Shareholders of Crystal Telecom were Tuesday morning told that they would be missing out on a dividend payout this year following losses posted by MTN Rwanda, where they have a 20 per cent equity stake.
During an Annual General Meeting, shareholders were told that there would be no pay out this year as MTN Rwanda reported a loss of Rwf 8.5 billion.
The firm incurred a loss of Rwf 8.5 billion which largely resulted from significant charges of Rwf15.5B from penalties by the regulator, Rwanda Utilities and Regulatory Authorities (RURA) as well as tax authorities.
Tax audits by the Rwanda Revenue Authority for the years 2011, 2012 and 2015 led to a tax discrepancy of over Rwf 12 billion which the telco is expected to pay.
So far they have made a provision of Rwf 6.8 billion and have lodged an appeal to challenge the assessment by the tax authority.
During the meeting, shareholders called for vigilance to ensure MTN Rwanda fulfils regulatory obligations to avoid unnecessary losses.
More details to follow…