By Maurice Makalu
I thought I could share some important information from around Africa about the FORMER owner of Zamtel, in case some of you miss them. And just by the way, I would like to appeal to those who have been scared by some UK legal expert who said Zambia could pay as much as $3 billion in penalties to please chilax. He was just bluffing, probably because he wished he could make some money from Lap Green’s losing battle. You know lawyers and their marketing: threats and intimidation to the opponent!
If there are any who are indeed scared by that expert, it is simply because they have not read the sound legal arguments, facts and exhibits in the Sebastian Zulu report. So their ignorance is causing the fear and it is being exacerbated by politicians of doom and gloom. If not that then they are scared simply because they feel inferior to “UK people.” So it is “UK” that is scaring them.
Here is Lap Green for you….from around Africa.
1. UGANDA – 16 Dec 2011
“Uganda Telecom Ltd (UTL) will receive capital from the Libya Africa Investment Portfolio Green Network (LAP Green Network), which owns 69% of the telco, according to local news source The Observer. LAP Green Network’s new board chairman Wafik Shater said ‘We are currently looking at UTL’s critical funding need for the remainder of this year. After ascertaining the actual funds required, we will inject them into our operations here.’ UTL has suffered indirectly as a result of sanctions imposed on LAP Green Network by the UN during Libya’s civil war, worsening the telco’s already substantial debts.”
Lap Green took over UTL in July 2007. So, by the time of UN sanctions in March 2011, UTL under Lap Green management was ALREADY in WORSENING substantial debts. In March 2011 UTL’s network was disconnected from MTN Uganda over $8.27 million in disputed interconnection fees. Service has resumed but the matter is still in court. In September Airtel Uganda threatened to follow suit, over a further $4.2 million in payments.
So when you hear anybody say Lap Green Uganda is a success story, know they are just lying. Pray for them to show some love for mother Zambia.
2. RWANDA – April 2011
“Rwanda is looking for suitors for national carrier Rwandatel after the government stripped Libya’s LAP Green Networks operating license last month (March 2011). The Rwandan government stripped LAP Green Networks of the license for failing to meet key performance targets in terms of investment, network roll-out, coverage and quality of service. Although Rwandatel acquired its operating license in 2007, it only started mobile operations in December 2008.”
UN Sanctions were imposed on Libya on March 29,2011, so they were not the cause for Lap Green’s failure to pay. As at January 2012, a Rwandan court ordered that Rwandatel be liquidated. Lap Green is joining the line of chancers to take over Rwandatel.
3. NIGER – June 2011:
“Niger’s government has canceled an agreement for LAP Green Network of Libya to buy 51 percent of state-owned telecommunications companies Sonitel and Sahel Com, said Salifou Labo Bouche, communications minister. We are currently looking for another buyer,” the minister said on national television yesterday. The decision comes after the government “waited in vain” for a payment from the Libyan company, he said.”
The agreement was signed in Jan 2011, so for 6 months, Lap Green couldn’t pay. We can’t even use the excuse of a civil war because in Jan 2011, Libya was peacefully under Gadhaffi. Only Tunisia was in flames.
4. ZAMBIA – January 2012
So if Lap Green is such a calamity in other countries, how did it manage to succeed so quickly in Zambia? Several reasons:
(a) Zamtel had the best infrastructure amongst all of Lap Green’s acquisitions in Africa.
This is really the main reason. This is shown by the fact that when ZDA announced the privatisation of Zamtel in mid 2010, it said Lap green would invest $127 million over three years following privatisation. Mr. Hans Poulsen, then CEO, was quoted as saying, “The investment will mainly go into restructuring the company; acquiring new technology, building a 3G network, extending network coverage and at the same time re-launch the brand.”
However, in January 2012, newly appointed Chairman of LAP Green, Wafik Alshater, said, “Zamtel is now a Zambian success story. SinceLAP Green’s acquisition, the telecommunications company has attracted over 400,000 new customers and grown its market share from 3% to 11%. Lap Green has committed itself to investing US$129 million (ZK670 billion) in Zamtel over two years so as to create a truly competitive and world class telecommunications company.”
This means by January 2012, that $129 million investment was yet to be done. So the success from 2010 to date was on already existing Zamtel infrastructure.
(b) This best infrastructure was given to them on a silver platter.
In addition to receiving the gift of $64.25 million (money for 25% shares) from government to fund its first year operations, government settled its telephone bills which at acquisition amounted to $7 million and at the time of the Zulu report, only $100,000 was outstanding. So in just over a year, government gave Lap Green $71 million free of charge. On top of that, it cancelled tax liabilities amounting to $100 million. Furthermore, Lap Green did not pay the $257 million in full. Instead $64 million of that was to be paid as equity capital over three years.
