Minister for Communication, Digital Technology, and Innovation Samuel Nartey George has strongly criticised the previous government’s acquisition of Airtel Tigo — now rebranded as AT — describing the move as “ill-informed and reckless.”
Speaking at a press briefing in Accra on Wednesday, April 9, the Minister condemned the reported $1 transaction used to acquire the company, calling it “disingenuous and unpatriotic.”
“The previous government acquired Airtel Tigo and rebranded it as AT with a reported purchase of $1. Nothing could have been more disingenuous and unpatriotic,” Sam George said. “When the company was bought, its debt portfolio stood at $400 million, and its revenues could not meet its monthly overheads.”
He noted that the company’s infrastructure was outdated, and the previous operators—Bharti and Milicom—had failed to make any significant investments over a five-year period.
“The core and dealing platforms have reached the end of life and both Bharti and Milicom, which operated Tigo, had failed to make any meaningful investments in both companies over the preceding five years,” he explained.
Sam George argued that the acquisition was not in the country’s best interest and reflected a failure of leadership.
“The decision to step in at the time can best be described as ill-informed and reckless. It was an abdication of responsibility by the then administration and minister to the best interest of Ghana,” he asserted.
The Minister revealed that following a debt restructuring agreement, AT’s current debt portfolio stands at $200 million. However, the company continues to post monthly losses of GHS20 million.
“Today, after a debt restructuring arrangement, the debt portfolio at AT sits at about $200 million, rising every month as the company makes a monthly operating loss of GHS20 million. The bleeding needs to be thrashed, and urgent steps are underway to engage the company’s creditors in negotiating haircuts to ensure the company’s viability,” he said.
He reassured the public of government’s commitment to stabilising the company, protecting jobs, and ensuring its long-term survival.
“I will be updating the nation in the course of this quarter on the policy directions the ministry will be taking as the sole shareholder to ensure the security of the jobs of employees and the long-term survival of the business,” Sam George stated.
Read also…
AT debt portfolio stands at $200m – Sam George