Maravi

No international court can entertain Zamtel sale - Sata

No international court can entertain Zamtel sale - Sata
By Ernest Chanda and Mwala Kalaluka
Mon 23 Jan. 2012, 12:59 CAT

PRESIDENT Michael Sata says no international court of law can entertain the Zamtel sale case if presented because it was shrouded in insidious corruption. And Zamtel top management held a ‘crisis' meeting amidst indications that the government would reverse the MMD's sale of the telecommunications company to Libya's LAP Green Network.

Meanwhile, President Sata has urged Zamtel workers not to panic as the State is sorting out the crisis that has beleaguered the telecommunications company.

In a statement released yesterday by the President's special assistant for press and public relations George Chellah, President Sata stated that the sale of Zamtel to Lap Green Network was consummated by a corrupt regime.

He stated that despite the release of the report of the committee investigating into the sale of Zamtel to LAP Green Networks to the public, members of the fallen MMD administration were still spreading falsehoods, alarm and despondency.

The President stated that LAP GreenN failed to meet three cardinal benchmarks prescribed by the Zambia Development Agency (ZDA) in the sale process.

"And these are: (a) a minimum of five years of licensed operation in the telecommunications industry (b) have more than three million subscribers on fixed, mobile or fixed wireless networks; and (c) a minimum of US$250 million Shareholders' equity for private entities or a minimum market capitalization of US$500 million for public listed entities," President Sata said.

"LAP Green all the same had the sale consummated by a corrupt regime which disregarded its own legal requirements of effecting the tender process, the mandatory legal consent by the Attorney General and ensuring valuation within the provisions of our laws. Although, there is no documentary evidence of any valuation, R.P Capital were paid US$12.6 million which was shared with the corrupt collaborators with explicit assistance by the Government officers at various levels."

President Sata stated that the PF government's primary duty was to be custodians of public interest.

He stated that government had a duty to correct falsehoods, distortions and misrepresentation of facts by elements that had unscrupulously plundered public resources.

"Therefore, the scare mongering tactics by Mr Situmbeko Musokotwane intended to cover up his crimes is essentially an exercise in futility.

The PF government's unequivocal stance on zero tolerance for corruption has the fullest support of the international community which abhors resource misdirection through corruption, a big contributory factor to Africa's retardation," President Sata stated.

He stated that his administration had received more foreign aid and investment because of its strong stance against corruption.

President Sata stated that the challenge was in fact on the country to develop adequate capacity to use the external aid timely and effectively.

On investment, President Sata stated that it was flowing into the country at a commendable pace because investors trusted the PF's policy consistency and predictability which were the pillars of credibility.

"The type of investors that are idols of the likes of Mr Musokotwane who come via the route or channel of corruption are a luxury Zambians can do without. Make no mistake about it, for we are determined to see transparency, accountability and good business moral codes in all spheres of Governance," he stated.

"Investors who are here and those planning to invest in our country are assured Zambia is a reliable investment destination. Zambia has not only both peace and stability but is irrevocably committed to the rule of law. What is more, there are no restrictions let alone cumbersome procedures for externalist of dividends."

President Sata stated that Dr Musokotwane had a false perception that investors were shunning Zambia because of the government's resolve to get back Zamtel.

He stated that Dr Musokotwane had a lot of things to answer, including the tax deferment concessions he gave in ways which Zambian law did not mandate.

"Saber-rattling as a defence, he will soon prove, is unsustainable and will not get him off the hook even with the lavish coverage he is getting from reckless media houses with a strange agenda," President Sata stated.

"This Government will not be stampeded into precipitate actions and if the government is slow in bringing to book those who have committed crimes against Zambia, it is only because they want to follow the due process of the law."

And sources disclosed yesterday that Zamtel managing director, Hans Poulsen, the chief financial officer, chief legal officer, transport coordinator and others met at the company's head office in Lusaka's Fairview area from 09:00 to 16:00 hours on Saturday.

"It's a situation where instead of working 100 per cent you spend 10 per cent on gossip," the source said. "Maybe they should make the announcement so that people know what will take place."

Meanwhile, President Sata had urged Zamtel workers to hold their peace, saying the government would not neglect them.

President Sata emphasised that when Zamtel had been sorted out, the majority of the shares would be owned by Zambians.

"We urge Zamtel workers not to panic or be used by people who have axes to grind and who are peddling all kinds of lies as a cover for their misdeeds. If any accounts have been frozen, it is to prevent the money from being taken out and it is basically in public interest," stated President Sata.

"Zamtel is a viable proposition when things have been realigned and streamlined. The temporary setbacks of the workers will be attended to so that workers are not subjected to uncertainties any more. Government has both the will and capacity to meaningfully capitalise Zamtel. As Head of State, I will never sideline my commitment to safeguard and superintend the interests of the Zambian people. Zambians with the passage of time will realise that they never misallocated their trust by entrusting me to preside over their fate and destiny."

And sources have revealed that the government will during the course of next week outline its direction on Zamtel to the public following the freezing of the firm's accounts by the Drug Enforcement Commission.

Sources disclosed that the government's decision to freeze the accounts of Zamtel was necessitated to avoid externalisation of funds.

"…We do not want money to be externalised outside the country and make Zamtel defunct. We will be able to have a definite position by next week," the sources said.

"Government had to freeze the Zamtel accounts because money would have been externalised and the company would have collapsed. Remember, Zambia has 25 per cent shares in Zamtel so we have an obligation to ensure the money and assets are properly looked after. If they will be holding money, they will be complicating matters if they start avoiding depositing money because if you look at the type of money Zamtel is making every day, if you are not banking it, where can they take it? So they risk complicating matters. If there are serious operational issues, they can make an application, that will be sorted out..."

Labels: GEORGE CHELLAH, MICHAEL SATA, SITUMBEKO MUSOKOTWANE, ZAMTEL

posted by MrK @ 9:54 AM