Maravi

Disclose results of RP Capital evaluation of Zamtel, Magande tells Rupiah

Disclose results of RP Capital evaluation of Zamtel, Magande tells Rupiah
Written by Patson Chilemba and George Chellah
Tuesday, July 28, 2009 4:36:09 PM

FORMER finance minister Ng’andu Magande has said government should not proceed to privatise Zamtel before telling the nation results of the evaluation process conducted by RP Capital Partners. And opposition FDD president Edith Nawakwi said government has deliberately bankrupted Zamtel so that they could sell it for a song.

Commenting on the announcement by President Rupiah Banda that government intends to sell 75 per cent of shares in Zamtel to an equity partner, Magande said the nation would be interested to know the equity partner the President was referring to. He said Zambians who are the main shareholders deserve to know the evaluation process of RP Capital before their asset could be sold.

“I wish they could disclose what RP Capital has done and what information is available. I don’t know with the unfavourable investment climate, I don’t know whether we will get so many bidders of choice. It would be useful for us to know the valuation process of RP Capital before the company could be privatized,” Magande said.

“We need to depoliticize it. Let us see the results. The issue might have been politicized but let us depoliticize it by knowing details of the valuation. We were told that these people [RP Capital] might be interested in buying. Let’s know the valuation from a technical and professional point of view.”

Magande said President Banda should in fact have allowed the Minister of Finance and National Planning or other senior Zamtel officials to announce the sale of 75 per cent shares so that they could tell the nation the whole package involved in the privatization of the company.

“I don’t know why he even announced to workers of Zamtel. They are not the shareholders. The shareholder is in Shang’ombo. Perhaps it should not have been the President to announce. He could have allowed the minister to give us the details. Like for instance, what is the interest of the workers? What are the results of the valuation process?” he asked.

Magande said telecommunications was an industry which was making money but it was unfortunate that Zamtel was instead making loses.

On the arguments by other stakeholders that Zamtel should not be privatized but government should instead pay the debts owed to the company, Magande said the nation needs to know the details because some debts might be capital debts. He said it would also be important to know how government had arrived at selling 75 per cent shares.

Magande said a percentage could only be reached at after looking at the liabilities and assets the company had.

“Also some of the liabilities, we might be thinking those are government liabilities. But if it is the private people not paying the bills, why are they not?” asked Magande. “On the optic fibre, one would want to know if we will recover money once the company is sold.”

Labels: MAGANDE, PRIVATISATION, RP CAPITAL PARTNERS, RUPIAH BANDA, ZAMTEL

posted by MrK @ 3:36 PM