Zamtel deal is costly - Nawakwi

COMMENT - Why oh why does the Zambian government spent $334 million to buy it's own shares??? Shares it already owns?

Zamtel deal is costly - Nawakwi
By Kombe Chimpinde
Sun 27 Nov. 2011, 12:00 CAT

The Zamtel sale deal by Rupiah Banda's government is costly and has caused much embarrassment to the country, says Edith Nawakwi. And Nawakwi says it is unfortunate that Dora Siliya who allowed herself to be used in Banda's games to siphon money from Zambians by defending the government on the sale of the firm could call investigations against her as persecution.

Reacting to revelations by highly placed sources familiar with the recent report submitted to the President that the Zambian government paid US$ 334 million (K1.7 trillion ) to retain its own 25 per cent shares in Zamtel during privatisation, Nawakwi, president of opposition Forum for Democracy and Development, said the revelations on Zamtel were not only embarrassing but also costly to the country.

"President Banda completely disregarded advice…This decision was more personal than for service, this is why he continued with the sale even after been warned by people like us, whether this advice was positive or negative. At the end of the day, the country has gotten to a position which is extremely embarrassing and costly because we now can't continue saying it's MMD. It's us now as Zambians," she said in an interview.

Nawakwi said someone must be held responsible for the recklessness the MMD exhibited on the sale of Zamtel.

She also said cabinet must immediately engage legal advice to look at the options available for government on the way forward.

Nawakwi said it was unfortunate that Zamtel was sold on the pretext that it was bankrupt when in fact it was being used by Banda, his sons and unscrupulous officials to siphon money.

‘'What happened in the short term of our replica President, that RB, is he could not separate state from family. His children also became the state by engaging in the initial of sale of Zamtel and this is what has angered so many Zambians," said Nawakwi.

Sources familiar with the findings of the Sebastian Zulu led Inquiry revealed that Libya's LAP Green Network which brought 75 per cent shares in Zamtel last year has only paid US$ 15 million (about K76 billion) to the Zambian government out of the purchase price of US$ 257 million (about K1.3 trillion) while the Zambian government paid US$ 334 million (K1.7 trillion) to retain its own 25 per cent shareholding in the company.