Big names in the TTCL-Airtel shares controversy

Dar es Salaam. New details have emerged of the controversial transfer of Tanzania Telecommunications Company Limited (TTCL) shares to Celtel Tanzania (now Airtel Tanzania) as the board of the state-run telecoms dug in at a press conference yesterday, vowing war to recover the “lost shares”.

The spotlight turned on a board meeting, which is being accused of sealing an eyebrow-raising deal that President John Magufuli said was marred by underhand dealing.

TTCL board chairman Omar Nundu and CEO Waziri Kindamba said yesterday the company had officially embarked on a “war to recover the firm’s lost shares”.

“We understand that it will not be an easy ride but we believe we have all the facts and evidence to support our claims,” said Mr Nundu.

The big names in the share transfer saga came to light yesterday, though neither Mr Nundu nor Mr Kindamba could reveal them. These are some of the key players who were in the TTCL board when the shares were transferred, The Citizen understands. They include Mr Omar Issa, who was Judge Joseph Warioba’s proxy, and chair of the fateful meeting.

Also in attendance was the then-Treasury Registrar Agnes Bukuku, Yona Killagane, Moez Daya (who also represented Tito Alai), Edward Mwakyembe (who was also proxy for Felix Mrema), Gilder Kibola, who was the company secretary and the then TTCL chief executive officer George Mbowe. Warner Ruessel participated via teleconference.

The board is on the spotlight for approving the transfer of TTCL’s 10.25 million shares to an investor Mobile Systems International (MSI), which boosted its share to 60 per cent against 40 per cent of the government.

Reached for comment yesterday, Judge (rtd) Joseph Warioba said the board was simply implementing the requirements of a contract that was signed between Celtel and the government.

“The contract was between the government and Celtel, so it would be better if you talked to them,” he said.

And yesterday, Bharti Airtel said it had not received any official communication from the government over the issue.

“Whilst in the absence of any notice or communication from the government of Tanzania we cannot comment on the basis of the news reports, we would like to clarify that the mentioned transaction of 2005 was well before the acquisition of the 60 per cent shareholding in Celtel Tanzania Limited from Zain to a Bharti Airtel group entity in June 2010,” it said in a statement.

“In addition, we would like to highlight that our acquisition of the said 60 per cent shareholding in June 2010 was in full compliance with and following all approvals from the Government of Tanzania,” Bharti Airtel said in a statement yesterday.

The company said it would work closely with the government and take all steps necessary to resolve any doubts or concerns to the satisfaction of all of the stakeholders.

However, the TTCL board chairman said the company was seeking to retain its ownership lost in 2005 in a fresh bid to compete in the lucrative cellular mobile market.

According to latest figures from the Tanzania Communications Regulatory Authority (TCRA), TTCL currently commands a mere one per cent subscription share in a market where seven operators scramble for 40 million active subscriber identification module (Sim) cards.