So who on earth can fail to succeed when there is free money coming from all over?
(c) Zamtel only needed to retrench, not to “desperately” recapitalise, to become profitable. So whoever would have had the guts to fire its employees would have succeeded.
As at March 2010, Zamtel revenue was K385 billion, its staff costs were K253 billion. This was 65% of revenues compared to industry average of 25%. The loss at the same date was K104.8 billion.
So all somebody needed to do was to fire the excess 40% staff costs. This would have translated into cost savings of K154 billion (40% of revenue). The $71 million that was given to Lap Green could then have been channeled into retrenchment packages. Zamtel would have instantly become profitable, like it did under Lap Green, and the other creditors it had would have been settled, including the cancelled $100 million tax liabilities.
5. ZAMTEL: BEST PRIVATISATION DEAL IN AFRICA???!!!
Given the above, what did those politicians and “experts” mean when they told us to celebrate and be proud, saying, “Zamtel was the best telecoms privatization deal in Africa?”
They meant that out of 10, some got zeros, ones and twos; we were the only one with a three: the best among the worst.
6. LIBYA – 27 January 2012
Libya is undecided on the future of its African investments. Mohammed Abdul Aziz, Libya’s deputy foreign minister, admitted on Thursday that the National Transitional Council (NTC) does not yet know the exact extent of Libyan investments on the continent.
Earlier this month, Mustafa Abdul Jalil, the chairman of the NTC, said: “There may be investments that would be better for the Libyan people for them to be closed”. Abdul Jalil added, however, that Libya would increase its investments in Sudan, particularly in agriculture and property. “Reason and justice require us to direct agricultural investments close to Libya instead of the Far East or Central Asia,” he said.
7. CONCLUSION
Now you know. There is nothing to miss about Lap Green. Let us just calculate their change from whatever they spent, give them back and remain with OUR Zamtel. But also, let us not rush to mass re-employee in the name of “creating jobs.” That would be foolish!
If Mr Makalu got appointed into a commission of enquiry or as an ambassador, would anyone be surprised?
So then what investment did LAP green bring? What technology did they have? I suspect they invested in Siliya’s bum or Rupiah’s tummy! Some one should be made to account for this plunder!!
Bye Bye Lap Green, It Was NOT Nice Meeting You !!
and I add
Bye Bye Rupiah, Bye Bye Henry, Bye Bye Dora, Bye Bye Maxwel, Bye Bye Situmbeko, Bye Bye Ronnie and Bye Bye MMD henchmen
It Was NOT Nice Trusting You !!
great and well articulated article
White farmers from Zim
Good afternoon,
Interesting case study. From their performance in the above named countries, we Zambians can safely say good riddance.
What is now needed is a good plan to sustain Zamtel with or without outside help. It is not always certain that investors will appreciate a win-win partnership, so I think we will have to be more passionate about defending Zamtel from foreign acquisition in future. A setback is always an opportunity for a comeback.
this is what RB did to our country and ‘smart’ dora, according to RB. they simply gave this company to Libya for free. and now HH wants to believe that RB was good and that Sata is wrong, we all remember what HH said about lap green before elections, why has he changed? this is the kind of politics i hate, Zamtel is ours and will remain so. thank you Mr president and the whole PF government. as for BR and bum Siliya, jail should be there destination!
Makes excellent reading on paper. I don’t know whether the same will be practically possible with GRZ taking over.
These are the brains madala Sata wants to work with. Abash the Musokotwanes with their PhD from Tanzania! Abash! Cost of Commisions! they are paying for by themselves from monies recovered from bad deals in Pepsi etc!
Maurice, Long time. This is a well thought out article. Just wondering how much more we don’t know…
Very good summery and precisely articulated. Only a fool can support LPG.
Good to have this knowledge, for the public to see.
Let us hear it from the detracts now, what they will say in the effort to criticise our govt
Henry you better hide in the bora bora mountains, but trust me Mufana we shall hunt you down
How dare you steal like this yet many are dying of hunger
Everything that belong to Qaddaffi was in bad shape during his final days. Somehow the west twisted things against him and all his activities collapsed. no wonder he was an easy prey for nato and thwars. anyway, the point is we should not expect a libyan to run business well. there is ZERO concept of investment in libya. Everything runs on subsidies from oil revenues. I do not see how mr al shatir could haven been of any help. ALSO I am sure NTC has enough funds to fund their Islamist agenda.
