Maravi

Sata warns against clinching deals through State House

Sata warns against clinching deals through State House
By George Chellah
Sat 04 Sep. 2010, 18:20 CAT

PF leader Michael Sata yesterday warned foreign investors against cracking deals through State House because President Rupiah Banda will not be in office forever.

Commenting on revelations that Bharti Airtel through one of President Rupiah Banda’s sons is seeking State House’s intervention to force the Securities and Exchange Commission (SEC) to have the share price for Zain Zambia reduced, Sata advised foreign investors to be extremely cautious with the manner in which they were conducting their business transactions.

“This idea of conducting transactions through State House should be discouraged if not halted immediately. My advice to foreign investors that are in a habit of cracking deals through State House is that they should desist from such business practices,” Sata said. “My appeal to all those investors that are coming to Zambia through State House should be very, very careful because Rupiah will not be President of Zambia forever.

Let them be mindful that Zambia is not a monarchy. Therefore, the people of this country decide which leadership is needed every after 5 years and Rupiah is definitely vacating office after next year’s general elections.”

He said true investors are mindful of the processes and procedures involved in investing in a foreign country.

“The only problem I have with some of these so-called foreign investors who come to this country is when they want to use State House. Every country has investment laws that need to be respected and honoured by investors,” Sata said.

“For instance, in Zambia we have investment agencies that deal with matters of investment. But it becomes highly suspicious when investors opt to negotiate their deals with State House and not the investment agency.

“The question is, why is State House at the centre of almost every investment that is coming to this country? Why does the President’s name keep coming up whenever there are such matters? And why are these so-called investors comfortable to deal with State House and not the technocrats at the Zambia Development Agency (ZDA).”

Sata said it was unfortunate that President Banda seems to be involved in most business transactions.

“I have in mind the Philips deal with the Ministry of Health...we later came to learn and Rupiah even admitted it that he was once their representative in Zambia. We have the issue of RP Capital on Zamtel, which is now under Lap-Green and currently we are faced with the issue of Bharti Airtel and the Zain shares. The man is literally in everything. What is happening?” Sata asked.

He said the market should be left to determine the share price of Zain.

“Let's take politics out of the stock exchange because if we don’t, the consequences of such actions will be too ghastly to contemplate,” he said.

And Sata urged President Banda to tell Zambians the benefits accrued from the sale of Zamtel.

“Rupiah was boasting that we are going to create 2,000 jobs but we have already lost almost 1,700 jobs and there is even no protection of the interests of the workers from this government,” Sata said. “And Rupiah is busy gallivanting and sending his wife around the country to distribute money as our people wallow in poverty.”

Labels: BHARTI AIRTEL, RUPIAH BANDA, SATA, STATE HOUSE

posted by MrK @ 7:47 PM