Maravi

(LUSAKATIMES) Prof Saasa responds to governments reaction on Nationalisation

Prof Saasa responds to governments reaction on Nationalisation
TIME PUBLISHED - Wednesday, May 23, 2012, 1:52 pm

I have taken note of the Statement authored by Mr. Siame, Special Assistant to the President, on the above subject. I would like to clarify as follows in case some of the media houses that received the Press Statement from State House did not see the Post Newspaper item that Mr. Siame was reacting to:

At no point have I said it is the PF Policy to nationalize private assets. I have, nevertheless, contended that what happened to Zamtel was nationalization however one wants to look at it. The Post Newspaper was also very clear on what I said and, as such, there should not be any misinterpretation what-so-ever. When I received a telephone call to comment on the statement attributed to the President that Government would “move in on anything which was privatized with corruption like Zanaco,” my reaction, as correctly reported by the Post, was basically as follows:

1. Giving an example of Zanaco as a company that was “privatized with corruption” does send the signal to the market that the Bank is going to face the same fate as what happened to Zamtel. I stated that a presidential statement like that is premature as it comes before the commission of enquiry that was mandated to investigate Zanaco privatization formally submits its report. Through the Post, I appealed that the Government Spokesman clarifies this statement purportedly coming from the President to allay fears and nervousness in the market, which is not good for investment.

2. I cautioned that state acquisition of private assets should be a decision of last resort as it does have the effect of scaring away investors (both foreign and local) and could affect the country’s investment attractiveness.

I believed that the President’s statement was made off-the-cuff and,hence, needed clarification. This is what I said and, indeed, reported by the Post.

In the light of the above, it is erroneous to deduce from what I said to suggest, as Mr. Siame does, that I have said it is Government policy to nationalize. I am, however, pleased that, following my statement, the clarification has now come from State House to the effect that
(a) nationalization is not PF Government policy; and (b) no decision has been made by Government to nationalize ZANACO.
Both clarifications were essentially what I requested Government to make.It is, therefore, important to understand correctly what transpired.

Oliver Saasa
Managing Consultant
Premier Consult Limited

Labels: NATIONALISATION, OLIVER SAASA, PF, ZAMTEL

posted by MrK @ 7:21 AM