Given the 90 days, cant see any comprehensive progress PF honoured, I hope reversing of the sale, will yield better resultS in the short term, then will say the long term will be something. In as much as the deal was raw, the results were SEEN AND EVIDENT from the green company. this is a FACT unless something is wrong in your head. These changes should have clear developmento and smart visions. Challenge the thinker. dont be Patriotic to Patrioyic Front. Be realistic, neutral and objective.Very remote and LEAST developed areas of the country like Luapula and Northern where the PF patriots hail from, were after 40 yrs of indpendce wre enlightened to th GLOBE. Challenge the LG initiative atleast in the short term, which with the prevailing planning inconsistencies, then wl impct +VLY. T.T.
Given the kind of free stuff and help Lap GreeN got from “Rupiah Banda & Company”, any id!ot would succeed!!!!!!!!!!!!!!
In my opinion, as a logical ansd and systematic think tank, I feel the country should put up a very good education policy, for citizens to be well enlightened, and make better decisions. It seems areas with less enlightment eduction wise, continue misplacing priorities. Ladies and Gentlemen, with this emphasis, open our eyes and see beyond our nose. the country’s development is dependent on us, not the president.
Please get your freakin head out of your frealin arse about 90 days. Even children know that it is over.
lets hope GRZ will make zamtel a company that strives to deliver quality service. Am sure those that used zamtel services can bear testimony to how poor the landline service was
Well well, Mr Maurice Makalu…how are you?…i couldn’t agree more with your article…its high time our so called “educated” brothers and sisters woke up!!
AS WE SAY BYE TO LAP GREEN, LET US ALSO WISH THE MOVEMENT FOR MAD DOGS (MMD) A SAFE TRIP OUT OF THE ZAMBIAN POLITICS.
Dont’t get pimped by your dreams brother!!!!
Continue folowing vis blind,visionless,lunatic, pathetic fools part caled pf untl leadeth 2 hel.,,,you the writter of this article you are a fool and uneducated person ever seen in zambia…..you are that cader of a fool….idi.ot….go back to school and live good silly
Fyi we do not care at all,,,, its bye bye lap green educated or uneducated
Miz – you sound so disparate. Did you benefit from the deal? What is your contra argument. Dont just insult.
@18 miz
You must have a low opinion of people, if you think they are your equal.
. If there are patriots of this Calibre in our country,That is MAURICE MAKULU, y is our country in this dire straights.Very well presented and hundred per cent correct. Come on LAP green we will sort u out., Who made this deal??This Gentleman should be at STATE HOUSE helping our HARD working President NOW.
@ Miz or Maize whatever u call yo self. From the comments U spewed U sound 2 be fro Bantustan party full of ici konko why is that we Zedians are full of hatred. Even when fact are there in white and black we want to ignore them and bring in our own egoistic opinion as the gospel truth. The article is good and as eye opener. We need to give credit were its due; lets remove this mentality of always thinking that only foreigners will develop our country, thats why pipo like U maize think that every muzungu you see has got money. Its pipo like U who if given chance would want to marry a muzungu with a very stupid ego that ninshi twa wina as a family. So as PF symphathiser i salute my Govt for repossesing Zamtel becoz its OURS period.
Tongas are SKUNKS hence SKUNKASTAN. Only hoping u re A NORMAL HUMAN BEING to understand how PF is messing up everywhere. Sorry, u should wake up.
@ Miz or Maize @ the same time I strongly object to the move HE has taken to shift portfolios like labor back to Shamenda as one way of weakening Kambwili.Its not a secret that Kambwili shook the Labour sector all what HE needed to do was to ask Kambwili to tone down and guide him. Otherwise workers will keep on suffering which will continue succesive govts in the years to come.
I told you. The Arabs are out to recolonize Zambia, just like the Chinese, using all tricks possible. Especially that they targeted the presidency, corrupt the head and the rest will be porridge. They will use tricks and hide in small prints in transactional documents just to dribble past and get what they want. They can be cunnin and brutal to employees after acquiring what they want and claim they are defending their interests. There is no democracy in china ask anyone, the Arabs are also very cruel with their sharia law. Wait for them to grow roots in Zambia and you will understand. Zamtel is ours, hands off.
Rwandatel Takeover – LAP Green Out of the Running
BY SAUL BUTERA, 1 FEBRUARY 2012
Libya’s LAP Green has lost the chance to reclaim the assets of its former troubled telco Rwandatel which are up for sale in the ongoing liquidation process, Rwandatel’s Administrator has disclosed.
