Zamtel managing director Hans Paulsen has said that siezure of ZAMTEL accounts by the Drug Enforcement Commission (DEC) was unreasonable and calculated to frustrate Zamtel management and paralyse the company’s operations. DEC seized three accounts at Zanaco and 10 others at Barclays Bank on January 18, 2012. This is according to the company’s application for leave to apply for judicial review, filed in the Lusaka High Court on Thursday.
“The DEC has no reasonable grounds to believe that all monies in the seized accounts are proceeds of criminal activities. The action by DEC has been precipitated by political pressure that the sale of Zamtel was allegedly fraudulent, an allegation that has not been proven in any court of law.”
“Monies have been wrongfully seized, based on a unilateral and unsubstantiated report. The DEC’s decision is wrong and not justifiable in the circumstances. Zamtel has never been heard by DEC after the seizure of the accounts,” Mr Paulsen said in his affidavit verifying facts.
Mr Paulsen said that Zamtel believes that the seizure is an indirect way of expropriating its property as it shall become non-operational due to lack of access to its funds.
“This is not in public interest as its internet services, fixed phone lines, mobile phones and other services will eventually shut down, due to lack of access to funds to pay for services and operational expenses. Employees shall be greatly affected in that Zamtel will be unable to pay them,” he added.
Mr Paulsen says the DEC’s action implies that Zamtel is an illegal business notwithstanding that Government, to which DEC belongs, is a shareholder in Zamtel.
[pullquote]“This is not in public interest as its internet services, fixed phone lines, mobile phones and other services will eventually shut down, due to lack of access to funds to pay for services and operational expenses. Employees shall be greatly affected in that Zamtel will be unable to pay them,” he added.[/pullquote]
“This will have an unprecedented impact on the economy and security of the country. It is desirable and in the interest of justice that this court grants leave to Zamtel to file a notice of motion for judicial review and that the order of leave to commence judicial review acts as a stay of the DEC’s decision to seize monies in the bank accounts belonging to Zamtel,” he said.
Lusaka High Court judge Evans Hamaundu is scheduled to hear the matter on Monday, January 23, 2012.
Meanwhile, anxiety and uncertainty has gripped many Zamtel top brass who do not know when or where the axe will fall from as the government tightens the noose on the company believed to have been sold after “gross” under valuation according to a study by the Sebastian Zulu-led probe team.
The company was sold for a questionable US$257 million of which only some US$15 million has been received by the government, according to Zulu who was commissioned to study the transaction by President Michael Sata.
Former Cabinet Minister in the MMD government Dora Siliya and former President Rupiah Banda’s son Henry are reported to have put together the transaction which the report says is deeply flawed and marred with gross corruption and was done without the national interest of Zambia.
Stephen Laufer, the Lapgreen representative for Southern Africa via phone yesterday said the company would issue a statement.
[Zambia Daily Mail]
If the government is resolved to grab ZAMTEL back why are they still dragging their feet. I thought ZAMTEL can be grabbed at a stroke of a pen. However I must say that the ZAMTEL Sale Report makes depressing reading. Where is the RP Capital valuation report. That must be released too. What was contained in the 300+ paged report. Its funny that at the time Felix Mutati said the report was too complicated for Zambians to comprehend. What an insult to our collective wisdom. And to imagine that cabinet had less than a day to study the document and approve it! It is true that if you want to hide anything from an African, put in in writing
If the government is resolved to grab ZAMTEL back why are they still dragging their feet. I thought ZAMTEL can be grabbed at a stroke of a pen. However I must say that the ZAMTEL Sale Report makes depressing reading. Where is the RP Capital valuation report. That must be released too. What was contained in the 300+ paged report. At the time Felix Mutati said the report was too complicated for Zambians to comprehend. What an insult to our collective wisdom. And to imagine that cabinet had less than a day to study the document and approve it!
Zamtel is definitely in need of proper Corporate Public Relations Department at this very moment….invest in savvy PR staff who know how to judge the mood of the public, place native Zambian staff to represent you in front of cameras….you can’t dig in and publicly attack a gov’t head-on in Africa..
