Telenor worried over Grameen Bank row
Sayeed
Telenor Group, which has a controlling stake in Grameenphone Ltd, has expressed deep concern about the ongoing dispute over the ownership of Grameen Bank, saying it could impact the company's future investments in Bangladesh.
"We expect the government to comply with both local laws and international treaties that protect the rights of foreign investors," said the Norwegian company in a statement yesterday.
The Group said it would consider all available legal options to secure its investment in Bangladesh and protect the future of GP, its customers, employees and business community if needed.
Telenor owns 55.8 percent in GP, which is the largest mobile operator in Bangladesh with more than 40 percent market share. Bangladesh's market has nearly 10 crore active subscribers now.
Grameen Telecom Corporation, a legally independent and non-profit organisation, owns 34.2 percent into the mobile operator. The other 10 percent shares belong to general retail and institutional investors, according to GP website.
The statement from Telenor came as an interim report from a government-sponsored commission on Grameen Bank reaffirmed the present government's long-held claim that Grameen Bank is a government bank and also owns all of the 54 organisations, including Grameen Telecom, that bear the name 'Grameen'.
So, the dividends going to Grameen Telecom from GP should go to Grameen Bank, according to the commission report.
But legal experts said, like all of the 54 organisations, Grameen Telecom has no legal link with Grameen Bank. As a result, the bank is not entitled to such dividends from GP.
The Grameen Bank Commission, in its report submitted to the finance ministry last week, also recommended that the licence of GP should be suspended immediately, as the mobile operator was not a party to the 1996 licence agreement.
If the licence is scrapped ultimately, it would give the government the control over GP through the takeover of Grameen Bank, said a lawyer.
Telenor, a group majority owned by the Norwegian government, said the Group is confident that GP has fulfilled all its obligations in the licence issued in 1996.
"With the support of Telenor Group, GP has had a successful development, and the company is today one of the most significant financial contributors to the Bangladesh government."
The Telenor statement also said the Group has not been a party in the ongoing review by the Grameen Bank Commission, as it relates to matters between the Bangladesh government and Grameen Bank.
"We have not received any formal information related to the process, and are therefore not able to comment on its specific progress."
Headquartered in Norway, Telenor is among the largest international investors in Bangladesh. It has mobile operations in 12 countries, with 148 million subscriptions.