Government has acknowledged that there is a high likelihood that LAP Green Networks’ shareholding in ZAMTEL will be frozen following the U.N resolutions 1970 and 1973 which freeze Libyan assets around the world following the crisis in that country.
LAP Green Networks which owns 75% shares in Zamtel is a subsidiary of the Libya Investment Authority which is Libya’s sovereign investment fund.
Finance and National planning Minister Situmbeko Musokotwane told parliament in a ministerial statement today that the purpose of the UN resolution on Libya’s asset freeze is not to prevent or impede the operations of companies such as Zamtel in which Libyan companies own equity.
He said that there was no reason for concern regarding the prevailing situation in Libya as it relates to Zamtel operations.
Dr Musokotwane assured the house that when the privatization of Zamtel was completed in July 2010, a number of transaction documents were agreed and signed between the Zambian government,Zamtel and LAP Green Networks which include key agreements such as the sale and purchase agreement, the shareholders agreement and the escrow of funds agreement.
He said that the documents were negotiated with great care and gives government all the necessary procedural controls with respect to the measures which are the subject matter of the asset freeze provisions of the UN resolutions.
Dr Musokotwane added that as a further cautionary measure government will seek final clarification from the UN sanctions committee whether LAP Green holding in Zamtel and other relevant assets fall within the definition of assets to be frozen under the UN resolution.
And Dr Musokotwane has pledged government’s commitment in compliance with UN resolutions on Libya.
He said that government plans to adopt formal general administrative measures that will under the framework provided by the Zambian law prevent any breach of the UN resolutions 1970 and 1973.
QFM
Cowards! What did you expect?
mr minister kindly explain the implications of freezing libyan shareholding in zamtel. what does that translate in terms of the labour force. does the govt take over running of zamtel like they did with finance bank
Typical Zambian leaders always placing there future in the hands of foreigners instead of their own, its so foolish.
hahahahahahahahahahahahahaha we told you anyway lwenu me my father is already walloping in poverty after you retrenched him……*****s!
You guys amaze me a lot,you say you are educated but have a poor foresight of things,even laymen like us told you that selling Zamtel was a stupid move and now you see what this is leading to.Its becoming complicated to run what would have been an easy business to own.You could have done PPP in this case and all this anxiety was not going to be there.Remember that the guys you have retrenched even if they were paid its wasted skilled labor force.You are just impossible to understand.
#5 Jozi1, you are wrong there. What IS amazing is the propensity by some Zambians to wish the endeavours of others to fail. Such people mistakenly think that when their collegaues fail, it translates into riches for themselves, see the Post over Finance Bank. Typical culture of witches.
Well guys, as I told you in an earlier blog, there is a government in place and it is not sleeping. Besides, these agreements always have protection clauses which address such eventualities, even though the specifics are not known at the time of signing. I would not spend sleepless nights over this matter, it is in capable hands.
Of course I would be worried if the lawyers who handled such a complex transaction included the likes of certain party lawyers, you know who.
Ubupuba pa Zambia! You did this deal in the dark of night and all this transaction was and is illegal. You arm twisted the Zambian people by pretending you had any intelligence in you. The new government should reposes this company with no compensation!!!!
Foolish Govt without foresight, one wonders what goes on these pigs’ heads. Just a few days ago the red lipped snake was assuring parliament that there is nothing to worry about ZAMTEL yet we knew that there is everything to worry about ZAMTEL which is in the hands of foreigners! Musokotwane and his crooks do not even have a plan because govt failed to run the institution and they cannot do what they did to Finance bank. I will not be surprised to hear someone else has bought the shares that belong to LAP Green Networks!
IMBWA izi! I am sure Dora’s pussy is happy!
Nomba finshi fyalekana fimambala. They don’t know when to say the truth and when to deploy their bush spin doctors. Nefishili fyakukana bamambala until its too much for them to hide.
The selling of ZAMTEL was not properly done, Lap Green bought ZAMTEL because Gaddafi promised to give MMD money. Gaddafi is well known for funding ruling parties in Africa and in turn he buys property and companies.
I just hope this time priority will be given to Zambians and not foreigners. I hope you will soon chase that Ugandan Director who is firing Zambians
Stop these Privatisations and get out of UN now !!
