'Govt should not allow Telecel to appoint a Swedish national' - AAG

Published: 10 June 2013

THE Affirmative Action Group says Government should not allow Telecel Zimbabwe to appoint Swedish national and Canadian resident Mr John Swaim as interim managing director of the mobile phone operator.

It argues the appointment of Mr Swaim, who looks set to assume the reins as MD for the third time on an interim basis following the resignation of Mr Francis Mawindi under unclear circumstances, is meant to serve and protect the interests of controlling shareholder Orascom.

"It is not difficult to see how this is done, which is why we believe there is no need for Government to allow the return of John Swaim as managing director of the company," said AAG executive director Mr Davison Gomo.

The group alleged that the preference for foreign executives was designed to protect controlling shareholder interests including by way of alleged routing of all of Telecel's international calls via its subsidiary even though this is believed to be expensive.

AAG has also demanded an explanation on why equipment and material supply deals are allegedly given to Middle Eastern firms with links to the controlling Egyptian shareholders.

Further AAG demanded answers why most consultants for Telecel are supplied by Orascom at suspected gross premiums and questioned the possible impact of many strategic decisions made in Cairo.

"There is absolutely no value that this foreign preferred MD is going to bring to Telecel.
"His real role is to make sure that decisions made reflect and serve the interest of his masters largely foreign and, of course, to some extent local," Mr Gomo added.

Egyptian company Orascom indirectly controls Telecel Zimbabwe through the telecoms giant's subsidiary, Telecel Globe, which holds 60 percent stake in the local mobile phone operator.

The balance is owned by Empowerment Corporation, a consortium of indigenous investors largely controlled by exiled businessman James Makamba.

AAG has questioned how Mr Makamba, the Telecel Zimbabwe chairperson, came to hold the biggest chunk of shares reserved for and once held by a number of individual indigenous investors.

It also questioned how Orascom acquired 60 percent stake in project that also had empowerment of locals at the heart of its objectives.

Telecel Zimbabwe has over the past few years courted controversy over its perceived preference for expatriates in most senior management positions, a claim the firm has dismissed as not entirely true arguing it is an equal opportunity employer.

AAG claims the controversy that has dogged Telecel lately is a result of its lopsided shareholding, which has not been corrected since falling due in 2001, in favour of Orascom, as well as its management contract, which give it swaying influence.

Besides, the Indigenisation and Economic Empowerment Act requires transfer of at least 51 percent of foreign-owned firms' shareholding to indigenous investors.

Asked to provide answers to most of the claims and issues raised by AAG, Mr Mandimika said after internal consultations Telecel had decided not to comment.

"I have consulted internally and the Telecel management has decided not to comment on the questions raised," he said.

Telecel recently hogged the limelight after Mr Mawindi resigned as the chief executive under unclear circumstances less than a year of assuming the hot seat.
- herald