Grameenphone (GP) is seeking arbitration to resolve its long-running Tk12,580 crore audit dispute with the Bangladesh Telecommunication Regulatory Commission (BTRC).
The company formally requested the regulator in July to begin an arbitration process to settle the 2019 information system audit covering 1997 to 2014, according to a letter seen by TIMES of Bangladesh.
The appeal comes as the case has remained stuck in a Dhaka court for six years, creating uncertainty for the country’s largest mobile network operator.
“The case has been pending for six years now,” GP said in the letter, adding that the backlog and slow pace of civil court proceedings indicate the matter is unlikely to reach finality soon.
It added that, given the prolonged legal process and technical complexities involved, the dispute should now be resolved through arbitration.
The operator said an efficient, merit-based arbitration mechanism would serve the best interests of all stakeholders and has asked BTRC to initiate discussions on the scope and terms for an arbitration agreement.
Attempts to reach BTRC Chairman Major General Emdad-ul Bari for comment went unanswered.
“All licensees doing business must be facilitated and an efficient arbitration should help,” Chief Adviser’s Special Assistant for Posts, Telecommunications and ICT Faiz Ahmad Taiyeb told TIMES on Saturday.
He said GP has shared details of its concerns regarding the disputed claims and noted that the interim government is positive about a win-win solution.
“We are planning an overhaul of the telecom industry’s audits so that licensees are audited within the same year,” he said.
He also said the ousted Awami League government aggressively targeted foreign operators while overlooking some local industry players including International Internet Gateways, International Gateways and International Terrestrial Cables.
“We are auditing all for facts,” he added.
GP said in its latest annual report that it deposited Tk2,000 crore in 2020 following a Supreme Court order before the matter was returned to a Dhaka court for detailed hearing.
“Grameenphone has always operated as a responsible, law-abiding company,” GP Chief Corporate Affairs Officer Tanveer Mohammad said.
“In 2019, Grameenphone received a demand of Tk12,580 crore following an audit conducted by the BTRC-appointed external auditor covering 1997 to 2014,” he told TIMES.
He said the claims include Tk4,086 crore related to the National Board of Revenue which falls outside BTRC’s jurisdiction, and around Tk6,194 crore in late fees.
GP disputed the entire audit demand citing errors in substance, methodology and procedure.
Tanveer said the unprecedented audit coverage of more than two decades and the inclusion of already settled matters, sub judice items and third-party components have further prolonged the issue.
“This prolonged uncertainty benefits no one,” he said.
A “fair, transparent and timely” resolution through arbitration would restore confidence and reinforce Bangladesh’s reputation as a trusted investment destination, he added.
