Lebanon Refers Previous Mobile Network Operators for Prosection

Lebanon's Telecoms Minister, Jebran Bassil says that files on the previous operators of the country's two mobile phone networks have been passed to the judicial authorities to consider prosecution. The government is alleging that the two operators cost it over US$1 billion in revenues.

The two companies, Cellis and LibanCell operated the two networks from 1994 under a Build, Operate and Transfer (BOT) agreement. In 2001, the government terminated the agreements leading them to sue the government for compensation. The government then invited bidders to manage the networks on its behalf, and the concession was eventually awarded to Zain and Alfa.

Bassil is alleging that the two companies, which were required to pay a portion of their revenues to the government constantly understated their incomes and underpaid the government.

Bassil told the The Daily Star newsaper that "the previous governments did not collect its rightful share from these revenues and as a matter of fact, the government revoked the contract with these companies in 2001 without considering the grave consequences of this hasty step,"

The minister also accused the previous companies and some officials at the time of financial embezzlement and urged the judiciary to penalize those who committed the financial crimes.

A report by the Lebanese government Auditing Department in July 2000 said that the two GSM networks in the country owed substantial back taxes, and have exceeded their allowed customer base. Both networks denied the allegations.

There have been on/off plans to privatise the two networks which have been held up repeatedly due to political difficulties in the country.

On the web: The Daily Star

Posted to the site on 25th May 2009