# 6 since when has the Zambian govt come out tops where a contract fails. The consenqueces of Zamtel sale to LAP green are dire. As we speak now the LAP green guys are already withdrawing their capital. by the time the Govt will make a move much damage would have been done and it willbe the tax payer who will fill in the whole left by the Libyans. One wonders why it took our Govt so long to act when countries like SA acted within days of the conflict. Did we have to wait for the UN when we knew we were sitting at a time bomb
Tekanyeni bane. Every business decision has a risk. Even the best sangoma in the world would not have predicted the tabulence in the Arab world let alone that it will sweep one col. muammar gadhafi off his firm feet. But that is not to say i am not worried. A few of our colleagues have just left well paying jobs and joined this company.
Kowtowing to the UN when you knew all along the sort of person you were dealing with.
Good evening
Well, these are some of the unexpected turbulences that come along with foreign investment. What makes the issue more complicated is that the UN is acting in it’s responsibility to protect the international community of which Zambia is a part.
So wherever Gaddafi’s monies are traced, there will be a “necessary intervention” by the UN to hold back the assets in the name of peace until tranquility returns to Libya. Let’s hope and pray that we dont have to wait too long…
#17 Nine Chale
Don’t forget Barack Obama won the Nobel Peace Prize.
He is now implicated in 3 wars: Iraq, Afghanistan and Libya.
Well, it was Dora and Kanishamezi’s children who closed this deal under a wave of public dissent. Now the Libyan investor is doomed and the future of Zambians working there is in limbo. And Banda wants to change the law to allow him take gratuity for such a lousy job. Further, I do not see the difference between the third term stinking Chiluba/Sata excrement and this gratuity debacle Bwezani wants to pull on us. No wonder Jerry Rawlings killed all former presidents and Judges and lawyers who had looted Ghana before him, I can wholly understand his move now and I hope it happens here too one day so that we are even with these stinking suckers of the motherland.
#6, #15, #17 Well said! We should approach issues with cool heads. The moment you put hatred before everything else, your reasoning power is compromised! The whole world did not forsee this happening, because even the west had embraced Gaddafi. We should hope for the best as Zambians, there is no need to yell blue murder.
This is a commercial agreement between two commercial entities and both parties are in it for a profit. So why should Zambia be scared and free ZAMTEL shares which will cripple a strategic Zambian company. ZAMTEL is a ‘going concern’ which is owned by the shareholders and run by the appointed directors.
All that the Zambian government ought to do is to ensure that no external person has access to the Zamtel assets until the issue is resolved with the UN.
# 20 sometimes it is not a question of keeping cool heads, like i asked earlier why did our govt have to wait so long to freeze shares of LAP green. Govt should tell us how much money has been externalised by LAP green since the conflict began.
Mwalapila ba kabalwe
#22 Mulungushi Travellers
I grant you those are good points!
you let reasonable companies like telkom of South Africa walk away. Very poor risk assessment. You guys should have picked the political risk of getting an investor from Libya. I hope you have learnt a lesson. receiving personal and dark corner cuts will result plunging the company into chaos since most business firms rely on Zamtel for conventional communication. where are you going to find the money should lap green assetts be frozen. We must learn to run our own industries. Ichishele nomba we will be seeing investors in families. Inviting another man to come and run the home. How sad!!!!!!!!!!
$-sly must face up
and the Dora Sil/RB and LapGreen saga goes on….
am sure Dora is peeing in her pants. this issue will definitely come back and bite her in the a.s.s!
@Ndate Sicaba:
You do not need a sangoma to predict the ZAMTEL deal was destined for trouble. Plenty of ordinary Zambians raised hel.l about this, didn’t they? It is ironic, isn’t it? that people who always brag about how educated they are failed to analyse this deal intelligently in spite of all their DEGREES. And these are the same characters who wanted to restrict the Presidency to themselves through the DEGREE CLAUSE—go figure!!
Sometimes WISDOM TRAMPS FORMAL EDUCATION, and these guys we have in govt are sure proving this theory to be very true!! KK’s UNIP had very few educated people but, boy! did they have A HEART FOR THE WELLBEING OF THE COUNTRY!! Kaunda may have been a semi-tyrant but he wouldn’t have allowed himself to sink levels of crookedness RB & MMD have!!
