‘Restructure NetOne management’

MDC-T MPs yesterday called for the revamp of the whole management team at NetOne, accusing them of failing to turn around the parastatal’s economic fortunes and declare dividends to government since the telecommunications company ventured into the mobile phone business.

VENERANDA LANGA

The MPs made the call as the House of Assembly unanimously approved a $218 954 843 loan agreement between the government and Export Import Bank of China for Phase II of NetOne’s expansion project.

Finance minister Patrick Chinamasa brought the loan agreement before the National Assembly, saying it was going to accrue an interest rate of 2% per annum and it was going to be payable over 240 months, which included 60 months’grace period.

“This will assist NetOne to expand its network so that it has in excess of 1 000 towers from the current 500 towers,” Chinamasa said.

“The commitment fee is 0, 25% and the management fee is 0,25%, and it is one of the infrastructure foundations that we are putting in place which is necessary for communication and it is my hope that after this infrastructure is put in place, NetOne along with other networks will make the necessary contribution to the fiscus by way of taxes,” he said.

Southerton MP Gift Chimanikire , Harare West MP Jessie Majome, Mabvuku-Tafara MP James Maridadi, and Binga South MP Joel Gabbuza — all MDC-T — said NetOne managers were incompetent and had failed to exhibit good corporate governance and to outperform their competitors Econet and Telecel.

“Before we approve this loan, there is need to look at the structure of NetOne in terms of corporate governance and failure by management to turn around the company. For us to then approve the $280 million and put it into NetOne with all its problems might be a mistake. NetOne has put a lot of money into soccer yet it is not viable and they operate in the same environment with Econet and Telecel,” Maridadi said. “There will be need to have periodic updates about the performance of the loan before Parliament, and there is also need to shake up management at
NetOne,” Kambuzuma MP Willias Madzimure (MDC-T) said.

However, Chinamasa said there was no need to change
NetOne management because the problem had been that all along the shareholder (government) had failed to capitalise the institution.

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5 Comments

  1. Zvakaoma, angadiniwo Chinamasa, vanhu in NetOne management vanhu vepatronage they were not cometetively recruited so they save those who appointed them kubva kumba. vanhu ava ihama dvavo. After a week you will hear that vanhu ivava have had their salaries increased to $1 000 000 each pagore. kunyepa kuti they want to expand the network, the loan will be used to increase their pay. kkkkkkkkk vanhu vozobhadhara through increase in taxation.

  2. Government Companies and their management boards should be left to make viable business decisions with absolutely no interference from political personages. Learn the example of Ethiopian Airlines which remained and remains a worldclass air transporter despite the many political, economic and military woes that bedevilled the country Ethiopia itself over many years. That is how all governments should run all their companies and local authority entities.

  3. Maxwell Christian

    Can somebody advise Net One that their DATA BUNDLES are too expensive, maybe that explains why the speeds are phenomenally high as very few people use the NetOne Internet facility. I am a NetOne Subscriber, but I would rather use the Econet or some other internet gateway.

    The NetOne Data Bundle prices are as follows: $3=70mb, $5=125mb, $10=285mb, $20=670mb, $30=1gig & $50=2gig. With Powertel, but ONLY after hours or on weekends I can download over 2gig for $1.20. Why would Reward Kangai & his Marketing Team expect me to spend $50 for 2gig when I can get 2gid for a mere $1.20 per day from a fellow Parastatal Powertel? Offcourse Powertel is phenomenally slow during the day, I must admit.

    Its unfortunate that NetOne responds to market trends at a monolithic rate so the Management Team needs shaking up. All those problems at NetOne are not due to Government not investing in NetOne. Also maybe if NetOne is allowed to procure stuff outside the State Tender Board auspicies maybe it may help them move fast as R. Kangai always claim Industrial espionage happens through the STB.

    But can someone explain why Telecash seems to be now ahead of OneWallet?

  4. Zvakaoma, angadiniwo Chinamasa, vanhu in NetOne management vanhu vepatronage they were not competetively recruited so they save those who appointed them kubva kumba. vanhu ava ihama dvavo. After a week you will hear that vanhu ivava have had their salaries increased to $1 000 000 each pagore. kunyepa kuti they want to expand the network, the loan will be used to increase their pay. kkkkkkkkk vanhu vozobhadhara through increase in taxation.

  5. Shake up needed at Telone.

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