Telecel risk losing its Zimbabwe operating licence

Published: 10 June 2013

Government says Telecel Zimbabwe risks losing its operating licence if it fails to comply with the Indigenisation and Economic Empowerment Act.

As the mobile operator's saga unfolds, government through the Ministry of Youth Development, Indigenisation and Empowerment has written to the Ministry of Transport, Communication and Infrastructural Development for consideration on the resistance by the mobile operator to comply with the laws of the land.

Minister of Youth Development, Indigenisation and Empowerment, Saviour Kasukuwere said his ministry has already made its decision by informing the parent ministry to take action with the mobile operator.

Kasukuwere further hinted that there has been a general consensus between government departments that there is no licence renewal for the mobile operator if it does not comply with the indigenisation law.

Contacted for comment, Telecel Zimbabwe communications and branding director Obert Mandimika said he is not aware of any communication between his organisation and government, indicating that the best person to comment was the company legal advisor, Angeline Vere, who could only be reached on a landline.

Mvere could not be contacetd for a comment.

Mobile operators' licences are set to expire at the end of June which will enable them to fork out US$100 million to get a new 10 year operating licence.

Information gathered shows that the Ministry of Transport, Communication and Infrastructural Development has already written to the mobile operator giving them a 14-day ultimatum to comply with the laws of the land failure of which will prompt government to revoke the licence.

Telecel Zimbabwe is owned 60 percent by an Egyptian firm Orascom with 40 percent being held by indigenous Zimbabweans and complying with the Indigenisation and Economic Empowerment Act has taken long than anticipated.

Recent developments that have seen the sacking of a local chief executive officer Mr Francis Mawindi has prompted empowerment groups to implore relevant authorities to take action against the firm.
- zbc

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