Maravi

LAP Green vows to fight for Zamtel

COMMENT - Actually cancelling of all corruptly entered into deals would most definitely send the RIGHT message to the investment community. Follow the rules, and you will be just fine. Come to Zambia and bribe state officials, and your entire contract is on shaky grounds. I would say that this is the perfect message to send. Where were the cries of 'investor flight' when the MMD confiscated Finance Bank, just on the suspicion that they had financial ties to the opposition? They were nowhere to be heard. But obeying the rule of law, now that is supposed to scare investors away. It will scare crooks away, as it is supposed to. Only criminals are objecting.

LAP Green vows to fight for Zamtel
By Joan Chirwa-Ngoma
Sun 08 Jan. 2012, 14:00 CAT

LAP GreenN's management has declared that the 75 per cent shareholding in Zamtel belongs to Libyans, vowing that the company will do "everything possible" to fight for ownership of a majority stake in Zambia's biggest telecommunication company.

Sources last week revealed that the government, following a Cabinet meeting held last Wednesday, had decided to retain the 75 per cent stake sold to Libya's LAP GreenN at a paltry US $257million through a questionable transaction done in former president Rupiah Banda's regime.

But LAP GreenN, the Libyan-owned telecommunications network, in a statement availed to The Post, stated that it is "deeply concerned about unsubstantiated news reports that the Zambian government is moving to seize the 75 per cent stake".

"We hope these reports are untrue, as this situation will not only be damaging to the telecoms industry in Zambia but would also send the wrong signal to those looking to invest in this country. LAP GreenN looks forward to continuing to develop Zamtel into a leading telecoms company, working with its partner in this investment, the Zambian government," stated LAP GreenN's newly-appointed chairman Wafik Alshater.

LAP GreenN claims that it bought its stake in Zamtel in June 2010 for US$257 million (about K1.37 trillion) following an open, transparent and competitive bid process that was overseen by the Zambian Development Agency.

But it was heard during a tribunal called to investigate the sale of Zamtel that then Minister of Communications and Transport Dora Siliya irregularly single sourced RP Capital Partners of Cayman Islands to valuate the assets of the company before the 75 per cent shares of the firm were sold to LAP GreenN.

However, Alshater stated that the new management is determined to safeguard its "'legally' acquired assets which ultimately belong to the Libyan people, who fought a bitter war of liberation in 2011".

"LAP GreenN is now under new leadership as part of broader changes in Libya...We will pursue all options and do everything possible to retain our stake in Zamtel - a highly prestigious part of our pan-African network," stated Alshater.

"Zamtel is now a Zambian success story. Since LAP GreenN's acquisition, Zamtel has attracted over 400,000 new customers and grown its market share from three per cent to 11 per cent. Furthermore, we have committed to investing US$129 million (K670 billion) in Zamtel over two years to create a truly competitive and world class telecommunications company."

Sources last week told The Post that Cabinet would engage an undisclosed process to repossess Zamtel's majority stake, which would not affect the operations of the once state-run fixed phone line firm whose 25 per cent shareholding was retained by government.

"Cabinet yesterday (Wednesday) decided to grab Zamtel from the LAP Green (Network) which is the majority shareholder. This as you know is because of the flawed procedure that was used by the MMD government to sell it," the source said.

The sources said Cabinet had also agreed to handle the process in a manner that won't adversely affect the operations of the company.

The sources said although free to contest the matter, the Libyan-owned firm would have no chance because there was sufficient evidence that the process used to buy the firm was marred with corruption.

"Cabinet however wants this matter to be silent until (former communications minister at the time of the sale) Dora Siliya is charged for her involvement in the sale," the source said.

The source said investigations in the sale has also linked Rupiah Banda and his son, Henry, who influenced the US$257 million dollar deal.

"The procedure that was used was just flawed. It is a situation where you had the president (Banda) calling for a Cabinet meeting like today, and the following day the president meets the buyers, and on another Siliya travels to South Africa to meet the buyers," the source said.

"LAP Green (Network) has no chance on this one even if they decide to contest it in the courts of law because the procedure is important. You see it is like buying a stolen a car and telling the law enforcement agencies that your car cannot be seized because ‘I spent a lot of money buying it'. That's the situation LAP Green has found itself in."

Labels: CORRUPTION, LAP GREEN, LIBYA, ZAMTEL

posted by MrK @ 7:47 PM