WASHINGTON-The Department of Defense Tuesday said it has begun to investigate allegations of wrongdoing in connection with the award of three mobile-phone licenses in Iraq last month to a group of Arab consortia that plan to deploy GSM wireless networks in the war-torn country.
“It is the subject of a DoD inspector general preliminary inquiry,” said Lt. Col. Kenneth McClellan, a Pentagon spokesman.
Egypt’s Orascom Telecom was picked to operate a cell-phone system in central Iraq; Asia-Cell in the northern part of the country; and Atheer, which is reportedly associated with Mobile Telecommunications Co. of Kuwait, in the southern region. The U.S.-led Coalition Provisional Authority headed a review of 35 applications and the selection process.
The three consortia were poised to get the official go-ahead to begin rollout of mobile-phone systems any day now. It is unclear whether the probe will set back a licensing process that has been mired in controversy and delay from the start.
Motorola Inc. is the primary equipment supplier to Orascom.
“We have no knowledge of an investigation, preliminary or otherwise,” said Norm Sandler, director of global strategic issues for Motorola.
