Prof Lungwangwa questions HH’s criticism over Zamtel sale

Prof Lungwangwa questions HH’s criticism over Zamtel sale
By Christopher Miti in Chipata
Tue 15 June 2010, 13:10 CAT

COMMUNICATIONS and Transport minister Professor Geoffrey Lungwangwa has said opposition UPND leader Hakainde Hichilema’s statement criticising the sale of 75 per cent shares of Zamtel lacks originality.

During a special programme on Breeze FM last Saturday, Prof Lungwangwa said it was unfortunate that Hichilema said the PF-UPND pact would reverse the sale of Zambia Telecommunications Company Limited (Zamtel) once it gets into power.

“First of all, he has been part of the privatisation process from the beginning, he has been part of that and he knows exactly the underlining objective of the nation with regard to privatisation and he knows exactly what this particular privatisation has been in terms of its history, the efforts that have been made before to try and privatise Zamtel,” Prof Lungwangwa said.

He said Hichilema was very much aware of the state of Zamtel.

“Zamtel had over 2,500 workers, it has been making losses in terms of its operation, it hasn’t been competing effectively with other operators like ZAIN and MTN. And Zamtel was on the verge of collapse. Now if a person like HH, Hakainde Hichilema applied to seriously understand what was at stake he would actually appreciate what government has done,” Prof Lungwangwa said.

“The government has been able to find an equity partner who can inject resources into Zamtel and make it more operational, save it from collapse in order to address the needs of the workers.”

He said government expects Zamtel workers to get their benefits unlike workers in other companies before who were not able to get their benefits.

“Zamtel workers are going to get hundred per cent of their benefits, now isn’t that a privatisation process which is in the best interest of the workers? And then we expect Lap Green(the company which bought 75 per cent in Zamtel) to get into Zamtel a recapitalisation process which will make Zamtel compete effectively with other operators in the market so that Zambians can get full benefit in owning investment in Zamtel. Now isn’t that a step in the interest of the nation? And we expect Zamtel through Lap Green investment to come up with new technology which will enable Zambians to enjoy better services in terms of mobile connectivity, internet and other data services,” Prof Lungwangwa said.

Asked to comment on Hichilema clarification that he was not the initiator of the government privatisation process, Prof Lungwangwa said Zambians should ask Hichilema why he agreed with the privatisation process.

“It’s better Zambians should ask him the question, did he superintend over the privatisation process? And in his own stature, in his own professional standing, why did he superintend over the privatisation process? Didn’t he agree with the privatisation process? What was he doing then?" Prof Lungwangwa asked.

He said if government did not look for an equity partner Zamtel was going to collapse.

He said the sale of Zamtel was aimed at ensuring that the company could later contribute to governments revenue through taxes.

Prof Lungwangwa said ZAIN and MTN had been contributing enormous resources to government through taxes which Zamtel had not been doing.

He said President Rupiah Banda made it very clear when he addressed the House of Chiefs that Zamtel made a loss of US$17 million the other year(2008) US$30 million last year.