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TIZ cautions on Zamtel, FBZ sale investigations

TIZ cautions on Zamtel, FBZ sale investigations
By Ernest Chanda
Tue 04 Oct. 2011, 12:50 CAT

TRANSPARENCY International Zambia (TIZ) has appealed to President Michael Sata to ensure that investigations into the sale of Zamtel and Finance Bank Zambia Limited are handled professionally to avoid the country losing out.

Welcoming President Sata's order to probe the hasty sale of the two institutions by the MMD administration, Zambia chapter president Reuben Lifuka said it was important to avoid vindictiveness in the exercise.

"Transparency International Zambia wishes to welcome the intention of the PF Government to probe the circumstances surrounding the sale of Zamtel and specifically the valuation exercise conducted by RP Capital and the Finance Bank deal.

Generally, we want to believe that President Sata and his administration should satisfy themselves thatb these deals were conducted above board and there is no wrongdoing associated with these transactions at all," Lifuka said on Saturday.

"We would like to urge President Sata, however, to ensure that such probes are conducted in a professional and objective manner and should not be motivated by any malice or vindictiveness. Zambia will miss the benefit of such probes if these are influenced by narrow political interests.

It is our view that such probes should provide firstly, information on any possible wrongdoings and secondly recommendations on how government can avoid the noted shortcomings in the future." He said it would be necessary for the President to acquaint himself with the Justice Dennis Chirwa Tribunal findings and take some of the recommendations into consideration as he decided the way forward.

"Finally, we would like to advise President Sata to reassure investors that such probes were well intended and not meant to harass those that have genuinely invested or are willing to invest in this country," said Lifuka.

"It is an undeniable fact that Zambia still needs foreign investment but this should not limit the government's intention to probe all possible wrongdoings in the manner that some of the transactions such as Zamtel were handled."

After he swore in Vice-President Guy Scott, Cabinet and deputy ministers at State House on Friday, President Sata ordered his justice minister to probe the sale of the two institutions.

He further ordered the Minister of Justice to probe the National Pension Scheme Authority's US $98 million funding of the Zambia National Building Society expansion project.

"I've appointed the Minister of Justice to look into the sale of Finance Bank. We want to see the sale of Finance Bank; was it transparent or was it fraudulent? And you have to look into the sale of Zamtel. The people of Zambia suffered to build Zamtel, so it cannot just be given away like that. So I need that report within 30 days," said President Sata.

The MMD government hastily sold 75 per cent of Zamtel shares after then communications and transport minister Dora Siliya single-sourced RP Capital Partners of Cayman Islands to valuate the company's assets.

And four days before the recent general elections, the MMD government announced the sale of Finance Bank to First National Bank of South Africa at a giveaway price of K27 billion, despite public resentment against the transaction.

Labels: CORRUPTION, DORA SILIYA, FINANCE BANK, NAPSA, RP CAPITAL PARTNERS, RUEBEN LIFUKA, TIZ, ZAMTEL

posted by MrK @ 6:13 PM