KIGALI; Nyarugenge commercial court is expected anytime from now to pronounce itself on the survival of embattled telecommunication firm Rwandatel Igihe.com has learnt.
The court had earlier appointed an interim administrator of the company for 60days that have already expired.
During the 2-month period, Richard Mugisha was mandated to investigate the company the evidence of which would be principal in the court decisions for declaring the company bankrupt or continue with its operations.
Speaking to Igihe.com today Mugisha said that the period of 60 days were a fair period and he managed to finish the report on Rwandatel as requested by the Court, “It wasn’t so difficult for me to make the assessments and I think what I presented to the judges was fair enough,” he said.
Mugisha admitted that the company is now waiting the feedback from the Judges and then see the way forward.
Mugisha was appointed by the Commercial Court to take over specific roles and responsibilities that included the total management of all the company’s assets and accounts.
The court also tasked him to supervise Rwandatel’s day-to-day business and oversee expenditures and payments of its debts, taking of loans and giving of the company’s assets as guarantees for loans on behalf of the company in the period.
A rival telecommunication company MTN Rwanda as Rwandatel’s creditor is so suspicious since the interconnection fees of fixed lines is continuously increasing the debt and they are not sure whether the company will have capacity to pay back.
“According to the report I presented yesterday to the Judges, Rwandatel owes MTN a whooping Rwf1,341,557,553 and we don’t know if the company is in the position to pay back,” Paul Mugemangango, the Senior Manager, Legal and Corporate Affairs MTN Rwanda told Igihe.com.
The debt includes Rwf60M accumulated on fixed interconnection fees during the period of 60 days after the revocation of the company’s mobile license.
According to sources who had access to the report given to the Commercial Court judges, Rwandatel accepts all the debt claimed by MTN.
Other sources also say that the Chinese company; Huawei who supplied materials is demanding over US$40M and this company is suspicious of the Rwandtel’s ability to clear such a huge debt.
Rwanda’s utilities regulatory agency withdrew Rwandatel’s GSM Mobile license in April this year and within weeks, the Office of the Registrar General had instituted insolvency proceedings against the company.
The commercial court in Kigali then appointed an administrator who is a judge of the High commercial court to take charge of the company and advise the court whether the company was solvent or insolvent and should be liquidation.
Following commencement of insolvency proceedings, Rwandatel had laid off 43.2% of its workforce as part of a company-wide restructuring process to lower its expenditure.
Operating both GSM Mobile and Fixed licenses, Rwandatel had a total workforce of 317 employees. However, only 180 have been retained to run its remaining voice, internet and data services all of which run on the fixed network.
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