Maravi

Government gets Zamtel back

Government gets Zamtel back
By Kombe Chimpinde and Bright Mukwasa
Fri 06 Jan. 2012, 14:00 CAT

Dora fears arrest, falls 'ill'

LAP Green Net-work's fortunes in Zamtel hang in the balance following Cabinet's decision on Wednesday to seize the 75 per cent stake held by the Libyan company.

And Dora Siliya yesterday failed to appear before police where she had been summoned over the irregularities involving the installation of a radar system at two international airports and the single-sourcing of RP Capital to valuate Zamtel.

Lap Green became the majority shareholder in Zamtel after the MMD government sold 75 per cent of the state-owned telecommunication company through questionable deals.

The government's decision to repossess 75 per cent shareholding of Zamtel made at a Cabinet meeting held on Wednesday follows President Michael Sata's directive to justice minister Sebastian Zulu, who also led the Commission of Inquiry on Zamtel to probe the sale of the company, whose 25 per cent shares is held by the state, to prepare a Cabinet Memorandum on the matter after a report was submitted to him.

The sources said Cabinet would engage an undisclosed process to do this, 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 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 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."

The source said the evidence and basis on which Cabinet had made its decision was overwhelming and that there was more that would be unearthed on the matter.

"Even the former head of state is confused because there is a lot of evidence in all forms that is before the investigative wings. This includes many other deals with him and Chinese on many other shoddy contracts," the source said.

Meanwhile, Zamtel acting managing director Eve Banda said the firm had not received any notification on the matter.

Last year, sources told The Post that the commission of inquiry revealed that the Zambian government paid US$ 334 million about K1.7 trillion to purchase its own 25 per cent shares in Zamtel during privatisation.

The commission also established that LAP Green Network, which bought 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 RP Capital Advisors - the advisors in the transaction - received a cash payment of about US$12.6 million (about K64 billion) from the transaction.

The commission of inquiry further recommended the termination of agreements relating to the sale of Zamtel's 75 per cent to LAP Green Network for US$257 million.

It also recommended the immediate termination of the illegal agreement in which Zesco ceded its fibre optic network to Zamtel.

Highly-placed government sources said the commission of inquiry found that Zesco signed the agreement under extreme duress.

In 2009, Siliya, then Minister of Communications and Transport, irregularly single-sourced RP Capital partners of Cayman Islands to valuate the assets of Zamtel before the 75 per cent shares of the firm was sold to LAP Green Network.

Siliya disregarded the professional advice from the Attorney General's chambers not to sign a memorandum of understanding (MOU) with RP Capital Partners.

And Siliya was supposed to be arrested in connection with her role in the radar saga and the RP Capital yesterday.

However, Siliya failed to turn up, delaying her impending arrest after it was announced that she had fallen ill. Siliya had arrived from South Africa around mid-day on Wednesday in a jovial mood, walked unaided and even greeted people at the airport.

Siliya, who was expected to appear before a team of combined investigators from the Drug Enforcement Commission (DEC), Anti Corruption Commission (ACC) and Zambia Police, kept the officers waiting from about 14:00 hours till late in the afternoon.

Police spokesperson Elizabeth Kanjela said Siliya, who is also MMD spokesperson, could not appear after her lawyer Sakwiba Sikota informed police that she was unwell.

In 2009, Siliya ordered the cancellation of a duly awarded contract for the supply, delivery, installation and commissioning of ZATM-RADAR at Lusaka now KK and Livingstone now Harry Mwaanga Nkumbula international airports to accommodate SELEX Sistemi Integrati, a company from Italy, which was single-sourced, to carry out the works.

Siliya's conduct was contrary to professional advice from officials in her ministry, the National Airports Corporation Limited (NACL) and the procurement authority.

The sources had revealed that the tender had been awarded to Thales Air Systems SA but Siliya cancelled it.

Labels: DORA SILIYA, LAP GREEN, RP CAPITAL PARTNERS, ZAMTEL

posted by MrK @ 8:11 PM