A quick rollout of mobile telephone services in Iraq looks increasingly unlikely as the Pentagon probes alleged corruption in the awarding of licences, the Middle East Economic Survey (MEES) reported.
Iraq's ministry of communications had stressed the systems must be operational within two months when contracts were signed with three consortiums on Oct. 6.
Egypt's Orascom Telecom Holding, Kuwait's National Mobile Telecommunications (AsiaCell) and Kuwait's Mobile Telecommunications Company (AtheerTel) were even put into a race where the first to establish a system in its designated area would then be able to start competing in the other two regions.
However, predictions that Iraq would have a mobile network in place by the end of the year "are looking increasingly unlikely, because the signing of the contracts has been delayed by a Pentagon investigation into allegations of corruption in the license awards," the newsletter says.
The Financial Times reported last week that two Coalition Provisional Authority (CPA) officials and interim Telecommunications Minister Haidar al-Abbadi, were under investigations over allegations of bribery regarding the Orascom contract.
Orascom and partners deny paying any bribes as does Abbadi.
The industry newsletter quoted one of the unsuccessful bidders as saying: "There are just too many accusations flying around about special interest groups and individuals with certain connections. They will have to investigate the whole procedure even if it is just to show there is no impropriety.
MEES says: "The current inquiry, which is in a preliminary stage, is apparently being conducted by the Pentagon Inspector General's Office following claims that the contracts were awarded on the basis of political connections rather than on technical merit."
"As soon as the awards were made they sparked controversy with many alleging that the procedure was not sufficiently transparent and favored special interest groups particularly from within the current ruling circles in Iraq," adds the Cyprus-based newsletter.
Orascom has been chosen for the central region which includes Baghdad, AsiaCell for the north, and AtheerTel for the south.
Last week, Kuwait's Mobile Telecommunications Co said its southern network has been delayed for security reasons, but insisted the project will go ahead.
Until the new systems are up and running, Iraq remains the only country in the Middle East and North Africa not to have a mobile network.
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in artificial-intelligence (AI) chips, yesterday said that small-volume production of 3-nanometer (nm) chips for a key customer is on track to start by the end of this year, dismissing speculation about delays in producing advanced chips. As Alchip is transitioning from 7-nanometer and 5-nanometer process technology to 3 nanometers, investors and shareholders have been closely monitoring whether the company is navigating through such transition smoothly. “We are proceeding well in [building] this generation [of chips]. It appears to me that no revision will be required. We have achieved success in designing
PROJECTION: KGI Financial said that based on its foreign exchange exposure, a NT$0.1 increase in the New Taiwan dollar would negatively impact it by about NT$1.7 billion KGI Financial Holding Co (凱基金控) yesterday said its life insurance arm has increased hedging and adopted other moves to curb the impact of the local currency’s appreciation on its profitability. “It is difficult to accurately depict the hedging costs, which might vary from 7 percent to 40 percent in a single day,” KGI Life Insurance Co (凱基人壽) told an investors’ conference in Taipei. KGI Life, which underpinned 66 percent of the group’s total net income last year, has elevated hedging to 55 to 60 percent, while using a basket of currencies to manage currency volatility, the insurer said. As different
Taiwanese insurers are facing difficult questions about the damage of recent swings in the New Taiwan dollar. Regulators might have a partial solution: letting firms change how they calculate the value of foreign currency assets. The Financial Supervisory Commission (FSC) is considering allowing insurers to use six-month average exchange rates when they calculate risk-based capital in their semiannual reports, a shift from the current system where insurers use exchange rates on the final day of reporting. The change could ease pressure on the US$1.2 trillion insurance sector, whose huge exposure to foreign assets came into the spotlight earlier this month after a
RSS