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
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Why is Zamtel after Zesco's optic fibre?
By The Post
Thu 05 July 2012, 13:25 CAT
THERE is totally nothing wrong with the state, the government running business enterprises. What is wrong, however, is for the state, the government not to run its business enterprises well, in an efficient, effective and orderly manner. Democracy implies no specific doctrine of economics. Indeed, a good deal of debate in any modern democracy concerns the proper role of government in the economy.
No contemporary democratic state has an economic system that is either completely state-owned or totally free of government participation or regulation. All are mixtures of private enterprise and government oversight.
Over the last two decades, our people have been bombarded with neo-liberal propaganda; they have been told that the government has no business in business. For some time, the political leadership of this country, and even civil society, seemed to have swallowed this without chewing.
In this world, things are complicated and are decided by many factors. We should look at problems from different aspects, not just from one. We must learn to look at problems from all sides, seeing the reverse as well as the obverse side of things. In given conditions, a bad thing can lead to good results and a good thing to bad results.
Many developing countries that are doing very well economically have got a state, a government that is participating efficiently and effectively in the economy.
Whether one likes it or not, the economic advances that China has made and is continuing to make, are as a result of the state, the government participating in the economy efficiently, effectively and in an orderly manner. The enterprises that have enabled China to accomplish what it has accomplished and to do what it is today doing in the world are state enterprises.
The same can be said of Brazil, Singapore, Iran, South Africa and India. The biggest airline in the world, Singapore Airlines, is a state-owned enterprise. The biggest telecommunication company in the world, Singapore Telecomms, is also a state enterprise. South Africa still has many state enterprises in its most important economic sectors.
Clearly, there is a lot to benefit from state enterprises. But there are prerequisites to any such successes. The state, the government cannot, itself, run efficient business enterprises if it is not, itself, being run efficiently, effectively and in an orderly manner. Singapore is able to run efficient state enterprises because it's got one of the most efficient civil services, and public sector in general, in the world.
The same can be said of China. For whatever ideological concerns one can have with the way China is politically governed, one cannot deny that the state, the government in that country of 1.3 billion people, covering a territory of 9,596,960 square kilometres, is efficient, effective and orderly. And this is the foundation, this is the base on which that vibrant economy is built.
Equally, in a state where the public sector is inefficient, ineffective and disorderly, the private sector also suffers; it can't do that well unless it becomes parasitic on and exploitative of the state.
With these brief observations, we come to the issue of the Zesco optic fibre network which Zamtel is trying to appropriate at no cost. Of course, both Zamtel and Zesco are state-owned enterprises with a clear mandate on what they should do. Zamtel invested over US$50 million in its own optic fibre network. Zesco borrowed US$70 million to invest in its own optic fibre network. That loan is a long-term facility which is yet to be repaid.
Why should Zamtel be handed over the Zesco network for nothing? Where is Zesco going to get the money to repay the US$70 million it borrowed for this network? We hope they are not expecting Zesco customers to pay this loan through increased electricity tariffs when this optic fibre network could bring in adequate revenue for the repayment of this loan!
Moreover, Zesco put up this optic fibre network to increase the security of its electricity supply lines. It is only a small surplus that it will run in a commercial way. Why deprive Zesco of the benefit of its efforts to cut costs and improve efficiency?
Of course, one can argue that the state, the government needs to rationalise its investment in the two companies by avoiding unnecessary overlaps, duplications. There is totally nothing wrong with state enterprises competing against each other. This is not irrational.
In China, it is not uncommon to find the state owning a number of companies in the same sector and having these companies compete against each other, in certain respects. For instance, the Chinese government owns at least four big enterprises in the telecommunications sector - ZTE, Huawei, China Mobile and China Unicom.
And even in our region here, the SADC region, we have the South African government having three state enterprises offering telecommunication services - Infraco, Telkom and Sentech. We are confident that many other examples of similar arrangements are there in our region and in the world.
Moreover, why try to create a state monopoly over the optic fibre network when Zesco and Zamtel can provide us the necessary competition? We don't think this will be in accord with the requirements of the consumer protection and competition Act. The Act doesn't exempt state enterprises from its provisions.
There is no need to move back to the methods of state enterprises that failed us.
We don't need one state enterprise to provide a service that can be provided by many state enterprises in competition with each other. We all know where such monopolies lead to - inefficiency, ineffectiveness and poor provision of services.
There is no problem in Zamtel and Zesco owning their own optic fibre networks and running them in competition against each other. There is enough room for each one of them to manoeuvre and the market is not saturated. Competition between Zesco and Zamtel in the optic fibre network is necessary and beneficial to the nation and to the consumers of this service.
Moreover, Zamtel should account for its US$50 million investment in its optic fibre network. If it has nothing to show for this money, then those who were responsible for this investment should be called upon to account wherever they may be.
We know there has been strong lobbying by people with vested interest for Zamtel to take over the Zesco optic fibre network. But let those in government leadership serve the interests of the people wholeheartedly and never for a moment divorce themselves from the interests of the masses, and proceed in this matter, as in all matters, from the interests of the people and not from one's self-interest or from the interests of a small group.
Labels: OPTIC FIBRE, ZAMTEL
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Yaluma vows to 'defend' Zesco's optic fibre
By Joan Chirwa-Ngoma
Thu 05 July 2012, 13:24 CAT
ENERGY minister Christopher Yaluma says 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.
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.
But Yaluma yesterday said Zamtel should rent the facility from Zesco like any other business entity because he was not ready to yield to maneuvers to have Zesco's optic fibre given to Zamtel.
"A wrong thing was done which we reversed and gave back Zesco's optic fibre to the company. But now they want this same fibre to go back to Zamtel. I am failing to understand why they are jumping up to talk about getting Zesco's optic fibre," he said in an interview.
"I will defend it (Zesco's optic fibre) to the core. I know the use of that fibre. Anywhere in the world, telecoms companies own their assets...And Zamtel and Zesco report to different boards and have different deliverables to be met. So I will it defend heavily. If they want to take the optic fibre, we will give them at a cost. We know how much was involved. We shall sell the asset to them then. They shall pay us the capital expenditure which Zesco incurred to install the fibre around the country. And then we gonna tell them, 'whatever we need to use, we will pay rent'."
In 2010 at the height of the controversial sale of three quarters of Zamtel to LAP GreenN of Libya, former president Rupiah Banda's government forced Zesco to cede its optic fibre cable to Zamtel but still has to settle the US $13 million loan for laying it.
However, following the reversal of the US $257 million Zamtel sale in January 2012, the government instructed that the optic fibre be returned to its rightful owners - Zesco - while Zamtel should pursue its own optic fibre project or rent the facility from Zamtel at a commercial rate.
But according to government sources, Dr Mwanakatwe is pushing for the return of the optic fibre to Zamtel, an asset industry sources say contributed "massively" to the quick turnaround of Zamtel in the aftermath of the 2010 privatisation.
"Zesco saw the need for optic fibre. Fibre is a key component of network operations, to operate remotelyand to monitor network performance, among many other uses. There are more uses for fibre. It can be used by the police for surveillance. We can have cameras in town using optic fibre to see what's happening in town. So Zamtel can come and hire other channels for from the optic fibre. Why should they own it?" Yaluma asked.
