KATHMANDU: The Nepal Telecommunication Authority (NTA) has stated that the legal procedures for the purchase and sale of Ncell shares remain unresolved.
In a communication to the Public Accounts Committee (PAC), the Authority highlighted the incomplete legal process concerning Ncell’s shares.
Citing rule 15 of the Telecommunications Regulations 2054 BS, the Authority underscored the mandatory approval required before engaging in the buying and selling of 5 percent of the paid-up capital shares, a provision that has not been met.
Referring to Regulation 4 (A) of Nepal Telecommunication Authority Regulations 2076, the Authority emphasized the need for obtaining permission or approval before any transactions involving buying, selling, or transferring the name of shareholders.
Non-compliance with this regulation, as stated by the Authority, could lead to action under section 47 of the Telecommunications Act 2053.
The Authority informed the PAC through letters, seeking official details about the purchase agreement and press release.
The agreement revealed that the Malaysian Telecom Company Axiata Group had sold 80 percent of its ownership shares to the UK-registered SpectraLite Company.
However, the Authority stated that it has not yet received the official documentation.
Regarding the actual share purchase price, the Authority assured the PAC that clarity would emerge from the share purchase agreement once received.
Additionally, if suspicions arise about the mentioned amount, a Due Diligence Audit (DDA) will be conducted to obtain accurate information.
The Authority clarified that the Internal Revenue Department would assess whether the seller is subject to double taxation.
The same department will also scrutinize the issue of capital gains tax, ensuring a comprehensive examination of the transaction.
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