About 12 telecommunication companies in the country are owing to the National Communications Authority (NCA) a total of GH¢213,656,226.27.
A report of the Auditor General said the telco’s debt to the NCA which is under the Ministry of Communications and Digitalization, is between 2012 and 2020.
The companies cited in the report as owing the government included Glo Mobile Ghana Limited (Globacom), Airtel-Tigo Ghana Limited, Vodafone Ghana, Vodafone Business Ghana, Scancom Plc (MTN), Telstar Communication Limited, Harmony Telecom Ghana Limited, D.Com Ghana Limited, Call Between Limited, K-Net Limited, Surfline Communication, and IS Internet Solutions.
The report, which covers accounts of Public Boards, Corporations, and Other Statutory Institutions for the year ended December 31, 2020, disclosed that the outstanding payments relate to international gateway services, microwave services, licenses, international incoming traffic services, microwave link, license renewal, Vsat services and penalty for non-compliance with quality-of-service requirements.
Globacom
The report indicated that revenue due from Globacom included $736,330.76 and GH¢17,014,402.26 accrued as a result of various services provided by NCA, including licenses issued to Globacom Ghana to enable it to operate within Ghana’s telecommunications space.
Section 91 of the Public Financial Management Act 2016 (Act 912) requires that the Board of Directors of a public corporation governed by this Act shall ensure the efficient management of the financial resources of the public corporation, including the collection and receipt of monies due to the public corporation.
“We also noted that an amount of GH¢2,292,004.93 included in the revenue totaling GH¢17,014,402.26 due by May 2018 was outstanding as of July 2019,” report pointed out.
The Auditor-General recommended to the management of NCA to increase supervision and tighten controls in the area of revenue management/accounting to avert the likelihood of the above anomaly repeating itself.
It also urged the management to recover the unpaid balance of GH¢17,014,402.26 and US$736,330.76 with interest at the prevailing Bank of Ghana Treasury bill discount rate with evidence of recovery for audit certification.
The report indicated that NCA management, in response, said it was aware of the indebtedness by Globacom and that “continuous effort is being made to retrieve all outstanding amounts owed the Authority, including interest charges as per section 83(2) of the Electronic Communications (Amendment)Act, 2009 (Act 786).”
It noted, however, that Glo had communicated to the NCA that it had challenges with its cash flow and that the company was working to improve upon its payment, intimating that “a new payment plan has been approved by the Authority effective July 2019 for the settlement of all debt owed by Glo.”
“Glo Mobile Ghana Limited (Glo) has since settled $386,355.99 out of the $736,339.76 on 29th March 2019 by a transfer into the Authority’s Account 1028631540037 with the Bank of Ghana. Additionally, an amount of GH¢1,160,840.74 out of the GH¢17,014,402.26 have also been paid by Glo on the 30th of October, 2019.”
According to the report, the auditors noted that other revenues due from Globacom are GH¢19,927,559.96 and $14,301.73 covering a period between 2012 and 2020 for services rendered by NCA.
Vodafone
The report said auditors noted during their auditing that an invoice with serial number QOS111804 dated November 23, 2018, and referenced NCA/GT/VOL.46 with a face value of GH¢ 8,890,000.00 due for payment on December 21, 2018, in respect of billing for September 2018 on account of non-compliance for quality-of-service requirements was as of July 2019 not honored by Vodafone Ghana.
The report entreated management of NCA to recover the unpaid amount with interest as stated in Section 83(2) of the Electronic Communications Act, 2009 (Act 786), and further recommended to management to ensure that all amounts owed the authority under transactions of similar nature are retrieved from the beneficiaries with documentary proof for audit verification.
The Auditor-General noted that NCA management indicated in a response that the amount was in connection with Quality of Service (QoS) sanctions against Ghana Telecommunications Company Limited (Vodafone) for non-compliance with quality-of-service requirements in the third quarter of 2018 for their 3G Licence.
“Vodafone has appealed against the sanctions and the issue is currently before the Electronic Communications Tribunal,” the report stated.
It said Vodafone also owed the NCA $23.5 million for renewal of the license of 900 MHz and 1800 MHz, while Vodafone Business Ghana owed GH¢329,082.50 for microwave link covering 2019 to 2020.
The report added that the $23.5million was due for payment on January 26, 2020, whereas the GH¢239,082.50 was due for payment on April 18, 2020, arguing that Section 91 of the Public Financial Management Act, 2016 (Act 921) requires that the Board of Directors of a public corporation governed by this Act shall ensure the efficient management of the financial resources of the public corporation including the collection and receipt of monies due the public corporation.
On the $23,500,000, the report intimated that Vodafone in a letter dated March 18, 2020, and June 19, 2020, wrote to the NCA requesting for an extension of the due date for payment of the license fee for the renewal of their 2GHz Licence.
“The company has informed the Authority that it is liaising with the Ministry of Finance and partners for the settlement of the amount. The NCA responded in a letter dated 25th March 2020 and granted Vodafone an extension to 24th June 2020 to make payment.
“Vodafone in another letter dated 19th June 2020 wrote requesting for an extension to finalize its negotiations with the Ministry of Finance and partners,” the report further stated.
It said the Authority in a letter dated August 13, 2020, wrote to Vodafone granting their request for an extension up to December 24, 2020, to make payment, whilst Vodafone had requested for another extension and the NCA has granted them up to March 31, 2021, to settle the balance.
Airtel-Tigo
The report also cited Airtel-Tigo Ghana Limited owing GH¢2,100,000.00 for the international gateway license granted in 2015, indicating that the company had written to the Authority and indicated that they had paid the said fees as part of its 1% regulatory fees for mobile services.
“Detail reconciliation is being conducted as part of the revenue assurance exercise being conducted for confirmation after which necessary action would be taken,” the report noted.
The report continued that Airtel-Tigo Ghana Limited also owed NCA GH¢3,540,556.51 for microwave link fees and that a total of GH¢2,655,417.39 had been paid.
“Management is engaging with Airtel-Tigo to ensure the outstanding amount is paid,” the report quoted NCA management as saying.
Scancom Plc (MTN)
The report said Scancom Plc owed the NCA GH¢3.5 million for international gateway license annual regulatory fees in 2014 and said Scancom in a letter dated October 23, 2019, referenced SK/CS/0639/OL/19 to the NCA indicated that the company had paid the said fees as part of their 1% regulatory fees for mobile services.
“Detail reconciliation is being conducted as part of the revenue assurance exercise being conducted for confirmation after which necessary action would be taken,” the report asserted.
Source: Mybrytfmonline/Evans Boateng