"The previous regime grabbed the optic fibre from zesco, it was wrong, it was unethical. Whatever Zesco has installed is theirs. Zesco fibre is non-negotiable and it belongs to Zesco. I am an engineer who once worked for Zesco so I know what fibre can do…"
He said Zesco identified the need for the installation of optic fibre on its network and would not give up the facility at no cost.
"We knew what industries would need from us. Let Zamtel keep the fibre they installed, let Zesco keep the assets. They are both parastals, and they are going to show their balance sheets at the end of the year that will show their viability and also asset base," said Yaluma.
Zesco over five years ago embarked on optic fibre installation on its power lines to boost its internal communications while Zamtel opted to singlehandedly install their own in the ground across the country, a move that was seen to be highly risky owing to increased vandalism.
The telecommunications company which invested US $50 million in its optic fibre project turned down Zesco's offer for a joint undertaking on the existing power lines.
Labels: OPTIC FIBRE, YAMFWA MUKANGA, ZAMTEL, ZESCO
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Cabinet to decide on optical fibre
By Chiwoyu Sinyangwe
Mon 02 July 2012, 13:24 CAT
CABINET will this month decide on the fate of Zesco's optic fibre which is at the centre of controversy between Zamtel and the power utility, says communications minister Yamfwa Mukanga.
According to government sources, 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.
In 2010, at the height of the controversial sale of three quarters of Zamtel to LAP GreenN of Libya, former president Rupiah Banda's government forced Zesco to cede its optic fibre cable to Zamtel but still has to settle the US $13 million loan for laying it.
However, following the reversal of the US $257 million Zamtel sale in January 2012, the government instructed that the optic fibre be returned to its rightful owners - Zesco - while Zamtel should pursue its own optic fibre project or rent the facility from Zamtel at a commercial rate.
But according to government sources, Dr Mwanakatwe is pushing for the return of the optic fibre to Zamtel, an asset industry sources say contributed "massively" to the quick turnaround of Zamtel in the aftermath of the 2010 privatisation. Commenting on the controversy, Mukanga said Cabinet would make the final decision on the control of the asset.
"Discussions are underway to see how Zamtel and Zesco will come up with the solution," he said in an interview.
"Ultimately, both optic fibre are under-utilised. We want to find a solution as to who is supposed to be the sole owner of the optic fibre or who should be running the optic fibre while the other one is getting a service from the other. And that decision can only be made by Cabinet, and we will try to draft a cab memo and see which direction Cabinet is going to give us. Within one month, everything will be done because discussions are already underway between both managements."
Both Zesco and Zamtel had both invested in laying the optic fibre although industry sources said the Zamtel optic fibre had failed to take off.
And Mukanga hinted the desire to see Zamtel takeover the Zesco optic fibre.
"Zesco is a company that is supposed to execute electricity and energy-related issues, and communication issues are for Zamtel," said Mukanga.
"I believe that even if Zesco was given a licence of being a carrier or carriers, it will not be in its core business and it will be some sort of a diversification. Zesco should concentrate on what they know best and Zamtel should concentrate on what it knows best, for now, since discussions are underway, I don't want to preempt what they are going to discuss."
Labels: OPTIC FIBRE, ZAMTEL, ZESCO
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Kunda's law firm received K190m from Zamtel - Zulu
By Chibaula Silwamba
Fri 25 Nov. 2011, 13:55 CAT
GEORGE Kunda's law firm received a K190 million payment from a Zamtel account, according to justice minister Sebastian Zulu and Commission of Inquiry technical committee chairperson Dimple Ranchhod.
And Zulu revealed that
LAP Green has started externalising money from Zamtel after his five-member commission of inquiry on the sale of Zamtel unearthed illegalities in the 75 per cent shares privatisation to the Libyans.
Addressing a media briefing at the Ministry of Justice in Lusaka yesterday, Zulu said Kunda, the former Republican vice-president and former minister of justice, should have declared interest instead of accusing the PF government of fault-finding in its investigations.
"If George Kunda & Company were in fact advocates for ZDA in this Zamtel transaction, he should have declared his interest; he should not have started accusing the government. If he is the partner in George Kunda & Company, naturally he shares in the profits of that K190 million transaction," Zulu said.
"I know George Kunda & Company was his company but I am not sure if he is still a partner. But since he is connected to that, he should have declared interest."
Ranchhod, a lawyer who chaired the six-member technical committee, said a lot of information was either deliberately not given to her team or was destroyed.
"What we did discover during our sittings is that there was a suspense account for legal fees that Zambia Development Agency held. Obviously when you are investigating something and an account is called a suspense account, you are definitely going to ask what it's about especially considering that legal fees had been specified; each amount paid to every law firm had been specified and was supported by a bill or invoice," Ranchhod said.
"We did query ZDA on what this suspended legal fees were. It was K190 million, so it's not a small amount. Chief accountant Mr Phiri did come back to us and said, ‘these are fees paid to George Kunda & Company'."
She said the committee demanded that ZDA provide a bill showing the legal services that George Kunda & Company had provided on the Zamtel transaction.
"Instead of coming back with the bill, he came back to us and said, ‘in fact we made a mistake, they George Kunda & Company did some different work'. We said, ‘that is fine but because it was on the Zamtel account, can you please show us a copy of invoice so that we can verify that this was different work and not work related to Zamtel'. But unfortunately to date we have not received a copy of this bill," said Ranchhod.
Ranchhod's committee included Misheck Kaoma a procurement specialist, Cosmas Mwananshiku an accountant, telecommunications specialists Dr Mupanga Mwanakatwe and Emmanuel Mbewe, and Don Zyambo a valuations specialist.
Kaoma, Zyambo, Mwananshiku and Mbewe separately told the media briefing that the Zamtel sale was irregular and illegal.
"We Zambians have lost out huge sums of money in this transaction," said Mbewe.
Meanwhile, Zulu said the Rupiah Banda-led government gave Zamtel for free to LAP Green.
He said the US$257 million, which LAP Green was to pay, was equivalent to a licence fee.
"My information is that right now, Zamtel LAP Green is busy externalising money. Let's say there is US$30 million, there could only be US$1 million in the account. They are busy doing that as a result of this report," said Zulu.
The commission of inquiry revealed that the Zambian government paid US$ 334 million about K1.7 trillion to purchase its own 25 per cent shares in Zamtel during privatisation.
LAP Green Network, which bought 75 per cent shares in Zamtel last year, has only paid US$15 million about K76 billion to the Zambian government out of the purchase price of US$257 million about K1.3 trillion while RP Capital Advisors - the advisors in the transaction - received a cash payment of about US$12.6 million about K64 billion from the transaction.
The commission of inquiry recommended the termination of agreements relating to the sale of Zamtel's 75 per cent to LAP Green Network for US$257 million.
It also recommended the immediate termination of the illegal agreement in which Zesco ceded its fibre optic network to Zamtel.
Highly-placed government source said the commission of inquiry found that Zesco signed the agreement under extreme duress.
"The findings were that a joint technical committee comprising Zamtel and Zesco staff was set up under the auspices of the Communication Authority in July on the understanding that the two parties would seek to rationalise and harmonise their optical fibre network roll-out and expansion plans, based on mutually beneficial and agreed commercial terms," the source said.
