Maravi

TIZ challenges govt to explain RP Capital irregularities

TIZ challenges govt to explain RP Capital irregularities
Written by Maluba Jere and Mutuna Chanda
Monday, February 16, 2009 5:18:32 AM

GOVERNMENT should explain the alleged irregularities surrounding the awarding of US $2 million to RP Capital Partners to value Zamtel’s assets rather than attack persons questioning the deal, TIZ has demanded.

And Patriotic Front (PF) Roan member of parliament Chishimba Kambwili has observed that considering the rate at which communications and transport minister Dora Siliya is going, she will be a possible convict.

Commenting on the US $2 million contract awarded to RP Capital Partners of Cayman Islands by Siliya to value Zamtel's assets without following procedure, Transparency International Zambia (TIZ) president Reuben Lifuka said they were convinced that there were some apparent irregularities in the manner the matter had been handled.

Lifuka said it was unfortunate that the explanation and defence given by President Rupiah Banda on Siliya's action to sign or even consider signing an MoU even in the light of the sound legal advice from the Attorney General, was far from being satisfactory.

“What we find extremely distressing is that the government is now shifting attention from the core issue of a US $2 million award to RP Capital Partners Limited based on single sourcing to attacking individuals who are raising concerns about the whole deal,” Lifuka said.

“It will not help government in anyway to start calling issues which are being raised and hinge on accountability of the executive arm of government as nonsense. It is not acceptable for a Head of State to casually malign citizens who raise concerns about his government's dealings as simply dull and not smarter than his appointed ministers.”

Lifuka has also challenged the government to explain to the public why the government opted for single sourcing and what considerations they made in arriving at RP Capital Partners Limited.

“Additionally, we need an explanation on why local service providers have been ignored in this exercise. We demand that government immediately gives a proper and comprehensive explanation on this transaction and we wish to remind government that it seriously needs to look at its public procurement practices,” he urged.

Lifuka said TIZ had noted with sadness that in the last two months, there had been reported public procurement processes for oil or petroleum products, maize and now the valuation of Zamtel which raised more questions than answers.

“And these are only a few of the procurements that have come to the attention of the public and one wonders what would come out if an assessment of all public procurements done by the Rupiah Banda administration were analysed,” Lifuka said.

“Government should be reminded that the people are living witnesses of what happens when a regime throws caution to the wind in its dealings, a window of unbridled greed and corruption is opened and total disregard for public property sets in. We are sure as Zambians that we deserve some answers and this is not too much to ask of people who are in office, courtesy of our votes.”

Lifuka said concerns about improper and in some instances, illegal transactions, should not be reduced to a simple contest of wits, saying it was about protecting public resources which needed to be fully accounted for at all times.

“We should not forget that having wits does not always translate into high public morality and integrity,” Lifuka said. “The concerns being raised are about integrity and probity in the execution of duties.”

Lifuka noted that the RP Capital deal was happening at a time when there were several revelations of carelessness, recklessness, mismanagement, misappropriations and embezzlement of resources in the Auditor General's report.

Lifuka said it was therefore not right for President Banda and Siliya to assume that people who had raised questions or blown the whistle on the matter were irresponsible and indisciplined.

He also said it was apparent that President Banda wanted the deal to be kept secret hence castigating those who may have leaked the document.

“Such sentiments, if anything, justify the need to protect whistleblowers, those who have seen something wrong being done in the spending of government resources and are patriotic enough to speak out not for their sake, but the rest of society,” he said.

“What is apparent in the President's statement castigating those who may have leaked documents is that he would have rather had this issue kept under a veil of secrecy and out of public knowledge. Yes, a disciplined government is necessary but this should also be clean and above board in its dealings.”

Lifuka emphasised that it would be unfair to expect public servants and those connected to the government to keep quiet in the face of glaring irregularities and illegality in the activities of the government.

“The Zambian people are alive to the need to capitalise Zamtel but at the same time, we do not wish to see public resources spent without due regard to cost and procurement procedures,” he said. “The President or minister Siliya are not spending personal money on this errand but public resources and as such, the public have every right to question actions which seem irregular.”

Lifuka also said TIZ found it unacceptable that single sourcing continues to be utilised, at times without the express authority of the Zambia National Tender Board or National Public Procurement Authority. He said while they recognised that in certain instances, single sourcing was inevitable, TIZ believed that there should be a strong system to ensure checks and balances to ensure that this facility was not abused.

“We have previously indicated that single sourcing has its weaknesses and mostly, it has a latent potential to attract bribery and kickbacks which makes it particularly unsuitable for public procurement purposes,” he said.

Last month, Attorney General Mumba 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.

But President Banda backed Siliya, arguing that she was on the right track regarding the partial privatisation of Zamtel.

According to the MoU, the Zambian government will pay to RP a fee amounting to five per cent of the negotiated amount ad would get US $ 2 million (about 10.3 billion) as transaction fees at the end of the transaction.

But Siliya told Parliament last Friday that RP Capital was the only company that expressed interest in valuating the assets of Zamtel.

And commenting on Siliya's defence over the MoU, Chishimba Kambwili warned her to be careful.

“I want to give Dora very friendly advice, I get along with her and as a friend, I want to her to know that lots of those who have gone to prison are those who are being used,” Kambwili said. “My advice to her is to be herself and be her own woman because arrogance and pomposity don't pay.”

Kambwili said it was clear from Siliya's explanation in Parliament that she did not have good reasons to single source the valuation of Zamtel assets.

“What Siliya should have done was to advertise through public tender for the valuation of Zamtel assets,” he said. “Any attempt to try and sweep dirt under the carpet will not help Dora. She might try and defend to please the powers that be but she will not go anywhere.”

Kambwili said when a public official abused authority, it did not matter who was backing that officer and that it was only a matter of time before one was caught up. He advised Siliya to rescind her decision on Zamtel and take the Attorney General's advice.

“If things go through as they stand, Dora will go to prison even before Rupiah Banda's end of term of office,” Kambwili said.

Meanwhile, Kambwili said former lands minister Reverend Gladys Nyirongo's conviction should serve as an example to all public officials against abusing their authority.

“Look at Gladys, she's a very nice person and straight forward but her conviction should send fears in Dora and others that ministries should not be used to get rich,” said Kambwili.

Labels: CHISHIMBA KAMBWILI, DORA SILIYA, RP CAPITAL PARTNERS, TIZ

posted by MrK @ 5:18 AM