Sittel audit alleges Entel underinvestment

14 Sep 2007

Bolivian telecoms regulator Sittel has said it will oblige incumbent operator Entel to meet its investment obligations, after an independent audit showed the company had invested 20% less than it claimed by the end of 2006, writes BNamericas citing local press reports. State news agency ABI reported the results of an audit carried out by local firm Pozo & Asociados, which claims Entel invested only USD576 million by end-2006 rather than USD720 million claimed by the telco. According to the contract between the company and the government, signed in 1995, the telco is required to invest no less than USD610 million, although there was no stipulated timeframe for the capex. Entel, meanwhile has countered that Pozo & Asociados has audited only the years 2002-05, and has not taken into account any money spent pre-2002 or in 2006.