THE National Union of Communication Workers (NUCW) and general workforce at Zamtel were made to believe that the telecommunication firm was fast headed for collapse and that employees would all lose their jobs, the Sebastian Zulu-Commission of Inquiry report says.
The report indicates that the decision to sell Zamtel was imposed on the union and the general workforce.
Former NUCW general Secretary, Clement Kasonde, had told the commission in his submission during the commission sittings that former Transport and Communications minister, Dora Siliya, threatened that no one was to frustrate the sale of Zamtel.
The union was not accorded an opportunity to sit on the committee that considered the sale of Zamtel contrary to the Zambia Development Agency (ZDA) Act number 11 of 2008.
Mr Kasonde had noted that the NUCW was not afforded an opportunity from pre qualification up to the final selections of the bidding process and did not sit on any of the privatisation committees as representatives of the workers.
“The sale of Zamtel was forced and imposed on the union, workers of Zamtel and the people of Zambia by the former MMD government,” he said in his submission contained in the report compiled by the commission of inquiry tasked to probe the sale of Zamtel to Lap Green Networks.
Mr Kasonde said former Zamtel Managing director, Mukela Muyunda and Ms Siliya created an impression that if Zamtel did not find a strategic equity partner, the company would collapse and the workers would lose what they had worked for.
Mr Kasonde said the MMD government through its agents did not act responsibly and never inspired hope other than inducing unreasonable fear in the minds of the workers.
Mr Kasonde who worked for Zamtel for 20 years, said he had difficulties to see what additional value the new Lap Green management had pumped into the company.
He said ever since the new management took control of management, it had only concentrated so much on the mobile side in the branding and marketing strategies.
“However, on the PSTN side, which has been the traditional demand product for Zamtel for a long time, LAP Green/Zamtel has completely failed despite being the only company with exclusive monopoly,” he said.
He said the performance of fixed line telecommunication facilities has become the worst ever and that this is typical of LAP Green as the story is the same in Uganda where the company also operates.
At another meeting with the workers in Ndola, Ms Siliya explained that Zamtel was a loss-making company and the only way to salvage it was “to go the Zanaco way by privatising it”.
Mr. Kasonde, just move on and I hope you used your benefits wisely. You will not get your job back
I agree with Mr. Kasonde.. Fixed lines and billing are a disaster.. No company can get additional lines.. some story about exchanges being full and digital migration…our switch boards have limited lines as a result so customer service is a nightmare as people cannot call in.. try calling Barclays bank.. All Hans Poulsen has been doing is putting up billboards, posters and painting buidlings and trying to claim improvements.
More will come up,just wait and see
i dont believe the sale of ZAMTEL was imposed on any one. FACTS are that 1. the company was making losses 2. the staff establishment was bloated 3. the customer base was low 4. the company was owed billions by its clients, especially government departments. Unless the said union was composed of dull people, i dont see how this could have been imposed on them. Zamtel was not competitive period.
Let me gues.. RB, Musokotwane, Dora and Mutati told you that right?
amocache #3, I hear you; however, this is a worrying trend amongst our politicians or notching up a worst-case scenario to win sympathy and then sneak in either corruption or blatant ill-will. It is not the first time that the public was drilled to feel sympathetic towards government for an action like this. There are countless, especially during Chiluba’s takeover when a lot of companies were sold at a whim. Facts on the health of a company are like statistics. Any twist that you can use can get you somewhere. There is usually intolerance when it comes to salvage measures when an authority’s mind is made up with “facts” to back them up.
well said.
I meant this worrying trend amongst our politicians OF notching up a worst case scenario.
what about those pronouncements the union were making about coresponding with govt over the privatisation process,the lies concerning the packages to be paid to workers.they were in it together with Dora,now they are trying to bootlick with PF.I dont believe that story at all.#3 u are right with your observation.i think the unoin was full of dull pipo.
God helps those who help themselves.If we want to help ourselves to come out of the mess the previous govt has created, then, we must help ourselves to face th reality.The reality is that a lot of selfishness and corrupt activities took place and many wounds have been created in our nation.We shall never be healed unless we expose our wounds and afflictions.This may be painful, but that is where our hope lies.Dont defend corruption.All corrupt elements and those who were involved must be prosecuted.Sanity must begin from somewhere.
no#3 zamtel was viable company despite what you have stated.mmd removed visionary mds to put their dull mds wo can dance to their tone.I was in zamtel and I had a prepare some sensitive information.And you kasonde you deceivd us our prayer is may Almight forgive you for what you did by signing on behalf without consulting or refuse to sign.you thought time will not catch up with you.you were even invited at rb state house for independence and today you r sayin you were forced.your hands r dirty with ex zamtel ees blood who since passed on.you gave rb & dora chance to steal from us by not giving us compensation for the loss of office.
