3rd condition of fresh NCC’s terms on sale of 9mobile unfair to Teleology—Analysts
Even though Teleology Holdings on Wednesday, beat deadline for the initial payment of $50m to rest Smile’s media campaigns, a serious crack in the genuineness of the Nigerian Communications Commission (NCC) in driving the sale of 9mobile has emerged following a letter written by the board Chairman, Senator Olabiyi Durojaiye, to the Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele.
The first fear was the suddenness of the letter coming after a winner has emerged to crop up strange rules of engagement that will ensure not only the transparent sale of 9Mobile but also the sustenance of its business after sales.
The second anxiety that sounds like a plot designed to perfect elimination by substitution is the third condition which states “that the company that will take over should have adequate technical infrastructure on ground”. The scenario tends to suggest that Teleology is the target after all.
According to an industry expert who pleaded anonymity, “Stakeholders started to suspect a gang up from the fact that the letter dated March 16, 2018, came barely one month after a preferred bidder, Teleology Holdings Limited was announced, knowing full well that it is a new investor in Nigeria”.
Analysts argue that introducing such a condition at a time a preferred bidder which was originally qualified to bid had been announced leaves much to be desired.
Besides, they also posit that knowing full well that that Teleology is a special purpose vehicle (SPV) set up to bid and possibly rely on existing infrastructure to manage and reposition 9mobile with forex inflow from abroad, smuggling in another condition which resembles shifting a goal post after the end of a football match tends to show that the Commission may be angling for a particular bidder after all.
They query why the controversial rules of engagement contained in the NCC’s letter, are coming at this time.
The letter, signed by NCC Chairman, Senator Olabiyi Durojaiye was dated March 16, 2018, and copied the Interim Chairman of 9Mobile Board. Senator Durojaiye implored the CBN Governor to use his “good offices to take into consideration all the issues raised.”
Senator Durojaiye’s letter in full: “I write to call your attention to the stand of the Governing Board of the Nigerian Communications Commission (NCC) with regard to the on-going discussions on the sale of 9-Mobile telecoms company,” meaning that the three new terms were suddenly cropped up by the Commission to achieve a purpose that is still veiled.
The NCC Chairman in the letter said that the regulator “was keen on obtaining an up-date on the situation of things in the company” as it appears that “the creditor banks only focus essentially on repayment of outstanding loans while the interest of the Commission is the continuity of the company for the betterment of the telecom industry, subscribers, labour force, and the interest of Nigeria as a whole.”
Even though the NCC letter is partly in recognition of the fact that 9Mobile is indebted to a consortium of banks that are regulated by the CBN, observers say it was very clear ab-initio to bidders that any winner must be ready to come on board with deep pocket, strong infrastructure and technical expertise.
Pundits say, terms and conditions for the sale of any enterprise are first and foremost documents that must be made available to prospective bidders and should not be introduced at the tail-end of the bidding process as NCC board chairman has just done.
The letter, therefore tend to rubbish all the assurances earlier made by the NCC from the beginning that it is following all the process.
Other two terms and condition contained in the letter include “that whichever company would qualify as successful bidder to take over 9Mobile has the technical competence apart from financial capability to turn round 9mobile and not further compound its problems,” and that the successful bidder should come in with substantial funds (FOREX) to sustain the industry not just recycling funds facilities already within the economy”.
Efforts to find out why such three conditions are coming at the end of the bidding process from the NCC on Wednesday failed even as the letter espoused the three criteria that will guide the emergence of a preferred bidder for 9Mobile.
Observers say in other climes, such letters usually come before the bidding process starts and not when a preferred bidder has been named or about to take over the embattled company.
