MTC BEE under spotlight Augetto Graig Thursday, July 10, 2014 - 08:00 News The multi-million dollar black economic empower alienation of shares in Namibia’s premier cellular service provider MTC, recently muted in Parliament, has been shrouded in a veil of secrecy after politicians sent the plan back to the standing treasury committee headed by Finance Minister Saara Kuugongelwa-Amadhila. This week, Information and Communication permanent secretary Mbeuta Ua-Ndjarakana finally shed some light on the much anticipated development, adding that moves to dismantle MTC holding company Namibia Post and Telecommunication Holdings (NPTH) have also been send back to a cabinet committee headed by Minister Joel Kaapanda and are expected to be resubmitted during the next parliamentary session. MTC spokesman Tim Ekandjo reiterated that Portugal Telecom owns 34% shares in the company and would have to agree to the share alienation. All other questions he referred to NPTH. For her part, NPTH acting CEO Christa Muller said that the company secretary or the board chairman would respond to questions sent. Board chairman Henri Kassen was only prepared to say the move is subject to consultations, “and more details might be shared at a later stage.” In May, the Minister of Information and Communication Technology, Joel Kaapanda approached Cabinet to approve the share alienation and in the process create a trust which would control 10% of MTC shares while the other 5% would be put on public offer for business empowerment. Since the company was created in 1995, 15% of the company’s shareholding has been reserved for black economic empowerment. Government holds majority shareholding of 51% through NPTH, while MTC’s other shareholder Portugal Telecom has 34%. Having secured consent for the move in principle from Portugal Telecom, the ministry is trying to set up the 10% trust to benefit students, disabled persons, early childhood development, orphans and vulnerable children as well as senior citizens. As for the other 5%, it is not yet known whether the bene-ficiaries of the black economic business empowerment would be expected to buy the shares. Based on MTC’s share market value in September 2012, total equity was about N$1,132 million and 15% would amount to N$170 million of which N$113 million would go to the trust and about N$57 million worth of shares to the empowerment business beneficiaries.
Posted on: Mon, 14 Jul 2014 16:00:00 +0000
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