Algiers--Orascom Telecom, locked in a bitter dispute with Algeria, owes the government there US$400,000 in debts left over from a former subsidiary, an Algerian minister was quoted as saying on Wednesday. The Egyptian firm has reluctantly agreed to sell its lucrative Algerian unit to the state but its hope of a clean exit could be stalled by a demand it settle all liabilities before the nationalization can be concluded. The dispute could endanger a US$6.6 billion deal signed by Russia's Vimpelcom to buy Orascom Telecom assets and create the world's fifth-biggest mobile operator. Algerian Prime Minister Ahmed Ouyahia said this week the liabilities included unpaid wages left over from Lacom, a now-defunct joint venture between Orascom and Telecom Egypt. He did not put a figure on that debt. Algerian newspaper El Khabar on Wednesday quoted Telecommunications Minister Moussa Benhamadi as saying: "The company (Lacom) has to pay all its outstanding debts, including 30 million Algerian dinars." The other liabilities previously outlined by Algerian officials are US$230 million in back taxes, plus an unspecified amount in penalties to the tax authorities, and US$190 million in fines to the central bank. Orascom Telecom contests the demands.
