Maravi

Kashita sues ZDA, RP Capital over proposed sale of Zamtel

Kashita sues ZDA, RP Capital over proposed sale of Zamtel
By Mwala Kalaluka
Mon 15 Feb. 2010, 04:00 CAT

FORMER communications minister Andrew Kashita has sued the Zambia Development Agency (ZDA) and RP Capital over the proposed sale of 75 per cent of Zamtel shares arguing that the procedure taken does not comply with the ZDA Act number 11 of 2006.

In a statement of claim filed in the Lusaka High Court last Friday, Kashita stated that the decision to sell 75 per cent of Zamtel equity, not having been based upon the advice from ZDA as the law required, was against the nation’s image as a law-abiding, democratic, open and accountable government.

Kashita prayed to the court for a declaration that the act by RP Capital on behalf of ZDA to advertise in the private media inviting prospective bidders to submit applications in the proposed sale of the Zamtel shares was invalid, null and void because it abrogated the procedure as spelt out in the ZDA Act.

Kashita has asked the court to order ZDA and RP Capital to restart the process properly and ignore all that had been placed, as that was the way Zambia should maintain her status as a law-abiding nation and re-establish her commitment to transparency, accountability and openness.

Kashita stated that the decision on Zamtel was against the best interest of the citizens and should therefore not be allowed to remain valid and that the conduct had increased the economic worries of the citizens and was also what triggered his court action.

Kashita is also seeking an order to interim injunction to restrain the ZDA and RP Capital, their servants and agents from continuing to advertise for bidders or from doing anything connected with the decision to invite bidders until the disposal of this matter.

He further stated that the appointment of RP Capital as so-called exclusive financial advisor to ZDA in relation to the Zamtel transaction was also contrary to the provisions of the ZDA Act and that even if the appointment was for more than one advisor, that would still have been contrary to the above Act.

“The first defendant is established under the ZDA Act number 11 of 2006, with broad powers which include specifically, the privatisation and commercialisation of state owned enterprises, statutory corporation and departments of government,” Kashita stated. “Since the coming into existence of the first defendant under the ZDA Act, this is the first time that the first defendant is attempting to conduct a privatisation under the Act and unfortunately it has failed to adequately execute its obligation and disappointed the people of Zambia.”

And in an affidavit in support of the an ex parte summons for an order of interim injunction, Kashita stated that he considered it his duty to draw the attention of the court to the latest developments, which did not conform to the nation’s laws namely the ZDA Act number 11 of 2006.

Kashita stated that there was nowhere in the Act or indeed part of it where there was any justification for what ZDA did by keeping quiet about its responsibilities but accepted to play a role different from what the statute says.

He stated that ZDA was the only one authorized to organise and manage the process of privatizing and commercialise a state-owned enterprise, organisation or department and that the current procedure was totally at variance with the provisions of the Act.

Kashita stated that the first defendant should have announced its responsibilities and taken over the whole issues when it became known in 2008 but chose silence and in action, thus jeopardising it’s own future conduct which in turn would deny Zambians their expectations of their future interests and rights in their own country.

“If allowed to continue witnessing lawlessness in this fashion, the rights of the citizens of this country will be whittled away including my rights and that at this stage, the government’s duty is to decide to which of the alternatives from ZDA board report should be adopted,” Kashita stated.

He argued that ZDA then only had powers to take over the process of dealing with the management in the named organisation, appointing an independent consultant to value the assets, consider various modes of privatising including allocation of shares, conditions applicable to Zambian citizens wishing to participate in shares acquisition and assist government to make a decision.

Labels: ANDREW KASHITA, PRIVATISATION, RP CAPITAL PARTNERS, ZAMTEL, ZDA

posted by MrK @ 3:48 PM