Thursday, February 12, 2009

Malila’s advice to Dora is mandatory – LAZ

Malila’s advice to Dora is mandatory – LAZ
Written by George Chellah
Thursday, February 12, 2009 5:08:01 PM

THE Attorney Gener-al’s advice is mandatory, Law Association of Zambia (LAZ) president Elijah Banda has said. Commenting on the US $2 million contract awarded to RP Capital Partners of Cayman Islands by communication and transport minister Dora Siliya to value Zamtel’s assets without following procedure and against the Attorney General's advice Banda said there was no legal justification to ignore the Attorney General's advice over the partial privatisation of Zamtel. He stressed the need for the government to adhere to Attorney General Mumba Malila's advice over the matter.

“First and foremost, the Attorney General has clarified the position that this communication was between him and his client who is the Minister of Communication, in this case. And as lawyers, we would like to respect that professional privilege,” Banda said.

“That not withstanding, generally our view as LAZ on this matter is that the function of the Attorney General is that he is the government's chief legal advisor and the advice of the Attorney General is mandatory as opposed to it being optional.”

Banda said LAZ did not see why or how the Attorney General's advice should be ignored or waived by the government.

“I don't think there can be any legal justification to ignore that advice, and ordinarily, we feel there should be adverse consequences for ignoring that advice,” Banda said.

“As LAZ, we are studying the Memorandum of Understanding (MoU) with the view that at an appropriate time, we can give our view over the same and what action needs to be taken.”

Last month, Attorney General Malila strongly criticised Siliya's decision to proceed to sign an 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 Communication 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.

"As to the argument that she did it illegally, that is nonsense. First of all, when the Attorney General gives an opinion, he does not give the opinion to the public. The opinion given by the Attorney General is given to the particular client. If the Vice-President writes to the Attorney General and say 'I want your opinion on this', the Attorney General must write that letter to him. And if the minister writes to the Attorney General, the Attorney General must reply to her, not to the public," President Banda said.

He said Siliya should be given the opportunity to explain the issue in Parliament. President Banda said Siliya was smarter than some of the people questioning her.

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 to 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.

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