(LINA) – The Liberian Senate has mandated its committee on Posts and Telecommunications to probe the pending acquisition of the NOVAFONE GSM Company by the state-owned Liberia Telecommunications Company (LIBTELCO).
The Senate committee is mandated specifically to authenticate the nature of the buy-out contract and fact-finding relative to knowing the source of the projected US$10 million to purchase NOVAFONE.
The senate’s action was prompted by concern raised by Maryland County Senator Dan Morais in a communication addressed to the Liberian Senate on Tuesday, in which he alleged that the legislature as the people’s representative with oversight responsibility was left out of said transaction.
Morais stated that Liberia subscribes to a free market economic principle and wondered why LIBTELCO will get involved in the purchase of a failed institution like NOVAFONE, thereby transferring its liabilities to the people of Liberia.
He called on the Senate to arrest the situation which, according to him, is not in the interest of the nation, terming the negotiation between the two companies as reaching “catastrophic proportion.”
It can be recalled that the management of LIBTELCO through its Managing Director Sabastian Muah announced the acquisition of NOVAFONE, a private GSM company.
Muah in his statement delivered recently placed the total price tag of the transaction at US$10.4 million, which buys 100 percent of the equity stake of COSMO TELL SA, Lebanese company in NOVAFONE.