For whom Awami League government works for - Indian interest or Bangladeshis?

[Stumper]

JS panel asks for details on Warid, Airtel deal
Says govt incurred losses as Warid allowed to sell stake for low price

Staff Correspondent

The parliamentary standing committee on the planning ministry on Sunday asked the Bangladesh Telecommunication Regulatory Commission to submit a report on how 70 per cent of the shares of mobile operator Warid had been sold to India’s Bharti Airtel only for Tk 70 lakh.
The committee chairman, Oli Ahmed, after a meeting, told reporters they had discussed media reports that Warid had been allowed to sell its 70 per cent stake to Airtel only for Tk 70 lakh.
‘The country and the government sustained a loss as Warid was allowed to hand over its share for such a low price,’ he said.
The government lost millions of dollars in transfer fees as the commission allegedly allowed Warid, which invested more than $600 million in the country, to hand over 70 per cent of its stake to Airtel for only Tk 70 lakh in recent times.
The standing committee also suggested that the posts and telecommunications ministry should bring Voice over Internet Protocol under the jurisdiction of law.
It will help to increase revenue earnings of the government as well as provide internet users with better services, the committee observed.
The meeting also recommended making capable the state-run mobile operator Teletalk so that it can survive in the competition with the private mobile operators.
Committee members planning minister AK Khandoker, Nawab Ali Abbas Khan and Azizul Haque Chowdhury attended the meeting.
The meeting discussed in details different projects undertaken by the ministries of land, posts and telecommunications and social welfare.
As for land ministry, it decided that the ministry would inform the committee in three months of the steps it has taken to reclaim illegally occupied government land, how much land has so far been reclaimed and whether any new incident of land occupation has taken places in recent times.
As for social welfare ministry, the meeting decided that proper monitoring should be ensured so that the registered non-governmental organisations properly follow the conditions of registration.

Business

I was really curious as to how can a mobile operator be acquired for a mere 70L TK as suggested by some BD members here ...And was digging into some rational behind it (I mean .. that price can not even buy me a house ... leave alone a company!).

So as it stand, the Abu-Dhabi based company has a Bank liability of around 350M USD as per books. Bharti has agreed to take up all the liabilities of Warid and thats where that figure of 350M is cropping up.

:The Daily Star: Internet Edition
Minister, regulator justify Airtel-Warid deal
Star Business Report

A minister and the telecom regulator yesterday justified the deal between Bharti Airtel and Warid Telecom, brushing aside all the questions that surfaced in Bangladesh's telecom industry centring the agreement.

They said all the things happened in line with the law.

Telecom Minister Rajiuddin Ahmed Raju and BTRC Chairman Zia Ahmed said Abu Dhabi Group, which was unwilling to invest anymore in Warid because of its financial crisis, has taken Bharti Airtel Ltd as a 'strategic alliance' to run the mobile operator.

Bharti Airtel has already received permission from regulatory body to acquire 70 percent shares in Warid. However, some legal aspects raised questions among the telecom industry people.

"Warid became financially burdened. We wanted to allow new investment in the company so it can run business," said the minister.

"It's not that Warid will transfer its licence to Bharti," said the BTRC chairman. "Bharti Airtel will be the strategic partner of Warid by acquiring its 70 percent stake."

The minister and the chairman of Bangladesh Telecommuni-cation Regulatory Commission (BTRC) were replying to journalists' queries after attending a seminar on 'Achieving 2021: A Digital Age for Bangladesh' organised by GSM Association at Radisson Water Garden Hotel in Dhaka.

When asked how much money Bharti agreed to pay for the 70 percent stake in Warid, the BTRC chairman said Bharti will invest $300 million in network development of Warid. The company however will pay $100,000 to Warid for the 70 percent share transfer, as Bharti is going to take all its liabilities.

About the justification for paying $100,000 for 70 percent shares, Zia said: "If Warid agrees to accept $100,000 as token money for the stake, we have no problem."

It can happen as Warid is suffering negative equity with huge bank loans, he added.

Warid's existing bank liabilities are worth around $350 million, said an official of the operator, which bought the GSM (Global System for Mobile Communication) licence for $50 million in December 2005.

"In line with the deal, Bharti is going to take all the liabilities of Warid. So, the amount seems insignificant," said a Warid official.

According to a letter of BTRC issued on January 4 to the operator, "The commission has accorded permission to Warid Telecom International Limited to form a strategic alliance with Bharti Airtel Limited (directly or through subsidiary)."

"It approved the proposed 70 percent shareholding of Warid Telecom International Ltd being acquired by Bharti Airtel Limited (directly or through subsidiary) through transfer of existing shares and the issuance of new shares of Warid Telecom International Ltd."

