ATTORNEY-GENERAL Mumba Malila says Government will soon decide whether to compensate Libya’s LAPGreen Network following the reversal of the sale of Zamtel as the firm (LAPGreen) denies any wrongdoing during the acquisition of the 75 percent stake in Zamtel.
Mr Malila says Government will analyse the matter of compensating LAPGreen, after assessing the losses the country suffered in the transaction.
“The acquisition was done under a piece of law which provides for compensation and what remains is to determine the level of compensation, depending on the losses the country suffered,” Mr Malila said in an interview in Lusaka yesterday.
He said court action will commence in the High Court if the two parties fail to reach a compromise on compensation.
And in a statement released by LAPGreen on Tuesday, the Libyan telecommunications company complained that the Zambian government has not given it an opportunity to meet and discuss the matter.
“We are deeply worried by the announcement by the Zambian government that it is acting to reverse the sale of Zamtel, which is 75 percent owned by LAPGreen,” the statement reads.
The company says it has over the last few weeks made numerous attempts to find an amicable solution that satisfies both parties to the transaction and secure the best possible outcome for its employees and subscribers.
LAPGreen insisted that its acquisition of Zamtel was made through an open, transparent and competitive bidding process, overseen by well-respected international professional organisations and in strict adherence to Zambia’s established legal framework.
“We hope this situation can still be amicably resolved and we welcome an opportunity to work with the Zambian government to achieve this.
LApGreen said under its ownership, Zamtel has moved from a state of near insolvency to become a national success story.
“As well as growing Zamtel’s subscriber base by over 600 percent in just over 18 months, we have created 1,700 jobs in Zambia,” the statement reads.
The actual number of jobs according to government reports is actually 700 which is down from 3,000 when the company took over.
The government after a probe has established that RP Capital grossly undervalued the company before it was sold to LAPGreen and that thus far Zambia has only received US$15 million from the Libyan company out of the agreed US$257 million.
The transaction has sucked Dora Siliya, the outspoken Petauke legislator, George Kunda and Situmbeko Musokotwane, the former Finance Minister who yesterday faced investigators at the former task force offices.
LAP GREEN should consult privately with RB; there are luck to know that the government will compersate them back, which is deplomatic and wise thing to do by the pf.
Come on go back to your country. We will find other investers rupia was dealing with kadafi over zamtel. Sha
Such bullshit sanyig the original is the best. The first guy to play Hamlet wasn’t the best. Hell the first person to play Juliet was a freaking GUY doesn’t make him the best. Idina is not the best hers is just one interpretation of the character.
Come on go back to your country. We will find other investers rupia was dealing with kadafi over zamtel.
Sound reasoning A-G. Reassuring that the matter will be resolved within the provisions of the law.
5-9 ce1c anh trong band m?i chednh th?c ve0o phf2ng thu, thu xong cf2n ch?nh s?a master, mix ?? ki?u sau ?f3 l?i xin gi?y phe9p, dgiesn cover n?a. Che0 che0 1 the1ng me0 le0m b?y nhieau ?f3 th? thec qu? le0 c?c k? n?ng n?. ce1c fans ch? ??i m?t s?n ph?m ch?t l??ng nean cf3 tr? ?f4i ba tu?n c?ng k sao c?.
[-( The guys are ready to work with the government of the day, give them a chance pf. we all make mistakes once.
Zambia lets be careful with the way we deal with the future. How we deal with this will have future consequences. Dont just react without reasoning, libyans have been our friends lets not destroy our commuradeship. Already Angola, SouthAfrica, Malawi and other SADC countries do not trust us. A MAN IS ONLY AS GOOD AS HIS WORD.
Dora should compensate them
@KAMALASHA…DONT INSUNIATE….why believe in rumours and who told you that we are not trusted by these countries?…if your neighbour does something wrong…nikumuuuuzhila tu…..be assertive and let them not play with our resources….
