Friday, June 18, 2010

Govt slashes gateway fees

Govt slashes gateway fees
By Chiwoyu Sinyangwe and Fridah Zinyama
Tue 15 June 2010, 08:20 CAT

GOVERNMENT has slashed international gateway fees to US$340,000 from US$12 million, former vice-president Enoch Kavindele disclosed last week, adding that the decision is meant to grant the buyers of Zamtel’s 75 per cent shares easy access to the facility.

Government, through the Zambia Development Agency (ZDA), last week announced that Libya’s Lap Green Network had been offered to purchase Zamtel’s 75 per cent shares, a move that has met strong criticism from the public.

“As a country we no longer have pride, seeing as we have sold off almost all the companies which could have given us a sense of ownership,” he said. “Now that government has successfully sold Zamtel, they will move to other entities like Zesco Ltd, State Lottery and ZSIC, a move which should not be supported by all well-meaning Zambians.”

Mukuka said as a union, they condemned the privatisation of Zamtel as it would only lead to a loss of formal employment in the country.

“As a union we have never supported the privatisation process which brought untold misery to a lot of Zambians,” he said. “A lot of people who were made redundant through the privatisation process are yet to be paid their terminal benefits and those who have been paid, their money went straight to shylocks to whom they owed money to. Some even died before they could even get paid.”

Mukuka said the government should have concentrated on creating more job opportunities for its people rather than selling off state companies.

“As it is, some 2,341 employees will lose their jobs...and government will be forced to increase PAYE Pay As You Earn from the already few employees who are in formal employment because they would have lost out on revenue from the Zamtel employees who will lose their jobs,” he said.

“It will be unfortunate but it is a move that government will likely take in order to raise the much-needed revenue for the treasury. We expect government to create and not dismantle jobs.”

Mukuka said the government should have listened to concerns raised by different stakeholders about the lack of transparency in the privatisation process of Zamtel.

“A lot of people have questioned the whole process and it is unfortunate that government has not rescinded its decision to go ahead with the sale of Zamtel,” he said. “The issue of national security has also not been considered.”

Mukuka pointed out that as it is, Zambia is the only country in the world that has privatised its entire parastatals in this manner.

“Even the World Bank has acknowledged that Zambia is the only country in the world which has made such a decision and yet government does not want to halt the process,” said Mukuka.

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