"But on the contrary, on October 28, 2009 the Zesco board was informed by its chairman that the Ministry of Finance, as a principal shareholder, was directing Zesco to cede its optical fibre network to Zamtel and to cease all commercial operations on their optical fibre networks."
The source revealed that the commission of inquiry discovered that the then Zesco managing director was under immense pressure to sign the Indefeasible Right of Use (IRU).
"In fact, some named individuals threatened the Zesco managing director with the loss of his job and accused him of dragging his feet and holding up the process," the source said.
"What was also discovered was the unfairness in the sharing of revenue under the IRU whereby 80 per cent was to go to Zamtel and the remaining 20 per cent to Zesco and that the provisions of the IRU would apply to all existing and future optical fibre networks to be rolled out by Zesco."
The source said the whole Zamtel transaction was unfair and unacceptable.
"Actually, whilst the Zesco managing director was on an official trip to Egypt, he was forced into signing the single signature page of the IRU agreement under extreme duress and thereafter faxing it back to Zambia on December 17, 2009. So you can see how this guy was abused in this transaction," the source said.
"On the other hand, the Zamtel board retrospectively approved the IRU in a board meeting held on December 24, 2009 while the Zesco board passed a retrospective board resolution at a board meeting held on January 28, 2010 authorising Zesco to sign the IRU agreement which had, in fact, already been signed by the Zesco managing director on December 17, 2009. Sadly, after that, the contract of employment for the managing director of Zesco was terminated."
Labels: CORRUPTION, GEORGE KUNDA, LAP GREEN, LIBYA, OPTIC FIBRE, ZAMTEL, ZESCO
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Wood grants Zamtel fibre optic injunction
By Maluba Jere
Sun 20 Nov. 2011, 13:59 CAT
LUSAKA High Court judge Albert Wood has granted Zamtel an injunction restraining Zesco from preventing the communication company having the indefeasible right to use its optic fibre network as agreed in the agreement entered into by the two companies.
Judge Wood granted the order following an application by Zamtel for an order of an interim measure of protection for an injunction pending the resolution of the dispute through arbitration.
The application was made pursuant to Section 11 of the Arbitration Act number 19 of 2000 and Rule 9 of the Arbitration (Court Proceedings) Rules 2001.
According to the order, judge Wood said, "It is hereby ordered that an order of interim measure of protection by way of an injunction be and is hereby granted to restrain the respondents whether by itself and or its servants or agents and whomsoever person or persons from preventing and interfering with and or disrupting the applicant's rights to the indefeasible right to use the respondent's fibre optic network as agreed to in terms of the indefeasible right of use agreement dated 17th December 2009 between the applicant and the respondent pending the hearing and determination of the arbitral proceedings and the applicant undertakes to indemnify the respondent for any damages that the respondent may suffer as a result of this order of an interim measure of protection by way of an injunction should the court afterwards be of the view that the order should not have been granted."
In an affidavit in support of ex-parte originating summons deposed by Zamtel managing director Hans Paulsen, by virtue of that agreement, Zesco agreed to grant Zamtel an exclusive indefeasible right of use of its fibre optic network including any future extensions or fibre networks based on the terms and conditions of the agreement.
He stated that in reciprocity, Zamtel also granted Zesco a non-exclusive indefeasible right of use for capacity of its fibre optic network including any future extensions or future fibre network based on terms and conditions of the agreement.
Paulsen said the agreement gave both Zamtel and Zesco the right to interconnect on each others fibre optic networks.
He further said as a result of the agreement and with the full knowledge of Zesco, Zamtel invested US $1,400,000,00 of the budgeted US $3 million in infrastructure and related developments of the fibre network.
Paulsen said sometimes in October this year, the Minister of Land, Energy and Water Development was reported as stating that the agreement between Zamtel and Zesco would be terminated.
He said following the purported pronouncement, on October 13, 2011, Zesco wrote a letter to Zamtel terminating the agreement on the premise that there was no notification from the electricity supply company confirming that all the three conditions of the agreement were satisfied and henceforth, the agreement had not become effective and that the three months period from December 17, 2009 had since elapsed.
Paulsen said his company believed that by the pronouncements in the press, Zesco had already formed a premeditated scheme to wrongfully terminate the agreement with no tangible and justifiable basis.
"…that the respondent's actions appear to be tainted with illegality and with ill motive in that it is calculated to deliberately disrupt the business of the applicant," Paulsen said.
"If the applicant is prevented from accessing the fibre optic network belonging to the respondent, the applicant shall be in breach of various contractual undertakings that it has with suppliers, engineers and other contractors who have been engaged on the strength of the existing agreement."
He added that both parties had been implementing the agreement unfettered since December 17, 2009.
"For instance, in August 2010, the applicant wrote to the respondent that it was planning to implement the optic grand wire across the Zambezi River at Kazungula to facilitate interconnection of the respondent's optic fibre network with the Botswana Telecommunications Corporation," stated Paulsen.
"The respondent accordingly confirmed to the applicant that it would provide it with 15 kilometers of the OPGW that needed to be used on the 66KV line at Kazungula between the respondent and the Botswana Power Corporation."
The matter comes up for inter parte hearing on November 21, 2011.
Labels: ALBERT WOOD, OPTIC FIBRE, ZAMTEL, ZESCO
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Namibia, Zim in print, broadcast talks
Friday, 04 November 2011 00:00
Herald Reporter
ZIMBABWE and Namibia's information officials met in Harare yesterday and discussed co-operation in broadcasting and the print media. In broadcasting, they looked at the digitilisation programme, prospects of Zimbabwe benefiting from the undersea cable that Namibia is developing as well as content development.
In print media, they reviewed co-operation in NamZim, a joint venture through which the Southern Times is published. Officials from Trans Media, Broadcasting Authority of Zimbabwe, the Zimbabwe Media Commission, Zimpapers and Zimbabwe Broadcasting Corporation attended the meeting with their Namibian counterparts.
Officially opening the meeting, Media, Information and Publicity Minister Webster Shamu said the meeting was a follow-up on issues raised at the last meeting held in Namibia in 2009 when he visited that country together with officials from his ministry.
These included development and harmonisation of policies and capacity development with a view to protecting the interests of the two countries.
He noted that the two countries shared a similar history as they were both born out of arduous liberation struggles.
In those struggles the people of Namibia and Zimbabwe stood shoulder to shoulder to free their countries and today they were doing the same in various fields.
Namibia's Minister of Information and Communication Technology Mr Joel Kaapanda also recalled that the two countries had stood together against all odds and continued to support each other.
They went to the Democratic Republic of Congo together and fought to liberate the whole country, paving way for democratic negotiations that brought peace and stability.
"Of course we were blamed and ostracised that we had acted as hegemonistic states that wanted to occupy that country. We did not occupy it but brought peace.
"Nobody wants to acknowledge this.
"DRC is what it is today because of the contribution of Zimbabwe, Namibia and Angola."
He said his visit was meant to cement relations between the two countries, to concretise political relations into economic and technical co-operation.
He said the two ministries had a role to play in attaining Millennium Development Goals. The two countries had discussed critical issues that put them on a serious development path.
