‘RP Capital has done 75% of work on Zamtel valuation’

‘RP Capital has done 75% of work on Zamtel valuation’
Written by Joan Chirwa
Wednesday, February 25, 2009 3:39:08 AM

RP Capital Partners Limited of Cayman Islands has so far done over 75 per cent of the work in valuing Zamtel's assets to pave way for the parastatal's partial privatisation, highly placed sources have disclosed.

And the sources said the majority of Zamtel employees in Ndola are against the procedure that has been used in granting RP Capital Partners a contract to value Zamtel's assets.

Sources told The Post that officials from RP Capital had been in the country for a while now and had so far done about 75 per cent of the work in valuing Zamtel's assets, a process that will eventually lead to the partial privatisation of the country's public telecommunication institution.

The sources revealed that a meeting was held last week between Zamtel's senior management, RP Capital officials and some union representatives to discuss the work that had been done so far.

"Over 75 per cent of the work has been done. They [RP Capital] have been around for some time now and are almost through with what is supposed to be done," said the sources.

And the sources further revealed that about 80 per cent of Zamtel workers in Ndola were not happy with the method used in engaging RP Capital to value Zamtel's assets.

"Some questionnaires were circulated and the response received indicated that a lot of workers are apprehensive about having RP Capital to value Zamtel's assets...they are not against the partial privatisation of the parastatal," the sources said.

"Zamtel has been having difficulties and it will be important to have it partially privatised, but what the workers are worried about are possibilities that RP Capital may undervalue Zamtel which would be a sad situation. So, the issue is that workers support the partial privatisation of Zamtel and not the method used in having RP Capital to undertake the process of valuing Zamtel's assets."

Communications minister Dora Siliya recently signed a memorandum of understanding (MoU) with RP Capital Partners Limited at a contract sum of US $2 million for the valuation of Zamtel's assets, in total disregard of advice from the Attorney General's chambers.

And last week, a source who is a qualified local chartered valuation surveyor explained that a foreign firm engaged to value assets of a public institution like Zamtel should have partnered with a local partner who was registered in Zambia.

"They have to do this because legally, they can't practice on their own without a local partner. Foreign firms should register that assignment as a project with the Valuation Surveyors Registration Board (VSRB), which is based in the ministry of local government," said the source. "But I have not heard of any request for proposals for tenders in the case of valuating Zamtel. The only time we heard was when the MoU was signed."

The Valuation Surveyors Act Chapter 207 of the Laws of Zambia 3(1)(a) states:

"Notwithstanding the provisions of any other written law, no person, unless he is registered as a valuation surveyor, shall-Prohibition of un-registered persons from practicing. (a) practice valuation surveying of land or use any name, title or style containing the word "valuer", "valuations", "evaluating", "evaluation", "appraiser", "appraising" or "appraisal', or any other word implying his being in the business of valuation surveying. (2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding two thousand five hundred penalty units or to imprisonment for a period not exceeding one year, or to both. (As amended by Act No. 13 of 1994)."