Maravi

RP Capital deal smacks of corruption, says Kakoma

RP Capital deal smacks of corruption, says Kakoma
Written by Chibaula Silwamba and George Chellah
Sunday, September 27, 2009 2:13:53 AM

UPND spokesperson Charles Kakoma has charged that ZPPA central tender committee’s holding of a meeting at night to award a contract to RP Capital as exclusive financial advisor in the sale of Zamtel smacks of corruption. And United Party for National Development (UPND) leader Hakainde Hichilema on Thursday warned of demonstrations over the corrupt privatisation of Zamtel with or without a police permit.

Commenting on a meeting that was held at night by permanent secretaries and other members of the central tender committee of the Zambia Public Procurement Authority (ZPPA) to rubber-stamp RP Capital as exclusive financial advisor to the Zambia Development Agency (ZDA) in the sale of Zamtel shares, Kakoma questioned the motive of holding a meeting at night.

“Government business takes place between 08:00 hours and 17:00hours. So why sit in the night, hold a dark corner meeting to award a contract? That smacks of corruption.There is some irregularity, illegal activities going on surrounding the sale of Zamtel,” said Kakoma, who is also Zambezi West member of parliament.

“That deal was done corruptly. It was done without following any tender procedures. There are so many companies in Zambia that are capable of providing financial advice. They [government] have continued to use the same company to value the assets of Zamtel and to provide financial advice services to ZDA; they have an interest in the matter. That is why people are concluding that RP Capital is a special baby of Rupiah Banda’s government. That is why people think RP Capital has special interest for Rupiah Banda especially his son because of such conduct. In any case, why didn’t they invite companies to bid for the tender and award the contract?”

Well-placed government sources revealed to The Post that permanent secretaries and other members of the ZPPA central tender committee met at ZPPA offices on the night of September 14, a day before the ZDA published an advertisement in local and foreign media about the privatisation of Zamtel, in which it stated that RP Capital Advisors Limited had been appointed as ZDA’s exclusive financial advisor in relation to this transaction.

“The meeting took place at 21:00 hours on [Monday] 14th September at ZPPA offices in Lusaka. ZDA is the one which requested the ZPPA central tender committee for the meeting which took place at the ZPPA offices,” the source said. “The committee rubber-stamped the engagement of RP Capital as advisors, shortly after that there were adverts placed in the media about the sale of Zamtel and retention of RP Capital as financial advisor. But this is strange.”

And during a programme on Joy FM radio in Lusaka, Hichilema said the privatisation of Zamtel amounted to corruption and abuse of office.

He said President Banda wanted to retire a rich man with his family and his business partners.

Asked whether the opposition political parties would allow such, Hichilema responded: “We are not allowing that. But it should not only be Hakainde and Michael Sata, they should be 12 million Zambians, these are your assets. We are making a lot of noise and what we want to see is Zambians coming together and demonstrating peacefully with a police permit,” Hichilema said.

“And if the police doesn’t give a permit this time, I think we should do it without a permit so that we can show a greedy president that he is not allowed to devalue the assets of Zambians and acquire them indirectly and then make a lot of money after.”

He said this country could be managed better than the MMD.

“MMD government has no priorities, they have no priorities for the people, they have priorities for themselves. They have priorities to enrich themselves. When you look at the Zamtel privatisation saga, we argued against the RP Capital Partners, we talked our lungs out, they didn’t listen,” Hichilema said.

“Now they have been given an exclusive contract as financial advisors to the whole privatisation of Zamtel, which we have been against. Here is the greed that I talk about. They should not allow RP Capital Partners to continue on the Zamtel contract, they are going to earn millions of dollars.”

He insisted that RP Capital Partners would benefit from the privatisation of Zamtel.

“There are three levels of fees and I define these levels; a commission on any sell realised...if Zamtel’s optic fibre network is sold separately, RP Capital Partners will be paid a percentage, if the assets of Zamtel are sold separately RP Capital Partners will get a commission,” Hichilema said. “If Cell-Z is sold separately, RP Capital Partners will get a commission, this is what the MoU says.”

He said President Banda was using the Zambia Development Agency (ZDA) to ratify a corrupt conduct.

“This is why I say the priorities are not there,” he said.

He said the tender procedures were not followed in the privatisation of Zamtel.

“We know that a family member is related to the Zamtel, RP Capital Partners...that is corruption. Our fight against corruption has collapsed this is evidence because it is perpetuated by the President’s office,” Hichilema said.

He said Zambians had not seen the report of the Zamtel evaluation.

“The whole Zamtel saga smells of corruption. The whole Zamtel saga smells of abuse of office,” he said.

He said the government needed to restructure Zamtel in a way that they could take it to the market and request Zambians to buy shares.

“I expected that 60 per cent of that could be owned by Zambians and maybe 40 per cent by a strategic partner who would bring in the technology and the management. And then ordinary Zambians will be the majority. The best industry you can do that is telecoms because it has money and Zamtel is telecoms,” Hichilema said.

“Tell me anyone who is normal, you are saying publicly that Zamtel is worth nothing, you are the President of Zambia, you are the chief sales man for your own asset on behalf of the people of Zambia. The President stands on a platform and says ‘Zamtel is worth nothing we should sell 75 per cent’. Now, let me ask you where the logic is, why should the one who should be promoting Zamtel to gain more for the people of Zambia be the one undervaluing Zamtel by making pronouncements?

“An optic fibre network is being laid right now, on another hand the President is saying Zamtel is worth nothing, why is he allowing billions being invested? Why should he say Cell-Z is worth nothing? You have the buildings, land and buildings worth billions, real estate.”

He said President Banda stated that Zamtel was worth nothing because he had vested interest.

Hichilema said corruption would increase under the MMD.

“You have seen how the MMD leadership is corrupting the judiciary. Now Zambians are even afraid to go to court. If you go to court under the case that involves an MMD politician, you have lost that case,” said Hichilema.

Labels: AFRICAN PARLIAMENTARIANS NETWORK AGAINST CORRUPTION, CHARLES KAKOMA, CORRUPTION, HAKAINDE HICHILEMA, RP CAPITAL PARTNERS

posted by MrK @ 1:14 AM