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Sata's statement on Zanaco was premature - Saasa

Sata's statement on Zanaco was premature - Saasa
By Chiwoyu Sinyangwe
Mon 21 May 2012, 14:00 CAT

PRESIDENT Michael Sata's statement on Zanaco was premature and sends shivers in the economy that government is going to nationalise the bank, says Professor Oliver Saasa.

And Prof Saasa says the government should not nationalise Zanaco.
President Sata on Friday hinted that government might "move in" on "anything which was privatised with corruption like Zanaco".

"Don't be misled that Zambia is going back to nationalisation; we are not nationalising anything but anything which was privatised with corruption like Zamtel, we will move in. Anything which was privatised with corruption like Zanaco we move in, but that's not nationalisation, we are going to float those publicly."

Last February, President Sata constituted a commission of inquiry chaired by justice minister Sebastian Zulu to probe the manner and process the 49 per cent stake in Zambia National Commercial Bank was sold.

Zanaco was sold to Rabobank in 2007 at US$8.25 million, and according to Zulu, the report was ready and only awaiting permission from the Secretary to the Cabinet for handover to the President.

Commenting on President Sata's statement, Prof Saasa said there was likely to be apprehension in the economy and investor community owing to the President's statement.

"That statement was premature because this Zanaco is a subject of investigations and when a statement like that is made, it's very easy for the international community, investors to immediately believe that the fate that befell the communications company Zamtel is going to fall on Zambia National Commercial Bank," Prof Saasa said.

"If a statement is made before the President receives the report or he has received it before we are made to understand that cabinet is deliberating on it, that becomes a governance issue. When the President makes a statement like that, you can start suspecting that already there are fears the President has already has already received and is making a policy statement even before Cabinet meets. That is what brings about nervousness.

It is not so much about whether they are going to nationalise or not, it is all about 'has the President made a premature statement?' Unfortunately for investors, they have a point of reference. This will not be too far-fetched when someone gets worried."
Prof Saasa who is a Lusaka economic and policy consultant challenged the government to state what President Sata meant.

"To save the President's face, we need a government spokesman to elaborate that he was just giving an example and it does not mean the decision has been made before the President receives those recommendations of the inquiry," he said.

"As far as I recall, I don't recall any announcement to the effect that a report has already been submitted. That is what makes me a little bit more comfortable that it may have been one of those off-the-cuff statements. If the report had already been submitted, this would have been already a verdict that the President has made a decision based on what was submitted."

Prof Saasa said he prayed that President Sata's statement was "off-the-cuff".
"To have included Zambia National Commercial Bank, it was inadvertent and I thought the President should have held a little longer to make that statement because for readers, listeners and investors, that can almost amount to a policy statement because he is the Head of State," Prof Saasa. "If it is Chishimba Kambwili who said it, I was going to rubbish it. The seriousness with which a statement is taken usually is not the message but the messenger. So, he is the Head of State and we cannot start playing politics about…no he didn't mean it. There was need to elaborate."

Prof Saasa said nationalising Zanaco should not be an option.
"As far as the definition of nationalisation is concerned, Zambia has nationalised the telecommunication company Zamtel," said Prof Saasa. "Zambia is going to nationalise Zambia National Commercial Bank if this is the position. But selling it back to the private sector does not mean you didn't nationalise.

Labels: MICHAEL SATA, NATIONALISATION, OLIVER SAASA, ZANACO

posted by MrK @ 2:08 AM