By RACHNA LAL
Additional Information:
THE NATIONAL
The Papua New Guinea media has reported that Vodafone Fiji and the Fiji National Provident Fund have backed out of the deal with BeMobile.
The agreement was signed with BeMobile in April for Vodafone to take over the management of Papua New Guinea’s mobile phone carrier.
Papua New Guinea Prime Minister, Peter O’Neill, made this announcement yesterday.
However, we have not been able to confirm this either with Vodafone Fiji or Fiji National Provident Fund.
Questions sent to the Fiji National Provident Fund yesterday got referred to BeMobile chairman, Syd Yates.
Mr Yates however had not responded to questions when this report went to press.
Under the $92 million agreement signed in Port Moresby in April, Vodafone was to assume management of BeMobile which includes rights for BeMobile to use Vodafone brand in PNG and Solomon Islands.
The Independent Public Business Corporation would have had share equity of 51 per cent, while FNPF would own 40 per cent.
The other nine per cent would have been shared between the PNG Sustainable Development Programme (PNGSDP), Steamships and Nasfund under the deal.
O’Neill to approach PM
Mr O’Neill told the media in PNG that he will be writing to his Fijian counterpart, Prime Minister Commodore Voreqe Bainimarama to express PNG’s disappointment.
This comes at a time when the Melanesian Spearhead Group is looking for closer economic relations.
Mr O’Neill told the National that they would be looking at the Independent Public Business Corporation (IPBC) and Telikom to fill in the void.
Acceptance
Papua New Guinea State Enterprise Minister, Ben Micah, has been quoted in the National saying: “Several days ago, the Fiji National Provident Fund decided not to extend the grace period, meaning that they have pulled out.
“This effectively means the State will have to look at the investment strategy for BeMobile going forward, through other options.
“They (FNPF) advised the chairman of bemobile and IPBC some days ago. I was advised and we have since decided not to create any more uncertainty in the business.
“This is why the IPBC board decided to accept withdrawal of the Fiji National Provident Fund.
“Our prime minister will be writing to the prime minister of Fiji to formally advise him that they are not coming in.
“The (PNG) government will have to find 40 per cent funding to fund the way forward for BeMobile, but like the prime minister mentioned, IPBC and Telikom will take over and see if they can raise the funds.”