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Zamtel transaction stinks of Rupiah’s corruption – HH

Zamtel transaction stinks of Rupiah’s corruption – HH
Written by George Chellah
Friday, September 18, 2009 5:29:54 PM

UPND leader Hakainde Hichilema yesterday charged that the whole Zamtel transaction stinks of President Rupiah Banda's corruption because he wants to actualise a dubious deal using the Zambia Development Agency (ZDA).

Commenting on ZDA's announcement that the agency will be the main privatisation agent for Zamtel with RP Capital Advisors Limited as the financial advisor, Hichilema said the whole saga was a matter that required Zambians to express displeasure.

"This is a clear message that Rupiah Banda and the MMD will stop at nothing to continue with their greed and corruption," Hichilema said.

"There is need to justify why the Dora Siliya and RP Capital saga was extended because they were arguing that this contract is just for the evaluation."

Hichilema said President Banda and his government were deceiving Zambians.

"Those of us who read the contract knew that it will commit the people of Zambia beyond evaluation. This dubious deal is now being actualised through ZDA to try and make it look normal," Hichilema said.

"Those of us who read the contract we knew that Dora and Rupiah had bound the Zambian taxpayer to a whole lot of money. The main issue is the greed during this presidency."

He said corruption had once again shown its ugly face in Zambia.

"We thought we had fought corruption. He (Rupiah) is developing very strange relationships as long as they satisfy his desires. It's clear that Rupiah's relationships and new-found love with various people is bent on these desires, so that they remain in office in 2011, so that they can continue stealing from the treasury. Rupiah is creating a cash mountain by privatising parastatals. We need to work together and stop this daylight robbery, which Rupiah and his friends are engaging in. Let's fight together, this devil will swallow every Zambian."

Hichilema said the stench from the Zamtel deal was getting worse day by day.

"To use bonafide people at ZDA...I have a lot of respect for Andrew Chipwende (ZDA director general) but he is being used by a corrupt President. There is no doubt about that and I am happy to repeat it," Hichilema said.

"He is bringing it with the whole Siliya stench. He is using bonafide institutions like ZDA. This is what a corrupt head of state does. They manipulate people like at ZDA. When they speak they are dismissed."

Hichilema said if the UPND and PF were in government, they would have floated the role of financial advisor to a local firm as opposed to what he termed as 'fly by night' firms.

"But you can't do that if your President is corrupt. The whole Zamtel, RP Captial deal stinks of Rupiah's corruption. Rupiah is hitting us from the left, from the right and from behind," Hichilema said.

On President Banda's relationship with Chiluba, Hichilema said: "Birds of the same feathers flock together. What is it except that Rupiah wants to gain personally? Zamtrop is a government account and you go and put your personal money in it...I can't see how one can debate it, that's madness. How do you put your personal money in Zamtrop?" Hichilema asked.

"Some of these things are so senseless that people should have shame. Some of the people the word ‘shame’ means nothing to them. Some of these people are supposed to be hiding from the Zambian people. Any sane person would not justify anything like that. Why not put money into your personal account? Why in the government account? Why did he do that?"

Hichilema said he was not too worried about Chiluba but President Banda.

"I’m worried about Rupiah because an upright President will be ashamed to defend anything like that. The problem is not that man (Chiluba), the problem is the head of state. [The problem is] when you have a joker in State House," said Hichilema.

In December last year, former communications and transport minister Dora Siliya single-handedly engaged RP Capital Partners to evaluate Zamtel assets before its partial privatisation contrary to advice from the Attorney General's chambers.

According to the memorandum of understanding (MoU) signed between the company and Siliya: "RP shall bear its own costs in connection with carrying out services under the Agreement. Reasonable expenses of RP incurred in connection with this MoU shall be reimbursed by the GRZ in conformity with section 3.4. Allowable expenses for reimbursement are limited to air tickets, accommodation charges, sundries, report production and communication charges. In any case GRZ shall not reimburse costs beyond US $ 50, 000 (about K260 million) unless higher amount of reimbursable expenses is agreed between GRZ and RP in writing.

"In consideration for the provision of services hereunder by RP, the GRZ shall pay to RP fee amounting to the higher of: (i) five per cent of the proceeds of the realisation amount arising from the relevant ZAMTEL sale; and (ii) a base floor amount of US $ 2 million [about K10.3 billion], to RP as transaction fees," the MoU stated. "For purposes of this MoU the realisation amount shall mean the amount received by the GRZ or its institution (or nominee) in connection with the potential ZAMTEL Sale."

The MoU stated that transaction fees were payable upon receipt of the realisation amount by the Zambian government or any institution of the Zambian government or its nominee.

"Any administrative costs that RP incurs arising from this assignment shall be deemed to have been incorporated in the transaction fee set in section 3.3 only in the case of a successful sale. Therefore, reimbursement under clause 3.2 shall apply only in case of the ZAMTEL sale not taking place during the term of this MoU," it stated.

"Transaction fee may be payable to RP in several instances in cases of several tranches of ZAMTEL sales. RP shall be entitled to receive the transaction fees hereunder even if ZAMTEL sale is completed following the termination of this MoU by either party unless the ZAMTEL sale is not causally connected with the services provided by RP hereunder. The parties of this MoU shall act in good faith in order not to circumvent the right of RP to receive and collect the transaction fees under this MoU."

It stated that notwithstanding clause 3.6, RP shall not be paid any amount from ZAMTEL sale on any transaction made by the Zambian government outside the MoU after a period of six months from the date of serving the notice of termination of the MoU in conformity with section 4.2 of the MoU.

Labels: CHILUBA, CORRUPTION, HAKAINDE HICHILEMA, ZAMTEL, ZDA

posted by MrK @ 4:29 PM