Sunday, February 1, 2015

GOVERNMENT RECLAIMS 100 PER CENT SHARES IN TANZANIA TELECOMMUNICATIONS COMPANY LIMITED

Government reclaims 100 pc shares in TTCL ownership



FINALLY, the long-drown-out blame game between Tanzania Telecommunications Company Limited (TTCL) and Bharti Airtel over shares has ended, with the latter surrendering its 35 per cent stake it had in the state-run telecom firm.

The Deputy Minister for Communication, Science and Technology, Mr January Makamba told the National Assembly on Saturday that the government will now own the company fully.

Mr Makamba noted that the move will allow the government to inject more funds for the company’s development, thus making it effectively offer services to its customers.

“We have held talks with Airtel and I am glad to tell the House that now the government will have 100 per cent share in TTCL as the latter has agreed to surrender its shares,” he said.

The deputy minister also refuted claims published by some media outlets that the company was running bankrupt, insisting that firm’s growth was on sound footing. He said that between 2010 and 2013, TTCL’s revenues grew at praiseworthy speed.

For instance, he pointed out that in 2010 it generated about 80bn/- and in 2013, the company’s revenue increased to 93bn/-. “The company also managed to cut down losses from 28bn/- recorded in 2010 to 16bn/- in 2013,” the Deputy Minister noted.

Chipping in, Finance Minister, Ms Saada Mkuya Salum said that government’s talks with Bharti airtel over the matter took long time due to the former’s laxity.

She, however, said that the government negotiation team agreed with Bharti Airtel that the state will pay 14bn/- as compensation to allow the firm truly become state owned.

“Previously, Bharti Airtel wanted to be paid 21bn/- as compensation but after negotiation with our team, the amount was later reduced to 14bn/-. We are going to pay this,” she noted.

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