Lap Green had earlier on approached the authorities for a possible bid to reclaim assets of its former subsidiary.
The liquidation process has attracted big players in the telecom industry including Bharti Airtel, which is set to commence operations in Rwanda before the end of this year.
“Lap Green was given an opportunity to submit a bid like any other player, but they didn’t submit any, now I can declare them out of the running,” Rwandatel’s Administrator, Richard Mugisha, said.
Thank you very much M. Makalu, you really opened our eyes, please keep it up, the good job.
and shamed the MMD. especially Dora Siliya, and Situmbeko, together with Bwezeni’s family.
There is not a single privatisation deal that has taken place in Zambia that has been clean since 1991. The worst of them all was ZCCM. A simple Bank in UK sells for $3 billion but we have the whole ZCCM valued at $400 million!!! The land, only the land that ZCCM owned could be worth billions of dollars even without a single mine structure! What NEEDS to be understood id this: What is it in the ZPA that makes them behave in so unpatritic ways as to sell our family silver for choruses? Why did Valentine Chitalu become a darling of the west? Who have financially benefited from the sale of these companies? Russia has the largest number of young billionaires in the world, all because of privatisations!
Bye LAP Green. For sure you were not welcome in mother Zambia. Just collect your change and leave. Nothing for you in Z.
Indeed it was sad meeting you. If there was no selfishness by the evaluation team you were not going to land on Zambian soil. Nevertheless just go back to Libya and keep trying elsewhere.
From the analysis, it was not nice meeting you cause you have proved to be a failure in all the countries where you operated. Bye bye LAP GREEN and wish you the very best in Libya.
Imagine Zambians, a zambian cabinet minister of finance claims that he does not know where the money from the sale of ZANACO was deposited! Then the following day, he complains about the cost of having so many commissions! First and foremost the money revovered/uncovered by one commision from the fraudulent transaction between Musokotwane and Pepsi is more than enough to pay fo all the commissions so far set up. LAP employed a ugadan at the expense of libyans and zambians. Which technology does a ugandan possess which is superior to our own? Sata may not be educated like Mr Magande but he will confound us all!
Security of the country is of prime importance. Zamtel is a “National Asset” and a component of the country’s security institution. It will not be safe to entrust our sole communication facility in the hands of foreigners. Look at Zambia beyond what can be seen today in terms of electronic warfare. Meanwhile, # 2 walasa, 3,4,6,7,9,10, etc you true patriots, but # 19 you have a defective brain hull those insults at yourself. Good article badala ba Maurice keep on scribbling or cibababe ninshi they are not true Zeds!!! Bravo PF, “Nomba Kubeba” ka!!!!.
A good article, full of facts. Thank you PF and all Zambian who supported the move to get back Zamtel.
@15, think tank:
Yes, and it is “us” who demanded the return of Zamtel to it its rightful owners, “us”!. Now we can talk about developing Zamtel into a company we all can be proud of—-a telecom business by Zambians for Zambians and beyond! YES?!!!!!!!!!
it is interesting to see how the Fikopos, dunderheads run away from an intelligent article like this,
l m encouraged to see sense in this e-paper blog, usually dunderheads just insult each other including authorities on issues that they dont even understand. education makes a difference!!
well done ba makalu God bless u
Nothing in this article supports nor reveals the wrong doings of LAP Green in Zambia to warrant the Zambian government to reposses ZAMTEL. It is myopic to celebrate this article which is devoid of sound legal arguments in it. The fact remains that Zambia will legally be made to pay for wrong action it has taken in repossessing Zamtel from its legal owners. The Libyans bought Zamtel lawfully from the Zambian government of the day irrespective of the wrongs RB and his govt. made. The best route was to negotiate with LAP green and not to hound them out like criminals. If there was any criminal intent in the quest do you think Sata would have left them without legally challenging them in courts of law? He would have prosecuted LAP green. CIRCUS it is!
Keep on dreaming. We will wake you up when all is said and done. Good nite, sweet nightmares and wet dreams.
Makalu. Enough of why Zamtel should gotten back ,its ours already ,we want to hear about operation plans. And we also want to see flesh blood on board ,not these old CE0 s who don’t understand IT and modern marketing skills.
well said.well said.this is very true pipo.im talking from inside experience
#19 miz, just tell us u hate PF so much that u cant stomach its in power and ruling. How do u call a person who has writen such a well thought out article a fool, uneducated. Only fools like u cant sense in what he writen coz u believe so much in either RB’s mass stealing through dubious deals or u believe in HH’s mass stealing from privatisation program
Now that LAP GREEN is gone, what is the hold to fix the peptrators of this crime? We are axciously waiting. Can MC be scared to take a move? I dont think so. Lets wait.
