Home articles Understanding a with Etisalat

Understanding a with Etisalat

ACCORDING to media reports, UAE-based telecom giant Etisalat has agreed to release an outstanding payment related to its acquisition of state-owned PTCL after holding back amount on non-transferred assets from $800 million stuck for over a decade. Etisalat has reportedly agreed to evaluate the non-transferred properties and deduct the amount from the unpaid dues. The company would also conduct physical verification of properties whose ownership titles have already been transferred in the last three months.
It seems that the lingering issue of unpaid dues of privatisation of PTCL would come to a satisfactory conclusion for both the parties but much depends on the quality of physical verification and evaluation of properties and assets. That confusion arose about transfer of some properties and assets after the privatisation deal is testimony to the oft-repeated allegations that the process was often carried out in undue haste and without doing the preparatory work. It is a sorry state of affairs that there has been a full-fledged Privatisation Commission/Privatisation Ministry but despite all this the state-owned entities were sold out without proper homework and as a consequence the country suffered. Why all properties were not identified and a list prepared clarifying which properties the buyer would get along with overall management control of the PTCL? If no such exercise was done then on what basis the value of the company and its assets were worked out for the purpose of privatisation? We have been pointing out that the process of privatisation was not transparent and the policy of selling profitable institutions must not be pursued for motives other than streamlining their working. Anyhow, the understanding with Etisalat augurs well and we hope the outstanding amount would be realized as a consequence of a transparent evaluation exercise.