The latest in the issue surrounding the closure of Telecel Zimbabwe is that the employees have issued a statement expressing concerns over the cancellation of the mobile network’s licence and how it will affect them.
In the statement the employees also throw their support behind the rejected Indigensiation plan that Telecel Zimbabwe had presented to government which ceded the outstanding 11% of shares in the MNO to an Employees Share Ownership Trust. It remains to be seen how the governement will factor in the concerns of these workers in further actions taken surrounding the operator.
You can read the full statement below.
PRESS STATEMENT BY TELECEL ZIMBABWE (PVT) LTD EMPLOYEES ON THE CANCELLATION OF THE NATIONAL CELLULAR TELECOMMUNICATIONS LICENCE BY THE POSTAL AND TELECOMMUNICATIONS REGULATORY AUTHORITY OF ZIMBABWE.
As Telecel Zimbabwe employees, we have noted with grave concern and distress the decision by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) to cancel Telecel’s National Cellular Telecommunications Licence by way of Regulatory Order No. 1 of 2015 with immediate effect and the subsequent granting of a special 30 day Licence to wind up operations on the basis that the company has failed to comply with the country’s indigenization laws.
It has also come to our attention that POTRAZ in coming up with a determination to cancel the Licence, has rejected Telecel Zimbabwe’s indigenisation plan of ceding a 11% shareholding to an Employee Share Ownership Trust (ESOT) as a way of regularizing the shareholding structure. As native Zimbabwean employees, we will be severely affected by this decision to immediately close the operations with no tangible remedy being provided to workers by POTRAZ.
We wish to stress that we are fully behind and committed to Zimbabwe and its laws and we believe that our ESOT will be mutually beneficial to all affected parties. We also believe that the creation of an ESOT will significantly and meaningfully empower us as Zimbabwean citizens and is in line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset).
We therefore would like to appeal to the Government of Zimbabwe to seriously re-consider the decision to cancel Telecel Zimbabwe’s Licence. It is common cause that such a decision will have a profound negative impact not only on Telecel’s +/-1000 Employees but also on the nation as jobs, business, and revenue to the fiscus will be lost if this decision is seen through. Downstream our business partners, suppliers, airtime vendors, airtime dealers, agencies and the social projects we support will also be adversely affected.
As Telecel Zimbabwe employees, we remain committed to working for the development of the country. We challenge the government not to relent on its mandate to protect and provide for its citizens. We thus reiterate our appeal to the government of Zimbabwe to allow Telecel Zimbabwe to continue operating.
11% shares to the employees is the way to go!
Inserted by Telecel Zimbabwe (Pvt) Ltd Employees
15 comments
Ceding 11% in an ESOT makes sense, I dont see why there should be a problem but as usual there are selfish interests of powerful people at play
Cancellation of the licence and the right to appeal to the Minister against the cancellation are purely legal matters and press statements by both Telecel and its employees will only sway public opinion one way or the other but the correct and legal route to proceed is to follow the legal process and actually present legal arguments that support and are calculated to change the decision of the Regulator or to convince the minister to set aside the cancellation. It is a bit worrying that these employees seem not to know exactly how many they are @+/-1,000 employees?
That is exactly how lobbying works – unless you imagine the Minister is unmoved by public opinion. After all, the minister holds a political office rather than a judicial one. I say let all involved parties politick to their hearts content.
Not really worrying – why do you expect employees to know the exact staff complement? They do not have a daily roll-call – only HR would know the specific number, which I assume changes from month to month.
It doesn’t matter if the employees are 1000, 100000 or whatever number they are, let them have the proposed 11% they are citizens of the nation of Zimbabwe after and should benefit from government policies that support such endeavours.
I think what is dissappointing is we have not really heard any substantial reasons from the regulator and the ministry as to why the 11% employee share scheme is not a viable empowerment policy.Nevertherless should the regulator and the government decide to reverse their decision Telecel also needs to put its house in order and make sure they deal with this issue of shareholders which has been ongoing for a long time.
At the end of the day it is not in the best interest of our beloved nation and its hardworking people to cancel the Telecel licence.
Almost wanted to post a comment, then read yours, realised you’ve said almost exactly what I needed to say. Even if the regulator might not be required by law to say anything (I’m clueless aout the law), I think in the interest of the public, they should light on why they rejected the 11% offer.
How many workers are supporting such policies. Unless there is a signed pertition with names and positions they hold in the company, these so called workers concern are nothing other than telecel trying to make political moves as it is used to its games, DRC, Rwanda??
Telecel must be making proper moves to pay up the licensing fees not meddling into this country polical ecosystem.
Interesting train of thought there but there was a payment plan that was agreed, as far as i have been following this issue, for some time now i should add. i do not always believe what i read or hear as do most people. I have read though that telecel is compliant with the payment plan and has not violated the agreed terms. Now if the minister wants to change the agreement then you needs to formally do so. But then again as i said its all stuff that i have just read.
Are these workers buying these shares or its another case of freebies? If they become shareholders, will they be able to contribute meaningfully as company shareholders e.g. raising funds for the balance on the US$137million licence.
The proper way to address this issue is for Tekecel to simply meet its legal obligations to pay up the license fees and rightfully so correct the share equity structure to comply with the law. The ESOT looks a bit suspicious and one of those pseudo mechanism to indigenise since the employees will not have a say in investment or policy decisions. They simply do not have voting rights and these 11% shares coming from the foreign shareholder will mean that it still controls the company.
The ESOT looks a bit suspicious and one of those pseudo mechanism to indigenise since the employees will not have a say in investment or policy decisions.? And you stay in a country in which people that take over, take over companies in the name if indigenization and run them down.? I would stick with the devil i know.
My thinking too, are these employees capable of sustaining their ownership responsibilities. Will they have control or is it the companies way of “keeping” their shares. Telecel should just indigenise, pay the license and then continue operating full stop. Failing which they will surely shut down just like other companies who had way more than this +/-1000 employee count.
I do not feel that is worrying that these employees seem not to know exactly how many they are @+/-1,000 employees? These numbers do change and at the moment i do not feel like its a priority to go to H.R and request documentation on the number of employees the co has or doesn’t, estimations should suffice. The minister i think is a bit over zealous, arrogant and like most of his counter parts greedy for gain. i think we need to think of the repercussions some of the decisions we make. A man in his position should know. But then a gain what do i know i am just a citizen.
Did the employees say how much have they raised for the acquisition of the said 11% . Has anyone disclosed how much the 11% is going for.
Hey people use your brain to think , and when you read these stories open your eyes this is not braille were feelings are used.
The problem is that we now have people accustomed to toiling for a boss….working on the instruction of a boss…to please a boss. It’s better to get a cent that goes into your pocket dudes than work for a million that feeds another man’s family…SENSELESS!!!
11% to employees means those who made Telecel to be a name today reap the benefits…no matter how small than talk of 20% that will go unaccounted for….minister’s pocket most likely or some rich office bearer.
NO to the rich get richer and poor get poorer thing!