The Public Account Committee of the House of Representatives (HoR) has demanded that the sale of Axiata Group’s stake in Ncell stop. Drawing on the possible irregularities in its transaction of the shares in Nepal’s only private telco, the body has called for the sale to be held. The Malaysian telecommunication giant recently announced that it reached a sale and purchase (SPA) deal with Spectrlite UK to sell its 80% shares in Ncell for a fixed consideration of $50 million.
After a meeting on Wednesday, December 06, it was decided that there is a need for a deeper and high-level investigation into the Axiata-Spectrlite UK deal for the Ncell acquisition, and until the final outcomes are reached, the deal should not proceed. The committee has also directed the government to start an independent investigation and find out the “reality” of the Axiata-Spectrlite UK deal within 30 days.
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Likewise, the committee has also called on the government to release its official statement on the allegations that foreign investments run a risk in Nepal as expressed by Axiata. The committee has decided to invite Prime Minister Pushpa Kamal Dahal “Prachanda” to gather the government’s official standpoint on Axiata’s exit from Nepal. On November 29, Axiata Group Berhad announced that it decided to exit Nepal by selling its shares in Ncell and placing the telco as an “asset held on sale.”
On December 01, it announced the Sale and Purchase Deal (SPA) with Spectrlite UK Ltd. for $50 million. The amount and the possible lack of provisional clarity have drawn huge scrutiny from the public and the government alike ever since.
PM Dahal has recently stressed that the government will conduct a high-level investigation into the Axiata-Spectrlite UK deal. Axiata has cited financial challenges and adverse policies in Nepal for its decision to exit Nepal. The company bought Ncell in 2016 after acquiring Reynolds Holdings for $1.36 billion.