Government Engages KPMG to Advise on Future of Debt-Ridden AT Ghana

The government has appointed global audit and advisory firm KPMG as a transaction advisor to guide the restructuring and future direction of AT Ghana, the state-owned telecommunications company struggling with debts exceeding $150 million.

The intervention comes in the wake of escalating tensions between AT Ghana and its tower operator, ATC Ghana, over unpaid charges, which recently led to the nationwide disconnection of AT’s radio access networks. The action, triggered by long-standing indebtedness, nearly left over three million subscribers without service.

Crisis Management

To avert a total blackout, the Minister of Communication, Digital Technology and Innovations, Samuel Nartey George, announced last Friday that government had directed AT and Telecel Ghana to establish a national roaming agreement. This measure, implemented through the National Communications Authority (NCA), has ensured uninterrupted access to voice, SMS, data, and AT Money services.

Mr. George praised the swift technical collaboration between the two operators, describing their work under difficult conditions as proof of Ghana’s strong telecom expertise.

KPMG has been given 60 days to provide recommendations on restructuring AT Ghana and reviewing government’s shareholding in Telecel Ghana. The ultimate goal, the Minister explained, is to create a strong second operator to balance the country’s telecom market, currently dominated by MTN.

No Merger or Acquisition

Responding to speculation, Mr. George clarified that the current process is neither a merger nor an acquisition.

“What we are witnessing is not a merger and neither is it an acquisition. This is a faux-merger situation, pending the outcome of KPMG’s advisory report,” he stressed.

The final decision on AT Ghana’s future will depend on KPMG’s findings and subsequent government action.

Protecting Jobs

Addressing concerns about staff, Mr. George assured that none of AT’s 300 permanent employees would lose their jobs. He also revealed that the transaction advisor would assess the situation of over 200 contract staff.

“The government is committed to protecting AT workers and their dependents from any adverse effects of the restructuring,” he affirmed.

Stakeholders, including subscribers, creditors, suppliers, and tower operators, have been urged to await KPMG’s report for clarity on the company’s long-term direction.