Ncell’s letter to NTA reveals what?

Axiata has declared its intention to quit Nepal by selling 80 percent of Ncell's stock.

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KATHMANDU: Ncell Axiata Limited has submitted a letter stating that it will notify the regulator Nepal Telecommunication Authority as soon as the papers pertaining to share acquisition and sale are collected.

Telecommunication Authority Chair Purushottam Khanal stated at today’s Finance Committee meeting that he had received a response from Ncell about the purchase and selling of shares.

According to him, on Mangsir 15 (Dec 1), the authority wrote a letter requesting information on the purchase and sale of Ncell shares, and received a response on Mangsir 19 (Dec 5).

It stated that documents related to share acquisition and sale are being gathered, and that it is ready to notify the necessary authorities in accordance with Nepal’s current legal regulations.

Chair Khanal also stated that if the committee finds Ncell’s share buying and selling questionable, the authorities will look into it further. The committee also asked an explanation from the administration over the Rs. 2.2 billion in arrears.

The authorities stated in this respect that the debts owed to nine different telecommunications service providers should be paid within three months.

During today’s Finance Committee meeting, National Independent Party MP Dr Swarnim Wagle stated that the management of Ncell should be summoned and questioned.

“The Chief Executive Officer (CEO) of Ncell Axiata Limited, Ncell’s partner of Nepali origin should be invited to the committee and the finance committee should write a letter on this matter”, he said. Wagle said that this case will send a negative message to foreign investors who want to invest in Nepal.

Deepak Khadka, Biraj Bhakta Shrestha, Ganga Karki, Purna Bahadur Tamang, and other committee members agreed that the Ncell acquisition and sale matter should be thoroughly investigated.

The MPs thought it was disgraceful that the state authorities were unaware of such a major business transaction, and that as there was a breach of existing rules, the state agencies should look into it thoroughly.