(LUSAKATIMES) Vodacom case has no link to Zamtel sale

Vodacom case has no link to Zamtel sale
Monday, August 10, 2009, 9:26

GOVERNMENT has said the court case involving Vodacom and the Communication Authority (CA) in which the former is seeking to be awarded a cellular mobile licence has nothing to do with the sale of shares in Zamtel.

Chief Government spokesperson, Ronnie Shikapwasha said the Vodacom case had nothing to do with the sale of 75 per cent shares in Zamtel and Government would proceed with the offer of shares to investors.

He was commenting on a statement by former vice-president, Enoch Kavindele that the sale of Zamtel shares could not go ahead until the case in which the State has appealed against a high court’s ruling that Vodacom Zambia was lawfully granted a mobile licence was disposed of.

General Shikapwasha, who is also minister of Information and Broadcasting, said yesterday that Government would continue with the sale of 75 per cent shares in Zamtel because it wanted to save the company from collapsing.

Mr Kavindele said that Zamtel shares could not be sold before the disposal of the case.

He said that he had since instructed his lawyers to institute contempt proceedings against the CA for allowing the sale of Zamtel shares despite the pending case in the Supreme Court.

Mr Kavindele, who is Vodacom Zambia chairman, said at a Press briefing yesterday that the high court ruled that his company still held the fourth cellular mobile licence and there was no way Zamtel could be sold because it meant that another company was being allowed in the country.

He said he had even written a letter to Communications and Transport Minister, Geoffrey Lungwangwa reminding him that the sale of Zamtel could not proceed because the high court injunction restrained the CA from introducing any other cellular telecommunication operator in any form.

“The said injunction, among other restrictions restrains the authority from granting such a licence to any national mobile cellular operator until after the determination of the appeal in the Supreme Court,” reads the letter.

He has also complained against the CA’s decision to issue Zain Zambia a third generation (3G) licence because the same injunction restrained it from granting any licenses relating to telecommunication until the matter was disposed of.

In another letter to Zain Zambia managing director David Holliday, Mr Kavindele said that the CA had recently issued public notices referring to the suspension of issuance of all telecommunication licenses until further notice.

He said he had instructed his lawyers to institute contempt proceedings against the CA and advised Zain Zambia to cease any 3G-related activities with immediate effect failure to which the company may face similar contempt charges.

But Attorney General, Mumba Malila said that he could not comment on the matter because Vodacom Zambia sued the CA and Zamtel adding that his chambers were not handling the case.

[Times of Zambia]