KTHL facing financial challenge: Minister

Business

KUMUL Telikom Holdings Ltd (KTHL) faces financial and reform challenges, according to State Enterprises Minister Sasindran Muthuvel.
Muthuvel said this in response to queries from The National about the progress of the state-owned enterprise.
“It faces challenges from its weak financial position and the need for a significant reform and restructure of the entity,” he said.
“KTHL’s biggest challenge will be servicing of commercial and concessional debt booked with the company.
“Key actions to address this situation commenced after the ministerial reshuffle in November last year which handed KTHL back to Kumul Consolidated Holdings (KCH). Also, discussions with ADB (Asian Development Bank) have been positive to date and they are showing strong interest in potentially assisting us with addressing the more expensive commercial debts.
“Completing the network merger of bmobile and Telikom mobile networks is important to drive efficiency across our mobile network and improve the services for customers.
“This could potentially cost up to US$10 million (K33.35 million) to undertake properly, and we are in discussions with development partners to assist us in funding the merger.”
Muthuvel said he had written to KTHL board and management notifying them that KCH would be more involved with their operations for the next 12 to 18 months.
“This will be to support the stabilisation of the company’s financial position and to address some of the other challenges.”
He added that a comprehensive network review and financial audit were underway.

One thought on “KTHL facing financial challenge: Minister

  • It has been an ongoing lack of will or drive to fix the basic existing services that it provides to its loyal customers. Unfortunately I have witnessed many leaving and going to the competition. There is also a lack of concern by management when a customer leaves. The faults helpdesk needs to be overhauled. Good to see Minister pushing for the review.

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