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Don’t trivialise Zamtel sale, Mususu urges govt

Don’t trivialise Zamtel sale, Mususu urges govt
Written by Kabanda Chulu
Saturday, September 19, 2009 5:18:33 PM

EVANGELICAL Fellowship of Zambia (EFZ) executive director Paul Mususu yesterday challenged the MMD government to be sensitive and not trivialise the sale of Zamtel through suspicious re-engagement of RP Capital Partners as exclusive financial advisors to the transaction.

And Southern Africa Centre for Constructive Resolution of Disputes (SACCORD) executive director Lee Habasonda has urged the government to explain why 'goal posts' are being shifted to suit the aspirations of RP Capital Partners in the 75 per cent sale of Zamtel shares.

Initially government stated that RP Capital Partners were engaged as evaluators for the assets of Zamtel and to propose the best way of restructuring the country's largest telecommunications company whose revenue for 2008 stood at K370 billion and has over 160,000 mobile subscribers and 95,000 fixed and wireless customers.

Commenting on the appointment of RP Capital Partners as the exclusive financial advisor to the Zambia Development Agency (ZDA) in the sale of 75 per cent shares in Zamtel, Bishop Mususu said it was a sad development and urged Zambians not to stand aside and look.

"It is wrong to re-engage RP Capital Partners again especially that tenders were not opened or what means were used to invite them [RP Capital] or extend their mandate as financial advisors from being evaluators?" Bishop Mususu asked.

"In light of glaring irregularities cited in the [Dora] Siliya tribunal and even before the dust settles, this government has again appointed this company whose earlier engagement raised so much dust. But why? Anyway this government should be sensitive to this matter [sale of Zamtel] because it is of national interest which should not be trivialized."

And Habasonda challenged the government to explain why 'goal posts' were being shifted to suit the aspirations of RP Capital Partners in the 75 per cent sale of Zamtel shares.

"There is something fishy about this deal because the government said that RP Capital Partners were evaluators but how come they have become financial advisors and why wasn't this tender open so that all entities had an opportunity to participate?" asked Habasonda.

"Government should clear the air on why goal posts are being changed to suit RP Capitals and Zambians deserve to know the kind of relationship which the MMD government has with RP Capital in relation to the sale of Zamtel."

And Zambians for Empowerment and Development (ZED) president Dr Fred Mutesa expressed fears that the current solution where the MMD government seeks to sell Zamtel to a foreign organisation will result in a situation where no major telecommunication company operating within Zambia will be locally owned and managed.

Dr Mutesa said ZED believes that Zamtel needed to be revitalised if it was to regain its lost competitiveness.

"However, we differ with the MMD government's approach concerning this matter. In our assessment, the recapitalisation and restructuring of Zamtel is the most important remedy to its problems. Whilst we accuse Zamtel of not being efficient, we note that it was under the policy direction of government all these years. Government has no one else to blame except itself for the problems Zamtel is facing. And we fear that the current solution which the MMD government seeks to sell Zamtel to a foreign organisation will result in a situation where no major telecommunication company operating within Zambia will be locally owned and managed," said Dr Mutesa.

"The experiences of Ramcoz and LCM should serve as sufficient lessons for the MMD government. The ZED policy position will be to use the Lusaka Stock Exchange and attract investment from Zambian citizens as well as local companies so that locals are empowered with shares and the majority of the company has Zambian control. It is unfortunate that whilst the government talks of empowerment and even sets up bodies such as the Citizens Economic Empowerment Commission (CEEC), that these institutions are not being supported to perform the work that they were originally established to do."

And Development Partnership International (DPI) Zambia coordinator Richard Musauka called on Zambians to rise against the suspicious approach, which the MMD government was undertaking towards the privatisation of Zamtel.

He said the MMD government must explain the re-engagement of RP Capital Partners as financial advisors without tender procedures, saying the development shows that privatisation of Zamtel will not be done in a transparent and accountable manner.

"This company [RP Capital] or whatever you may call it was initially engaged in questionable circumstances and again it has been appointed as financial advisors but what the MMD government should know is that this suspicious approach shows that privatisation of Zamtel will not be conducted in a transparent and accountable manner that will not benefit the people of Zambia and people should stand up and oppose this development which smells of corruption," said Musauka.

The Zambia Development Agency during announced that they would be the main privatisation agent for Zamtel with RP Capital Advisors Limited as the financial advisor.

Labels: EFZ, LEE HABASONDE, PAUL MUSUSU, PRIVATISATION, RP CAPITAL PARTNERS, SACCORD, ZAMTEL

posted by MrK @ 4:18 PM