What do I care anyway about Lapgreen….just give us back Zamtel!!
Lapgreen,let m`membe take over zamtel.take your investment elsewhere where you will find presidents with brains.and your investment will be respected
Indeed the Zamtel sale report makes for sad reading. I only hope all those that put this fraudent deal are brought to book.
Mr Paulsen is 100% correct. This is Govt at work with a strategy to cripple Zamtel operations hence forcing them out and avoid paying compensation. It begs the question as to why use such a strategy when you have every belief that your position is legally sound with “Honourable” Sebastian Zulu’s report detailing the compelling evidence. Did cabinet sit, hatch up this plan and agree that it’s the best legally sound approach. Just use due process and gain support and approval by all Zambians and international interested parties. Lack of foresight and I imagine Sata, like his worshipers, has an idea of the Global angle of his actions but totally fails to comprehend the impact of his actions.
@4 joe hunter
LAP Green wouldn’t make it past any tender stage in any country….please read the report and then argue objectively.
DEC needed to say exactly why they decided to freeze the accounts. Zulu’s report can not suffice as it relates to matters in 2009. This will sail through in court and Zamtell accounts will be operational again but unfortunately the damage has already been done. LAP green will just have to sue to get their investment back.
I wonder if Mmembe and his new buyers will have that kind on money to invest in Zamtel when they used to run Zambian airways with government money. My take is they want to siphon government money again, this time using Zamtel as the conduit…Zamtel will simply replace Zambian airways as their cashcow. Tax payer takes the hit, mmembe not bothered!
So out of the US$257 million. US$15 million has been paid? Then it is easy to get back.
Iwe matako yanjoka. You must be very dull indeed. Didnt you read the report?
Hahahaha, Mr. Paulsen, when someone owes you $344m and you owe them $257m, them you pay $15m simply to pay RP Capital, come on, we are not fools, this stinks.
Actually, my suspicion is that you LAP guys were given the company so that RB and mates can use it to syphone millions of dollars from the government coffers in the name that ‘the government was paying its debts to you’and yet you were merely acting as a channel.
I suspect you were happy because you looked at the bigger picture of selling the company for $5bn in two years!
Whichever lawyer is advising ZAMTEL MD is misleading him. Such an application cannot be made at this stage. My understanding is that such freezing of accounts is done through the judicial procedure. Applying for this kind of leave at this point is like asking the court to contradict itself.
Many people are wondering why the govt in dragging its feet in reposesing ZAMTEL on the face of such overwhelming evidence. Reposesing the company has to be done within the law. This means that there are procedure to be followed. This govt is very conscious of not repeating the mistakes MMD made of using shortcuts.
You’re very naive, DEC and State House are one. It is the president issuing directives. This is not something that will be decided by a judge, the president has already made a decision to grab the organization.
This Man is typical of Arab mentality. very sacastic especially that he is in the country of what they call infidels. Can we have him deported please,He thinks he can start ARAB rebellion here. Very stupid.
@14, or sorry he is not Arab, paulsen, but I think he has some Arab blood in his veins.
Freezing accounts to destabilise the company. Workers will suffer because of this madness. No jobs. Where are you MMD. Investors are going to run away with this govt. What have we done guys. I’m worried which way the economy is going to go.
Sad lol.its better they r given back their money and not harrassing them like this!these people were simply clients for grz and had no final say.Deal wd ur fellow zambians whom u perciv to hv bn corupt
Hans Paulsen, pack your bags you are not ZAMBIAN?? Who the hell do you think you are?? MMD really makes me sick, what made them think we don’t have educated ZAMBIANS to run ZAMTEL. Well done DEC, we want our Company Back. LT please don’t publish such nonsense from Silly MDs who think Zambians are St.upid.
After reading the Report, best move DEC, lock Dora and all Stu.pid MMD Leaders.
People, try to read news widely before commenting on issues! Please don’t just depend on LT for news b’coz you are denying yourselves a wider perspective on issues.
