Government to cancel SaskTel’s TTCL contract in 2009?

8 Dec 2008

The government of Tanzania is reportedly considering plans to suspend or terminate the three-year management contract awarded to Canada-based SaskTel International to operate national fixed line telco Tanzania Telecommunication Corporation Ltd (TTCL). The East African newspaper writes that the Cabinet’s decision follows the recommendations of a government-appointed team that was sent in to audit the PTO’s financial and operational performances before and after SaskTel took charge. It is understood Dar es Salaam is concerned by the failure of the Canadian management team to raise sufficient funds to turn the company around – contrary to the commitment it made in signing the management contract. SaskTel, which is 18 months into its contract, has been trying to secure loans from local and international banks such as NBC Limited and Stanbic Bank Tanzania, and also approached the China Development Bank for funds, but withdrew its request due to the stringent conditions that the Chinese attached. A final decision could be made as soon as January 2009 according to The East African citing a ‘high placed source’ in government.