The Rwandese government has initiated insolvency proceedings against Rwandatel, the telecoms operator controlled by Libyan investment vehicle Lap Green Networks, reported local newspaper The New Times.
An official at the registrar of companies was quoted…
The Rwandese government has initiated insolvency proceedings against Rwandatel, the telecoms operator controlled by Libyan investment vehicle Lap Green Networks, reported local newspaper The New Times.
An official at the registrar of companies was quoted saying that the move was aimed at liquidating the operator after audited reports revealed it was technically insolvent.
If the court rules in favour of the government, Rwandatel could be closed down.
Earlier this month, the Rwanda Utilities Regulatory Agency (RURA) revoked Rwandatel’s mobile licence for failing to fulfil licence obligations in terms of investments, coverage, rollout and quality of services.
The Minister of Finance and Economic Planning, John Rwangombwa, was quoted saying that based on the reports the registrar got from RURA, Rwandatel’s liabilities were far bigger than its assets.
Rwandatel is 80%-owned by Libyan state-controlled telecoms investment arm Lap Green Networks, while Rwanda’s Caisse Sociale (social security fund) owns the remaining 20%.
The government has taken custody of Rwandatel and Laico Hotel in compliance with the recent UN resolution, which requires that Libyan assets be frozen.
Rwangombwa reportedly said that the two companies were already crippled financially before the resolution and talks were engaged about the issues.
