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Zamtel should assume optic fibre upon paying market value - Kashita

Zamtel should assume optic fibre upon paying market value - Kashita
By Chiwoyu Sinyangwe
Sat 07 July 2012, 13:24 CAT

ZAMTEL should only assume the Zesco optic fibre upon paying a market value for the asset without compromising the power utility's ability to monitor the safety of its installations, says Andrew Kashita.

And Kashita says finance minister Alexander Chikwanda should intervene in the fight over the initially US$13 million Zesco asset and at the same time constitute a forensic audit to determine the correct status of the Zamtel optic fibre project.

Government sources have disclosed that Zamtel, through managing director Dr Mupanga Mwanakatwe, is pushing to wrestle back the Zesco optic fibre from the power utility after the government reversed the sale of the telecommunications company.

And communications minister Yamfwa Mukanga said he would like to see Zamtel takeover the Zesco optic fibre, saying "Zesco is a company that is supposed to execute electricity and energy-related issues, and communication issues are for Zamtel" and that Cabinet will decide on the matter.

The matter is expected to be tabled before Cabinet to decide ownership of the asset grabbed from Zesco and given to Zamtel at the height of the ill-fated 75 per cent sale of the telecommunications giant to Lap GreenN of Libya. The optic fibre was reverted to Zesco after the government aborted the US $257 million sale of Zamtel last January.

Energy minister Christopher Yaluma said he will heavily defend Zesco's optic fibre from being ceded to Zamtel unless the latter agrees to pay the capital expenditure invested by the power utility.

Kashita, a former communications minister, said there was need to resolve the wrangle of the optic fibre to benefit the Zambian people.

He said there was need for Chikwanda who holds shares in two firms on behalf of the Zambian people, to decide in the interest of the country.

"If on business consideration, it is found that Zamtel is the better company to run even the Zesco's investment optic fibre, then that should be done but Zesco should not be deprived of its right to use the communication system for its own house telemetry to allow them know what is happening on the line," Kashita said in an interview.

Kashita who said Zesco needed to safeguard its ability to closely monitor the safety of its installation using the fibre optic, said the commercial viability of the asset was the source of the current wrangles.

"Zesco has a duty to make sure that they know what the fault is; where the fault is and how long they are going to put it right using this technology telemetry," he said.

"We must use the optic fibre to the benefit of Zambia and not get stuck in squabbling between state-owned enterprises. Therefore the ministers cannot put a coin in the air and say 'head you win; tail you lose'. There must be a business analysis of what is the best for the country but Zesco has a duty…necessity to tell at any time where the fault is."

Kashita who blamed the MMD regime for what he termed lack of foresight said Zesco and Zamtel optic fibre projects were "duplicated investments" and that there was need to investigate the current status of both optic fibre projects to determine their current status and viability.

"What is the capacity that Zamtel has where there is a duplication compared to what Zesco has? If the capacity of both is big enough to accommodate present demand, fine," said Kashita.

"If it isn't, Zesco will be told that you have to make available and so much will be paid but they must control the charges because optic fibre should cost the same. If it comes to compensation, it must be done as a business because these are two separate businesses and they must be treated as such. Each one will say we invested this much, so, they must be a forensic audit of that investment to show that it was a genuine investment in fibre optics."

Labels: ANDREW KASHITA, OPTIC FIBRE, ZAMTEL, ZESCO

posted by MrK @ 1:30 PM