Transaction of Ncell shares to be investigated

 Kathmandu, Dec. 5

The government said on Tuesday that it would conduct an extensive investigation into the telecommunication company Ncell's share transactions.

Stating that the government's attention has been drawn to the case of the share transaction issue, Minister for Communication and Information Technology, Rekha Sharma, who is also the spokesperson of the government, said that the in-depth study would be conducted into the case to measure its impact on Nepal's telecommunication sector, foreign investment and government revenue.

According to a statement issued by the Communication Ministry on Tuesday evening, it is imperative to know whether the prevailing legal provision and international norms and methods were followed while transacting the shares of the company by its holding institution, Axiata.

Prime Minister Pushpa Kamal Dahal has already directed the concerned authorities on Monday to study into the transaction that happened at unconventional price and provisions without informing and getting approval of the Nepal Telecommunication Authority – telecommunication sector regulator.

Minister Sharma said in the statement that the government would severely punish all concerned if there were any inappropriate activities, and expressed commitment of the government to protect the interest of Nepal and Nepali people.

Citing the cumbersome tax process and biases of the NTA in facilitating the business of Ncell in Nepal, its holding company, Axiata of Malaysia, decided to exit from its business in Nepal.

Axiata has sold its shares worth Rs. 6.65 billion (80 per cent of its holdings) to Spectrlite UK which bought the Reynolds Holding Limited. About 80 per cent shares of Reynolds were bought by Axiata group in 2016. Concerns were raised as the company sold the shares about 20 times less than the purchasing price. 

Published in The Rising Nepal daily on 6 December 2023.