That the management of Zamtel was a mess is true. It is also true that it was failed by Zambians. We (Zambians) are responsible in taking ourselves out of this mess. It also looks like we reached a point where the intervention needed could not come from within, and that is my worry. Until we reach a point where we can manage our things prudently, the circle goes on until we end up enslaved!
That is the problem with our union. How do they say it was imposed on them? Lets have people in the unions that can understand business and the way the profits and losses are made unlike the curent situation where most of the people in the unions can’t even understand the basic simple double entry. That is why its very easy to manuvour them. Its high time we involve people like accountants and economist those that can interprete the system of the busines.
@SWT Cherry.. I agree with you.. ZAMTEL was a profictable and viable institution.. and for me anyone that believes it was not simply because RB/Dora/Musokotwane/Mutati told them that is as dull and uninformed as they are with no brains of their own.. I can never take a lecture on Accountaning, Finance , Stategy and investment from those 4 career employees thieves and loud mouthes that have never run a successful proper business. What annoys me the most aboutpeople like @Amocache is that they pretend not to know the real motives of the sale.. IT WAS NOT Ture that ZAMTEL was insolvent or loss making. THE WHOLE THING WAS PRE-MEDITATED PLAN TO STEAL AND make money the minute LPM was at his death bed and was the 1st thing they did when RB won. That is FACT!
I totally agree with you chief you are 100% correct.
I have heard, with sadness, people talking about Zamtel’s subscriber base improving. The question is ON WHICH NETWORK? The land line is no more and yet people claim there are improvements. Even the mobile has been very bad, especially on the Copperbelt. Can someone distribute questionaires to confirm these lies? Lapgreen is composed mostly of people who have never operated at the level Zamtel operated especially inn terms of the knowledge. All good guys have been victimized and fired by fellow former workers because of wanting power.THIS IS THE TRUTH. NAMES ARE AVAILABLE FOR BOTH THE VICTIMS AND VICTIMIZERS.
First of all, privatising Zamtel was not a bad ideal, what was wrong was a flawed undertaking in which the company was sold. Am sure if the right route was followed and the right price paid, there would be no cries at all. It is true that Zamtel was facing huge challenges with the advent of other mobile competitive companies (air tel and MTN) and needed strong synergies and stringent strategies to compete favourably and profitably. However, what we want is to send  a strong message to those in the current and past governments that real power belongs to the people and can and should not be abrogated with impunity to satisfy one’s personal aggrandisement. Let us all be open minded and debate intelligently to find solutions to our problems and be accountable to our people.
@10 PELSI… Economists are not capable of interpreting the system of business.. They have neither the skills , knowledge or experience.. That is the preserve of ACCOUNTING, FINANCE, INVESTMENT and BUSINESS SCHOOLS.. these are professions who’s members are trained and skilled at developing business strategies, executing them and successfully running business..
Zambians wake up all the countless problems this country has faced has to do with poilticians. Get rid of them and the country will be good. Citizens time has come we dont exist for the polticians (PF, UPND, MMD or whatever). Open your eyes polticians exists for themselves. The report was prepared by PF what do you expect with the statements coming from shit house, i meant state house
Kamalasha, mind your language. what do you benefit if you insult. Just talk nicely
What does the reversal of Zamtel mean?
It means the following:
1. Every former employ who is available and eligible must report back for work.
2.There are some chaps in the current Lap Green arrangement who have been victimizing others for power. These are former employees in the the former Zamtel and some Ugandans brought by RB as expatriates. THESE MUST BE SORTED OUT AND MUST NEVER BE PART OF THE COMING ZAMTEL.
3. All those workers who have been victimised and fired for no reason MUST BE RE-INSTATED.
4. The HQ must be taken back to Ndola.
Am usually amazed at how often bloggers call each other dull here. It seems everyone is intelligent and considers others dull. I take it that most bloggers are a working class and well educated to even be on the internet, but our country has been in shambles and is one of the poorest in the word. Since we have come up with any meaningful solution to world problems let alone Zambian woes, know has shown any streak of genius. We just manage to make enough money to buy Second hand Japanese cars and buy beer at Times cafe. Shame on all of us. We are actually nothing compared to a University dropout called Mark who founded FACEBOOK.
