Jibrin Abubakar
4 July 2008
Transnational Corporation yesterday said it is not selling Sat-3 communication cables, the company's spokesman Dayo Ojo told Daily Trust.
He was reacting to allegations by some management staff of the Nigeria Telecommunication (NITEL) who were sent on compulsory leave that Transcorp was planning to sell Sat 3.
"The rumours are to distract Transcorp from focusing on the resuscitation of NITEL from its current rot. We challenge anyone who has any information to publish it. Transcorp will remain focused on delivery promises of a profitable NITEL," he said.
He also thanked NITEL employees for their dedication and patient.
Sat-3 sub-sea communications cable is the Nigeria's major broadband link to the outside world.
Meanwhile, Transcorp had told Daily Trust Tuesday that its decision to send NITEL management staff on administrative leave is part of its critical initiative to return the company to profitability.
It also carried out that action in order to assure a fair and equitable valuation prior to sale to core investors.
Transcorp said over the last several months, it has made great progress in developing transformation plans to return NITEL to prominence and to ensure a successful sale of 51 percent to a new investor.
It said due to obstacle from the board and management of NITEL, it become impossible to go from plans to implementation of initiatives that will result in positive changes at NITEL.
According to it: "If nothing is done, NITEL's operation will continue to deteriorate and positive."
Last month the company announced the suspension of all funding of the NITEL for 30 days.
Mr.Ojo had said that the initial finding of a team of financial experts sent to NITEL discovered that the financial system of the telecommunication company is, "ineffective and loose."
"The Group Managing Director has sent in a team of accounting experts to broker financial system of NITEL, especially the billing system. Initial finding shows that the financial system is ineffective and loose. Therefore the GMD has directed a thorough check to stem further loses. This will result in the suspension of all funding for the next 30 days to ascertain the extent of financial damage done to the organization," he said.
Transcorp bought a 75% stake in 2006 in both companies for $750 million during a privatization sale. It could only pay $500 million and acquired 51% stakes in both companies. The government held the remaining 49%.
The government recently said that Transcorp will continue to hold 51% in NITEL and MTEL and manage the organization until a new core investor is found.
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