Maravi

Govt’s engagement of RP Capital in Zamtel sale not transparent – Zukas

Govt’s engagement of RP Capital in Zamtel sale not transparent – Zukas
Written by Patson Chilemba
Saturday, February 14, 2009 4:36:33 AM

VETERAN politician Simon Zukas yesterday said the engagement of RP Capital Partners of Cayman Islands by communications and transport minister Dora Siliya to value Zamtel’s assets is not transparent.

Commenting on the US $2 million contract awarded to RP Capital Partners Limited by Siliya without following procedure and disregarding the Attorney General's advice, Zukas said the nation should be told how the government arrived at awarding the contract to RP Capital.

"This deal lacks transparency. To remove the [Kashiwa] Bulaya taste, the public needs to be told the international experience of RP of Cayman on similar projects. How was the firm selected and payments established? Is it the right fee? How do we know whether it's going to be paid the right fee?" Zukas asked.

"Unless the firm's professional standing is adequate, the incoming partner into Zamtel will not accept the valuation of Zamtel assets."

On whether Zamtel should be partially privatised or not, Zukas said Zamtel needed a partner because it was not good enough in its current state.

Last month, Malila strongly criticised Siliya's decision to proceed to sign a Memorandum of Understanding (MoU) with RP Capital Partners Limited over the partial privatisation of Zamtel shares in total disregard of legal advice from his office.

Malila in his letter dated January 5, 2009 to the permanent secretary in the Ministry of Communications and Transport advised that the MoU be nullified and that the necessary processes be followed.

But addressing the press before leaving for Tanzania on Monday, President Banda backed Siliya, arguing that she was on the right track regarding the partial privatisation of Zamtel.

According to the MoU, RP Capital had been single-sourced and contracted by the government to provide consultancy services to the government in connection with valuation of Zamtel for purposes of the potential sale of government shares in Zamtel, assistance in negotiations with prospective acquirers in conjunction with the government team and project management of the potential Zamtel sale process working with the Ministry of Communications and Transport and/or the Zambia Development Agency (ZDA), as the case may be.

The MoU further stated that the Zambian government shall pay RP a fee amounting to five [5] per cent of the negotiated amount and would get US $2 million [about K10.3 billion] as transaction fees at the end of the transaction.

The MoU stated that RP Capital partners Limited would be reimbursed the expenses it would incur in air tickets, accommodation charges, sundries, report production and communication charges.

Labels: CORRUPTION, DORA SILIYA, PRIVATISATION, RP CAPITAL PARTNERS, ZUKAS

posted by MrK @ 4:36 AM