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Malawi Communications Regulatory Authority (Macra) has stopped Malawi Mobile Limited (MML) to operate the third GSM network in the country, affecting Ericsson’s $25 million deal with MML to supply equipment, Macra director general Evans Namanja said Friday.
But former Macra board chairman Abdul Pillane this week described the decision as “fishy”, claiming that MML with the help of Ericsson had already paid $300,000 in fines and was ready to start operations.
Sweden’s Ericsson was exclusively going to supply MML with services, hardware, software and infrastructure for the implementation of its GSM network over a three-year period.
Namanja, who dismissed Pillane’s allegation, insisted that MML was given enough reminders since they got the licence in April 2002.
"To say that they have paid the money is not true. To who did they pay this money? Macra knows nothing about the Ericsson deal and we are not interested because all we wanted is for them to roll-out as planned in their bid document," Namanja said.
Pillane, in an earlier interview this week, accused Namanja and Attorney General Ralph Kasambara of blocking the MML deal by dissolving the Macra board and, therefore, making every decision by the board invalid.
“As a board we met and extended the contract to October 31, 2005 after they paid $100,000 in fines and another $200,000 to start rolling out. So tell me, what else can force someone to block such a deal other than the fact that there is something fishy?”
“Why was the letter from the Attorney General delivered to us by Mr. Namanja? Why did the AG backdate the letter to March 24? Is it because he knew that by doing that the extension was gong to be invalid? Why did the AG rush into writing the letter without consulting with OPC or Statutory Corporations or Dr [Charles] Matabwa?” asked Pillane.
On March 24, 2005, the AG wrote a letter to all former board members asking them to submit CVs within 14 days. They did not submit CVs within this time and government has since dissolved the board.
Last week Matabwa, Chief Secretary for the Civil Service, described the AG’s letter as "out of line".
But documents sourced by Nation Online show that MML failed to roll out as planned from the various reminders from the Ministry of Information and Macra.
The first reminder was in February 2003, which was 10 months after the licence was issued on April 19, 2002. Another one came on April 16, 2004 from Ministry of Information reminding both Macra and MML that the due date to roll out as per agreement was December of 2002. In August 2004, Macra wrote MML giving them another chance.
The last reminder was on February 9, this year after the Macra board met and decided to give MML 90 days in which to roll out or have the licence revoked.
“Having noted your substantial and continued breach of your licence terms and conditions and in accordance with Clause 21 of your licence, you are hereby given 90 days notice...to pay all licence fees and penalties due to date and to roll out your work in default whereof your licence shall automatically stand revoked,” read the letter.
The letter also warned of some unspecified action against MML if they failed to roll out.
In an interview, the Macra boss disclosed that since MML has failed to put in place offices, structures, instal equipment or put anything on the ground, government plans to re-advertise for another company.
“We are going to meet and decide on when to re-advertise for another one and if MML feels they can do it again, they are free to do so,” Namanja said.
Malawi is one of the countries with the lowest GSM penetration in Africa with around 185,000 cellular phones in use in a population of around 12 million.
Currently there are two mobile phone operators in the country. These are Telekom Networks Malawi — in which Telekom Malaysia holds a 60 per cent stake and state-run ground phone company Malawi Telecommunications Limited 40 per cent — and Celtel Malawi Limited, owned by the Netherlands-based Celtel group, now Africa’s third largest mobile phone company.
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