State-owned telecommunications companies GAMTEL and GAMCEL recorded combined losses exceeding D870 million in 2022, lawmakers deliberated today 24 February during a presentation of the firms’ annual activity report and financial statements before the National Assembly’s Standing Committee on Public Enterprises.
The figures presented to the committee showed that while revenue improved in some areas, mounting debts, operational inefficiencies and legacy financial obligations continued to weigh heavily on the two institutions.
GAMCEL reported revenue of about D450.3 million, representing a 17 per cent increase driven mainly by expansion in data and leased line services.
Gross profit also rose to D336 million. However, the company posted a net loss of roughly D749.5 million, largely attributed to a D486.6 million provision for bad and doubtful debts related to long-standing receivables.
Auditors issued an unqualified opinion on the accounts but warned of material uncertainty surrounding the company’s sustainability, citing accumulated losses and negative equity.
For GAMTEL, lawmakers were told that revenue declined from D277.3 million to D192.9 million, with the company registering a loss of about D121.3 million. Officials linked the downturn to capital constraints, infrastructure challenges and stiff competition in the telecommunications market.
The company also faces exposure to a D125 million government-guaranteed loan.
Beyond the financial results, auditors flagged governance and compliance concerns, including limited execution of internal audit activities and delays in remitting statutory deductions to the Social Security and Housing Finance Corporation.
Procurement compliance issues relating to fuel supply contracts were also highlighted.
Management attributed some of the challenges to capacity constraints and historical operational weaknesses but assured lawmakers that reforms are underway to address the gaps.
Measures outlined include strengthening debt recovery systems, improving internal controls and enhancing regulatory compliance.
The committee also heard details of a World Bank-supported social plan valued at $6.4 million aimed at restructuring operations and reducing payroll pressures.
The exercise affected 641 staff members across the two entities and was described by management as a necessary step towards restoring efficiency and competitiveness.
Looking ahead, officials said Cabinet has approved plans for a public-private partnership to support network modernisation and infrastructure expansion, a move expected to improve service quality and revenue generation.
Despite the financial strain, lawmakers stressed the importance of sustained reforms and stronger governance to safeguard national telecommunications infrastructure and steer the institutions towards recovery.