19 miz. You are not a zambian and if you are then RB is your relative or Doran is your concubine. The writer is perfect but just beacause you are drunkd with fake money, you have lost yourhead, you ***** of a man.
This is not a case study! This is exactly what is contained in the ZAMTEL report and Makalu has just articulated it for most people who choose to make comments without facts.
Read the ZAMTEL report and you will notice more anomalies on how Dora and the 4 Man Cabinet decided the fate on ex-employees with impunity. Heartless Dora, Situmbeko and RB.
Viva PF!
The author should explain how Zambia is going to escape the fine should Lap green take this matter to court. So far he has talked about the failures of Lap Green and has not explained how Zambia can escape the fine should this matter end in the courts of Law.
Who said they will sue? LAP GreenN has not thought about it yet. They know better.
post my comment, i tried too much
I happen to be one of those who put up some network in Lusak and Ndola .The supporting staff may have been too many AND THAT MMD was sucking a lot ,otherwise zamtel was doing fine.
Having worked for zamtel, the company is viable.correcction is costly stop being scared of the unknown unless your relatives eat lap greens cash,you will owe them yourself.reposation and prudent runing the only way.Govt should be in control like UBZ in zim still runs as zupco while the private players also do their rounds.Bravo P.F
We should expect Dora to face the law…
This all is rubbish and we will be laughing at you as you are laughing at us today. Let us see where the high tide will take you we have fought and know how to fight but you are amateurs in this field. We will bounce back.
How would you feel if your Father sold all Family assets, to please a Girl Friend??? You would be angry right??? THIS IS HOW WE FEEL ABOUT SELLING ZAMBIAN COMPANIES. We young Zambians will have nothing.
BYE BYE LAP GREEN, TRY NEXT DOOR??? ZIMBABWE.
@Shiekh a very soft question does 2 wrongs make a right. If it was sold wrongly then it is taken back even more wrongly world today is a global village and countries/investors help each other but the way the GRZ is working few months down the road I do not see any investor in the country. Then what!!! second question please tell me one name which was in the commision of inquiry report has been proven guilty and punished. Do you peopel not think these things. Now if your father has sold the asset to please the girl friend what is the fault of the buyer. Will you go and kill the buyer or sort out the issue with father.
Ans Ques 1: Two wrongs does not make right. The sell was wrong and the taking back was correct. Let us leave the “how” for later because we are now busy building our country.
Ans Ques 2: The target is the assert and not the father, his girlfriend nor the buyer. So, we just get back the assert and let the father deal with the girlfriend and the buyer. As for punishig the father, we leave that for later as for now we are busy building our country. Now Mr Libyan, this is how we work in Zambia. Before Gadhaffi’s demise, did you take keen interest on what he was doing with your money?
Very insightful. Good to have Zamtel back. What will now run it down (again) is political appointments and interference. GRZ needs to employ qualified, marketing, managing and technical staff. While LAP Green acquired Zamtel unfairly, it has shown us that given the right management, Zamtel can thrive.
Welcome Zamtel
interesting article,well thought out and simply expounded,keep it up,i just pray the govt in objective as regards re-employment as they take over operations of this company,recruit qualified personnel,revitalize and even upgrade the Zamtel training college and for goodness sake reduce the caller tariffs and maybe airtel can stop messing around with consumers and give us quality service or risk losing clientele…after all local could be lekker
:d
Thank you Maurice it was indeed a very wonderful research.This Article should favour be researched and indicate how much commission was given out. It makes me wonder on how these guys had no heart for their fellow citizens.Millions were paid out in commission to RP capital and yet again our,then,second in command of the country.a lawyer by proffessional is also mentioned of having pocketed millions from a useless deal like this one.
With all these reverations.Why is the PF government taking its time to cage these mambalas?Our leaders are human who are bound to fall prey to some of these crooks.They may just buy them out like they sold out Zamtel.Already we have been informed that some leaders have lost employment over the same.Cage these guys,money is power.
Will Lap GreenN does own shares but its completely managed by Zambians , shame on them misusing the fortune of their country this way , we Libyans want our investment money back , we got rid of Gadaffi and we want to get rid of corrupted Africa .. and its mercenaries and the new Libya will stand tough to get its rightful money and honestly you should care more about the staff who will lose their jobs :-?