Comium in Le 70 billion debt

A two-week-long investigation mounted by Politico has shown that the mobile phone operator, Comium SL is bankrupt in all but name and risks being shut down. This has prompted a three-man delegation to visit from Lebanon to ascertain how come the company is in debt of around Le 50 Billion with at least four banks in the country. Comium also owes service providers like SSCG and SALMAN hundreds of millions of leones. Additionally, it owes the National Telecommunications Commission (NATCOM) several hundred millions leones. In total, according our findings backed by impeccable documents, Comium is in debt of around Le 70 Billion. That does not include the fact that it owes its staff at least two months’ salary arrears, tax arrears to the revenue authority and the social security contributions of its staff to NASSIT. The service providers who run their base stations and supply them with fuel threatened recently to shut down the company but for the intervention of NATCOM. Sources say all four banks – Rokel, ECOBANK, FIBank and PHB – have secured law suits against the company with Rokel having been approached for a receiver status, which means that it can decide to manage or sell the company. Our investigations show that Rokel has turned down the offer and has given Comium up to October this year to service its debts or it may go for a court order to shut down the company. In the last week Comium management has refused to speak to Politico. An SMS text message to one of its managers was ignored. The Chairman of NATCOM, Siray Timbo says they are intervening in the interest of the mobile phone operator and the customers, adding that negotiations are ongoing. Our findings have also shown that government is looking out for interested parties for the possibility of a bailout or a buy-over. One of the other local mobile phone operators, who cannot be named, told Politico that they were considering making a takeover bit but were concerned about “the sheer size of their liability” and the fact that Comium are a 2G operator while they are a 3G. There were offers to buy Comium SL a couple of years ago at US$ 40 million but the owners in Lebanon insisted on US$ 50 million. That offer is no longer available, our research shows. The company also owns a subsidiary in The Gambia and Ivory Coast with a liability of around US$ 200 million. There is apprehension among staff of the company who have cited low morale and uncertainty about their future amid “the secrecy surrounding the company’s financial wellbeing”, one of them told Politico. He said many at the top echelons of the company were out of the country. (C) Politico 24/09/13