He wanted to see the two countries exchange skills, develop relevant content, develop their capacities and move together in the process of digitilisation.
He was keen to see Zimbabwe benefiting from the undersea cable. Namibia was already co-operating with Botswana and wanted other hinterlands like Zimbabwe and Zambia to benefit from the excess capacity that Namibia has.
An official who attended a closed session said they also discussed liberalisation of airwaves and community broadcasting.
The official said they looked at the possibility of training programmes and exchange of skills between the two countries. Minister Kaapanda arrived in the country on Wednesday and has held several meetings with Government officials.
Labels: MEDIA, NAMIBIA, OPTIC FIBRE, WEBSTER SHAMU, ZIMBABWE
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Zamtel ready to help ZNBC digitalise
By Mutale Kapekele
Mon 02 May 2011, 03:59 CAT
ZAMTEL says it is ready to assist the Zambia National Broadcasting Corporation digitalise nationwide using its optic fibre network. Last Thursday, ZNBC director general Eddie Mupeso, said the national broadcaster had already started ordering digital-capable equipment that would ensure the signal was completely digital by 2013.
Mupeso, who was touring leased transmission facilities at Zamtel, said his institution would also take advantage of the latter’s optic fibre which has already terminated within the mass media complex to improve the quality of the broadcast signal countrywide.
“We are going to make use of the fibre because we will be building provincial television studios and we hope to use fibre to make sure these facilities are well connected and serviced so that we can send good picture quality to our audience,”
Mupeso said. “In Livingstone for instance, we are sending picture to Lusaka via internet, which is very cumbersome. But once we complete digitalising our facilities, transmission will become child’s play.”
Mupeso also disclosed that ZNBC would receive three mobile studios in the next two weeks from the United Kingdom, which he hoped would ease transmission challenges for events across the country.
At the same event, Zamtel chief commercial officer Amon Jere pledged his company’s continued collaboration with ZNBC by providing the latest technology that would improve the quality of the broadcaster’s signal.
Jere said Zamtel had invested a lot of resources in installing digital transmission enabled equipment and was ready to switch on the national broadcaster’s signal as soon as it was technically ready.
“The cost of running the analogue transmission links is very huge and in most cases, the technology is old and spare parts are hard to find. So when ZNBC is transmitting, sometimes we literally have to ‘babysit’ the equipment to ensure there is no signal failure,” he said.
Zamtel provides transmission leased facilities to the national broadcaster for its signal countrywide.
Labels: AMON JERE, OPTIC FIBRE, ZAMTEL, ZNBC
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Zamtel to invest K600bn in Internet access
By Florence Bupe
Fri 19 Nov. 2010, 04:01 CAT
ZAMTEL is investing K600 billion into new technology to enh-ance the country’s Internet access and capacity, company chief commercial officer Amon Jere has disclosed.
Addressing trainee journalists at Post Newspapers on Wednesday, Jere acknowledged that Zambia’s Internet penetration rate had remained among the lowest globally and pledged Zamtel’s commitment to ensuring a reversal of the situation.
“Although some reports have indicated that Internet penetration rates stand at about 6.3 per cent of the Zambian population, it is in actual fact just about two to three per cent. As Zamtel, we want to take the lead in providing faster, more affordable Internet services and we are working with other countries in the region to install optic fibre technology,” he said.
Jere disclosed that Zamtel was partnering with Botswana, Namibia and Tanzania to lay optic fibre cables for enhanced technological growth.
He further explained that Zamtel was working with Zesco to integrate the two organisations’ optic fibre installations.
Jere also explained that Zamtel would strive to increase Internet access for Zambians through the provision of the service on fixed phone lines.
“We are trying to ensure that all landlines have fixed broadband Internet. This will help us create more access,” Jere said. “We also expect to roll out 3G (third generation) technology by January next year.”
However, Jere echoed sentiments of many other stakeholders that the cost of Internet services in Zambia had remained high due to a number of factors such as the cost of computers.
And Jere said Zamtel was in the process of recovering the K200 billion owed to the institution by various clients.
“We are engaging government to try and recover the huge debt that is owed, and a number of ministries are starting to pay their bills. Zamtel was owed K200 billion by various organisations and we have instituted a team to try and recover the monies,” he said.
Jere said as a means of improving the management of revenue, the company was encouraging the use of pre-paid service facilities.
“If you came to us now and asked for a landline, we will most likely put you on pre-paid. In fact, some government ministries have taken the responsibility of asking for pre-paid landlines to avoid accumulating debt,” said Jere.
Labels: AMON JERE, INTERNET, OPTIC FIBRE, ZAMTEL
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Sichinga asks Lap Green to reimburse Zesco for optic fibre
By Sandra Lombe in Livingstone and Mutale Kapekele in Lusaka
Tue 24 Aug. 2010, 04:01 CAT
ECONOMIST Bob Sichinga has asked Lap Green Networks, the new owners of Zamtel, to reimburse Zesco Limited for the optic fibre that the latter took over.
The Zesco optical fibre network project was being done in phases at a huge cost, with the first phase already laid from Sesheke up to Lumwana in Solwezi at a cost of about US $13 million. The network is linked to the international gateway in Namibia while the second phase was expected to cover the whole country and preliminary projections indicated that the project was likely to gobble about US $30 million.
But Zesco’s optic fibre cable was forcibly ceded to Zamtel. Zesco Limited will, however, have to settle the US $13 million loan for laying it, highly placed sources revealed recently. Zamtel which had earlier sought to put up its own fibre optic through ground connection across all provinces in the country failed to proceed with the project. Zesco used its already existing electricity lines for the optic fibre. The sources also revealed that following the grabbing of the optical fibre from Zesco, Zamtel, under the new owners, would develop the second phase of the project.
“They have taken over the optic fibre from Zesco, so they must reimburse Zesco,” Sichinga said. “Government, or the new investor (Lap Green) have to pay Zesco for the optic fibre transferred to Zamtel. It must not be an ordinary take-over just like that, they must reimburse because Zesco will have to pay for it at the end of the day.”
And Sinchinga has advised Zamtel employees to maximise the use of their terminal benefits by investing wisely and contribute effectively to the national economy.
Lap Green Networks, the new owners of Zamtel, are expected to pay close to K500 billion as retirement benefits to all employees. The Zambia Development Agency (ZDA) has commenced nationwide counseling workshops on investment for Zamtel employees. In an interview in Livingstone, Sichinga advised Zamtel workers to invest wisely.
“My advice since all this Zamtel sale started has been not to sell, but it has gone as far as it has and is unlikely to be reversed. Whatever payments they (workers) may receive in terms of benefits, terminal benefits they need to use them very fugally, make sure that they invest in businesses, houses, in properties, in assets such as treasury bills, so that they don’t misuse it,” Sichinga said.
“We have seen cases in Kitwe, Luanshya, in Lusaka wherever they were people retired, they ended up being in desperate situations.”
He also urged employees who will be taken on by Lap GreenN to change their attitude towards work.
“One hope is that there will be change of work attitude, Zamtel was very much like government type organisation, and it was not working well, it was not effective. It was sluggish, it was not making right investments, we are told now that it could not have survived,” he said.
“The question is where was the board of directors when such was happening? What was it doing? Why was it not making changes while investing in the right places?”
