Kathmandu. The high-level probe committee led by former auditor general Tanka Mani Sharma Dangal has made public its report on the Ncell share trading scandal. The committee has made public the report prepared after investigating the purchase and sale of 80 percent shares of Ncell. The report concluded that the share trading of Ncell was unrealistic and suspicious.
On December 1, 2023, Axiata Berhad had taken a controversial decision to sell 80% stake in Ncell to Satish Lal Acharya’s company SpectrolLight UK. After this, the government had formed a probe committee to investigate the issue.
In 2016, Axiata paid $1.36 billion to buy 80% stake in Ncell. However, seven years later, the same shares were sold for only $50 million. “There have been unnatural reasons in the valuation of the shares,” the report said, adding, “The latest share transactions of Ncell are unrealistic, opaque and suspicious.” ’
According to the Nepal Telecommunication Regulations, it is mandatory to take prior approval from the Nepal Telecommunication Authority while buying and selling more than 5 percent of the shares. “However, Axiata has transferred its shares abroad without informing the authority,” the report states, “This is a direct violation of Nepal’s Telecommunications Act, 2053 and Regulations 2054.” ’
The report said that it was motivated to challenge Nepal’s laws and evade billions of rupees in revenue. “It is unrealistic and suspicious that the value of a company that was valued at billions of dollars in the past has fallen by more than 95 percent in such a short period of time,” the report said. This will have a serious impact on the capital gains tax received by the government. ’
The report has expressed concern over the NEA failing to monitor such big transactions and failing to take strict action even when foreign investors are ignoring Nepal’s laws.
The committee has suggested the government to amend the act along with a detailed investigation into the sale and purchase of shares of Ncell.
Similarly, the report has suggested restructuring of tax collection and regulators.
एनसेलको शेयर खरिद–बिक्री सम्बन्धी अध्ययन तथा छानबिन प्रतिवेदन, २०८०_rkn3lag
