KATHMANDU: The government has announced its decision not to recognize the recent transactions involving the purchase and sale of Ncell shares.
With this Satishlal Acharya’s bid to seize control of Ncell through political, administrative, and media maneuvers has met with failure.
Following discussions between Prime Minister Pushpa Kamal Dahal Prachanda and the ruling CPN-UML chairman KP Sharma Oli, last week’s Cabinet meeting concluded not to acknowledge the recent transaction of share purchase and sale involving Ncell.
Sources reveal that based on the findings of an inquiry commission led by Tankamani Sharma, the Council of Ministers reached the decision during its meeting held on Thursday.
It should be noted that Khabarhub carried a story on Ncell on April 30 stating that the plan orchestrated by Shatish Lal Acharya to gain control of Axiata through his Nepali partner was likely to be intercepted before it infiltrates political circles and manipulates media narratives.
https://english.khabarhub.com/2024/30/353236/
Last December, it came to light that Satish Lal Acharya, a non-resident Nepali, purportedly acquired an additional 80 percent stake in Ncell, adding to the 20 percent previously held through Sunivera Capital Ventures under the name of Bhawana Singh Shrestha.
Although Axiata offered to sell shares to other Nepali businessmen for ownership of Ncell, Satishlal opted to purchase shares outside Nepal, claiming he could facilitate the transaction.
He approached numerous businessmen in Kathmandu seeking Ncell shares, embroiled in dispute, yet none were willing to take the risk.
Ncell has evaded taxes totaling 85 billion rupees by neglecting payments owed to the Government of Nepal.
Subsequent revelations indicated that Acharya, representing a Malaysian entity, sold 80 percent of Ncell shares to the UK-based Spectralite UK Company at a questionable price.
The inquiry committee, headed by former Auditor General Sharma, found irregularities in the transaction, noting the absence of regulatory approval from the Nepal Telecommunication Authority and potential tax evasion.
Former Auditor General Tankamani Sharma presented the committee’s report to Prime Minister Pushpa Kamal Dahal, detailing discrepancies in the sale process.
In 2016, Sweden’s Teliasonera sold 80 percent of Ncell’s shares to the Malaysian firm Axiata for over one billion US dollars, a move suspected of tax avoidance.
Last November, Ncell disclosed that Axiata divested its stake by 96.34 percent.
By disregarding the recent share transactions, the government’s objective to avert Ncell’s potential nationalization within five years has been thwarted.
Acharya’s acquisition of additional shares was seen as an attempt to circumvent the automatic nationalization clause triggered when foreign entities own over 50 percent of the telecom company’s shares for more than 25 years.
Section 15 of the Telecommunications Act-2053 stipulates a maximum 25-year license term for telecom companies, after which ownership reverts to the Government of Nepal per Section 33.
Section 33 specifies, “Assets and facilities associated with telecommunication services, where foreign individuals or entities hold more than 50 percent of the total capital investment, shall be transferred to government ownership after the license period expires.”
The Parliament’s Public Accounts Committee has also endorsed the non-recognition of the contentious share transactions.
Earlier, Satish Lal had planned to raise a significant sum of shares from Nepalese businessmen and supplement the remainder by issuing 31 percent primary shares to the general public at a premium price.
However, the recent amendment in the Securities Registration and Issuance Regulations has obstructed Ncell’s path to issuing primary shares, narrowing Satish’s room to maneuver and elucidate the state’s accountability.
The seventh amendment to the regulations by the Nepal Securities Board last August has barred Ncell from issuing primary shares.
This amendment has curtailed Ncell’s maneuverability by stipulating that if the duration of a business operation permit is less than 10 years, such an entity cannot apply for securities registration and public issuance with the Securities Board.
Despite Ncell’s attempts to amend the situation by engaging with the chairman of the new securities board, the finance secretary’s stance remained unfavorable, and the authorities showed little interest, effectively closing off this avenue.
In an effort to curb Satish’s confidence in his ability to influence Nepal’s political, administrative, judicial, and media spheres, discussions were held between UML Chairman Oli and Prime Minister Dahal regarding granting the Asset Laundering Department and the Revenue Investigation Department.
Satish’s endeavors to exert influence at the policy and decision-making levels in Nepal face discomfort, as the two top leaders have concluded that he lacks the experience to manage a large organization single-handedly and is attempting to undervalue government assets for personal gain, shirking his responsibility to Nepal.
As per reports, there are also deliberations about conducting investigations into Satish Lal and his family through asset scrutiny and revenue investigation procedures.
Also read:
https://english.khabarhub.com/2023/08/329667/
https://english.khabarhub.com/2023/05/329214/
https://english.khabarhub.com/2024/19/341688/
https://english.khabarhub.com/2024/11/340282/
https://english.khabarhub.com/2023/28/332748/
Comment