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Kunda refuses to disclose value of ZAMTEL in Parliament

Kunda refuses to disclose value of ZAMTEL in Parliament
By Ernest Chanda
Fri 09 July 2010, 15:00 CAT

VICE-PRESIDENT George Kunda on Thursday refused to give a full value of Zamtel on the pretext that it could prejudice the transaction going on between the company and RP Capital.

And Vice-President Kunda has ruled out any possible extension to the 40 days given by the National Constitutional Conference (NCC) within which the public should comment on the draft constitution.

This was in response to a question from Zambezi West UPND parliamentarian Charles Kakoma who wanted to know what the full value of Zamtel was after the company was valuated by RP Capital Partners.

Kakoma’s question was a follow up to a question for oral answer from his Solwezi Central counterpart Watson Lumba who wanted to know how many Zambian companies expressed interest in buying the 75 per cent shares in Zamtel, why the companies were not short-listed, how much money will be paid to RP Capital as full consideration at the end of the privatisation process; and what measures have been taken to protect employees who may lose their jobs as a result of the privatisation.

Vice-President Kunda said: “If we mentioned the value of Zamtel it would prejudice the transaction, so we cannot reveal that in public interest.”

Asked by Lumba what was so special about RP Capital that they were given the contract when there were qualified Zambian companies that could have valuated Zamtel, Vice-President Kunda said: “This Company had pre-requisite expertise and therefore qualified to provide the service. Thank you.”

When pushed further by Lusaka Central Patriotic Front parliamentarian Dr Guy Scott to give an estimated value of Zamtel, Vice-President Kunda still refused.

“That question is vague because there is no value at the moment,” he responded.

And when asked by Chongwe MMD member of parliament Sylvia Masebo what the contract said about the amount RP Capital would receive after the valuation of Zamtel, Vice-President Kunda said: “Five per cent of the net value that government would realise. At the moment there is no such value.”

And earlier responding to the whole question, Communications and Transport deputy minister Mubika Mubika said only TATA Zambia expressed interest in valuating Zamtel, but that they did not bid.

On how much money would be paid to RP Capital as full consideration at the end of the privatisation process, Mubika said the fee cannot be determined at the moment.

And later contributing to debate on the second report of the parliamentary committee on Economic Affairs, Katuba MMD member of parliament Jonas Shakafuswa questioned government’s overconfidence in foreign investors.

“There are a lot of Zambians who do not feel that they belong to this country. There are a lot of Zambians who do not feel the economic gains being talked about because they are not employed. If that contract was given to a Zambian firm, the $12 million this country paid to RP Capital was going to remain in Zambia and it would raise our GDP Gross Domestic Product,” Shakafuswa debated.

“For me it doesn’t matter if Zambian gets that job, even if it’s Hakainde who gets the job because he has the expertise and it’s fine because he is going to invest in this Zambia and create jobs for Zambians. We have people who graduated from the Copperbelt University and they run accounting firms. We also have outstanding engineers in this country who are only appreciated by other countries. Now, if government is in the forefront of looking down on our experts who is going to promote them?”

And yesterday Vice-President Kunda told parliament that the NCC would be no more after August 31, 2010.

Responding to Katuba MMD parliamentarian Jonas Shakafuswa during the Vice-President’s question time who requested for an extension to the 40 days period especially that people in his constituency only received the draft constitution on Thursday, Vice-President Kunda said the constitution making process could not go on forever.

“One of the functions of this House is to make laws and the Honourable member asking this question was party to enacting this law on the 40 day period. There was an understanding that the process had to end and we prescribed August 31 this year to end the process,” Vice-President Kunda said.

“Therefore after August 31st the NCC will come to an end. If we have to extend then we will have to bring a bill to make an amendment. We can’t continue with the process. This process has been going on for too long and it’s time we moved on. Regarding the referendum, we will decide as NCC whether we should go to a referendum or make some amendments and we will do that before August 31st.”

Labels: CORRUPTION, GEORGE KUNDA, GUY SCOTT, JONAS SHAKAFUSWA, MUBIKA MUBIKA, NCC, RP CAPITAL PARTNERS, WATSON LUMBA, ZAMTEL

posted by MrK @ 11:43 PM