State vs GP, Robi: Out-of-court settlement suffers delay

The government move for out-of-court settlement of a dispute between the telecom regulator and two large mobile carriers over “dues” suffered at least a week’s delay yesterday. 

Two memorandums of understanding (MoUs) were supposed to be signed yesterday between the telecom regulator, the National Board of Revenue, the telecom division, and Grameenphone and Robi but the matter was put on hold after the Supreme Court in the morning asked Grameenphone how much money it was willing to deposit to keep an injunction going, sources familiar with the matter said. 

The Bangladesh Telecommunication Regulatory Commission (BTRC) claims that the two carriers owe the state Tk 13,447 crore in revenue share, taxes, and late fees until 2014, but the carriers said the amount was disputed.

The BTRC was about to appoint panels of administrators at the carriers to realise the money but Grameenphone won the two-month injunction in court on October 17. The government appealed against the injunction on Sunday.

Following a meeting at the Gono Bhaban between Prime Minister’s ICT Affairs Adviser Sajeeb Wazed Joy and all stakeholders on Sunday, the move for out-of-court settlement was initiated.   

The finance ministry consulting the NBR drafted two agreements and gave them to the telecom division on Wednesday.

The drafts kept a provision for forming two committee to review the audit reports that claimed the carriers owed the state Tk 13,447 crore. 

The documents said Grameenphone would have to deposit Tk 100 crore while Robi Tk 25 crore which would be refundable or adjustable after the committees’ review. The carriers would have to deposit the same a month after the committees started their procedures. 

The drafts said that the BTRC would start issuing no-objection certificates for various equipment needs and services of the carriers. The BTRC had stopped doing so since July. 

The documents were to be signed yesterday before Joy left the country for the US in the evening. 

Yesterday, the Supreme Court, during a hearing on the government appeal against the injunction, asked Grameenphone how much money it was willing to deposit. 

The next hearing is scheduled for October 31.  

The government says Grameenphone owes it Tk 12,580 crore, of which Tk 2,300 crore is principal amount and the rest are late fees, VAT etc.

“We were ready to sign the MoUs but now we decided to wait for the court’s verdict in the appeal,” Mustafa Jabbar, telecom minister, told The Daily Star yesterday evening.

Jabbar declined to share details of the MoUs.

It was decided in the Gono Bhaban meeting that the carriers would withdraw cases they had filed against the regulator with the lower court and the High Court after the out-of-court settlement.  

In a statement, Grameenphone yesterday said the Appellate Division adjourned the hearing until next Thursday and the injunction passed by the High Court was still in effect. 

“We urge the BTRC to act in good faith and fully comply with the current stay order. We expect the BTRC to take the necessary actions to process and allow the release of our equipment from customs, import equipment for network expansion, and offer products and services to customers. 

“We reaffirm our commitment to reaching a transparent and amicable resolution to the disputed BTRC audit claim through constructive dialogue.”

Robi had also sought an injunction on the BTRC move to realise Tk 867.23 crore from it. The verdict delivery on the petition was yesterday deferred until November 3.

BTRC Chairman Md Jahurul Haque claimed that the court had upheld their claim and had asked Grameenphone to pay some money. “We always welcome amicable solutions but public money must be paid.”