Maravi

Sata was part of Zanaco sale, claims Kunda

Sata was part of Zanaco sale, claims Kunda
By Chiwoyu Sinyangwe
Sun 12 Feb. 2012, 11:40 CAT

PRESIDENT Michael Sata was part of the decision to privatise Zanaco despite probing the transaction today, says former vice-president George Kunda. And Kunda has accused the PF government of "hiding in the pro-poor policies" in pursuing socialist and communist policies of grabbing private properties and stifling private enterprises.

Submitting on behalf of the MMD to the Sebastian Zulu-led commission of inquiry probing the US $8.25 million sale of 49 per cent of Zamtel to Rabobank in 2007, Kunda said selling Zanaco was one of the key conditionalities from key donors to cancel Zambia's external debt from about US $7 billion to under US $600 million in post-HIPC era.

Kunda also accused President Sata of being part of the MMD government which wanted to sell majority stake in both Zesco and Zanaco.

"Including President Sata, he was in the government and he was part of that decision to privatise Zanaco, and the cooperating partners to ensure that Zanaco and the financial sector was reformed," said Kunda who was accompanied to the submission by lawyer Rabson Malipenga.

"Because we agreed with IMF that we are going to privatise Zanaco, and we performed our obligations and undertakings under that agreement, if we had not done so, credibility of the government would have been put on the line because of the agreed programme with the IMF. We would not have benefited from the Group 8 initiative."

Kunda also laughed at claims by finance minister at the time of Zanaco sale, Ngandu Magande, that he was not involved in the sale and had no information about how the proceeds could have been used.

"It was not my responsibility as minister of finance to privatise any companies. That was the duty of the Zambia Privatisation Agency (ZPA) and I followed the regulations of the duties of the minister of finance," Magande told the commission last week.

But Kunda explained that Magande was fully aware that privatising Zanaco was a priority of the government at that time.

"It is important to note that the debt relief programme is to go on until the year 2020, US $3.8 billion was written off on reaching the HIPC completion point," he said. "And Mr Magande boasts about…he says, he is Mr HIPC (Heavily Indebted Poor Countries Initiative) because of what we achieved through privatising Zanaco. Now, he comes here and he says that he had no knowledge. It was a programme of the minister of finance and commerce programme. It was a conditionality and he had to give assurances as minister of finance to the international community.

"If you go through the Letters of Intent, you are going to see that Mr Magande was fully aware of the Zanaco situation, and the need to privatise and the mode of privatisation, the percentage and why we needed an equity partner who would take over the bank with management rights as was the case with Rabobank."

Kunda accused the PF government of attempting to nationalise a bank that was performing very well after privatisation to abuse its resources.

"I am worried Mr Chairman that if you reverse the privatisation in accordance with your socialist/communist policies, you will be violating our understanding with the IMF, the African Development Bank because as a country, we have benefited from this privatisation of Zanaco through debt relief and debt write off," said Kunda. "The money which should have gone to debt relief, we are able to use it as a country for poverty reduction programme for development of the country. Our fear is that we shouldn't go back to those days when, as government, we were interfering so much. When the government of that time was interfering in the operations of banks things like unsecured loans and things like that."

Labels: GEORGE KUNDA, MICHAEL SATA, MMD, ZANACO

posted by MrK @ 8:48 PM