The letter also said: "The commission has approved the proposed amendment to vest licence in the sole name Warid Telecom International Ltd by replacement of the word 'Warid Telecom International LLC and/or its hundred percent subsidiary in Bangladesh' with the words 'Warid Telecom International Ltd' in clause 1(j) of the mobile operator licence issued on December 20, 2005 and other places where so required".

However, as per the Telecom Act 2001 (section 37) and Warid licence (section 29, clause 29.1), "The licence and any right acquired hereunder shall not be transferable, wholly or partly, and such transfer, if any, shall be void."

 

[TopCat]

I smell serious irregularities in this deal. I bet Bharati paid Warid in Dubai and showed and very miser amount 70 Lk through BD banking only to evade fees. Even a license cost 400 mln in Pakistan or in India let alone network. The liability in queation here are the one taken from mostly BD and international banks and scheduled to pay from income generated from operation. All companies have liabilities and I belive anybody will be willing to pay more than a billion dollar for Warid's 70%.

AK khan sold 30% of Aktel for 1800 crore taka, Singtel bought 40% of Citycell for more money that I forgot. These companies have far more liabilities than Warid.

 

[Desi Sher]

VAT to tution fees bcoz of India?

 

[ek_indian]

If I am correct, idune was the peson who posted the article that Indian truck drivers are source of AIDS!!

Anyways, Awami League won there. Since most of the people voted for them, you are actually raising fingers on fellow Bangladeshis on their loyalty towards BD. But again, since when logic is the part of any such theory?

 

[Stumper]

I smell serious irregularities in this deal. I bet Bharati paid Warid in Dubai and showed and very miser amount 70 Lk through BD banking only to evade fees. Even a license cost 400 mln in Pakistan or in India let alone network. The liability in queation here are the one taken from mostly BD and international banks and scheduled to pay from income generated from operation. All companies have liabilities and I belive anybody will be willing to pay more than a billion dollar for Warid's 70%.

AK khan sold 30% of Aktel for 1800 crore taka, Singtel bought 40% of Citycell for more money that I forgot. These companies have far more liabilities than Warid.

Well, i wont call it irregularity....How do you suggest they would have shown that extra cash (paid in dubai) as ? ....Airtel would have got screwed by Auditors in India. But yes .... Warid should have got more money than what they are showing on record.

As for Valuations : They paid 10.7B for 15 countries Zain deal. Out of this 1.7 was debt obligations. 7.9B was cash and other shares over 1 year. Regarding Billion for 70% .... Maybe .. if your customer base is 45M or above.

 

[Skies]

Khaleda vows to resist Indo-Bangladesh pacts
By Mizan Rahman
Dhaka

Gulf Times ? Qatar?s top-selling English daily newspaper - SriLanka/Bangladesh

Opposition leader Khaleda Zia yesterday vowed to resist implementation of all anti-Bangladesh agreements the government of Prime Minister Sheikh Hasina has signed with India.
She asked the student community to prepare for ousting the “present autocratic government,” claiming this may even lead to bloodshed.
“You’ve overthrown one autocrat (H M Ershad). Prepare for ousting another autocrat,” she told a huge student rally at a ground close to the Soidabad Rail Gate in Sirajganj district town.
The rally was organised by the Jatiyatabadi Chhatra Dal (JCD), the student wing of the Bangladesh Nationalist Party, to mark Jihad Day.
Naziruddin Jihad, an activist of the Jatiyatabadi Chhatra Dal, who hailed from Ullapara in Sirajganj, was shot dead during the anti-Ershad movement on October 10, 1990.
Khaleda, who is the chairperson of the Bangladesh Nationalist Party, alleged the Awami League government had initiated agreements one after another with India without securing anything for the country.
She pointed out that India was not solving any of the outstanding issues. India has turned Bangladesh into a vassal state, she alleged.
The Hasina government has allowed India land transit to carry Indian goods to the seven north-eastern Indian states but without getting any royalty. It has also offered New Delhi the use of Chittagong and Mongla ports, Khaleda said.
The former prime minister alleged that the present autocratic regime was claiming the lives of people everyday and more sacrifices would be needed to topple the government.
Khaleda revealed her party would announce “peaceful democratic programmes against the repressive, oppressive and killer government” as the BNP believes in peace, stability and development.
The opposition leader urged the student community to join the movement to save the country and ensure the welfare and security of the people.
During her 45-minute speech, Khaleda criticised the government for its “failures” in various sectors including power, gas and water, price-hike and unemployment, as well as for the political repression.