KATHMANDU: In a high-level report made public following Tuesday’s Cabinet decision, a government probe panel led by former Auditor General Tanka Mani Sharma Dangal concluded that Ncell Limited’s controversial share sale agreement must be rejected due to unapproved transactions, financial opacity, and systemic regulatory breaches.
The investigation revealed that Malaysia’s Axiata Group Berhad and Spectrlite UK executed the deal without required regulatory approval, while Spectrlite UK lacked the proven technical and financial capacity to operate the telecom operator.
Furthermore, Axiata retained indirect control after the sale, and hidden clauses tied an extra USD 10 million payout to Ncell acquiring Smart Telecom—exposing potential cross-holding conflicts.
Refuting claims of an unfavorable investment climate, the report showed Axiata earned up to six times higher profits in Nepal than in other markets, urging anti-corruption and tax agencies to investigate past revenue leaks, non-bank offshore settlements, hidden foreign control of Ncell’s mandatory 20% domestic stake, and to enforce state ownership safeguards ahead of upcoming license renewals.
