Awal Communications is looking more everyday as the biggest telecommunications Scam in PNG

PNG's newest mobile provider AWAL Telecom, a major world mobile provider as they claim or a Scam? Since my last post on AWAL's Post Courier interview I did some further research and analysis into its so called mobile operations. I researched the industry in Africa and Dubai against the claims reported on their website and media statements.

1) AWAL Telecom claims to be an mobile provider with it's telecom Brand A-Tel, one of the fastest growing mobile operators with a strong footprint in the African Market. Substantial activities in subsidiaries and joint venture operations. One of the top 500 global companies by market share.
Funny they failed to mention a single joint venture company, subsidiary or even country they operate in. After researching a number of African countries and their respective communications regulators not one has A-Tel registered as a mobile operator. In fact the only information on A-Tel is a small to medium company called A-Tel Communications that only sells telephone handsets.

2) Most of the wording in the AWAL website is generic what you would find for most start-up companies. Digicel has websites setup for each of the 35 countries they operate in. Their websites disclose standard information about the company and its operations. The websites also have links to their holding company. Where AWAL does not even have one, their only website is their holding company AWAL International Holding. The pictures in the AWAL website seems to have been ripped off from other company websites.
3) The PNG Company AWAL Telecommunications Corporation Ltd was only incorporated in Sept 2013 (only 9 months ago). It has four shareholders who are also directors.

Johnfeely SAKUMAI - PNG (10 shares)
Pradeep Kumar KUNNUPARAMPIL - Indian (25 shares)
Muhammad Babar KHAN - Pakistan (25 shares)
Mahabubur Rahman SAKIB - Bangladesh (40 shares)
Major global mobile providers do not register their shareholding under individuals but their holding or group company. eg. Digicel Group or Digicel Pacific.

4) Awal Telecommunication's (PNG) registered company office is located in a residential home on Geboso Street, Korobosea NCD. Multi-national companies typically engage a reputable international legal or accounting firm to act as a their registered office or they list their place of business. In AWAL's case it seems they operate out of a back street house.

5) The three foreign company shareholders/directors stated the residential address as Office 260, Single Business Tower, Dubai, United Arab Emirates. This is the same address as their head office in Dubai. This would suggest all three shareholders/directors are living in the same office they operate from. Again this is not the practice of a multi-national global mobile company. The PNG director's residential address is also the same as the companies registered office, Geboso Street, Korobosea. This would mean they are using his home to operate from.

6) Awal boasts they have ITU membership (International Telecommunications Union). This is correct that membership is registered under AWAL Telecommunications Corporation (PNG). They did not have any membership prior their PNG License and only acquired membership using their PNG License. Highly questionable, given their claim their Brand A-Tel one of the fastest growing mobile operators with top 500 market share yet does not have membership.

7) In November 2013 AWAL posted an article on its website about the PNG Ministers visit to Awal International Holdings in Dubai.
"Telecommunications Corporation Ltd. AWAL International Holdings Ltd were happy to have received from PNG- Hon. Mr. Jim Miringtoro ( Minister for Communication and Information Technology) , Mr. Tulia Jack and Mr. Johnfeely Sakumai ( Director-First secretary Awal International Holdings , PNG) at our offices here in Dubai this October 2013. This follows a visit earlier in September 2013 to Papua New Guinea by our Chairman Pradeep Kumar, CEO Mr Sakib M.R, and Managing Director Mr Muhammad Khan. This Delegation from PNG participated in a series of meetings with our associates here in Dubai.
AWAL TELECOMMUNICATIONS CORPORATION LTD. is a registered Telcom company in PNG. AWAL expressed their interest in development of Telecommunications infrastructure in PNG"
The interesting point here is that AWAL never had a Mobile Company other than AWAL Telecommunications (PNG) Ltd which was registered in PNG in Sept 2013 and nothing more than a shelf company without a license. No employees, no assets, no bank accounts no background in mobile communications. Further there was no mention of their Mobile Operations or A-Tel in the newsletter or AWAL's background in the industry.

The news letter goes on to say;
SALIENT FEATURES OF PNG: For those not familiar with Papua New Guinea a few words about the country: As we know Countries which possess natural resources have an automatic advantage for economic development and PNG has an abundance of this advantage.

