Corruption agency ‘denounces’ Libercom mismanagement

10 February 2017

Mergers, Acquisitions and Financial Results

The Republic of Benin’s Front of National Organisations Against Corruption (Fonac) has made a public announcement to the press identifying failures in the management and performance of struggling state-owned mobile operator Libercom, reports Agence Ecofin. President of Fonac, Jean Baptiste Elias, denounced the mismanagement of the cellco, a subsidiary of Benin Telecoms, including ‘unjustified’ expenditures and the ‘dilapidation’ of the existing limited resources of the company.

According to Fonac, the management continued with its misspending despite the falling turnover of Libercom over the years, whilst the operator has failed to provide an acceptable quality of service. Furthermore, Fonac hinted at unsound business practices in granting free telephony services to selected individuals, as well as a bloated senior payroll, factors which had ‘a significant financial impact on the company’. The agency explained that the number of Libercom management positions ‘increased from 26 to 54’ over a period when the cellco’s customer base and revenues dwindled, whilst ‘several officers appointed to these new posts were reclassified to higher categories’.

Fonac concluded that it considers Libercom to be working beyond its means, with ‘constant irrational spending’ gradually pushing the company towards bankruptcy.

Source: telegeography 8 February 2017