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Momodou
Denmark
11831 Posts |
 Posted - 14 Sep 2007 : 19:18:15
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GAMTEL DETERIORATION LEADS TO SALE OF GOVERNMENT SHARES
By Bubacarr K. Sowe
Neneh Macdouall Gaye, the Secretary of State for Communication, Information and Technology, has on Tuesday September 11, told the National Assembly that Government decided to sell its shares in Gamtel/Gamcel due to deterioration of services over the years.
Mrs. Macdouall Gaye was answering a question from the Minority Leader and Member for Kiang West, Momodou Sanneh. The Secretary of State said: "The Government of The Gambia has decided to find a strategic partner for Gamtel/Gamcel so as to inject the necessary capital to increase coverage and improve quality of service. Gamtel over the years has deteriorated greatly in terms of service provision, service quality and accessibility. It experienced stagnation in network expansion at a time when population increase, boom in business and transforming the economy into a technology driven one requires robustness, dynamism and strong competitiveness for any operator in the business of telecommunication".
Mrs. Macdouall Gaye stressed that telecommunication infrastructure provision is capital intensive and also requires cutting edge technical and managerial competence. "Gamtel has not been in a position technically, operationally, managerially and organizationally to provide these and achieve the Government objectives of universal telecommunication access to every one in this country," the SoS said.
Mrs. Macdouall Gaye explained that their concerns are in line with Government's liberalization policies and programmes as enshrined in the NICI Policy and the telecommunication sub-sector strategy.
She added: "Government felt that there is need to inject capital, new technology and new business models and strategies through strategic partnership with reputable companies who have the required competence and financial muscle to extend quality, affordable telephone and related services to all citizens and residents in The Gambia".
The Secretary of State indicated the country's financial and capital markets are not sufficiently developed to raise the needed finance through these markets. "Partnership with well meaning, genuine investors through allocation of shares is an economically efficient way of raising capital and engaging management teams to turn public enterprises like Gamtel around. Government has studied several proposals from different companies and the current partner spectrum Group Came up with required business models and plans that can address the existing problems Gamtel faces," she said.
Babanding Daffeh, the Member for kiang Central also questioned the SoS on what measures were taken prior to the sale. Mrs. Macdouall Gaye responded: " Government is not oblivious of the fact that sometimes when a company changes hands, organization structures, management and human resources systems change too. These changes could lead to personnel being moved from one section to another or become redundant. However, the process will be managed well to minimize redundancy and where it cannot be avoided, there will be acceptable redundancy package in line with labour laws of this country. Currently the new team is doing their study and will report back to Government once their assessment is completed. We will be in a position to know details of costs involved. But let this Assembly be rest assured that there will be no loser in this process".
The SoS assured legislators that the Spectrum Company Group is an internationally acclaimed company operating in both Africa and the Middle East with good reputation. She further added: 'Detecon Group that has been given the assignment to manage the partnership is a reputable international telecommunication consulting company from Germany with a good track record in this domain".
Source: Foroyaa Newspaper Burning Issue
Issue No 108/2007, 14 - 16 September 2007
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