The government of Pakistan has conveyed to Etisalat that it will defend all pending cases in courts, filed in the aftermath of Pakistan Telecommunication Company Limited (PTCL) privatisation, but will not be responsible for the outcomes. The State Minister for Privatisation Commission Muhammad Zubair while briefing a parliamentary panel on Wednesday said that three points have been raised with Etisalat management for the release of $800 million outstanding dues on account of PTCL privatisation. Etisalat has agreed on remaining properties valuation.
Zubair stated this while briefing the Senate Standing Committee on Information Technology and Telecommunication which met with Shahi Syed in the chair. The Minister said that it was agreed with Etisalat that transfer of remaining 33 properties is not do-able and valuation of these properties should be carried out by both sides. At present, the valuation of 33 non-doable properties conducted by the government of Pakistan is approximately $87.89 millions; however, no response has so far has been received from Etisalat. The Minister further said the government has been asked to defend all the court cases filed against the privatisation of PTCL.
Three days ago, Privatisation Commission wrote a letter to Etisalat while conveying the message that government of Pakistan will defend these cases but will not be responsible for the outcomes. Zubair said that Technical Service Agreement has been challenged in National Accountability Bureau.
As per the Share Purchase Agreement, the payment of the balance $1.2 billion was contingent upon transfer of clean and clear titles of 100 percent properties by January 2008. In case of failure, valuations of the properties not transferred till January 2008 will be carried out by both the seller and the purchaser separately and higher of the two valuations will be considered for deduction from the balance instalments.
The Minister said that Etisalat, the purchaser of PTCL, is delaying further payments on the ground that all properties included in the Share Purchase Agreement have not been transferred in the name of PTCL. Since January 2010, approximately 278 properties have been transferred in favour of PTCL. GoP has on multiple occasions requested M/s Etisalat to withhold approximately $50-75 million and release the balance amount, after adjusting the proportionate amount equivalent to its holding of 26 percent of the value of 33 properties. However, despite all efforts of the GoP, M/s Etisalat has not released any further instalment of $133.333 million.
State Minister for Information Technology and Telecommunication Anusha Rehman said that government of Pakistan remained failed in fulfilling their part of milestone. She said after January 2008, a letter should have been written to Etisalat while explaining that these properties are not transferable and carried valuation, adding the previous government did nothing in this regard.