For yet another time, the Nationalist government has sold its stake in one of the country’s best companies at a price that is much less than its value quoted on the stock market, Labour spokespersons Charles Mangion and Joe Mizzi said yesterday.

They said the government sold its stake at the price of Lm1.55 per share, however the price quoted on the Malta Stock Exchange was Lm1.85 when the sale was effected. They added that this decision was creating pressure on the share price for several Maltese investors.

Dr Mangion and Mr Mizzi said the government had not negotiated strongly enough because Maltacom had increased its profits by 57 per cent in 2005. They said that Tecom bought a stake in Tunisia Telecom at a much higher price than that paid for Maltacom.

The Labour spokesmen said that although the telecommunications market had been liberalised, Maltacom continued to grow without having to shed workers.

They said that Tecom could now reduce the number of employees after the next general election and called on the company to re-train the employees “so they could fit in with the company’s future expansion”.

Dr Mangion and Mr Mizzi also called on Tecom to invest in Maltacom and to keep the company’s social responsibilities.

In a counter-statement, the Investment, Industry and IT ministry said the Labour Party was against all forms of privatisation and its statement on the sale of the government’s share in Maltacom was based on untruths and unfounded criticism.

The ministry said it was not true that sale price was discounted but, based on advice from Lehmann Brothers – who were more credible in this sector – had stated that the price was the average for this type of transaction. The government insisted that the price was not discounted in any way.

The ministry also denied that the government had agreed that Tecom should dismiss a considerable number of workers after the election. “There is no agreement to sack any workers.”

Finally, the ministry said that it was not true either that Maltacom no longer had any social obligations.

“The agreement with Tecom is that they continue to subsidise those who have the 61+ Pink card, the Telecare service, the service TAFDA, information society educational programmes for the elderly and community education in IT,” the ministry said.