The Ghanaian Ministry of Communications and Digital Technology has declared its intention to discontinue its contract with Kelni GVG, the private entity responsible for managing the nation’s telecom traffic monitoring system. This decision stems from escalating operational costs, which have become unsustainable for the government. The contract, originally valued at $89 million, has been under scrutiny since its inception in 2018 due to concerns surrounding its procurement process and overall efficiency. The Ministry’s announcement signifies a shift towards a more cost-effective and transparent approach to telecom revenue monitoring, with the National Communications Authority (NCA) poised to assume control of these operations.
The crux of the issue lies in the burgeoning cost of operating the Common Monitoring Platform (CMP), the system implemented to oversee telecom traffic. Initially, operational expenses constituted 28% of the revenues generated under the CMP. However, this figure has dramatically surged to 84%, a development that has prompted the government to reconsider its partnership with Kelni GVG. This escalating expenditure renders the contract fiscally unsustainable for the state, as it spends significantly more on monitoring revenue than it retains. This imbalance underscores the need for a more prudent and cost-efficient system, leading to the decision to transition the responsibility to the NCA.
The CMP was originally designed to monitor international inbound calls and curb revenue leakage within the telecommunications sector. However, the ballooning operational costs have overshadowed its initial purpose, necessitating a change in management. The NCA’s takeover is expected to streamline operations and ensure that monitoring expenses remain within reasonable limits. This transition also provides an opportunity to address the concerns raised regarding the initial procurement process and the overall effectiveness of the system under Kelni GVG.
Before fully assuming control, the NCA has been mandated to conduct a thorough operational audit of the CMP. This audit will provide a comprehensive assessment of the current system’s performance, identify areas for improvement, and ensure a seamless transition of responsibilities. This assessment will also serve as a baseline for evaluating the NCA’s performance in managing the system, promoting accountability and transparency. The audit’s findings will be crucial in shaping the NCA’s strategy for managing the CMP and ensuring its long-term sustainability.
The decision to transition the management of the CMP to the NCA signifies the government’s commitment to fiscal responsibility and efficient resource allocation within the telecommunications sector. This move also addresses the concerns raised by organizations like IMANI Africa and members of Parliament regarding the contract’s procurement and efficiency. By entrusting the NCA with this responsibility, the government aims to establish a more transparent and accountable system for monitoring telecom revenues.
The Ministry’s emphasis on accountability for the NCA underscores the importance of this transition in achieving a more effective and sustainable telecom revenue monitoring system. The NCA’s performance will be closely scrutinized to ensure that the issues that plagued the Kelni GVG contract are not replicated. This signifies a commitment to a more transparent and cost-effective approach to managing Ghana’s telecom sector, ultimately benefiting the state and the public. The success of this transition will rely heavily on the NCA’s ability to effectively manage the CMP within budgetary constraints and maintain transparency in its operations.
