Zesco fibre optic burns board chairman Zyambo

Zesco fibre optic burns board chairman Zyambo
By Amos Malupenga
Wed 30 Dec. 2009, 04:01 CAT

Energy minister Kenneth Konga has dismissed Songowayo Zyambo as Zesco board chairman for among other reasons, the way the board handled the issue of fibre optic which the government initially wanted to be part of Zamtel assets.

However, Konga yesterday said Zyambo was not fired but resigned on his own.
According to sources within the Ministry of Energy, Konga last week summoned Zyambo and asked him to resign from his position or risk being fired.

“The minister asked Mr Zyambo to resign or be fired. He talked about some issues and also mentioned the issue of fibre optic… the manner in which this issue was handled by the Zesco board and/or management,” the source said.

“I am told Mr Zyambo asked for some time to think about the matter. But on Thursday last week, everything happened and My Zyambo is no longer Zesco board chairman.”

Another source said there were more issues surrounding Zyambo’s dismissal.

“We are hearing so many stories,” the source said. “Some people are saying the whole thing was triggered by the fact that Mr Zyambo demanded or ordered a vehicle for K600 million as board chairman.

Other board members felt that this was unnecessary expenditure because Mr Zyambo was not an executive chairman. It appears the minister took advantage of this matter to fix or push him out because the government was not entirely happy with the way the issue of fibre optic was concluded.”

But when contacted for comment yesterday, Konga said Zyambo was not fired.
“You are not fired as board chairman. You resign. So Mr Zyambo resigned,” Konga said.

But when told that The Post had information that he threatened Zyambo with a dismissal if he didn’t resign because of the manner the issue of fibre optic was handled, among other issues, Konga became emotional and raised his voice.

“Mr Malupenga, if you say you have a story why are you contacting me? Just go ahead and write. I have told you he just resigned so if you want to say other things, just go ahead. I have already told you,” Konga said.

When reminded that it was unnecessary for him to be emotional because he was expected to give the side of his story as The Post were ethically obliged to verify their facts, Konga restlessly replied:

“Just go ahead and write what you want to write, Mr Malupenga. If we did it, we did it. If we didn’t do it, we didn’t do it. Just go ahead because you always like to write what you want to write.”

Konga was told that he had just missed an opportunity to clarify or clear matters and should the story be published, no complaint from him would be entertained.

Zesco and Zamtel recently signed an agreement that will see the two companies working together to deliver fibre optic connectivity across the country. According to the agreement, Zesco would lead the deployment of new optic fibre cables and other backbone equipment, including international transit links in order to complement its own existing fibre network.

But last month government sources disclosed to The Post that State House was exerting pressure on Zesco management to have the power utility company's optical fibre network, which was installed at the cost of over US $13 million sold as part of Zamtel assets.

The sources further disclosed that President Rupiah Banda, through his legal advisor Joseph Jalasi and Zambia Development Agency director general Andrew Chipwende had engaged Zesco over its optical fibre network since the Zamtel fibre project was a flop.

The sources revealed that after realising that Zamtel fibre project was a flop, RP Capital Partners, as financial advisor on the sale of Zamtel wanted to increase the value of Zamtel by getting the Zesco network, which would automatically translate in an increase in their fees or commission when Zamtel is sold at a higher price.

Meanwhile, a Zesco source observed that things have never been the same from the time the last board was dissolved.

“It appears that now people are more pre-occupied with wanting to please the politicians in order to survive. If you do what the politicians do not expect of you, then you are in trouble,” the source said.

“For example, as President Banda was heading to Mfuwe for holiday, there was a truckload of all sorts of gifts or presents to the President. Was that necessary?”