LOL!! Decide?? Get your facts right AG. This contract was signed by the Zambian govt not MMD. That is why you should have gone for arbitration rather than rush into revoking the sale. The govt is now in breach and you have to pay LAP Green, who will be laughing all the way to the bank. Not just compensation but damages as well. THINK before you ACT. Thats why its called a Contract. You just cant throw it away. Legally, its still one government. Interational law doesnt recognise PF or MMD. Its just Zambia. Thats why the MMD governemt found itself paying for debts incurred by KK’s governemt on tractors bought from Nicolae Ceau?escu’s Romania. Even though both KK and Nicolae Ceau?escu had since been deposed. Thats why maturity should have prevailed. THINK!!
HOW DO YOU COMPASET A THIEF?
Iwe chkala where is it written that lapgreen are thieves? just compensate them,why running away from facts in the name of thieves stanioko!!!!
This is an important observation. If LAP Green was involved in malpractice, then they don’t deserve compensation. Just like of one os found with stolen property, he is made to pay in addition to losing that property. If the Government has facts and proves that LAPGreen was fraudulent, they don’t deserve compensation. I hope PF did its homework well.
# 5, there is sense in your words. we must understand the Qaddafi system had forget links to most of the corrupt governments across the content. The NTC in Libya has the same mandate as the PF viz to fight corruptions and reverse most of the corrupt acts that were done under the previous regime. On this basis, let me say that LAP green is under new owernship and I want to think that they are willing to recognise the fact that Qaddaffi system and Rupia-MMD system are corrupt and should be dealt with. I am for the idea of reworking the deal rather than reversing. What do you think blogger??? It is a fact that PF have not consulted LAP Green and have failed to recognised that it is under new NTC government, different from the regime that corruptly undertook teh deal.
Are you crazy????????? NTC is the very reason we should cut off all ties!!! bloody hell you are dull you cant see whats happening all over the Arab world and Nigerioa with these crazy islamist rebels / gvt.. The west have even admitted to not understanding the rebels… and you expect a responsible GRZ to leave strategic security assets in those hands???? In fact RB/Musokotwane/GK Must be Tired for TREASON..
# 9 Independent your comments are disappointing. A point of correction. MMD was the Zambian Government. PF Government has done a remarkable thing majority Zambians are proud of. The Reversal of ZAMTEL was enivitable. We are talking about NATIONAL SECURITY HERE. NATIONAL SECURITY is the pillar of any Country’s SOVEREIGNTY. PF Government has highly educated men and women and they know what they are doing. For the first time in Zambia’s History Zambians (Except MMD Cadres) have confidence in the Government. ZAMTEL IS FOR ZAMBIANS talk all you want we are not interested Mr INDEPENDENT
#9 Damn. There is no such thing as MMD being government. Please read a little. Governement is government irrespective of the party in power. Any agreement that PF enters into now will be binding on any future governement, whatever the party in power then. This agreement was not signed with MMD, it was signed with the Zambian Government. If PF wanted to reverse the agreement, they should have taken the evidence of wrongdoing that they had and gone to arbitration. Thats just the way it works. This is not about the merits of the reversal. Its about the process followed. Whoever signed that contract was acting as a government official. Unfortunately, you just cant throw a contract away. Thats the way it works, whether PF cadres like you like it or not. FYI, I am not MMD
The reality is Zambia is going to pay heavy for putting a grade 7 in state house… watch this space. Libya has enough money to hire the best lawyers to fight this one… you do not settle political score by being foolish Mr Sata. You are going to be given a metal as the most useless president Africa has ever produced at the rate of which you are going in the last 4 months. You kaponya supporters will cheer you off the cliff.
Ba Engineer, it’s ‘medal’ and not ‘metal’. This ain’t not mistake because where ‘t’ and ‘d’ are placed on the keyboard, one can’t claim to have made a mistake! Ubu fontini bakolwe bampili!!
Sorry you will be given a medal as the most useless president Africa has ever produced
Real Engineers don’t brag. Stop embarrassing us.