Continue from #29:
…..And Dora Siliya has the audacity to insult the Kaunda Sons who could have walked away from State House with riches beyond comprehension if they wanted to. But they are humble people, and that’s a sin in “DOLLAR SILIYA’s ZAMBIA”.
If Waza or Panji wanted to be like Gaddafi or Saddam’s sons they could have. But their father, KK, wouldn’t allow it. The same way he did not allow his Ministers to get rich through corruption. This is what sacrifice and how principled leadership looks like. Not twisting laws and rules so you can extract gratuity you are not entitled to.
State Deals are now a preserve of the President’s sons who are not even govt officials who serve under oath. And now they have brought as LAP GREEN and Gaddafi crap. Corruption STINKS!!
thats what happens when party “cadreism” usurps professional judgement. I sometimes wish the University that granted Musokotwane his PhD could withdraw it. Did people see Chirwa’s proposals about the pact? one could tell “education” at work; wanting to use education to solve a problem. The exact opposite is true for Zambians. Education has been used as a tool for syphoning money from publoc coffers; to indimidate basolola. Who can blame the whites for taking advantage of Africa? And this is the same Musokotwane refusing to TAX the mines for the benefit of ordinary people. Dear God, what wrong did we do to deserve shambolic chaps for leaders?
SATA will bring sanity in zambia
With a viable Zamtel in 100 percent GRZ portfolio control, its more campaign funds for MMD for Decision 2011. Interesting fact sad for armchair critics is that even if GRZ clears with the UN and Libya, the decision to resale it will have zero input from armchair critics but the same GRZ.The good thing is that operating Zamtel retains jobs for Zambians.
Even if the decide to resale it none of these trolls here will have ability to mobility even a merger US $100 million. There is a diaspora project headed by Dr. Chishimba in the US right now. Since its launch asking for simple US $100 -$1000 from 100 people has hit a snag. Zambians we are only good at armchair rants than action.
.
Freezing and suspending shares is a Safety Measure taken to protect investment in case there are some Market Fundamental Analysis affecting that particular Security, Share, and Company Portfolio.
This happens all the time on the various Global Exchanges such as (London – LSE), (New York – NASDAQ & DowJones), (Japanese – NIKKEI ) ( France – CALC), (German- DAX) etc…
For example The FSA in UK and SEC in US has the power to freeze and suspend shares or even delist a company
However, we are dealing with a nation that is at war, so UN has the mandate to take that role and assess Risks.
Zambia is just complying with UN Resolution. Otherwise, its business as usual for ZAMTEL. The USA has frozen $20 Billion Dollars that Libya invested in its US Government Treasuries
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Libya has also invested in other leading Government Treasuries in countries like Britain, Italy, France, Brazil, and German. The UN has to freeze the shares to protect the Global Markets. If the Hundreds of Billions or Trillions Libya has invested in all these countries were delisted, it would have a market impact on all the leading Global Exchange Markets.
In addition, Libya has invested in the IMF, World Bank. As for its investment in lobal Investment Banks, it would effect extras’ such as Money Markets, Energy Trading and FX Derivates, Hybrids and so on…
@#6 I dont understand when you say I am wrong,to enlighten you I worked for Zamtel for more than 10 yrs and resigned when the decision to sell it was eminent,the skilled labor force I mentioned to you will never benefit Zambia at all because even in the sell contract there was no protection to such.e.g if Lap green wants contractors for PSTN they could source them anywhere in the world even though the skill was there in Zambia.The fact is government never listened to the people who understood the world of ICT and the business dynamics associated with it.Many of us now in the diaspora see how certain governments treasure such business entities,perhaps you should study the way RSA government treats the Telkom busniess and why selling such would be unthinkable.I worked for that company.
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The Global Markets are still wobbly and shaky, so the UN has to very careful on how its handles Libya’s external investments.
We must remember that Libya is an oil rich country, though I dont appreciate the Lunatic & Madcap who has been ruling the nation reducing his people to dust. The sooner they get him the better.
