Vodafone Fiji has backed out of the deal with Papua New Guinea’s mobile phone carrier BeMobile.
The Post Courier reports that differences between BeMobile and Vodafone over the use of a contractor to rollout the new infrastructure are the cause for the falling out.
The joint-venture agreement would have seen Vodafone Fiji manage BeMobile’s telecommunications system and the PNG government’s IPBC would own 51% share equity while the Fiji National Provident Fund could have 40%.
PNG State Enterprise Minister Ben Micah said they would now have to look at other options.
He said Papua New Guinea Prime Minister Peter O’Neil will formally advise his Fijian counterpart.
However, Telikom and IPBC will take over and try to raise the 40% equity.
O’Neil has confirmed the split saying negotiations have been difficult in the sense that there were management issues about some contractual obligations, that PNG as a country felt needed to be negotiated properly because of governance issues.
He said the issue stems from a contractor who has got issues with the government.
Vodafone Fiji Managing Director Aslam Khan said he will not make any comments.
FNPF Investments Manager Jaoji Koroi said he is in a meeting and cannot comment.
Story by: Vijay Narayan
