Telecom loses 50% of revenue to middlemen - Amupanda

Telecom Namibia allegedly loses 50% of its revenue to intermediary companies under agreements signed shortly before the departure of its former chief executive officer, AR leader Job Amupanda has claimed.

Amupanda raised the allegation in an urgent oral question directed to information and communication technology minister Emma Theofelus in the National Assembly on Wednesday.

He alleged that Telecom’s former chief executive, Stanley Shanapinda, signed two agreements with intermediary companies about three weeks before leaving the telecommunications company.

He alleged that, under the agreements, Telecom customers who are disconnected or experience problems with its services are referred to the intermediary companies.

“If it so happens that a customer is offloaded or is having problems with Telecom, they will be loaded into this middleman company,” he said.

Using a 10-megabit-per-second package as an example, Amupanda claimed Telecom charges N$479 for the service, while one of the intermediary companies charges N$208 under the agreement.

“That package of 10 Mbps, Telecom charges N$479. That middleman company, in terms of the agreement that they have signed, charges N$208,” he claimed.

“Telecom is losing 50% of their revenue for this middleman company,” he said.

No documents explaining the pricing or revenue-sharing formula were presented during the parliamentary exchange.

Amupanda linked the alleged losses to Telecom’s mandate to repay a N$400 million infrastructure loan obtained through RMB Namibia.

“As we speak, the N$400 million has been utilised fully. Telecom is only servicing the loan as we speak,” he claimed.

Official material reviewed confirms that First National Bank of Namibia, acting through RMB Namibia, approved an N$400 million facility for Telecom. However, it does not independently establish Amupanda’s claim that Telecom has drawn down and spent the entire amount.

Amupanda argued that Telecom needed to generate sufficient revenue to repay the loan but was surrendering half of the revenue from affected services to an intermediary.

“Telecom has taken N$400 million, has used up N$400 million, and it must then recover their funds to pay back that loan,” he claimed.

“It is not going to be in a position to pay back that money,” he added.

Demands answers

Amupanda also raised concerns about what he described as the deliberate sabotage of Telecom’s infrastructure.

He alleged that cables belonging to Telecom, MTC, Paratus and one of the intermediary companies were installed at the same location, but only Telecom’s cable was cut.

“There are four cables: one cable for MTC, one cable for Paratus, one cable for that middleman and one cable for Telecom. It is only the one for Telecom that is cut,” he said.

“Once that is cut, then they are loaded into this middleman that they have signed.”

Amupanda asked Theofelus what her ministry was doing about the alleged infrastructure sabotage, which he claimed affected Telecom but not the other service providers.

No evidence linking the reported cable damage to the intermediary companies or the disputed agreements was presented during the parliamentary exchange.

‘Put it in writing’

Theofelus did not address Amupanda’s allegations during the exchange, saying she would need to investigate the claims.

Instead, she rejected what she saw as an attempt to create the impression that she was connected to corrupt activities.

“I can respond with facts without creating an aspersion that I’m corrupt and I’m connected to corrupt activities, because that is the doubt you want to create in this House and in the minds of Namibians, that I might be corrupt,” Theofelus said. “I reject that with the contempt it deserves.”

She asked Amupanda to submit his questions in writing so she could obtain information from Telecom and respond based on verified facts.

“Honourable member, put it in writing so I can acquaint myself with the facts on Telecom, so I can respond. That is my answer,” Theofelus said.