Sebastian zulu must be very dull, its a known fact that zamtel aka ptc was headed for doom. Dont twist facts to suit yo myopic innuendos. Being a former employee of ptc i can attest to the fact that the company was useless even tho it had great potential. Technicians like kasonde shud not never fool pipo. His unionism has been his saviour, Tho i do not support the wholesale of ptc, i think it deserved it. Let soft bums n RB enjoy their change from the sale. Malabishi!!
this government needs to invest a lot in education. the 2008 parliament report revealed that zamtel required an equity partner. at the time zamtel had about 2000 workers but a customer base of 700,000 while zain had 700 workers with a customer base of 3,000,000. zamtel had obsolute equipment and a lot of debt. analyse the scenario and make judgement.
Prepared and presented to parliament by who?? RB/GK/Dora/Musokotwane/Mutati?
Before companies are insolvent Directors, Management and Accountants do everything to hide it. In the case where even a two year old could see the insolvency, poor quality then the case for a company like Zamtel going under was genuine.
3 amocache,
” i dont believe the sale of ZAMTEL was imposed on any one. ”
From the report:
” 5.5. The Zesco MD whilst on an official trip to Egypt, was forced into signing the single signature page of the IRU Agreement under extreme duress and thereafter faxing it back to Zambia on the 17th of December 2009. “
3.1.2. Process adopted
i. RP Capital Partners Cayman Islands were sourced and engaged by the Ministery of Communications and Transport (MoCT) by its Minister Dora Siliya.
ii. Dora Siliya unilaterally and arbitrarily signed a MoU with RP Capital Partners Cayman Islands. She stated to the Tribunal that this was on the recommendation of her staff who had reviewed a dossier submitted by RP Capital Partners and were satisfied with their review.
The Committee was unable to find any documentary evidence supporting the Minister’s claims. To the contrary the Committee has obtained a MoCT internal memo which in fact contradicts the Minister’s statement. This Committee places on record that this memo was neither mentioned nor availed to the Tribunal.
Was Zamtel profitable before RB and Dora Siliya came into office?
From the report:
” Internal RP Capital documents project the value of Zamtel in 2015 being in excess of US5 Billion, the benefit of which the Zambian people would not have enjoyed. ”
$5 billion is not $257 million. And of course now we know that the Rupiah Banda adminstration/RP Capital’s made the GRZ *pay them* $77 million, which they then put on the Zambian people’s tab by borrowing $75 million from a Chinese infrastructure fund.
This is pure fraud. The valuation was fraudulent, the sale was fraudulent.
The Zambian people were robbed of $5 billion. Plus $77 million.
They could have sold 1/5th of ZAMTEL’s resources at market value, and had 4 times as much money as LAP Green nominally paid for it (but didn’t).
Where is the Zulu report? Sata has issued a decree that it should be made public with immediate effect.
How does a union leader not know the financial position of the company whose workers he is representing? It is a shame that such people should ascend to lead others! What chance has anyone under them got if the leader does not know. Ignorance is no excuse. You the leader went to sleep on duty.
@12 digga thank you for your but I am sure understand what I meant.
apologies mate.. I misread your post…. You know .. I get emotional over national assets.. I investors are serious, let them build and install their own networks like MTN/Airtel did and not try to corruptly take over the peoples pride using traitors and sell outs.. (RB/GK/Dora/Mutati/Musokotwane)
Brainwashing, modern tool for the greedy ones.
@25 the report is available at the website below since LT are too lazy to paste links on their website;
zambian-economist.com/2012/01/zamtel-commission-report.html
this chap are really taking us for a ride. this UNIP chap is a lying old man. how can a union leader fail to know the company status.a company whose employees he represent.what! in this world? let this UNIP guy tell us what the company hearded for .BOOM? let his directly contradict the auditing form that actually wrote about telecom’s future.
25 MrK not so fast.you have a strong propensity to tell lies
MrK i read the commission’s report. its a piece of shi.t. i don’t think you have noticed that this report outlines the express beliefs of the commision. its not based on facts. for example the commision never told us the true value of zamtel, no counter expert’s views on anything about zamtel. the commission believe the evaluator when he say the future value is like 5billion US$ but refuse to accept the same evaluator when he  tells them the present values is just over 200million US$. come on! if this is the only thing the president is acting on then he is more confused than you MrKÂ
 #12 have you ever read a financial report of zamtell. how profitable a company is is not about talking.its based on assets and liabilities.
Just arrest Dora and others coz we want the Petauke Central Seat. We are sick and tired of ZAMTEL LT bring something exciting this news has become stale
33 Global citizen,
I’ll make it very simple for you. ZAMTEL was handed over to LAP Green, and the Banda government went $77 million in debt, and gave that to them too.
I hope that is not too hard to follow. It is also fraud, bad faith, and unethical.
I see the MMD cannot stop defending the robbery of the Zambian people, even in opposition.
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