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Sichinga asks Lap Green to reimburse Zesco for optic fibre

Sichinga asks Lap Green to reimburse Zesco for optic fibre
By Sandra Lombe in Livingstone and Mutale Kapekele in Lusaka
Tue 24 Aug. 2010, 04:01 CAT

ECONOMIST Bob Sichinga has asked Lap Green Networks, the new owners of Zamtel, to reimburse Zesco Limited for the optic fibre that the latter took over.

The Zesco optical fibre network project was being done in phases at a huge cost, with the first phase already laid from Sesheke up to Lumwana in Solwezi at a cost of about US $13 million. The network is linked to the international gateway in Namibia while the second phase was expected to cover the whole country and preliminary projections indicated that the project was likely to gobble about US $30 million.

But Zesco’s optic fibre cable was forcibly ceded to Zamtel. Zesco Limited will, however, have to settle the US $13 million loan for laying it, highly placed sources revealed recently. Zamtel which had earlier sought to put up its own fibre optic through ground connection across all provinces in the country failed to proceed with the project. Zesco used its already existing electricity lines for the optic fibre. The sources also revealed that following the grabbing of the optical fibre from Zesco, Zamtel, under the new owners, would develop the second phase of the project.

“They have taken over the optic fibre from Zesco, so they must reimburse Zesco,” Sichinga said. “Government, or the new investor (Lap Green) have to pay Zesco for the optic fibre transferred to Zamtel. It must not be an ordinary take-over just like that, they must reimburse because Zesco will have to pay for it at the end of the day.”

And Sinchinga has advised Zamtel employees to maximise the use of their terminal benefits by investing wisely and contribute effectively to the national economy.

Lap Green Networks, the new owners of Zamtel, are expected to pay close to K500 billion as retirement benefits to all employees. The Zambia Development Agency (ZDA) has commenced nationwide counseling workshops on investment for Zamtel employees. In an interview in Livingstone, Sichinga advised Zamtel workers to invest wisely.

“My advice since all this Zamtel sale started has been not to sell, but it has gone as far as it has and is unlikely to be reversed. Whatever payments they (workers) may receive in terms of benefits, terminal benefits they need to use them very fugally, make sure that they invest in businesses, houses, in properties, in assets such as treasury bills, so that they don’t misuse it,” Sichinga said.

“We have seen cases in Kitwe, Luanshya, in Lusaka wherever they were people retired, they ended up being in desperate situations.”

He also urged employees who will be taken on by Lap GreenN to change their attitude towards work.

“One hope is that there will be change of work attitude, Zamtel was very much like government type organisation, and it was not working well, it was not effective. It was sluggish, it was not making right investments, we are told now that it could not have survived,” he said.

“The question is where was the board of directors when such was happening? What was it doing? Why was it not making changes while investing in the right places?”

Sichinga said even though the government owned only 25 per cent of Zamtel, it still remained a major part of the telecommunication industry in the country. And ZDA head of small and medium enterprise development Windu Matoka disclosed that the agency had so far counseled more than 700 Zamtel employees on how to invest their retirement benefits.

“What we are telling them is that they should invest 80 per cent of their benefits in real estate or deposit that money in fixed deposit accounts,” Matoka said. “They can use 15 per cent to start small businesses and the other five per cent they can share it with family and friends.”

Matoka said the workers were being counseled to help them identify good business ideas that could make them build big businesses.

“We are counseling them on the dos and don’ts of business, but the most important message we are giving them is to accept change,” he said.

“We want to help them not to jump into a lavish lifestyle that will be short-lived, but to lead normal lives. We want them to come up with good business ideas because a business cannot grow without a proper idea.”

Matoka advised Zamtel employees to form partnerships and seek to be subcontracted by Lap GreenN.

“They (Zamtel employees) should learn to have joint partnerships, have positive mindsets and seek for sub contracts at Zamtel,” said Matoka.

And in an interview, Bankers Association of Zambia (BAZ) chairman Saviour Chibiya observed that the K500 billion retirement package for Zamtel workers would stimulate economic activity in the country.

Chibiya said his association was pleased with the funds that the Zamtel retirement packages would inject in the economy.

“We are pleased to see any incremental funds coming in the system as this further stimulates economic activity in the country,” Chibiya said.

“We expect that the (Zamtel) retrenchment packages will go through the formal banking system and part of these funds will increase long-term savings, resulting in extra liquidity for the banks to provide loans which in turn leads to greater economic activity.”

Chibiya urged Zamtel workers to invest their money in housing and agriculture.

“Apart from savings, we urge the recipient of these funds to utilise this money, to the extent possible, on investments such as housing, agriculture and other business ventures,” he said.

“That is not to say there is any harm with consumption as long as it is not done excessively, as consumption boosts demand for goods and services resulting in economic growth.”

Chibiya also said BAZ did not expect the K500 billion to affect inflation.

“We do not expect such an amount to have any inflationary impact on the economy as we believe the Bank of Zambia is well equipped to manage the sterilization of this liquidity through the monetary policy,” said Chibiya.

Labels: LAP GREEN, OPTIC FIBRE, PRIVATISATION, ROBERT SICHINGA, ZAMTEL

posted by MrK @ 3:40 PM