Govt appoints KPMG to advise on $150m AirtelTigo debt crisis

The government has engaged the international audit and advisory firm KPMG as a transaction advisor to determine the future of AT Ghana, the state-owned telecommunications company burdened with a debt of over $150 million.

The decision follows a standoff between AT Ghana and its tower operator, ATC Ghana, over unpaid charges, which led to the disconnection of power to AT’s nationwide radio access networks last week, a move that nearly plunged over three million subscribers into a nationwide blackout.

Safeguarding consumers
To avert the crisis, the Minister of Communication, Digital Technology, and Innovations, Samuel Nartey George, announced that the government, through the National Communications Authority (NCA), had directed AT and Telecel Ghana to establish a national roaming agreement to ensure service continuity immediately.

“It is important to note at this point that all of AT’s services, and I’ll be clear here, voice, SMS, data, and AT Money remain intact,” the Minister assured.

He praised the technical teams of both operators for their “exceptional skill and commitment” in executing the integration under difficult circumstances, describing it as proof of the expertise within Ghana’s telecom industry.

Mr George disclosed that KPMG had been given 60 days to complete its advisory work, which would cover AT’s restructuring and the government’s shareholding in Telecel Ghana. The objective, he stressed, was to build a strong second operator to rebalance a market long dominated by MTN.

Not a merger
Addressing media speculation, the Minister clarified:
“This is not a merger. It is also not an acquisition.
We are dealing with a faux-merger situation and the work of the transaction advisor. For emphasis, I repeat, what is happening and playing out is not a merger and neither is it an acquisition.”

The final pathway for AT Ghana, he said, would be based on KPMG’s recommendations and the government’s subsequent decision. Until then, he urged stakeholders, including subscribers, tower companies, suppliers, and creditors, to await clarity on debts, services, and the company’s future.

No job losses
On staff welfare, Mr George was emphatic that jobs were secure.

“The government will ensure that the approximately 300 permanent staff of AT retain their employment. There will be no job losses. I have already met with the staff and offered them assurances in this regard,” he said.

He added that KPMG had also been tasked to consider the fate of over 200 contract workers.

“I am fully aware of the gravity of the current situation for the workers, their families, and their dependents, but I remain committed on behalf of the government to protect them from any adverse situation,” the Minister noted.

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