Sichinga said even though the government owned only 25 per cent of Zamtel, it still remained a major part of the telecommunication industry in the country. And ZDA head of small and medium enterprise development Windu Matoka disclosed that the agency had so far counseled more than 700 Zamtel employees on how to invest their retirement benefits.
“What we are telling them is that they should invest 80 per cent of their benefits in real estate or deposit that money in fixed deposit accounts,” Matoka said. “They can use 15 per cent to start small businesses and the other five per cent they can share it with family and friends.”
Matoka said the workers were being counseled to help them identify good business ideas that could make them build big businesses.
“We are counseling them on the dos and don’ts of business, but the most important message we are giving them is to accept change,” he said.
“We want to help them not to jump into a lavish lifestyle that will be short-lived, but to lead normal lives. We want them to come up with good business ideas because a business cannot grow without a proper idea.”
Matoka advised Zamtel employees to form partnerships and seek to be subcontracted by Lap GreenN.
“They (Zamtel employees) should learn to have joint partnerships, have positive mindsets and seek for sub contracts at Zamtel,” said Matoka.
And in an interview, Bankers Association of Zambia (BAZ) chairman Saviour Chibiya observed that the K500 billion retirement package for Zamtel workers would stimulate economic activity in the country.
Chibiya said his association was pleased with the funds that the Zamtel retirement packages would inject in the economy.
“We are pleased to see any incremental funds coming in the system as this further stimulates economic activity in the country,” Chibiya said.
“We expect that the (Zamtel) retrenchment packages will go through the formal banking system and part of these funds will increase long-term savings, resulting in extra liquidity for the banks to provide loans which in turn leads to greater economic activity.”
Chibiya urged Zamtel workers to invest their money in housing and agriculture.
“Apart from savings, we urge the recipient of these funds to utilise this money, to the extent possible, on investments such as housing, agriculture and other business ventures,” he said.
“That is not to say there is any harm with consumption as long as it is not done excessively, as consumption boosts demand for goods and services resulting in economic growth.”
Chibiya also said BAZ did not expect the K500 billion to affect inflation.
“We do not expect such an amount to have any inflationary impact on the economy as we believe the Bank of Zambia is well equipped to manage the sterilization of this liquidity through the monetary policy,” said Chibiya.
Labels: LAP GREEN, OPTIC FIBRE, PRIVATISATION, ROBERT SICHINGA, ZAMTEL
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Zesco cedes optical fibre cable to Zamtel
By Chiwoyu Sinyangwe
Tue 02 Mar. 2010, 04:01 CAT
ZESCO has finally been forced to cede its optical fibre cable to Zamtel but still has to settle the US $13 million loan for laying it, highly placed sources have revealed.
Since the advent of the Zamtel privatisation process last year, the government had been exerting pressure on Zesco management to have the power utility company's over 1,700 kilometre optical fibre network sold as part of Zamtel assets.
The move by the government to forcibly transfer the optical fibre was aimed at raising the profile of Zamtel by getting the Zesco network, which would automatically translate in an increase in RP Capital Partners of Cayman Islands’ fees or commission when Zamtel is sold at a higher value.
Sources close to the transaction told the Business Post that apart from enriching the profile of Zamtel, the shift of optical fibre would also allow Zesco to concentrate on its core business of power generation, supply and transmission.
The sources said the move to grab the optic fibre from Zesco had angered some engineers in the power utility especially those in the department that laid it.
“How do you expect us to be happy when for all the sweat we put in laying this optic fibre, someone just comes and say ‘give it to Zamtel for no sensible reason…this is so frustrating and demoralising but obviously there is no one who can oppose such a move because everyone in Zesco is scared of Honourable Kenneth Konga. But I guess there isn’t much we can do because we all need to protect our jobs,” the source explained. “The contract to get the optic fibre was signed in December 2009 and under the terms, 80 per cent of the revenues from optic fibre will go towards Zamtel and 20 per cent towards Zesco, yet we Zesco are expected to pay back the loan which we used to lay the fibre optic… how do you explain that? This is our cable and we wonder why Zamtel should get 80 per cent of the revenue when they also have also been digging their own optic fibre.”
The Zesco optical fibre has been a source of controversy after attempts by the government to wrestle the network from the power utility to Zamtel in the third quarter of last year were exposed.
Well-placed government sources yesterday disclosed that President Rupiah Banda, through his two named advisors, engaged Zesco over its optical fibre network.
“It appears this Zamtel and RP Capital Partners scandal is one that will never end. And it’s clear that the architects of this saga are unrepentant and are determined to bring down a number of state institutions just to satisfy themselves,” the source revealed.
The Zesco optical fibre network project was being done in phases at a huge cost with the first phase already laid from Sesheke up to Lumwana in Solwezi at a cost of about US $13 million.
The network is linked to the international gateway in Namibia while the second phase was expected to cover the whole country and preliminary projections indicated that the project was likely to gobble about US $30 million.
The sources also revealed that following the grabbing of the optical fibre from Zesco, Zamtel, under the new owners, would develop the second phase of the project.
The sources disclosed that the Zamtel optical fibre network project flopped.
“One thing you also need to know is that the Communications Authority gave Zesco what is called ‘A Carrier of Carriers’ licence in about 2006. But I think it only became operational in 2007,” the source said. “Zamtel… the same company they want Zesco to give its optical fibre network tried to install its own network and they failed. They have even abandoned that project right now as we are talking.”
The sources also disclosed that following the decision by Kenya’s biggest mobile-network operator, Safaricom, to lease capacity on Kenya Power & Lighting Limited’s fibre optic cable as a way of minimising vandalism-related losses as the link runs on overhead lines, the proponents of the Zesco/Zamtel deal wanted to use the move to justify their intentions.
According to media reports in the biggest economy in east Africa, Safaricom was to lease a pair of the 48 optic fibre links on the cable for 20 years at 288 million shillings US .8 million a year, and will transfer data traffic to the Kenya Power fibre link.
Safaricom chief executive officer Michael Joseph told reporters in the capital, Nairobi that: “Hopefully this era of vandalism, sabotage will be a thing of the past.”
The company estimates that it loses as much as 20 million shillings in revenue each year because of damage to fibre-optic links that are laid underground.
Safaricom owns 22.5 per cent of the East African Marine System fiber-optic cable that links Kenya to Fujairah in the United Arab Emirates, giving it capacity of 22,500 megabytes.
It also bought 620 megabytes of access to a cable owned by Seacom Limited, Safaricom.
Kenya Power, the east African nation’s monopoly power distributor, started the fibre project in 1989 to better manage the national transmission and distribution grid. The network cost 1.9 billion shillings to set up.
Labels: OPTIC FIBRE, ZAMTEL, ZESCO
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Zesco fibre optic burns board chairman Zyambo
By Amos Malupenga
Wed 30 Dec. 2009, 04:01 CAT
Energy minister Kenneth Konga has dismissed Songowayo Zyambo as Zesco board chairman for among other reasons, the way the board handled the issue of fibre optic which the government initially wanted to be part of Zamtel assets.
However, Konga yesterday said Zyambo was not fired but resigned on his own.
According to sources within the Ministry of Energy, Konga last week summoned Zyambo and asked him to resign from his position or risk being fired.
