Maravi

Those involved in sale of Zamtel will pay back – Kavindele

COMMENT - For the flailing justifications of this fire sale by MMD ministers, see: Zamtel sold at fair price – Finance minister, HH benefitted from privatisation — Siliya

Those involved in sale of Zamtel will pay back – Kavindele
By Chiwoyu Sinyangwe
Wed 09 June 2010, 08:10 CAT

ENOCH Kavindele has warned that the “inner circle” dining and wining over the kickbacks they got from the sale of Zamtel will soon or later pay back for robbing the Zambian people of their asset. And Kavindele, who observed that Zamtel has been sold for a song, said there is need to make public the evaluation report by RP Capital Partners Cayman Islands.

Commenting on the government’s decision to sell 75 per cent shares in Zamtel to Libya’s Lap Green Network, a transaction from which RP Capital Partners would get about US $12.8 million, Kavindele said it was just a matter of time before Zambians demand that which truly belongs to them.

“It is more than likely those celebrating and enjoying their kickbacks with champagne and caviar and cigars will have their merry-making expeditions cut short as they will be required to pay back,” Kavindele said.

“History is laced with examples of such cases and those involved in this sale must realize that this asset is for the Zambian people and not personal asset belonging to any one individual or those who have been involved in its disposal…the inner circle. It may take a little while but everything will come out and many will have to account for their role in this most dubious and scandalous privatisation ever seen in this country. Posterity will engulf all those who have robbed the Zambians of the national asset. The sale of Zamtel is a scandal from inception to end.”

Kavindele denounced President Rupiah Banda’s directive that no new mobile phone licences should be allowed into the country’s telecommunication sector until Lap Green Network settled down.

“To add insult to injury, the government of Mr Rupiah Banda has enacted a law by Statutory Instrument prohibiting…until 2015,” he said.

“This is strange that this government would wish to protect interest of foreigners against their own people. This is a reversal of what is happening in the region where, for instance President Robert Mugabe has enacted an indigenisation law that compels all foreign companies to surrender at least 51 per cent of their shares to local people. In South Africa, they have a very effective Black Economic Empowerment, the same is happening in almost all the countries of the region like Tanzania and Kenya. Now in this country, for no any other reason than greed by the leadership, not only have they robbed Zambians of the asset but they just do not want to see local people enter this market.

We are surprised by this decision, which creates a buffer to protect foreigners at the exclusion of its own citizens. Zambia is a liberalised economy and therefore, this action by government to protect the Libyans is against that spirit.”

Kavindele also denounced the payment of K65 billion to RP Capital, saying it was another scandal meant to deprive the Zambian people of their national asset.

“Whereas today, they will be celebrating and dinning for what they consider a job welldone, time is coming...before long, there will be agony in many houses as the Zambians demand to take back what has been robbed of them, Kavindele said.

“This transaction lacked transparency from the word go and this is what the tribunal stated. But everyone who advised was considered an enemy of those who were to make a killing. It is difficult to hide that type of money and soon, as would have been paid in commissions and kickbacks but time is coming as this transaction of robbing the poor will not go undetected.”

Kavindele said even though the Zambia Development Agency (ZDA) were brought in to give credence to this transaction, the Zambian people knew very well how the transaction started and all those who were involved.

“The people of Zambia know about this transaction and camouflaging it will not make them forget,” he said.

“It’s too early for them to celebrate the perceived victory because their hour of reckoning is yet to come and definitely it’s coming and like I have said before, fingers shall be burnt over this transaction.”

Kavindele said although he greatly respected Libyan President Colonel Muammar Gaddafi, he regretted that Libyan businessmen had involved themselves in a dishonest transaction.

“I have nothing against the Libyans, if anything I greatly respect their President who I have met several times and when he came to Zambia at the transformation of the OAU to AU, I surrendered my official residence to him and from that time, I have maintained friendship,” he said.

“…I regret, however, that the Libyans will be caught up in this web of dishonest which has robbed the Zambian people of their heritage.”

And Kavindele called for the immediate release of the Zamtel evaluation report.

Kavindele said Zamtel recently installed equipment from Huawei and ZTE as part of its expansion and modernisation programme, and therefore to sell the company at US $257 million was gross undervaluation.

“The equipment from China… has made Zamtel one of the most modern telecommunication companies in Africa,” said Kavindele.

“Therefore, the price that has been agreed upon between the Zambian government and the Libyans Lap Green Network is gross understated if you consider that Vodafone of the UK paid US $900 million for 70 per cent stake in Ghana Telecom in a country where there are other six operators. Zamtel has been grossly undervalued in view of modernisation and existing assets. The government must, as a matter of urgency, release RP Capital evaluation report on the asset of Zamtel. Ghana population is 23 million people and there are six other operators and so, the growth prospects are even slimmer than here where we have got only two foreign companies…”

Labels: CORRUPTION, ENOCH KAVINDELE, LIBYA, PRIVATISATION, ZAMTEL

posted by MrK @ 2:51 PM