The government has allowed Etisalat International Pakistan (EIP) of UAE, buyer of PTCL, to link full payment with transfer of properties and payment of government's share for a 'Voluntary Separation Scheme' (VSS) for nearly 15,000 employees of different grades, sources in Privatisation Commission told Business Recorder here on Sunday.
The Cabinet Committee on Privatisation (CCoP) in its meeting in January had decided that payment of future instalments would not be linked to any conditions but agreed to pay its share for VSS to the tune of Rs 7.5 billion--half of the total amount.
"Certain matters, such as allowing EIP to link full payment with the transfer of properties and payment of GoP's share for VSS is a departure from the earlier CCoP decisions," sources said.
They said that concessions and terms of the transaction had been agreed upon in the list of importance and value of the transaction for the country.
They said that the government has given warranties and indemnities on transferability of properties, distribution of dividends from the sale of properties, regulation, legality and transparency, which is different from its normal practice.
They said the two other bidders Singtel and China Mobile have not been taken into confidence on the recent additional amendments of the terms and conditions as a result of 'negotiated deal' between the government and the EIP.
According to sources, Privatisation Commission has also asked the government that matters such as technical service agreement where CCoP has already given a decision should be refereed against to its ratification.
The Commission, in the CCoP meeting on March 11 stressed the government to ensure safeguards through parent performance guarantees on behalf of EIP as it was an integral part of the SPV transaction documents, sources added.
It has also been agreed that the government would not issue licence to any new operator, besides allowing EIP to utilise PTCL reserves towards acquiring telecom companies within Pakistan and beyond, or any other way deemed beneficial by the board.
The amended Share Purchase Agreement (SPA) and Shareholders Agreement (SHA) would be submitted to the Federal Cabinet for ratification, sources said.
"In view of the sensitivity of transaction, and certain elements of negotiations, in consideration of rule 6(2) of the Privatisation (Modes and Procedure) Rules, it is proposed that the matter should be placed before full Cabinet for ratification," sources quoted from summary of PC which was approved a by the CCoP on Saturday.
They said that PC and EIP teams held final discussions on the confronting issues on March 8-9 as the marked versions sent by the buyer on some of issues were found beyond the understanding reached earlier.
According to sources, UAE Ambassador to Pakistan attended the recent meetings between the EIP and PC as observer/facilitator.
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