Problematic of liquidation and dissolution of companies under rwandan law: case study of Rwandatel

II.3.3. Revocation of Rwandatel's mobile license

RURA Legal affairs Directorate& Ad Hoc Monitoring committee made an audit of Rwandatel and after it presented a report to the Board of directors in demonstrating the inability of Rwandatel SA of implementing its bligations as per its licenses, Share Purchasing between GoR and Lap GreenN as well as the technical offers of Lap GreenN. This led to the revocation of Rwandatel's mobile license^95(*).

II.3.3.1. Objective of the audit

On the 1^st November 2010, the RURA management committee set up a team for the establishment of the then status of Rwandatel S.A.^96(*)

Their task was to monitor the performance of Rwandatel SA in terms of compliance of Rwandatel to be committed roll out plan, Capacity to install, investment plan to support technical offer, the license QoS indicators year per year since 2008, second it was to collect information on financial status, Project implemented to fulfill the performance obligations and last it was to analyze external audit reports and carry out a financial analysis in order to be able to ascertain the health of the company for the protection of all stake holders^97(*).

The objective of the report was to establish the exact status of Rwandatel compared to the technical and financial commitment year by year, and to provide legal advice to management on the way forward.

II.3.3.2. Historical background of the revocation of Rwandatel SA mobile license

Rwandatel was purchased by LAP GreenN on 26/10/2008 through a tendering process, whereby Lap GreenN was found to be best offer based on the technical and financial offer. The share capital of Rwandatel was distributed between two shareholders to wit; Lap GreenN with 80% of share capital and Caisse Social du Rwanda with 20% of share Capital. As a majority shareholder, the management was under Lap GreenN responsibility.^98(*)

When purchasing Rwandatel, Lap GreenN submitted a detailed Technical Proposal with a commitment of five years investment plan of 176 Million USD to support the rollout plan. Lap GreenN commitment was also that 60% of 177.6 Million USD would be invested in the first two years which are 2008 and 2009.^99(*)

After the cabinet decision of choosing the successful bidder, Lap GreenN has entered into negotiation with RURA to translate its commitments as described in its technical offer and business plan into license obligations that would to bind the new owner of Rwandatel. Those commitments were summarized in the appendices of the license especially in the provision relating to coverage and Roll out Plan with requests the licensee to install, operate and maintain the Licensed Network and provide the Licensed Services in all the localities that was indicated in the license and in accordance with the CAPEX Plan that was presented in the technical offer.

Rwandatel license obligations were including the Quality of Services requirements so that it provides very good and reliable services to customers.^100(*)

After Rwandatel was licensed, there was an establishment of an ad hoc committee within RURA for regular monitoring of the implementation of license obligations by the telecommunication companies including Rwandatel. Unfortunately, all reports made on Rwandatel indicated a poor performance and the failure to meet its obligations whether technical, financial or legal.

RURA tried to persuade Rwandatel to fulfill its obligations but the latter continued failing. The reports from RURA alongside those made by Rwandatel, the Audit Report of Rwandatel, the complaints from Rwandatel Customers, were demonstrating that instead of improving the situation, Rwandatel were getting worst.

The management of RURA found that it was necessary to move into enforcement measure in order to make Rwandatel implement its obligation. That is the reason why the ad hoc committee was made in place in order to prepare a report on Rwandatel situation and that led to the revocation of mobile license of Rwandatel.

* ⁹⁵ RURA Legal Affairs Directorate& Ad Hoc Monitoring Committee, Report on the Implementation of the License Obligations, Share Pledge, Technical Proposal and the Investment Plan of Lap GreenN December 2010, p.3

* ⁹⁶ RURA Legal Affairs Directorate & Ad Hoc Monitoring Committee, op.cit, p.4.

* ⁹⁷ RURA Legal Affairs Directorate & Ad Hoc Monitoring Committee, op.cit., p.5.

* ⁹⁸Ibid.

* ⁹⁹Ibid.

* ¹⁰⁰ RURA Legal Affais Directorate & Ad Hoc Monitoring Committee, op.cit., p.4.