Saturday, June 12, 2010

Zamtel transaction has raised $127m in guaranteed financing - Rupiah

Zamtel transaction has raised $127m in guaranteed financing - Rupiah
By Moses Kuwema
Sat 12 June 2010, 04:01 CAT

PRESIDENT Rupiah Banda has disclosed that the transaction involving Zamtel has raised US $127 million in guaranteed financing.

Opening the 13th session of the House of Chiefs yesterday, President Banda said this demonstrated the difference that his government was making in implementing the right processes to bring about change and stimulate the Zambian economy.

“To put the Zamtel transaction in a proper perspective, compared with previous transactions, the gross value raised from the previous transactions was US $433 million, about K40 billion. Of this, the gross mining sector proceeds accounted for US $339 million and non-mining sectors accounted for the remainder,” President Banda said.

He said the government would ensure that a substantial part of the US $257 million is allocated to the settlement of full terminal benefits of all Zamtel employees.

“This differs significantly from previous privatisations, such as RAMCOZ, where employees’ interests were not properly represented or accommodated. Independent auditors have been appointed to ensure that the package for every single employee is correct and in full,” he said.

President Banda said about US $98 million would go straight into the pockets of ordinary Zambians and the economy.

And President Banda said the government had released K4.4 billion for the procurement of 90 vehicles for the chiefs. He said at present, a total of 196 vehicles had been procured and distributed to chiefs countrywide.

“The motor vehicles are meant to facilitate your tours of chiefdoms so that you are kept informed of what the headmen are doing in promoting national development,” he said.

President Banda also noted with great concern the increasing number of succession disputes.

“Royal families should endeavour to resolve these succession disputes amongst themselves before appealing to the House of Chiefs for resolutions. The royal establishments should verify and submit family trees to government in order to curb the trend of succession conflicts,” said President Banda.

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