Libercom Benin

cancelled

Libercom was a GSM 900 network in Benin, launched in May 2000. The GSM network was part of a US$60 million BOT joint venture between the Office des Posteset Telecommunications (OPT)(50%), the national telephone company of Benin, and Titan Africa (50%), a wholly owned subsidiary of the U.S. Titan Corp. in 2000. Libercom was to offer service in Cotonou, the major port city of Benin where 15% of the country's 6 million people resided. The joint venture was granted one of the 10-year renewable GSM licenses awarded in Benin. The Libercom network was deployed by Titan with the assistance of Alcatel. Sofrecom, a subsidiary of France Telecom was assisting with the marketing, sales, and customer acquisition efforts. Under the terms of the larger agreement between Titan Africa and the OPT, Titan Africa was to build, co-operate, and ultimately transfer to the OPT a complete telephone system which included the GSM network, a wireless local loop network in several mid-sized cities, a fiber optic backbone transmission link, an Xpress Connection VSAT network to interconnect urban and rural communities, and the modernization of urban central telecommunications operations. In addition to the US$60 million BOT agreement, Titan Africa also wanted to receive up to 50% of the total net receipts earned on the project for up to a period of nine years. On December 10, 1999, Titan Africa entered into a Loan Facility agreement for up to 30.0 billion Francs CFA (US$45.0 million), with a syndicate of five banks, with Africa Merchant Bank as the arranger. In 2002, this financing was subsequently increased by 6.0 billion francs CFA to approximately US$54.0 million through the West African Development Bank (BOAD) to expedite an extension of the existing network which was expected to cover the entire country. In July 2002, Titan made the decision to exit all of their international telecommunications business through a combination of selling or winding down the operations within the Titan Wireless segment. Titan immediately began implementing these actions, which were substantially completed during 2003. Court filings by the SEC and U.S. Justice Department stated that Titan funneled US$2.1 million in 2001 in "social payments" to the election campaign of Benin's president, Mathieu Kerekou. Four days after Kerekou was declared the winner, Benin government officials agreed to quadruple Titan's management fee for developing the country's new telephone network from 5% to 20%, according to a plea deal filed by the U.S. Justice Department. In March of 2005, Titan Corp. agreed to pay US$28.5 million to settle an enforcement action filed by the SEC alleging the company violated the Foreign Corrupt Practices Act. Up and until 2013, Benin Telecoms remained in state hands. In 2014, the state made initial plans to privatize 80 percent of its stake in the entity, but at the time of the 2013 update, these changes had not been implemented yet. In March of 2005, Titan Corp. agreed to pay US$28.5 million to settle an enforcement action filed by the SEC alleging the company violated the Foreign Corrupt Practices Act . Benin Telecom was in state hands.