State owned Mobile Network Operator has been prejudiced an estimated USD $20 million due to bad governance and poor decision making driven by possible corruption, kick backs and general bad governance while the public company will likely sink into oblivion in the next few years, if nothing is urgently done to salvage it.
Against all odds and common sense NetOne contracted ZTE for an estimated USD $12million to supply a Mobile Switching Centre, MSC when the company had a total switching capacity of 10 million subscribers out of the Huawei and Nokia MSCs with less than half 4.2 million subscribers.
While this move under normal circumstance may have been done in anticipation of growth to have justification, the connected subscribers dropped by almost 2 million, meaning they do not even need to be upgrading the current system , but rather seek maintenance with a current subscriber base of less than 3million active subscibers.
Purchase of redundant MSC from ZTE US$12 million, Failure by immediate past NetOne management to force Tecnotree for specific performance on the Billing System contract also costed them over US$2million.
After NetOne insisted in this rather ugly deal, Cancellation of FTS Billing contract and awarding it to ZTE has costed them a whopping US$5 million as awarded by the London Arbitration Centre oer contract violation.
While NetOne is actually yet to pay these costs, they are all demanded to be paid and the state owned company which is already struggling financially must not have been exposed to these unnecessary financial constraints.