Then again, all these western countries have been kissing his behind until few wekks ago.
I expect a lot of spin and fear mongering from The Post about Zamtel. If there is anything dodge it will be picked up and the nation will know soon or later!!!
On a shallow perspective the sell to Lap green was the best because they offered a higher cash bonus and promised recapitalization offered by non of the other bidders and obviously offered other cash bonuses to the government which needed money for MMD campaigns.But the thing is there were other options to deal with Zamtel apart from selling it thats what we have been singing.Selling was a short term benefit to the government by way of getting tax which they still got even before the sale and a bit of profit in the name of the 25% share stake.Do you realize how many people lost a livelihood after being retrenched? giving them money did not offer a anything in terms reducing the unemployment levels in the country and these are factors required to measure development.I nver wish them failur
#6 you say that there is a government in place and its not sleeping,I greatly doubt your understanding of the connotation you have used,since when did the Zambian government come on top of things?they know no proactive measures but love to deal with crisis or fixing issues that needed not to be fixed.remember you are talking about a government that thinks being slow is being diplomatic when it comes to issues that concerns the international community.The Zambian government mind you is never even sure of itself,the so called politicians can hardly even think about the people they suppose to serve.Right now they are more concerned with the gratuity issue and you say the government is not sleeping? you must do some soul searching brother,I dont hate them I just hate the way they think,SHALLOW
@@@ Ndate Sicaba, since when has the middle east been stable? Even I an optimist knows dealing with that part of the world requires exuberant risk taking.
Government is about THE PEOPLE and in this case, THE PEOPLE where against this transaction. If you are Zambian, you know that it had no blessing from the majority.
1984 I see you mark your return. Welcome back. Always I have stated that African countries should have a fall back to prevent a global choke hold. Internal markets local then regional period. God ( Jesus) Food, shelter, and learned education is all that’s needed.
Tamumfwa ba mbuli twalemweba ati mwishitisha company
Dont say you were not warned. Where is Dora
BA MAUREEN it is nice to see you commenting. The initial bloggers on LT and representing the ladies, we need more of the old school because the new LT bloggers are party cadres of MMD UPND and PF. I miss the young lady poet we used to have aswell, don’t forget Engine Bhloko.
This is what happens when you engage in corruption, such are the fruits
There goes Rupiah again; ZAMTEL shares frozen. Anything done corruptly do last. Rupiah and his chaps knew very well the standing of Libya at international relatiotions level. It is like going to marry a well known prostitute.
This was expected
Imbeciles in government!!
Government must seize this opportunity, gifted to it by the UN, to legitimately expropriate ZAMTEL. We, the people, must demand for the return of our asset. Lap Green is financed by the Libyan Sovereign fund which fund has been ring-fenced by UN resolution 1970.
If not now, when?
My people perish for lack of FORESIGHT.These MMD guys and the so called ECONOMIC MANAGERS of this nation should find time and sit under my counsel.It will savethis nation a lot of problems.This is serious.TRUST ME
the whole world may have failed to see it like the others have blogged herein before. But beleive me we told these crooks not to go ahead but what did they do the rest is now history. Real issues are we are donar depedant, and some govts are strict we cannot use they money to pay companies which are associated with terror and Zamtel is now one of them. The question is who does’t use Zamtel line for serious business? Dora, we told you that you are far from being smart, and now it is showing. Zambian we need to put a govt in power with real vision and one which can listen to us when we talk and not telling is that it is too complicated a deal like was the case in this transaction. Dora you are just not fit for the job, it is tribal lines which has landed you the jobs you have .
just pay them back their shares..and let people in good standing buy ZAMTEL..especially Zambians..
Oh, the joy of being a Zambian! Never a dull moment. Yesterday GRZ was studyng the UN resolution and today “government [is] planning to adopt formal general administrative measures that will under the framework provided by the Zambian law prevent any breach of the UN resolutions 1970 and 1973”. What in heaven does this mean? When will this planning be concluded?
Dora Siliya and her boyfriend Henry Banda’s fault..
>assurance from an ***** that all will be OK!
>we are laughing stock.. this is very embarrassing.
>how can i introduce myself as being Zambian with such stories…
>its a damn SHAME!!!!
