Orascom Telecom to file appeal in Algeria case.
The Egyptian company Orascom Telecommunications SAE is appealing a decision by the Algerian Supreme Court after a lower court upheld a $1.3 billion fine for violating foreign exchange regulations.
Source : https://www.marocafrik.com/english/Orascom-Telecom...
The Algiers court suspended a two-year sentence against the Chief Executive Officer of Djezzy, Tamer El Mahdi, and asked the company to pay a fine of 6 billion dinars ($79 million) on his behalf. the court of appeal confirmed a judgement against Orasom Telecom Algerie (OTA) that consisted of fines of 99 billion Algerian dinars, worth about $1.3 billion. OTA has indicated that it will comply with the law.
This is the latest development in a long running dispute between Orascom and the Algerian government. Orascom wanted to sell the operator Djezzy and the Algerian government wanted to nationalise it instead.
The Russian company VimpelCom, majority owner of OTA,had tried to reach an agreement with the Algerian regarding the sale of OTA but the Algerian government seems to want a sale on its terms.OTA had tried to repatriate funds it says it is owed by Djezzy and the Algerian government moved to prevent this as it has with other international companies with subsiduaries in Algeria.
There is a strong feeling that the economic liberalisation policy which encouraged companies like OTA to enter the market has not lived up to expectations and they want to return to "National Champions".
However the dispute with OTA has deep roots beginning with the decision by Orascom Construction owned by Naguib Sawaris's brother to sell its Algerian operation to France's Lafarge. OTA has also been the victim of difficult Algerian and Egyptian relations which came to ahead over violence at a football match. The Algerian press has run a series of campaign's against Orascom Telecom and Naguib Sawaris who is a Copt .
Orascom Telecom has been a pioneer inestablishing mobile telecommunications in difficult countries like Zimbabwe,North Korea and Pakistan. It may have met its match in Algeria and commentators say the Algerian government may force a sale of Djezzy ,which is estimated to be worth $6 to 7 billion, on its own terms.
Last week Naguib Sawaris finally agreed to sell his Egyptian subsiduary Mobinil to France Telecom.
This is the latest development in a long running dispute between Orascom and the Algerian government. Orascom wanted to sell the operator Djezzy and the Algerian government wanted to nationalise it instead.
The Russian company VimpelCom, majority owner of OTA,had tried to reach an agreement with the Algerian regarding the sale of OTA but the Algerian government seems to want a sale on its terms.OTA had tried to repatriate funds it says it is owed by Djezzy and the Algerian government moved to prevent this as it has with other international companies with subsiduaries in Algeria.
There is a strong feeling that the economic liberalisation policy which encouraged companies like OTA to enter the market has not lived up to expectations and they want to return to "National Champions".
However the dispute with OTA has deep roots beginning with the decision by Orascom Construction owned by Naguib Sawaris's brother to sell its Algerian operation to France's Lafarge. OTA has also been the victim of difficult Algerian and Egyptian relations which came to ahead over violence at a football match. The Algerian press has run a series of campaign's against Orascom Telecom and Naguib Sawaris who is a Copt .
Orascom Telecom has been a pioneer inestablishing mobile telecommunications in difficult countries like Zimbabwe,North Korea and Pakistan. It may have met its match in Algeria and commentators say the Algerian government may force a sale of Djezzy ,which is estimated to be worth $6 to 7 billion, on its own terms.
Last week Naguib Sawaris finally agreed to sell his Egyptian subsiduary Mobinil to France Telecom.
Source : https://www.marocafrik.com/english/Orascom-Telecom...