SPTC PROBES SWAZI MTN’S FIXED WIRELESS PROJECT

MBABANE – The recently-launched fixed wireless project by Swazi MTN is now the subject of an intense investigation by the Swaziland Posts and Telecommunications Corporation (SPTC), investigations have revealed.

The Times SUNDAY understands that the SPTC Board and Management want an explanation from the corporation’s representatives in Swazi MTN Board on how they agreed to the fixed wireless project yet they knew that it would offer direct competition to the corporation’s core business.

SPTC is carrying out the probe alongside ongoing negotiations with Swazi MTN on the fixed wireless project that the latter launched on January 26, 2018 after having unveiled it last December.  
SPTC is negotiating for Swazi MTN to withdraw the project but the latter is resolute in continuing with it because it believes it has broken no rule, including the joint venture agreement (JVA) that exists between the two entities. The JVA is a shareholder agreement between Swazi MTN and Swaziland Post and Telecommunications (SPTC).  Swazi MTN holds a technology neutral licence and therefore believes it was within its scope to venture into the recently-launched fixed wireless and broadband solution.

Pertaining to the investigation, this publication can reveal that each of the four SPTC representatives have been ordered to write letters explaining their roles and how they voted on the matter when it came before the Swazi MTN Board. Further, SPTC is looking to lay hands on minutes of the Swazi MTN Board meeting where the issue of the fixed wireless project was possibly discussed and approved.

SPTC holds a majority 41 per cent shares in Swazi MTN and, therefore, has majority representation of four people in the Board, which makes the Corporation to believe that decisions seen to be unfavourable to it should be vetoed.
MTN International holds 30 per cent shares and has three representatives in the Board, while Swaziland Empowerment Limited, which holds 19 per cent shares, has one representative and the Esteemed shareholder, who holds a 10 per cent has one representative. It is believed that since the Esteemed shareholder bought his shareholding from SPTC, an agreement was struck that his vote will always be alongside that of the corporation, tipping the scales in favour of the latter when it came to voting within the Board. However, this view had not been verified at the time of publication.

Senior sources within SPTC revealed that it therefore came as a surprise when Swazi MTN announced the fixed wireless project without the corporation’s expressed consent. SPTC also claims they received no heads-up, or feedback from its representatives.
According to the sources, when the representatives were questioned on the project, they claimed to be also in the dark about it, and further said it was never presented to the Board.
According to an expert, who preferred to remain anonymous, Board of directors generally have bigger policy-related issues to look at and approve, and this does not include approval of products.

“The narrative by SPTC Board representatives that they don’t recall the issue put to a vote is most likely true,” opined the expert.
However, the SPTC Board and management are reportedly not convinced by this narrative.

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