Maravi

Next govt must review Zamtel deal – Milupi

Next govt must review Zamtel deal – Milupi
By Chibaula Silwamba
Mon 21 June 2010, 04:01 CAT

THE next government in 2011 must review the Zamtel privatisation transaction, former Public Accounts Committee chairperson Charles Milupi has demanded.

Commenting on the shoddy Zamtel transaction where the government has sold 75 per cent shares to Libyan government -wned Lap Green Network for US $257 million, Milupi said the amount that Zamtel was sold for was too little considering that Lap Green Network would also get the Zamtel and Zesco fibre optic network that was constructed at a high cost.

“US $257 million price is not a fair price. Zambians must demand that Zamtel privatisation process must be reviewed. If this MMD government is unwilling to do it, then the next government that will come in 2011, because this is certain, must review this transaction,” Milupi said.

“It will be a lesson for government and prospective investors to ensure that they don’t get involved in shoddy deals.”

Milupi questioned the huge payment given to RP Capital Partners for evaluating Zamtel other than the initial US $2 million that was given to them at the start of the privatisation process.

“Why is RP Capital being paid US $12.8 million? If you look at the privatisation that we have had, whether it’s the mines, all these other companies that we have privatised, we have not paid this kind of money to the evaluator. If you compare with the previous privatisation, why is this figure so high?” Milupi asked.

“We also want to know when they say Zambia is going to make further investment in Zamtel. Further investments in a company that is 75 per cent owned by outside investment! If you look at the mining companies where the government owns about 20 per cent, they government are not making any further investments. Why are they going to make further investments in Zamtel?”

On June 5, 2010, finance minister Dr Situmbeko Musokotwane announced that the government would sell Zamtel’s 75 per cent shares to Lap Green Network for US$257 million. Dr Musokotwane said the Zambian government would only remain with 25 per cent shares in Zamtel and only two of the seven board members.

However, the transaction has attracted widespread opposition and condemnation with few civil society organisations backing the transaction.

Labels: CHARLES MILUPI, CORRUPTION, PAC, PRIVATISATION, ZAMTEL

posted by MrK @ 5:41 AM