Zambians deserve to know Zamtel’s evaluation results, says Magande

Zambians deserve to know Zamtel’s evaluation results, says Magande
Written by chama
Wednesday, July 29, 2009 5:39:53 AM

FORMER finance minister Ng'andu Magande has said government should not proceed to privatise Zamtel before telling the nation the results of the evaluation process conducted by RP Capital Partners.

And FDD president Edith Nawakwi said the government has deliberately bankrupted Zamtel so that they can sell it for a song. Commenting on the announcement by President Rupiah Banda that the 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 were the main shareholders deserved 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 privatised," Magande said.

"We need to depoliticise it. Let us see the results. The issue might have been politicised but let us depoliticise 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 finance minister 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 privatisation 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 making loses.

On the arguments by other stakeholders that Zamtel should not be privatised 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 the 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?" Magande said. "On the optic fibre, one would want to know if we will recover money once the company is sold."

And Nawakwi said no one could cheat Zambians that Zamtel had no assets.

He said the government was deliberately not paying debts owed to the company so that it could be presented as a bankrupt company to be sold to their friends.

"He [President Banda] is not allowing the finance minister to do proper restructuring, he hasn't because we heard about a study and before we could get results, there is a sell. But we haven't seen the report," Nawakwi said.

"In Zambia we are fond of selling things for nothing, like the mines. Those in office have seen our mistakes and cannot continue making the same mistakes. In 1991, there was no money in the treasury, but for these people no one is forcing them to sell."

Nawakwi asked President Banda to apply breaks because he was too fast in his conduct over Zamtel. She said people like UPND president Hakainde Hichilema should not be blamed for saying that President Banda wanted to personally benefit from the sale of the company because there was too much secrecy from the government over the matter.

"Things are moving too fast. There is a study, and within two months, there is a sale of 75 per cent," Nawakwi said.

Patriotic Front (PF) president Michael Sata said President Banda's arrogance over Zamtel would not take him anywhere. He said President Banda was emulating former president Frederick Chiluba whose privatisation programme was a sham because he failed to listen to the advice of people like Andrew Sardanis. Sata mockingly said education minister Dora Siliya suffered on behalf of the President over Zamtel and now he was getting the cream of that suffering. He said President Banda had now taken over the responsibility of plundering Zamtel.

Sata challenged President Banda to tell the nation the equity partner government intends to sell 75 per cent shares to.

On President Banda's refusal to comment on the current debate regarding Chief Justice Ernest Sakala's tenure in office, saying the matter was in court, Sata said the President was contracting himself because he was the same person who was speaking good of Chiluba when the court process had reached a critical stage.

Sata further asked President Banda to stop claiming that he won the 2008 presidential elections.

He said President Banda did not win the elections but was merely favoured by the Supreme Court, which refused a recount of the ballots.

Sata warned President Banda not to be too excited over the Zamtel deal because it would blow in his face.

"He should not be carried away by gifts from international plunderers like his now best friend Chiluba was. In 1992, his best friend Chiluba was carried away by gifts like shoes, suits, bracelets and expensive watches. And he ended up privatising the mines for nothing," Sata said.

"The privatisation of the mines was not carried out properly purely because Chiluba got carried away. So if Rupiah is also excited, this deal will blow in his face. He should not be too excited like his friend just like I have said. Chiluba became too excited in 1992 and he gave away the mines."

He said President Banda should learn from Chiluba's mistakes.

"Chiluba got so excited with gifts so much that he even forgot the advice given to him by Andrew Sardanis and because of excitement, he even changed his accent," he said.

He said President Banda should not justify the plunder of Zamtel he had embarked on. Sata said President Banda must be mindful of the security of the nation before offloading the 75 per cent shares.

"Rupiah is aware of the implications of that deal. We advised Chiluba not to privatise Zamtel because we were concerned about the security of this country," Sata said.

"If he gives 75 per cent, that's worse than plunder. If those foreigners decide to block both the local and international gateway what will happen? They can even use Zamtel, which will be under their care to spy and interfere with other countries."

He warned President Banda to be careful.

"Rupiah can flee to Gwanda but where will the rest of us flee to if he brings trouble in this country?" asked Sata.