SIERRATEL to acquire the many assets of SIERRATEL spread all over the country?
2. What is the profile of the would-be owner(s)
3. Have they been in telecom business before?
4. What is there track record?
5. Do they have audited financial statement to prove their financial viability to take over and manage SIERRATEL?
6. How much is the Government of Sierra Leone going to gain from this deal?
7. How much concession would be paid to the government of Sierra Leone for the people of Sierra Leone?
8. How long will the contractual period last for? Or it is absolute and permanent ownership?
Our sources disclosed that the purported winner of the NCP bid for the ownership of SIERRATEL has never operated a Telecom company before and do not have the required finance to even fully pay the liabilities of SIERRATEL. They also lack the technical capability to run an ailing telecom company like SIERRATEL. It is understood that they will be paying a concession of USD15 Million Dollars for a period of 25years, which means a yearly concession of USD 600 Thousand Dollars and USD50 Thousand Dollars monthly. They have provided no clear roadmap of a new Network rollout and expansion. Our sources disclosed that other telecom competitors are behind the privatization of SIERRATEL.
We were also made to understand that another telecom company called Mighty Mobile opted for SIERRATEL with a more viable investment option/portfolio;
1. To invest in the first year USD200 Million Dollars.
2. To invest a total of USD600 Million Dollars in 5 years.
3. To provide nationwide coverage in 5 years with specific focus on rural connectivity.
4. The make payment of USD 6 Million Dollars of liabilities even before commencement of operations.
5. The agreement will be on profit sharing ONLY between SIERRATEL and MIGHTY MOBILE.
6. SIERRATEL will remain 100% government owned and by extension owned by the people of Sierra Leone.
7. The brand will remain SIERRATEL
8. MIGHTY MOBILE operates in 13 other Africa Countries and has the technical and financial capabilities to transform SIERRATEL into a viable state owned enterprise.
9. MIGHTY MOBILE is ready to provide evidence of availability of funds for this investment and partnership relationship with SIERRATEL and the government of Sierra Leone.
10. MIGHTY MOBILE will employ more Sierra Leoneans because of the planned Network expansion project.
BETWEEN the two options why should NCP decide to proceed with the weaker option rather than the stronger one which will benefit the country and the people of Sierra Leone more? There is something wrong with this decision.