“The minister asked Mr Zyambo to resign or be fired. He talked about some issues and also mentioned the issue of fibre optic… the manner in which this issue was handled by the Zesco board and/or management,” the source said.
“I am told Mr Zyambo asked for some time to think about the matter. But on Thursday last week, everything happened and My Zyambo is no longer Zesco board chairman.”
Another source said there were more issues surrounding Zyambo’s dismissal.
“We are hearing so many stories,” the source said. “Some people are saying the whole thing was triggered by the fact that Mr Zyambo demanded or ordered a vehicle for K600 million as board chairman.
Other board members felt that this was unnecessary expenditure because Mr Zyambo was not an executive chairman. It appears the minister took advantage of this matter to fix or push him out because the government was not entirely happy with the way the issue of fibre optic was concluded.”
But when contacted for comment yesterday, Konga said Zyambo was not fired.
“You are not fired as board chairman. You resign. So Mr Zyambo resigned,” Konga said.
But when told that The Post had information that he threatened Zyambo with a dismissal if he didn’t resign because of the manner the issue of fibre optic was handled, among other issues, Konga became emotional and raised his voice.
“Mr Malupenga, if you say you have a story why are you contacting me? Just go ahead and write. I have told you he just resigned so if you want to say other things, just go ahead. I have already told you,” Konga said.
When reminded that it was unnecessary for him to be emotional because he was expected to give the side of his story as The Post were ethically obliged to verify their facts, Konga restlessly replied:
“Just go ahead and write what you want to write, Mr Malupenga. If we did it, we did it. If we didn’t do it, we didn’t do it. Just go ahead because you always like to write what you want to write.”
Konga was told that he had just missed an opportunity to clarify or clear matters and should the story be published, no complaint from him would be entertained.
Zesco and Zamtel recently signed an agreement that will see the two companies working together to deliver fibre optic connectivity across the country. According to the agreement, Zesco would lead the deployment of new optic fibre cables and other backbone equipment, including international transit links in order to complement its own existing fibre network.
But last month government sources disclosed to The Post that State House was exerting pressure on Zesco management to have the power utility company's optical fibre network, which was installed at the cost of over US $13 million sold as part of Zamtel assets.
The sources further disclosed that President Rupiah Banda, through his legal advisor Joseph Jalasi and Zambia Development Agency director general Andrew Chipwende had engaged Zesco over its optical fibre network since the Zamtel fibre project was a flop.
The sources revealed that after realising that Zamtel fibre project was a flop, RP Capital Partners, as financial advisor on the sale of Zamtel wanted to increase the value of Zamtel by getting the Zesco network, which would automatically translate in an increase in their fees or commission when Zamtel is sold at a higher price.
Meanwhile, a Zesco source observed that things have never been the same from the time the last board was dissolved.
“It appears that now people are more pre-occupied with wanting to please the politicians in order to survive. If you do what the politicians do not expect of you, then you are in trouble,” the source said.
“For example, as President Banda was heading to Mfuwe for holiday, there was a truckload of all sorts of gifts or presents to the President. Was that necessary?”
Labels: KENNETH KONGA, OPTIC FIBRE, SONGOWAYO ZYAMBO, ZESCO
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Zesco, Zamtel sign deal over optic fibre network
By Kabanda Chulu
Thu 24 Dec. 2009, 04:00 CAT
ZESCO and Zamtel have signed an agreement that will see the two companies working together to deliver optic fibre connectivity across the country.
According to the agreement signed last Friday, Zesco would lead the deployment of new fibre optic cables and other backbone equipment, including international transit links in order to complement its own existing fibre network.
It is expected that by running fibre over its network of power lines, Zesco would be able to deliver high speed backbone connectivity to all provinces within two years.
On the other hand, Zamtel would lead the commercialiSation of fibre access and high bandwidth services, taking advantage of its large distribution footprint and customer relationships.
“Zamtel will be investing in retail access networks to the consumer while Zesco will be providing the fibre optic backbone and both parties will share the revenues generated by the partnership, which are expected to be greater than either party would have been able to generate alone,” it stated.
Commenting on the fibre network agreement in a statement, Zesco acting managing director Cyprian Chitundu noted that the development was the start of a cooperation that Zesco and Zamtel had been working towards for a long time.
“Zesco’s fibre network was built to support our power generation and distribution business but it has a substantial amount of excess capacity and Zamtel is in a position to help us generate value from that capacity not only by using it to better serve their own customers but also by making capacity available to other telecommunication service providers such that the whole country can benefit,” stated Chitundu.
Zamtel managing director Mukela Muyunda stated that his company was delighted that the partnership with Zesco was now in place.
“Zesco has built and continues to build an impressive fibre network and together we can focus on using our combined fibre assets to deliver innovative products and services for consumers and sophisticated ICT solutions for corporations,” stated Muyunda.
The signing of the fibre network agreement has been timed to coincide with the sale of 75 per cent Zamtel shares whose prospective bidders were expected to be announced yesterday by the ZDA.
But last month government sources disclosed to The Post that State House was exerting pressure on Zesco management to have the power utility company's optical fibre network, which was installed at the cost of over US $13 million sold as part of Zamtel assets.
The sources further disclosed that President Rupiah Banda, through his legal advisor Joseph Jalasi and Zambia Development Agency (ZDA) director general Andrew Chipwende had engaged Zesco over its optical fibre network since the Zamtel fibre project was a flop.
The sources revealed that after realising that Zamtel fibre project was flop, RP Capital Partners, as financial advisor to the sale of Zamtel want to increase the value of Zamtel by getting the Zesco network, which will automatically translate in an increase in their fees or commission when Zamtel is sold at a higher value.
Labels: OPTIC FIBRE, ZAMTEL, ZESCO
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Kunda admits govt’s manoeuvres on Zesco’s optical fibre network
By George Chellah
Sat 31 Oct. 2009, 04:01 CAT
VICE-PRESIDENT George Kunda yesterday admitted in Parliament that the government is handling issues of the optical fibre network through the privatisation of Zamtel.
But the Power Generation and Allied Workers Union of Zambia (POGAWUZ) has demanded that Zesco must run the fibre optic independently and compete in the telecommunication market according to its license.
Responding to a question from Kantanshi PF member of parliament Yamfwa Mukanga, who wanted to know why Zamtel laid its optic fibre on the ground instead of using the Zesco pylons, which is cheaper, Vice-President Kunda said the Zamtel board made the decision.
“Zamtel is an independent entity and a decision was made by the board of Zamtel. This is one of the issues we are trying to address through the privatisation of Zamtel so that we don't have duplication of infrastructure, duplication of technology,” he said.
And communications and transport deputy minister Mubika Mubika told parliament that the government did not award a US $2 million contract to RP Capital.
“The contract between the Ministry of Communications and Transport and RP Capital to valuate the Zambia Telecommunications Company (Zamtel) has added value to the potential sale of Zamtel by providing information on the actual value of Zamtel's assets and liabilities that is required by government and investors interested in buying shares in the company,” Mubika said.
“RP Capital was paid US $161,029.00 (K837, 347,888.00) for re-imbursables they incurred in the valuation of Zamtel assets. These funds were paid under head 51/01/9/11 (Valuation of government enterprises) in estimate of revenue and expenditure, 2009 (Yellow Book) of 2009.”
