Mthuli Ncube now looking into Telecel issue

By Staff reporter | 07 May 2019 at 21:19hrs
Mthuli Ncube
After TechnoMag pressed the finance minister, Prof Mthuli Ncube last two weeks on why the government is allowing an asset like Telecel Zimbabwe to crumble down and ultimately lose stake due to contractual violation over non-payment, it seems the government has woken up to the reality.

The finance minister has written to the ministry of ICT, Postal and Courier Services, forcing the perm secretary to give a full report on the Telecel issue as the government moves in to prioritize full payment of the asset, TechnoMag has learnt.

The Zimbabwe government had only extended $21 million towards Telecel Zimbabwe payment and it seems the contract could be violated due to non-fulfilment the payment, three years down the line, with an outstanding $19 million still to hit their account.

Vimplecom who are the legal owners of 60% stake of Telecel International is yet to give the government the shareholder certificate, as they are not yet fully paid up.

After TechnoMag pressed the finance minister last two weeks on why the government is allowing an asset like Telecel Zimbabwe to crumble down and ultimately lose stake due to contractual violation over non-payment, it seems the government has woken up to the reality.

The finance minister has written to the minister of ICT, Postal and Courier Services, demanding the perm secretary to give a full report on the Telecel issue as the government moves in to prioritize full payment of the asset, TechnoMag has learnt.

The Zimbabwe government had only extended $21 million towards Telecel Zimbabwe payment and it seems the contract could be violated due to non-fulfilment the payment, three years down the line.

The minister earlier on was honest enough that he was not appraised of the situation, professing pure ignorance on the matter, and we are so much impressed by the new efforts he has undertaken to get the matter fixed, hopefully with some urgency.

Vimplecom who are the legal owners of 60% stake of Telecel International is yet to give the government the shareholder certificate, as they are not yet fully paid up.

Technically this means that the government does not yet legally own the 60%, as the money they paid is still being held in an escrow account.

An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction. This means a trusted third party will secure the funds in a trust account. The funds will be disbursed to the merchant after they have fulfilled the escrow agreement. In this case, Vimplecom, is yet to receive the payment.

The balance that was paid is however yet to even reach the Escrow account, it is still to hit the Nostro account as RBZ is still running dry to fund all the international transactions.

There were however other proposals that suggest that Vimplecom could be paid via minerals and had concerted to such an agreement, we, however, could not independently confirm this ascertained.

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