Former Gateway Television (GTV) subscribers will not receive interest in the compensation deal that will see over 500 formerly registered subscribers share Rwf 47.8 million.
The development follows the sudden closure of the pay TV in January 2009 due to bankruptcy caused by the global credit crunch.
According to Regis Gatarayiha the acting Director General of Rwanda Utilities Regulatory Agency (RURA), which is the institution handling the case; whoever has supporting documents, will be compensated, minus interest.
“The compensation package is considered according to two priorities, subscription fee and the equipment but no interest will be considered because they didn’t keep the money in the bank,” Gatarayiha said.
He also added that the calculations are done based on the rate of depreciation of the equipment.
Gatarayiha also added that the process is ongoing and they are still receiving claims from former subscribers.
Accordingly, all those with the required documents will receive their money.
He declined to say whether Phoenix, the insurance company responsible for the compensation, will pay extra money as additional claims are received.
However, a former subscriber who preferred anonymity stated that their claims are not being received at RURA headquarters in Kiyovu, adding that he even has the contact that he signed with GTV.
“We are not on the original list of the 490 residents, presented to RURA. When I presented my claim, an official in RURA told me that the matter was being handled in the Director General’s office and they could do nothing about it,” He said.
He added that they should be expecting interest payments since it has been a long time.
RURA requested GTV Rwanda to pay a performance bond that would cover damages caused or damage about to be caused to its clientele by reason of breach of contract or failure to perform obligations under the licence.
Under the framework, GTV Rwanda had secured, in 2008, a renewable one-year Performance Bond N°A133/BOD/0004/2008 from Phoenix of Rwanda Assurance Company SA, an East African insurance company.
In the compensation deal, RURA says that the package only serves to benefit clients who subscribed to GTV Rwanda and not people who bought their equipment from other East African countries especially Uganda and Tanzania.