Glo Owes NCA US$3 Million

Given 30 Days or Risk Losing License -http://theheraldghana.com/http://ghanapoliticsonline.com

The woes of Mike Adenuga, the owner of Glo mobile telecommunication network, operating in a number of West African countries, have been deepened further with the National Communications Authority (NCA), threatening to revoke its cellular license for failure to settle certain fees and the associated penalties.

The telecom company, owes the NCA, nearly US$3 million, according to a letter intercepted by this paper.

This threat comes as the Nigerian-owned Glo Mobile Ghana Limited, aside being accused of non-performance by its customers for the past two years, has had some of its retail outlets closed down across Ghana. It appears the company, which flamboyantly entered the country boasting of state-of-the-art technology, is now gasping for air.

Insiders say, the company is broke and cannot afford to pay rents to property owners, hence the closure of some retail outlets.

The Herald, has sighted the correspondence between the company and NCA, with Glo being directed to take all the necessary steps to settle all its outstanding indebtedness within a 30-day period or have its license revoked.

A letter fired by the NCA to Glo management, and signed by its Acting Director –General, Mr. William Tervie, and intercepted by The Herald revealed that, Glo owes Microwave Link frequencies an outstanding balance of Ghc 4,955,123.64; made from 2013 to 2015, a net of Ghc 750,000, brings the outstanding balance as at December 2015 to Ghc 4,205,123.64.

The NCA letter dated February 4, 2016, observed with concern and displeasure the continuous failure on the part of Glo Mobile Ghana to meet its financial obligations to the Authority with respect to invoices on “Surrender Portion for international incoming Traffic “ as per the Electronic Communications (Amendment) Act, 2009, Act 786, international Gateway Renewal License, Regulatory Fees, Annual Fee for usage of Microwave Link frequencies and penalties for QoS infractions indebtedness to the NCA.

Per the letter, Glow owes NCA Gateway renewal license fees for 2014 and 2015, amounting to Ghc 589,750. While International roaming traffic payments, outstanding from November 2014 to October, 2015 amounts to USD 1,134,962.14.

A penalty on QoS infractions between 2013 and 2014 comes to a total of Ghc 850,000.

According to the letter, Glo’s regulatory fees in respect of mobile license and submarine cable license from the second quarter of 2014 to the fourth quarter of2015, have also not been settled, adding Glo has not submitted audited financial statements to enable NCA extract the exact fees payable.

The letter further reminded Glo’s management that, the authority would invoke the penalty stated in section 83(2) of Act 755 as amended by the Electronic Communications (Amendment) Act, 2009, Act 786 which is to the effect that a person who fails to pay a fee, penalty or other levy payable to the Authority within the stipulated time is liable to pay to the Authority a fine of one and half percent of the amount due for each month or part of a month after the stipulated time that the fee penalty or other levy remained unpaid.

NCA, threatened it would in accordance with section 13(1) (C) of Act 775, take the required steps to revoke the company’s Mobile cellular license for default payment of fees or other moneys charged by the Authorit