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(LUSAKATIMES) Consult before privatising Indeni, Govt urged

Consult before privatising Indeni, Govt urged
Friday, November 26, 2010, 7:31

The Private Sector Development Association (PSDA) has advised government to undertake wide consultations before considering the privatization of Indeni Oil Refinery.

PSDA Chairman Yusuf Dodia in an interview with QFM says Indeni Oil Refinery is a strategic institution to national development adding that it needs to be spearheaded by government. Mr. Dodia says people should not be misled in thinking that the oil refinery will be more efficient if the majority shares are placed in private hands.

He says it is important to bring in private capital in the oil industry adding that Indeni belongs to the people of Zambia and government should ensure that it owns the majority stake in the refinery.

And Mr. Dodia says the mistakes that government may have made in privatizing other parastatal companies should not be ignored and that if the same happens to Indeni, the country will be in a situation where it will begin importing fuel.

Energy and Water Development Minister Kenneth Konga recently announced that Cabinet will soon meet to discuss the sale of some shares in the Indeni Oil Refinery.

Government currently holds a 100 percent stake in the oil refinery after it bought off the 50 percent shares from Total.

Labels: ENERGY, INDENI, PRIVATE SECTOR DEVELOPMENT ASSOCIATION, PRIVATISATION

posted by MrK @ 5:54 PM