1) Papua New Guinea has 1,831 tons of gold reserves, which places it in the front row in the world.
2) Its export income accounts for 49.4% of the gross export income;
3) Land-based and Seabed natural gas and prospective oil respectively is 12.2 thousand billion cubic feet and 400 million barrels
4) It possesses 1/3 of the tuna resources of the central and western Pacific Ocean;
5) Moreover it has the third biggest remaining area of tropical rainforest in the world, about 78% land of Papua New Guinea being covered by forest.
6) It has some of the best growing conditions for horticulture
7) Tourism potential is huge. Tourists not only appreciate the natural beauty of this tropical paradise, but also the exotic taste of its diverse foods. Most of rural Papua New Guinea remains untouched by modern industry; the pristine natural beauty is an attraction for travelers.

Seems AWAL's interest lies more in our natural resources then our telecommunications. So what is becoming more and more clearer is that AWAL International Holdings headed by a Bangladesh, Pakistan and Indian teamed up with Papua Guinean Johnfeely SAKUMAI to register two companies in PNG, AWAL Telecommunications Corporation Ltd & AWAL LNG PNG Oil & Gas Corporation Ltd in September 2013. From there they then invited the Minister of Communications to Dubai to convince him they were a world leader mobile provider when in fact they never owned or operated a mobile company.
So a number of important questions that need to be answered.

Firstly much criticism has been levelled against the Department of Communications and the Minister responsible for approving the Company's network mobile licence. It should be noted that licenses are granted by National Information & Communications Technology Authority (NICTA) Board regulated by an Act of Parliament. The Minister only signs the license acting on recommendations from the Board. Given the serious questions raised regarding AWAL's financial & technical capability or experience in the industry so who should shoulder the blame if in fact AWAL is a scam?

Did the Minister approve the license acting on the advice of the NICTA Board, or did the Board act on the Ministers instructions?

1) The National Information & Communications Technology Act stipulates that NICTA Board shall grant an license if its satisfied the applicant is financially and technically capable of meeting its legal obligations under this Act as well as the obligations in the individual licence. The License Application Form Part C states the applicant must have capability of running the proposed network to the satisfaction of NICTA. This includes expertise required for the operation of the proposed network. Previous expertise in operating telecommunications network in PNG or overseas will be considered. The applicant must list his/her expertise in telecommunications for NICTA consideration.

So based on what expertise or experience in the industry did the NICTA Board see fit to grant AWAL a operators mobile license?

Did the NICTA officers visit the Company's operations in Africa and confirm their A-Tel Brand exists and is owned and operated by AWAL. Further if it is the Board that grants the License what was the Minister doing in Dubai?

2) AWAL claim to have budgeted K100m initial investment in PNG with a further K800 thereafter. Did the Board actually confirm the company's financial capability or net worth before granting the license?

3) The Awal statements: ‘We take a different proposition. If people like our service, some will switch. If not, they will stay. We are looking at areas where there is currently no coverage. New people, new customers. Such remarks make absolutely no financial business sense let alone common sense. Are we Papua New Guineans that stupid to be so gullible in believing such statements. Because it seems there are those in our Government or the NICTA Board who are.

If AWAL are looking in areas where there is no coverage then they are essential looking in areas where there is no market or return on their investment. Maybe this approach of claiming to go into remote areas to setup network towers is an entry point to go after our oil & gas.

I can only conclude that AWAL knew very well that by making the claim it would setup networks where there was none it would best position itself to be granted a license. Of course whether they have the financial and technical capability becomes irrelevant once you obtain your license. It then provides the option to sell the license to a legitimate mobile provider and pocket ten's of millions in the process.

So what now?? I'm sure you would all agree such practices must happen every day of the week in PNG where no one bothers to look into it. I guess the only appropriate action to take would be to write to the NITCA Board cc. the Ombudsman Commission and Fraud Squad to have those involved investigated. The NICTA Board under Section 60 of the NICT Act has powers to suspend or revoke the license. Let's hope this article and a letter to the Ombudsman Commission will motivate them to consider it.

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