PRESIDENT Rupiah Banda says the partial privatisation of Zamtel to Lap Green Networks of Libya can be viewed as being the most successful in the country’s history largely on account of the process that was used by the Zambia Development Agency (ZDA) to structure the transaction anchored on professionalism and transparency.

The President said Government raised about US$433 million from the previous 262 transactions but will this time around make US$257 million in Zamtel’s proceeds and a further US$127 million in guaranteed financing, bringing the total commitment to US$384 million.

He was speaking in Lusaka yesterday when he officially opened the 13th sitting for the Third Session of the House of Chiefs at Cabinet Office.

“Note that of this (US$433 million), the gross mining sector proceeds accounted for US$339 million and the non-mining sectors accounted for the remainder. As can be noted, the Zamtel transaction alone has raised US$257 million in sale proceeds,” he said.

The President appealed to traditional rulers to explain to their subjects the benefits of the partial privatisation of Zamtel to Lap Green Networks of Libya as it is probably the single most successful transaction of the 263 deals undertaken since 1992.

Mr Banda has also advised Zambians against politicising the sale of 75 percent shares in Zamtel because the benefits from the transaction will be immense and that only posterity will judge Government’s decision on the matter.

[pullquote]The President said Government raised about US$433 million from the previous 262 transactions but will this time around make US$257 million in Zamtel’s proceeds and a further US$127 million in guaranteed financing, bringing the total commitment to US$384 million.[/pullquote]

Mr Banda said the proceeds from the Zamtel deal demonstrate the difference that his Government is making in implementing the right processes aimed at bringing about change and stimulate the country’s economy.

He said Government has ensured that a substantial part of the US$257 million proceeds is allocated to the settlement of full terminal benefits for all Zamtel employees as agreed with union representatives.

Mr Banda said this is significantly different from previous transactions like the Roan Antelope Mining Corporation (RAMCOZ) where workers’ interests were not properly represented or accommodated.

He said independent auditors have been appointed to ensure that the package for every employee is correct and paid in full.

Mr Banda said all Zamtel employees will be given a lump sum proportionate to their grade and tenure at the company.

He said about US$98 million will go into the pockets of ordinary Zambians and the country’s economy.
“I hope that our people will invest this money cleverly to enjoy a lasting benefit,” he said.

Mr Banda said before the sale of 75 percent shares in Zamtel to Lap Green Networks of Libya, a concerted and sustained effort was made by ZDA to maximise the attractiveness of the company, improve its efficiency and prepare its other elements for post-transaction change.

“The process of privatisation was transparent and competitive throughout,” he said.

The President said the implementation of the privatisation process took into consideration some of the shortcomings observed in earlier processes.

“We had many bidders-all of them serious- and Lap Green Networks emerged from this competitive and rigorous process as the clear winner,” he said.

Mr Banda said the rigorous process ensured transparency and was done in accordance with the ZDA Act.

He said from the time Lap Green Networks takes over operations of Zamtel this monthend, Zambians will start seeing real change at the company as it will begin to actively compete and innovate in a way a modern telecommunications firm ought to.

The President, however, said that the key objective of the transaction deal was to find the right partner for the company and Government as an ongoing shareholder in Zamtel.

Mr Banda appealed to Zambians not to politicise the Zamtel transaction because without the intervention to privatise it, the company would have collapsed.

He said in its current form, Zamtel is unable to compete in the telecommunications market for various reasons well known by most Zambians.

The President said Zamtel made US$17 million loss in 2008 and more than US$30 million last year and that while its competitors like Zain have over three million subscribers, Zamtel has been struggling at barely 100,000.

“Even in the fixed line business where Zamtel is a monopoly, it has only about 240,000 connectivity,” he said.

He said the situation in which Zamtel is can only continue up to a certain extent beyond which it would collapse.

Mr Banda said Government has a duty to ensure that it safeguards Zamtel’s assets on behalf of the people and as such cannot allow the company to collapse while there are options to save it.

[pullquote]
The President said Zamtel made US$17 million loss in 2008 and more than US$30 million last year and that while its competitors like Zain have over three million subscribers, Zamtel has been struggling at barely 100,000.[/pullquote]

The President questioned the motive of those politicising the privatisation of Zamtel when it is clear that the prime objective of the transaction was to find the right partner that could raise capital, invest in new technologies and improve efficiencies that could help in turning around the company while Government continues to be a shareholder.

“The proof of Zamtel’s failure will not be in my words but in the turnaround that you, the Zambian people, will see at Zamtel within the next year. My Government and I have been criticised for this privatisation.