Mwanawakwitu. Those were days. Many bloggers have undergone metamorphosis, just like myself. Talk about Lady Chiza’s legs, Thenji Steven(mrs), Ba Moze, Miss Pretty and, oh yes, the poems lady. I wish them well wherever they are.
Mwanawakwitu. Those were days. Many bloggers have undergone metamorphosis, just like myself. Talk about Lady Chiza’s legs, Thenji Steven(mrs), Ba Moze, Miss Pretty, Kadobi and, oh yes, the poems lady. I wish them well wherever they are.
GRZ is stubborn and doesn’t learn… the same mistake they make of selling ZCM as a single unit came back to haunt them. Similarly here, these guys were advised not to sell 75% shares but just above 51%??? Kukonda kudyamo… Wina azalila and it is election year.
Atleast LAP has done a bit of investment to ZAMTEL . We now have fibre optic connectivity here and there. We have gained somehow. We can pick it up from there with people with good brains like me and move the company forward. Lets not blame Banda or Dora we have not lost anything.
Our leaders are very dull or maybe they are just clever to make cuts from such deals. Chiluba sold mines to little know trading companies. Honestly, there are more prominent companies like MTN, Vodacom, LPN was a very foolish decision, I had a heated debate with my friends, now I have been proven right.
Give the company to MTNor Vodacom period.
For those that have narrow minds, be informed that this is not a small matter. It is serious and it has to be dealt with. Please can someone do an investigation on the monies externalised so far by these LAP guys. Believe me these are moments when everyone wants to gather as much as they can.It’s just the normal behaviour that if fire starts in your house, you will get out as much property from the house as you can even if they tell you fire men are on the way to extinguish it. So how much have these guys taken since the conflict started?
Ifyakulya ubushiku fitulila kumalushi, mwamona nomba, don’t say we never told you. Dora, whats you input on this one since you also got a cut.
Interesting news indeed
Hi there everyone. I’m back \:d/
You see guyz! Much as we analyse and come up with the best solutions to this Zamtel problems. The biggest enermy is that the selling and signing of business contract was done under someone’s MINISKIRT and the Solutions should be found inside that MINISKIRT.
Nowonder RB is seeking gratuity. His cash is locked up under UN sanctions. More over Ghadafi’s future is not known whether he will survive the heavy bombers.
Where is Dora Siliya mwe bantu we told them with RB
What is happening in Zambia is a total shame. Politicians are just at it to make themselves more richer and richer while the majority Zambians continue kissing poverty. Honestly, how much much do one need to live? Isn’t food, decent shelter, health, clothing, transport, water enough to make a person hapy. RUPIA, even if you dupe us of that gratuity, havent you had enough?
This deal from the word GO was rotten! And what did he say when he was first asked about the same! He said that the shares for LAPGREEN were safe now what’s this he’s telling Parli! He should resign!
RB and Siliya are not worried. They and their family have accumulated enough money to be confortable for the rest of their days. All the promised investment in ZAMTEL will not materialise. People will soon start losing their jobs. Eventually ZAMTEL will be shut down just like Mulungushi Textiles. May be their Chinese friends will ‘rescue’ ZAMTEL for $1 just to spare RB some embarrassment. Only a few days ago government officials were lining up to say ZAMTEL would not be affected by the troubles in Libya. They may have signed all these documents and government may have the right to take over, but where is the money going to come from?
Iyoo Sata is mad,now we have started seeing the real mad ones,we told them SATA told them,Zamtel was a national asset.Ba mumbwe ba posha na bana babo na ka girl friend kabo.Mwala cimona nomba ili Sata aleisa,ubo ubuwelewele bwalapwa.
That fake lawyer kaKunda busy missleading people ati kalyemo.,mwa amba ukupiba elyo yateka.,bamukukulu imwe with that ka finished consultant of yours.,can anything good come from that LAZO? who even sold a toilet he did not build,this is just a begining more is yet to come.
We told you bamambala tamwaleumfwa mwamona nomba!ubutungulushi ubwabula ukulolamo,you have no vision, no hear and very blind loosers.
Bumambala bwacilamo!!!