Govt should not even compensate those Libyans, first collect the fraud acquired money from mama bokosi, GK, AlaB and Jemusi. These people are sitting on millions of dollars only God know where its stuffed. The fight is not over until the stolen money is unearthed, Bank of Liato and other banks to be mentioned might be keeping the money. Collect from those swindlers mama bokosi, GK, AlaB, & Jemusi. I rest my comments…..
only corrupt people who do not have Zambia’s interest at heart will speak negative about the reversal of ZAMTEL. Communications is pivot to National Security. Therefore, we should be careful who we put in charge to run our telecommunications. Money laundering seem to flowrish in developing countries due to luck of control elements. It’s amazing to see PF government’s swift action to restore Zambia’s dignity which investors will appreciate. Compaseting LAP Green is a strategic deplomatic move.
Dear Zambians,
There are lessons that you and i should learn from the ZAMTEL saga.my message goes to the youths especially those aspiring to be leaders of tommorow.We should always endeavor to do the right thing,”the minority voice today could be the,majority voice tommorow and the majority wins”.Nothing is as worse as a contract been declared illegal,you can not enforce an illegal contract.The LAPGREEN holders fate now hangs on the amount to be so compesated as prescribed from their agreement.An office should always be differentiated from an individual,the likes of DORA SILIYA, SITUMBEKO MUSOKOTWANE AND GEORGE KUNDA should have known better.We are but only the future leaders,lets learn and collect the mistakes.
For ideological reasons, Sata’s regime has finally expropriated Zamtel from the legal owners – Lap Green. As a patriotic Zambian I am urging Lap Green to take the expropriator to a court of law in London for obvious reasons. High court judges in Lusaka have failed to protect a foreign investment even when there were assurances of investor protection mechanisms. The problem is that Sata has not been through school, but the attorney general should have advised cabinet that for breaches of contract, unless specific performance is awarded, claimants are compensated by an award of damages which aims to place them in the same financial position they would have been in had the contract been performed. Sata does not understand the word “breach of contract”.
big notorious am sure you know that if you buy something which was stolen,you will lose it if the matter is taken before the law and no compensation,am sure you know why they say don’t buy stolen items.its a little similar to lap green,those guys well new that they where doing the wrong thing so they should pay for that.anyway let us wait for govt to decide.ghadaffi and his regime liked short cuts no wonder he had to hide in a pipe,he thought it was a shorter way to hell.yesterdays game was zamtel against lapgreen,it was a draw but in the sale issue its a win for zamtel.
@Zibwidi.
It not for you to decide on the compensation. Don’t think that the AG is talking from without. Lap green pleaded with you to reason but you refused.
When you compensate lap green up to 3 billion dollars . That will be the best turnover in telecommunication for an acquisition within a year.
That is why there is investment. to make profit.
@11 Mulikishi… …Are you crazy????????? NTC is the very reason we should cut off all ties!!! bloody hell you are dull you cant see whats happening all over the Arab world and Nigerioa with these crazy islamist rebels / gvt.. The west have even admitted to not understanding the rebels… and you expect a responsible GRZ to leave strategic security assets in those hands???? In fact RB/Musokotwane/GK Must be Tired for TREASON..
Dora should be the one to give them their money. Let her pay them before she goes into jail. Mat-ako yakwe!
So up to now Lap agreen has only paid $15m? This is another reason why the take over was necessary. Compassion will be based on the $15m they have paid at and not the 3 billion which some mentally retarded person is dreaming of. We only compass ate in billions if they have paid billions. Full stop.
Progressive urbanite, It shows how shallow and premitive you are. What has London or Britain got to do with LapGreen corruptly buying Zamtel? Zambians said loudly they don’t want to sell Zamtel. Maybe you don’t much about this saga, Ruphia and his family, Situmbeko Musokotwane, George Kunda and Guy will K2.1billion were heavily involved in this corrupt selling of Zamtel. Why is Situmbeko always speaking on behalf of Lapgreen? How did Situmbeko manage to buy a house in one of the afluent areas in London, where the 2bedroom house costs £2million. Situmbeko’s house is more than five bedrooms.These people had no heart for a common man on a street. If you have close friends from the intelligency wings they will tell Ruphia benefited more from Gaddafi, trunks of money at KK int-airport
you use a sword,it will be used on you.try musokotwane today,your time of trail is also coming and you will remember the wrong things you did to others.
try others you will also be tried.
