Technology company DATEC, a business arm of the Telikom Group, is not up for sale, says Papua New Guinea's State Enterprises Minister William Duma.
Duma told the local newspaper The National that Datec was actually making money for the group.
“Why would we be selling a business that is actually making money? It makes big profit for Telikom,” he said.
“I have instructed Kumul Consolidated Holdings and Kumul Telikom Holdings not to sell Datec.”
Duma said Datec was an important internet service provider (ISP) provider.
“When you have a mobile company, you must have an ISP company. It sells all your accessories, mobile phones, laptops. They all work together,” Duma said.
“Datec also has a good training school where it trains members of the public to use, for instance, IT equipment.”
Last November, The National reported that the National Executive Council (NEC) had approved the sale of Datec to repay Telikom’s K1.8 billion loan.
Kumul Consolidated Holdings Ltd (KCHL) managing director Isikeli Taureka had said that Datec was a non-core asset which was not generating revenue.
Taureka said Telikom PNG was not making revenue to repay the K1.8 billion loan, therefore, Datec had to be sold.
The sale of Datec needed NEC approval because its assets were valued at more than K10 million.
Taureka said the KCHL board would submit the short-list of buyers to the NEC to consider.
“At least this enables us to find out what the market value is for this asset,” he said.
“It’s a transparent process that we have on the sale of Datec and other assets.
“Treasury is the ultimate owner and they may have a representative as well as Telikom and KCHL when we evaluate the bids.”
Taureka said 90 per cent of Datec’s business was in photocopy paper, laptops and ink.
Less than 10 per cent is on internet services.
The National / PNG eHow
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