Bamambala mwamona ifyo mwacita nomba?fwebene Zamtel nifwebo and we told by advisin that lekeni fwebene tucangalile ci Zamtel u thot we were just blurfin, foolish and very unwise, u c now.kwashala ukushitisha Zambia kabali u want money for campains tho tapali eko muleya ba muntu. muleumfwa mwaunfwa?
Lets hope the secret Zamtel valuation report will come out now………Gaddafi blinded our leaders and bought a key institution (Zamtel) in his quest for a United States of Africa..
Wake up LB & Dog Kudu
SHAME ON YOU MINISTER GOOD NOW THAT AT TIME GET ADVICE FROM OUTSIDE PIPO U SEE NOW
6 H.H. Sata,
” #5 Jozi1, you are wrong there. What IS amazing is the propensity by some Zambians to wish the endeavours of others to fail. ”
I think you are projecting some very shallow motives.
It was clear from the start that the sale of a Zambian state owned telco to a Libyan state owned investment fund had nothing to do with the benefits of the free market.
Putting the national telco in the hands of a foreign dictatorship is a danger to national security. The way it was done reaked of corruption from the start. The use of RP Capital Partners ‘in the Cayman Islands’ (a tax shelter) was extremely intransparant. No debate in parliament or the press. No national referendum.
But with a number of key countries breaking economic ties with Libya in reaction to the killing of rebels trying to unseat Gadhafi, analysts fear that there might be problems ahead for Zamtel and other networks across the region.
Outside of Africa, the European Union has extended sanctions to include Libya’s sovereign wealth fund and central bank, and the U.S. has frozen assets valued at about US$30 billion. Meanwhile South Africa, Africa’s largest economy, has imposed sanctions and frozen assets linked to Gadhafi. The Zambian government said it may review its economic ties with Libya.
Improvements to LAP Green’s infrastructure have been funded by Libya’s investments in Europe and America, notes Amos Kalunga, a telecom analyst with the Computer Society of Zambia. Up until…
So the truth is coming out. We sold ZAMTEL to thugs and abusers of human rights while expecting our firm to be in better hands! ZAMTEL’s problems are similar to Zambia’s – poor leadership and management. You do not sell a company because of its poor leadership, you fire the leadership and hire competent people. Sad that we have *****s for leaders.
dont worry we will nationalise Zamtel in november
You guys saying we told u so fonyoo..fonyoo..fonyoo. Do you know the State Zamtel was in, they were even failing to pay salaries. FYOI most developt and developing countries have a privertised ICT sector.
82 kc,
” You guys saying we told u so fonyoo..fonyoo..fonyoo. Do you know the State Zamtel was in, they were even failing to pay salaries. FYOI most developt and developing countries have a privertised ICT sector. ”
ZAMTEL was run down *because* of privatisation. That is why the government abused it, didn’t pay bills, why there was no new investment, etc.
Privatisation is nothing other than an open invitation for corruption.
What happens is that a real audit is done that determines the real value of the assets – landlines, real estate, workforce, etc. They then give a 10% bonus to the minister in charge for the difference between the valuation and the much lower sales prices. The lower the sales price, the bigger the bonus.
What does zambia own,land is in foreign farmers,mines foreigners,shops .big ones foreign…..Rupiah and co must go ………..its about time.
World Bank chief economist Joseph Stiglitz calls this process of privatisation ‘briberization’.
ZAMTEL was sold through Dany Gertler’s RP Capital Partners. Why to Libya? I think it was part of a larger swap/trade/deal, that has to do with all the economic activity going on the sale of Libya’s oil.
There is no reason why ZAMTEL should have been sold to another government.
It’s is really a shame! When will Zambia learn to put emphasis on their “people” instead of running always to foreign investment? Sale of Zamtel eas not really called for! More 4 decades into “independence” we cannot work out plans to empower Zambians to run our own shows? No wonder we are “insulted” by the so-called foreign investors; worse still shot-at in our own country? As a Zambian, you can behave like that in a foreign nation; our friends care for their own “jealously” while we “worship” foreigners?
government with an immediate effect should reposes Zamtel with an immediate effect so to create jobs to those who lost theirs. It was not to lose job like that.