“But I challenge all Zambians to judge this privatisation by its results, the change they will see from a new and transformed Zamtel,” Mr Banda said.

President Rupiah Banda has said the partial sale of Zamtel to a Libyan company is irreversible because it has been done legally.

The president said United Party for National Development (UPND) president Hakainde Hichilema is exhibiting ignorance by saying the sale will be revoked.

Mr Banda said the sale of Zamtel to Lap Green Network was binding on the Zambian Government as it had been done within the law and there was no way of reversing the process.

He said Mr Hichilema was exhibiting lack of political and legal understanding by asserting that he would reverse the privatisation of Zamtel if he comes into power.

Lap GreenN, which had bought 75 per cent shares in Zamtel at US$257 million, would have long paid the money to Zambians and investment would have taken place, which would render the process irreversible.

On arrival from Mfuwe where he went for a three-day working holiday, President Banda wondered where the money to pay Lap GreenN of Libya would come from especially that everything had been done within the requirements of the law.

President Banda said Mr Hichilema was merely exposing his failure to understand politics and wondered where he was getting the muscle to condemn a process that had been widely accepted by the workers and stakeholders.

“Where will he get the money to pay those Libyans? He does not understand politics. Most of the privatisation in this country was done by Mr Hichilema and we have not reversed what he did,” President Banda told journalists in an interview.

Government at the weekend concluded the sale of Zamtel to Lap Green N of Libya. Finance Minister Situmbeko Muskotwane said Zamtel had become a drain on the treasury as it was making losses.

And Mr Banda dismissed sentiments by Mr Hichilema that the ruling party was shaken by the launch of the Patriotic Front and UPND (PF/UPND) Pact going by the huge support his Government continues to enjoy.

Mr Banda said huge crowds of people welcome him wherever he goes, citing Mfuwe where he was well received during his three-day working holiday.

“Do I look like I am shaken? Even last year they launched the pact and now we thought they would announce their leader. I don’t understand what they launched,” the president said.

The president was reacting to sentiment by Mr Hichilema on ‘Let the People Talk’ programme on Radio Phoenix on Tuesday that the MMD had been shaken by the launch of the pact last Saturday.

Meanwhile, Mr Banda has said The Post newspaper editor-in-chief, Fred M’membe should not kill himself to put the Government on a black spot in view of his continued attacks on the Government over his contempt case.

Mr Banda said Mr M’membe’s problems were with the courts that cited him for contempt and had nothing to do with the Government.

The life of Mr M’membe could not be said to be in danger on account of his court appearances over an offence committed in court.

The president said he was not a man-hunter and that Mr M’membe’s allegations were far from the truth.
Mr Banda also said he sympathised with Health Deputy Minister Solomon Musonda who shot and wounded a PF cadre identified as Jackson Musaka last month.

President Banda said the matter would be left in the hands of the police and the Director of Public Prosecutions (DPP) to resolve.

The president said he would not take any action against Dr Musonda to allow the law enforcement agencies to deal with the matter professionally.

“I feel sorry for him. He is a very professional man but I will leave the matter with the police and the DPP,” Mr Banda said.

The president also called for more investment in the vast game reserves, forests and national parks in the countryside.

Mr Banda said he was taken to areas in the Northern parts of Luangwa National Park and discovered that massive forests were under-invested which must be changed.

He said there was so much potential for huge investments in the valley areas around Luangwa National ?ark.
Vice-President George Kunda, Information Minister Ronnie Shikapwasha, Home Affairs Minister Mkhondo Lungu, State House Minister Ronald Mukuma, Agriculture Minister Peter Daka welcomed the president on arrival at City Airport.
[ Times of Zambia ]

Government has revealed that the country’s domestic debt stock currently stands at $1.93 billion (K10 trillion ).

Principal economist of domestic debt under the investment and debt management department at the ministry of finance and national planning, William Kabwe said government is rolling over the domestic debt and has decided to only engage into further borrowing to manage the already matured domestic debts.

Mr. Kabwe however said that government is well aware of the fact that domestic borrowing is on the increase and should be effectively managed because it is dangerous for the economy.

He said government has already began working on the reduction of the Treasury bill restricting the debt management office at the ministry to bring it to appreciable international standards.

But a report on domestic debt management in Zambia by AFRODAD in conjunction with the Civil Society for Poverty Reduction has divulged that government has failed to put in place adequate legal frameworks that are all encompassing to forge for efficient domestic debt management.

Presenting the report for validation in Lusaka this morning, to the civil society, the private sector and some government officials, CSPR Programmes Manager, William Chilufya,called on government to urgently implement the national domestic debt management strategy.

QFM