This appears to be an after thought after the takeover annoucement
Or more boldly put ,damage control.
I hope everything ( Legals loop holes) has ben taken care of as large sums could be lost.
Investing in foreign countries involve alot of due dilligence,audit of procurement procedures and powers of attorney for the signatories .
What type of people are in the boots of situmbeko who would commit his own country to very hash conditions such that repossessing his own asset becomes difficult? was the infrastructure of zamtel built by a foreign country or was it built by zambian tax money? for Gods sake, zamtel is not like zcbc chain stores which cannot be a security risk if at all it fell in dirty hands. Yes any govt can reverse deals that were done by their own people and we have seen how china protects its industries and how japan too protects its own industries even if such utility companies like the postal services of japan are in private hands. for your own information developed countries are so clever that they allow their own citizens to buy out govt owned coys so that investment circulates within the country
Progressive urbanite indeed.
the engineer from australia, did you do your engineering in zambia or australia? if you did your engines at either Beng-UNZA or Sot-CBU then waliwa mwana!
Hold on a minute bloggers. LAPGreen has done nothing wrong from the report of the inquiry everything points to the previous government. Its us who undervalued, its us who did not follow tender procedure and its our laws that they followed. If they sue to the international court you will pay dearly if you refuse to pay all foreign assets will be seized. Let us be smart about this one. Investor confidence will go down same with the kwacha.
Damage control here,its not Govt to decide to compensate.All dunderheads please READ THIS……….. “The acquisition was done under a piece of law which provides for compensation and what remains is to determine the level of compensation, depending on the losses the country suffered,” Mr Malila said.
If what the PF regime has done is right and legitimate, why are they so scared of a court case in London? I am prepared to give Lap-Green the best advice on how best to get back their money plus any costs that have accrued. Zambians in the diaspora know how financial markets work and the dangers of reneging on contracts. Let Zambia pay for this sickening behavior.
I note that the government never mentioned compensation before they decided to repossess Zamtel. If this was known I (and other citizens) would have debated differently rather the way I supported the move wholeheartedly. Are there things that have happened since the takeover which we have not been told, as in donchi kubeba? Honestly how did you expect citizens to debate this issue intelligently if they were only given half the information? If the government legal advisors have only realised the pitfalls of this action then I am scared.
Ladies and gentlemen, some of us warned on this platform that zambia will pay dearly for this and you thought we were joking. Am sure reality has NOW dawned. Goverrnment rushed the takeover and overlooked all the obvisious legal provisions. Looking at the behavoiur of the police, am sure LAPGREEN will not spare this country. The president is abusing his executive authority and all of you are watching, including very educated people. Well, the drama is just UNFOLDING.
If we end up swallowing our pride and giving back the company to Lapgreen, Zambians will be walking foreign lands while hiding their faces in shame.
HO HO HO
I see there are too many lawyers on this blog waiting to represent GRZ. The only problem is that you have a client who isn’t giving your sufficient facts. If all of you can represent govt, I believe we will succeed in our case
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I am amazed to first read the article and the guts of the AG to come and comment of thinking of compensation. Now going to the commision report just to put facts right tell me one person who has been implicated or punished from the deal of Zamtel. How can a reversal happen without actually punishing the people who were involved in the deal. That would have been the only limus test for the GRZ and public if someone would have been actually proved guilty and punish. All was done on adhocism and even the GRZ would be looking for money to pay back. For information of all Telecoms are never evaluated on building and equipment but on the numbers of subs so they say $81 Million was the value of the company. Sub at the time of sale were 140K so now Zamtel has 1 M sub Zambia may have to pay $1 Bn
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