DEC moved to freeze ZAMTEL accounts because of suspicion of criminal activities taking place at Zamtel by the top management? Read THE POST, they have detailed what is going on at Zamtel branch offices. They have told their branch managers to stop banking business proceeds anymore. Instead they are hording money in safes because, I guess, they realize how shaky their legal grounds are. So DEC suspects Zamtel top management is trying to siphon off money out of Zambia. This is the reason why money laundering is suspected and their accounts frozen. If true, any competent govt on earth would react the same way!
Hans, you have touched a live wire. How dare you join the politics of a nation? You are not a diplomat nor a citizen?
Stay within the peripherals of business/commerce.
# 4 Joe Hunter. Which Mmembe to take over Zamtel? Who told you after repossession of Zamtel would be GIVEN to an individual or company? Thats moronic on your part. If its true that Liybians only paid 1/25 of transaction value and allowed to run Zamtel, then something is wrong here and Zambian govt is on right option to repossess. Consideration of the commercial transaction has not passed to the vendor. Zambian govt should quickly formalise repossession process, make a rationale press statement and normalise Zamtel business. This will avoid creation of agitations in the Zambian economic environment.
Ok enough of LAP Green ZAMTEL is ours.
Have you guys seen inside Africa Zambia? I have never seen any show that has shown the fun side of Zambia. All the World knows is a poverty stricken Zambia. Errol Barnnet @ CNN has done us proud. Advertising Zambia’s beauty Internationally at no cost. Thanks to Errol & CNN. Hon. Shamenda / Ministry of Tourism Should donate some money to UTH Children ward as Advertising has been done at no cost. Keep a receipt for the Auditor General
Lapgreen is a corrupt company that has corrupted leaders any country they have started business. Reading the Zamtel report makes any sensible Zambian to wonder what was going into Ruphia and his minion to carryout such a bad decision. Decision like that was based on Ruphia will continue ruling this country. PR worked together with simmons and simmon to siphon Zambians imagine legal fees $710 thousand unbelievable. when redundancies $85 thousand. Those demornising the govt are the sons, relatives or have shared the root.
Zambia beat Senegal 2-1. Thanks boys you have done us proud..Teti tubwelele panuma bakatongo , teti tubwelele panuma, bakatongo twapamakasa pamakasa yenu teti tubwelele panuma. Here come mayuka , to Katongo , katongo to chimanga, Ponga what can you say about the way the way the boy are playing? Thank you Dennis, the are playing from side to side. Thank you POMGA ITS A GOALLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL
Zambians are very shortsighted people. …
Is it true that ZAMTEL management was not called testify in Zulu’s Commisiion of Inquiry? If yes, then how did it come up with that so-called damning report? There are always two sides to a story. Both stories needed to be told in order to come out with an objective result. As it is,I wouldn’t be surprised if ZAMTEL wins the battle in the long run.
Such things happen only in countries without rule of law. Civilised countries wouldn’t allow situations where today you have a bit of money in the account but you are told you cannopt withdraw it to pay salaries because ‘big brother’ government so decreed last night. What a lawless society! Can someone tell me doesn’t this happaen after courts have ordered the confiscation? What is the difference between this and Robert Mugabe’s land invasions? The Peoples’ Army will put all this crimnals to their right places!
Frozen accounts ? Call liato for plan ‘ B ‘
Today its Zamtel, tomorow it will you or the business u work for. Zambians lets fight for good governance and respect for the rule of law. The state has too much power. Its like we exist for the state. The state exist because of pipo like u and me. Sata has too much power.
Joe Hunter # 4, we chipubawe.
Iwe Matac0 Yanjoka #8, naupena ayi? What are you bubbling about? Baiche mulekwato muchinshi. You mean with all that tax money from the mines and the money owed to Zamtel by GRZ, Zamtel can not be recapitalized and sold to indegenous Zambians? Ulichikopo wechipubawe. What has mmembe done to you if you are not jelousy of something about him?
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