Asked by Luena member of parliament Charles Milupi if the government was concerned about the revelations on the internet about RP Capital, communications minister Geoffrey Lungwangwa said there were so many things on the internet.
“I don't think it's prudent for us to go by whatever is on the internet,” he said.
And POGAWUZ president Thomas Nyendwa yesterday stated that Zesco workers were deeply concerned on issues that tend to affect the state of the organisation physically, structurally or morale wise.
“Zesco is going through a period of 'acting managements' and the talk of privatisation, lease or sale of Zesco or any of its assets could not have come at a worse time. We call upon the Zesco board to exercise its duty and appoint or confirm a chief executive for Zesco without further delay.
Then and only then is it possible for us to assure our members that we have a partner, a management, that we can engage with and discuss not only short-term issues but long-term issues. It will then be possible for us or any interested person to know who to praise or blame for any happenings in Zesco,” he stated.
Nyendwa gave the union's position on the optic fibre network.
“It's our duty as workers' representatives to state that it will not be in the interest of Zesco and, by domino effect, its workers and the Zambian people to sell the Zesco fibre in any form to anyone,” Nyendwa stated.
“It is not in dispute that the Zesco optical fibre as implemented through the Optical Ground Wire (OPGW) is an integral part of the power transmission network. This wire shunts to ground excess and fault currents to protect transformers, generators and attached equipment. This adds to the supply of quality and reliable power and efficient service delivery.”
He stated that what the nation should apply itself to was how best Zesco could benefit from the unique position it finds itself in.
“It is the first on the market, it has the longest network (1700 Km plus), it can roll out fibre across the country faster and cheaper than any competitor and there is no competitor on the horizon (Zamtel fiber project has done more digging than laying fibre to the best of our knowledge),” Nyendwa stated.
“Commercialisation demands that Zesco runs as a profit-making organisation and optic fibre was one of the initiatives taken to improve among others the resource base of the company.
“The questions basically being asked are as follows: (1) should Zesco lease out the dark fibre, recoup the costs with a markup profit and focus on the energy business? (2) should Zesco be a carrier of carriers providing SDH, PDH, Ethernet, etc, services to organisations and service providers? (3) should Zesco partner with established telecommunication companies? These questions have long been answered.”
He stated that Zesco's intention was to be a Carrier of Carriers.
“This is evidenced by the acquisition of the carrier of carrier licence and a transmission capacity of STM16 (2.5G/s) upgradable to STM64 (lOG/s). Zamtel who could have been a potential partner refused the offer time and again and opted to go it out alone. It is not good business to continue discussions with Zamtel especially that it is about to be privatised,” Nyendwa stated.
“Our advise is let us wait for Zamtel to put its house in order then we can discuss and negotiate, as equals, with whoever takes control of Zamtel. This is how win-win relationships are built. It is only a strong Zamtel that can bring synergy to any partnership with Zesco, CEC or any, other optical fibre operator. Otherwise the sum of the whole will be less than the value of any of the parts.”
He stated that Zesco and Zambia needs every income it could get from its resources.
“Income from Zesco fibre is expected to grow the current K30 billion per annum to K200 billion per annum by the year 2020. This is at minimal extra overheads to the current wage bill and operational costs. This is money that Zesco can well use to expand its network without overburdening the taxpayer. This is money that can motivate the workers and bring industrial harmony,” Nyendwa stated.
“This is money that could cushion our customers from sharp tariff increases. This is money that we badly need!
As POGAWUZ our position is to let Zesco run the fibre optic independently and compete in the telecommunication market according to our licence. The proposed sale won't be in the best interest of the company and the nation at large as we'll live to regret and blame ourselves in future.”
Labels: CHARLES MILUPI, CORRUPTION, GEORGE KUNDA, OPTIC FIBRE, POGAWUZ, PRIVATISATION, ZAMTEL, ZESCO
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State House wants Zesco’s optical fibre network sold with Zamtel
By George Chellah
Wed 28 Oct. 2009, 04:00 CAT
STATE House is exerting pressure on Zesco management to have the power utility company's optical fibre network, which was installed at the cost of about US $13 million sold as part of Zamtel assets.
President Rupiah Banda's son Henry introduced
RP Capital to the government and
RP Capital is currently the financial advisor in the privatisation of Zamtel.
Well-placed government sources yesterday disclosed that President Banda, through his two named advisors who include his legal advisor Joseph Jalasi, engaged Zesco over its optical fibre network.
“It appears this Zamtel and RP Capital Partners scandal is one that will never end. And it's clear that the architects of this saga are unrepentant and are determined to bring down a number of state institutions just to satisfy themselves.
Can you believe that right now as we are talking, Zesco's top management is under extreme pressure from State House to let go of their optical fibre network to enable these guys sell it together with Zamtel assets?” the source revealed.
“So far President Banda's advisors Jalasi and one of his colleagues from State House including Mr. Chipwende from ZDA have been on the Zesco management's door step over the same issue. The Zesco optical fibre network project is being done in phases at a huge cost. You may wish to know that in the first phase, Zesco laid its optical fibre network from Sesheke up to Lumwana in Solwezi at a cost of about US $13 million. This network is linked to the international gateway in Namibia.
“Therefore, it runs from Namibia into Sesheke up to Lumwana. The second phase is the one that is coming to cover the whole country and the projections are that this project is likely to gobble about US $30 million. So it's quite some costly and ambitious project and it's embarrassing to see State House being heavily involved and in the forefront to have such an installation sold together with Zamtel. Actually, RP Capital are even insisting that Zesco starts working on the second phase of this project.
They want to up the value of Zamtel by getting the Zesco network, which will automatically translate in an increase in their fees or commission when Zamtel is sold at a higher value.”
The sources disclosed that the Zamtel optical fibre network project flopped.
“One thing you also need to know is that the Communications Authority gave Zesco what is called 'A Carrier of Carriers' license in about 2006. But I think it only became operational in 2007,” the source said.
“Zamtel… the same company they want Zesco to give its optical fibre network tried to install its own network and they failed. They have even abandoned that project right now as we are talking.”
The sources said there was an ad hoc committee, which has been set up to deal with the issue of the Zesco network.
“The people that are in this committee include the acting Zesco managing director Cyprian Chitundu, energy permanent secretary Peter Mumba, a Mr Sakala from ZDA, a representative of RP Capital and a director from the Ministry of Energy among others,” the source said.
The source emphasised the importance of the Zesco network and listed some of its functions.
“It can act as a powerline carrier network, mobile (VHF and HF) radio network, private telephone network, microwave radio network and optical fibre network. And there are a number of local companies and mobile service providers that are using this network,” the source said.
When contacted for comment, State House special assistant to the President for legal, Joseph Jalasi responded: “No! No! I don't deal with those issues… am at the funeral.”
And Peter Mumba said the fact that he was sitting on the committee did not mean that he was planted by State House.
“No! That's not correct. How? The government has a vision and the vision is to move things forward. Of course, I worked for Post and Telecommunications Company (PTC) for 13 years and later on Zamtel.
