(DAILY MAIL ZM) Zamtel sale reversal costly - Situmbeko
COMMENT - Situmbeko Musokotwane is a coward, counseling fear.Zamtel sale reversal costly - Situmbeko
By CHARLES MUSONDA
FORMER Minister of Finance Situmbeko Musokotwane says the Patriotic Front (PF) Government risks compensating LapGreen of Libya between US$400 million and US$1 billion if it reverses the sale of Zamtel.
But Minister of Justice Sebastian Zulu says Government is aware of legal consequences that will result from the impending reversal of the sale and will fight to the ‘bitter end’.
Dr Musokotwane said at a media briefing in Lusaka yesterday that the compensation will include the US$257 million purchase price, extra investments LapGreen has made and the positive turn around in business.
“We can’t be sure whether this money will ever be recovered because in accordance with the PF manifesto, they will choose party cadres to manage the company. How will the company then remain profitable and protect jobs?
“This type of arbitrary action damages the reputation of Zambia as a destination for investments. It has taken more than 20 years to build confidence in the investor community that an investment made in Zambia is free from political seizure,” Dr Musokotwane said.
He said Libya is part of the capital-rich Middle East, which is exporting capital all over the world, thereby creating jobs for young people.
“Their confidence in Zambia and Sub-Saharan Africa was growing as they seek to diversify their investment from Europe and America. Now, we are busy spoiling all this and we expect to develop our country and create jobs?
“Will it surprise us when our currency begins to lose value quickly as it is doing now because the public is getting nervous about the safety of their money while those planning to invest hold back the inflows of their money into Zambia due to similar fears?” he said.
Dr Musokotwane said by constituting the Zulu-led Commission of Inquiry into the Zamtel sale, President Sata lost an opportunity in failing to appoint independent commissioners who would have provided non-biased views on this important subject.
He said since Mr Zulu and other politicians on the commission were fully aware of President Sata’s public pronouncements on Zamtel sale that it was fraudulent, it cannot surprise anyone that their report had to tow the same line of thinking “or else they would have been sacked from their jobs.”
Dr Musokotwane said findings of the then latest audit report on Zamtel by Ernst and Young, a reputable international audit firm, showed that Zamtel was insolvent with enormous and unsustainable debts against few and obsolete assets.
“Let the PF refute the fact that an insolvent company faces liquidation as was the case with many parastatals before, leaving behind untold suffering by former workers who would remain unpaid for years…let the PF refute that saving the company, jobs and indeed service provided was done in the best interest of the country,” he said.
He said the US$257 million paid for Zamtel is the best price that Zambia has ever received for any parastatal company ever sold and is seven times more than what was paid for ZCCM units that became Konkola Copper Mines.
Dr Musokotwane appealed to the PF government to settle down, ‘sobre up,’ and focus on developing the country.
“Creating a mindset that focuses primarily on hunting for mistakes committed by the previous Government even where there is no justification just slows down development. Let those same energies be used to develop industries, infrastructure, jobs and business opportunities,” he said.
When contacted, Mr Zulu said Government is aware of legal implications that will result from the impending reversal of Zamtel sale.
Mr Zulu challenged Dr Musokotwane to read the report of his commission of inquiry for him to appreciate specific illegalities that were established in the whole transaction.
“In our democracy, people are free to say what they want and that is his opinion. But has he got a copy of our report or is he just fighting in the dark? Anyway, I respect people’s opinions but he should not make wild allegations. People of Zambia were cheated in this fraudulent sale of Zamtel. As Government, we are aware of the legal consequences and we will fight,” he said.
President Sata has embarked on a corruption fight that has implicated a number of former government leaders, including Dr Musokotwane and others such as Dora Siliya. Both former ministers served in the previous government when Zamtel was sold.
A probe report has established that the Zamtel sale was fraudulent and Mr Sata is awaiting advice from Cabinet on how to proceed given the gravity of the findings.
Labels: PF, SITUMBEKO MUSOKOTWANE, ZAMTEL
posted by MrK @ 8:18 PM
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