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Mutati, Musokotwane contradict each other over ZAMTEL

Mutati, Musokotwane contradict each other over ZAMTEL
By Fridah Zinyama and Chiwoyu Sinyangwe
Thu 17 June 2010, 08:00 CAT

FINANCE minister Dr Situmbeko Musokotwane yesterday maintained that there has never been a time when the valuation report on a privatised company has been released before a sale.

Dr Musokotwane said the government will resolve internally issue of conflicting statements over the release of RP Capital valuation report, a day after commerce minister Felix Mutati pledged that the much sought after report will be unveiled in Parliament this monthend.

And United Kingdom-based Zambian economist Chola Mukanga has observed that Zambians risk being shackled into perpetual suffering similar to the mining Development Agreements for as long as the RP Capital valuation report on Zamtel remains in secrecy.

In what would be seen as succumbing to growing pressure for the government to make available the US $12.8 million RP Capital evaluation report on Zamtel, Mutati promised on Tuesday that the valuation results of the net asset value of recently privatised Zamtel would be made public at the end of this month when parliament resumes sitting.

But in interview yesterday, Dr Musokotwane stood by his earlier statement last week that valuation results for privatised companies are never made public. Dr Musokotwane said the issue of conflicting positions with Mutati would be resolved internally rather than in the media.

Dr Musokotwane maintained that in the country’s privatisation process, there has never been a time when the valuation report was released before a sale.

“This is because bidders might end up bidding around the price that is indicated in the valuation report,” Dr Musokotwane said.

He insisted that Zambia would have lost out if the valuation results were made public because the bidders would have not offered a higher price as they would have been bidding around the net asset value of Zamtel as revealed by the RP Capital findings report.

Dr Musokotwane explained that against that background, the valuation report was never released.

At the beginning of the controversial sale last year, former communications minister and one of the architects, Dora Siliya promised that the valuation report on the net asset value of Zamtel was going to be made public for the Zambians to realise that the giant telecommunication was not “sold for a song” unlike what happened to the ZCCM privatisation process under former president Frederick Chiluba when parastatal companies were sold without valuation.

And in his letter to Dr Musokotwane, copied to Mutati and Zambia Development Agency (ZDA) director general Andrew Chipwende, Mukanga requested the immediate and unconditional release of RP Capital Valuation Report that underpinned the recent sale of Zamtel to a Libyan Lap Green company.

“My request is based on a simple principle that the assets of this country belong to all Zambians. As such we have the legal and constitutional right to see this report,” Mukanga stated.

“We are best placed to assess and judge whether the sale of Zamtel was based on reasonable and credible advice from RP Capital.”
Mukanga stated that the secrecy was being been used to cover alleged dishonest activities as alleged corrupt activities in the mining privatisation process have gone uninvestigated.

“You also need no reminder that Zambians have for a long time suffered due to the secrecy that underpinned the mining Development Agreements,” he stated. “Then like now, the government withheld vital information which only became public after NGOs Non-Government Organisations and academics got hold of the reports and bemoaned the cruel details contained therein.

Up to this day, the government of Zambia has never held a single enquiry into the alleged corruption that took place. You have an historic opportunity to show you are politicians of the future and not those that should belong to the political museum. You can start by releasing this valuable report.”

Mukanga stated that Zamtel was a public institution owned by ordinary Zambians and any decision made concerning it affected everybody.

“You as members of government are servants of our mothers and children. You are not our masters - but our servants,” stated Mukanga. “This is not a party political issue, it is common sense. I urge you to stand-up and be counted.

Release the valuation report and let Zambians see the truth for themselves.”
Former Development Bank of Zambia (DBZ) managing director Dr Bwalya Ng’andu said the RP valuation report would have made a difference to the Zambian people had it been released before government finalised the partial privatisation of Zamtel.

Another UK-based Zambian economist, Patrick Mulenga said Zambia would regret the privatisation of Zamtel in future. Mulenga said the Zambian government had ignored sensible advice and privatised Zamtel when the whole world knew that telecoms and Information Telecommunications were the growth industries of the future.

“If the Zambian government was truly committed to diversification from copper, the key was to maximise revenues from the mines through improved taxation, through the windfall tax or higher royalties which could have been used to recapitalise Zamtel after first splitting it into two units, namely a mobile service provider and a fixed line/gateway provider.

Unfortunately your leaders are more interested in the benefits to themselves not to the country,” Mulenga said. “This is one privatisation that the country will surely regret.”

Labels: CHOLA MUKANGA, CORRUPTION, FELIX MUTATI, PRIVATISATION, RP CAPITAL PARTNERS, SITUMBEKO MUSOKOTWANE, TRANSPARANCY, ZAMTEL

posted by MrK @ 4:33 PM