I do appreciate the operations of the institution fairly well. And perhaps when the secretary to the Cabinet looked at my CV, he probably felt that I will be useful,” Mumba said. “The government took into consideration my vast experience and also I have been in government for some time now. So there is no truth in whatever they are saying.”
Asked about the intentions to get the Zesco optical fibre network to enhance the value of Zamtel, Mumba responded: “I have no idea about that.”
And according to a recent circular issued by Zamtel managing director Mukela Muyunda, Zamtel would implement retrenchments or redundancies.
“As part of this important partial privatization process and with permission from ZDA, management wishes to announce that Zamtel inevitably will be implementing conditional retrenchments/redundancies in line with the collective agreement. Zamtel management and the union entered into negotiations on 9th October 2009 relating to the redundancies/retrenchments.
I wish to announce that management and the union completed these negotiations on 22nd October 2009,” read Muyunda's circular No.6 of 2009 in part. “The agreed package for unionised members of staff is as follows; (a) three months pay for each year served, (b) two months pay for repatriation; and (c) one month pay in lieu of Notice.
Other details of these redundancies/retrenchments including the meaning of conditional redundancies/retrenchments will be shared with all staff as follows; (a) Following this circular, all directors, managers and supervisors will be provided with relevant details regarding the form and nature of the redundancies/retrenchments; (b) in the coming week, all directors, managers and supervisors will then share with their staff the relevant details regarding the form and nature of the redundancies/retrenchments; (c) the union will also play a critical role in information dissemination regarding this matter.”
He urged all Zamtel employees to acknowledge the effort of management and the union negotiating teams for coming up with a reasonable package under very challenging circumstances.
“All Zamtel employees should note that the redundancies/retrenchments are dependant upon the successful completion of the privatisation process. This being the case it is extremely important that all staff remain focused and work extremely hard to ensure a fluent and successful Zamtel privatisation,” Muyunda stated.
“Like was stated in circular No.4 it is still critically important to observe confidentiality throughout the process of privatisation. All information about Zamtel and the privatization of Zamtel to all external stakeholders will be issued by the Zambia Development Agency. Management will keep staff informed about this important process as it progresses.”
Labels: CORRUPTION, HENRY BANDA, OPTIC FIBRE, PRIVATISATION, RP CAPITAL PARTNERS, RUPIAH BANDA, STATE HOUSE, ZAMTEL
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Venture workers threaten to down tools
By George Zulu in Monze
Mon 26 Oct. 2009, 04:00 CAT
VENTURE Communications contract workers have threatened to down tools following non-payment of their salaries for two months. Venture Communications of Botswana has been contracted by Zamtel to put up the fibre optic network cables in Monze and Pemba districts.
In a walk in interview in Monze, workers who spoke on condition of anonymity said they had not been paid for the past two months and that most of their colleagues had been laid off.
They said the company had been promising to pay them but nothing was forthcoming to date.
“Our bosses have been promising to pay us but up to now nothing has come out. This company has been contracted by Zamtel to lay the fiber optic cables and more than 40 casual workers for the two towns were employed to help lay down the cables but if you see the number of workers remaining, it is less than 20... others have stopped because of not getting their salaries. We are not paid, we are made to work for over 12 hours daily and only getting K12,000 a day,” the workers said.
They complained of poor working conditions, saying the site supervisors were not concerned about the welfare of the casual workers.
“We have waited for some time now and have lost patience. What we want is the company directors in Zambia to respond to our call, we need our money we have worked for. If they don’t pay us by next week, we shall down tools and they should not blame us for failing to complete the works on the scheduled time.
They should blame themselves for failing to pay the workers,” they said.
Site supervisors for Monze and Pemba could not comment on the matter as they were reportedly out of the sites.
Labels: MONZE, OPTIC FIBRE, STRIKE
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Zesco to spend $30mon optic fibre project
By Joan Chirwa
Monday April 14, 2008 [04:00]
ZESCO Limited expects to spend around US $30 million on phase two of the optic fibre project for areas that were not covered under the first phase. And a total length of 1,700 kilometres of optic fibre has so far been installed on Zesco power lines under its first phase of the project.
Zesco Limited senior manager for marketing and public relations Monica Chisela stated that the second phase of the optic fibre project would concentrate on connecting Kasama, Mongu, Chipata and Mansa – provincial headquarters that were not covered in the initial phase.
“Preliminary estimates show that the amount that will be required is in the tune of US $30million in order to cover the distances that will be in excess of 3,000 kilometres,” Chisela stated. “Phase II is planned to commence sometime in 2008. To date nothing has been spent on phase II.”
At present, several service providers such as Celtel, MTN, Zamnet, Coppernet, UUNET, Realtime, Lafarge Cement, Zambia Revenue Authority, National Breweries and Communications Authority, are utilising the Zesco network for service provision.
Phase I of the project begun in May 2006 and was completed in June last year.
During the initial phase, optic fibre was installed on the power lines from Lusaka to the Copperbelt and beyond to Kansanshi and Lumwana in Solwezi.
In addition, the fibre was installed on the power lines from Lusaka to Sesheke with links to Mazabuka, Choma and Livingstone.
The first phase, which cost a total of US $13 million, was completed by installing fibre on the power lines from Lusaka to Kafue Gorge and Kariba North Bank Power Stations.
The optic fibre network provides a very high speed and reliable infrastructure for telecommunications. The technology lends itself easily to the provision of higher internet access rates and is ideal for high data transfer rates.
“By installing the optic fibre, Zesco has provided wider coverage for all telecoms operators in some of the urban and rural areas. For instance there is increased access around Lusaka and for the very first time, digital telecommunications is available in the rural towns of Sesheke, Kazungula, Siavonga, Solwezi and Lumwana,” Chisela stated. “The Zesco Optic fibre has provided options for international connections with Zimbabwe, Botswana and Namibia.
For instance if the connection with Namibia is completed, it will mean that Zambia will be connected to the undersea cable that goes into Europe.”
Labels: OPTIC FIBRE, ZESCO
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Zamtel finishes installing optic fibre in Lusaka
By Chibaula Silwamba
Saturday March 29, 2008 [03:00]
ZAMTEL managing director Simon Tembo has said his company has finished installing optical fibre in Lusaka and has since started connecting clients to the network. In an interview yesterday, Tembo said the Lusaka Metropolitan optical fibre would be officially commissioned next month. “We are now selling the service to government departments and business houses,” Tembo said.
The installation of the Lusaka Metropolitan optical fibre project was scheduled to be completed in January but was delayed due to the rains that had flooded some parts of the city. Tembo said after the Lusaka Metropolitan project, ZAMTEL would embark on the national optical fibre installation.
“All the equipment for the national optical fibre is in the country,” said Tembo.
A fibre optical cable is a bundle of glass threads, each of which is capable of transmitting messages modulated onto light waves. ZAMTEL has invested US $5 million (about K19 billion) in the Lusaka Metropolitan and has installed over 20 nods in areas such as Arcades, Manda Hill, Northmead, ZNBC, government complex, University Teaching Hospital (UTH), and University of Zambia (UNZA).
ZAMTEL is phasing out satellite communication and copper cables because they are expensive and have limited capacity to replace them with optical fibre cables.
Labels: ITC, LUSAKA, OPTIC FIBRE, ZAMTEL
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