TELIKOM LTD CLEARS SPECULATIONS ON SALE OF TELIKOM TRAINING COLLEGE

Ownership and Historical Commitment
Telikom is the legitimate and rightful owner of the Telikom Training College (College) in Lae, Morobe Province, with a conclusive and indefeasible title.

The College has historically produced skilled telecommunications professionals, benefiting not only Telikom but also other State-Owned Enterprises and industries within Papua New Guinea and abroad.

Telikom’s commitment to preserving the College’s legacy is demonstrated by recent improvements, including the installation of a new perimeter fence and the removal of
unauthorised occupants.

Efforts Toward Collaboration with Unitech
Recognising Unitech’s interest in expanding its facilities, Telikom initiated multiple discussions with Unitech to explore potential synergies for utilising the College to further Unitech’s educational mission. These discussions culminated in two formal meetings held on 30 August 2023 and 21 November 2023 in Port Moresby.

During these meetings, both parties agreed on the framework for collaboration, which included the preparation of two Memoranda of Understanding (MOUs) and three definitive agreements: a Lease Agreement, a Training Agreement, and a Commercial Agreement.

Challenges and Roadblocks
Despite Telikom’s proactive approach and flexibility, negotiations reached an impasse primarily due to unresolved terms in the Lease Agreement.

To address these issues and offer Unitech further assurance, Telikom extended a first right of refusal to Unitech, enabling it to potentially acquire the College in the future, with rental payments going toward a discounted purchase price. Unfortunately, Unitech’s Council was unable to resolve the outstanding issues, leading to a failure to finalise the transaction.

Department of Higher Education’s Involvement
Recognising the potential strategic value of this partnership for the nation, Telikom requested the intervention of the Secretary for the Department of Higher Education, Research, Science and Technology in November 2023. In response, the Departmental Head acknowledged Telikom’s efforts and provided guidance.

However, despite support from higher authorities, Unitech did not align its actions with these recommendations, further
stalling progress.

Concerns Over Funding Transparency
Prior to these discussions, Telikom became aware that Unitech had sought and reportedly received public funding for the redevelopment of the College without informing or consulting Telikom, the legal owner. Telikom has made repeated requests for transparency regarding this funding but has not received any disclosure from Unitech. This lack of communication has raised questions about the alignment of Unitech’s actions with Telikom’s commitment to transparency and cooperative partnership.

Exploring Viable Alternatives
While Telikom firmly believes in the potential value of collaborating with Unitech, it cannot afford indefinite delays. As a business, Telikom is responsibly managing its surplus assets and is offering the College for sale through a public tender. Importantly, Telikom is only selling to nationally owned companies and PNG citizens and will not sell to foreign buyers.

Telikom Sale Objective
The proceeds from this sale will primarily be reinvested into critical projects, including upgrading Telikom’s mobile phone network (equipment and towers), implementing new technology, and managing necessary staff adjustments to ensure the long-term sustainability of the business.

Conclusion: A Balanced Approach
for National Development
Telikom remains open to any collaborative effort that supports national interests in both telecommunications and education. However, the company also reserves the right to make decisions that best serve its operational and financial objectives.

Moving forward, Telikom will continue to prioritise the growth and sustainability of its business while supporting educational advancement in Papua New Guinea.