NYARUGENGE - The Nyarugenge Commercial court will, on April 21, announce its decision on whether Rwandatel will be liquidated.
This follows yesterday’s initial hearing into the case where the government, through the Registrar General, instituted insolvency proceedings seeking court orders to liquidate the company.
Presided over by Bwasisi M Germain, the court heard that Rwandatel’s liabilities exceeded, by far, the assets which increased its deficit and, therefore should not be allowed to continue operating.
The prosecution, led by Emmanuel Butera, told court that, according to audit reports, Rwandatel is financially handicapped and can no longer function properly.
Butera added that since Rwandatel’s mobile license was revoked, the company was technically insolvent and unable to pay its debts.The defence, however, told the court to dismiss the complainant’s submission that the company was affected by the mobile license withdrawal.
Rwandatel’s defence team, represented by three lawyers Didas Kayihura, Herbert Rubasha and John Bosco Bugingo, told the court that Rwandatel was not technically insolvent as the complainant suggests and should not be liquidated.
Rubasha requested the court to put into consideration the setback the decision on the matter would bring on the investments in Rwanda since the majority shares in Rwandatel were owned by a foreign investor, LAP Green.
The defence had also asked court to withhold the hearing of the case as it had appealed against RURA’s decision to revoke the mobile license.But Judge Bwasisi ruled that the hearing will continue despite the appeal.