Zamtel in huge losses, firm is technically insolvent-Auditor General

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Zamtel

The Auditor General has released a damning audit report on state telecoms firm ZAMTEL which shows that the company has been making huge losses since 2011 when the Libyan investor Lap Green was forced to exit the firm.

The report which part of the latest Auditor General’s report on parastatals carried out in July last year and released this week shows that ZAMTEL is technically insolvent.

A Statement of Comprehensive Income shows that the company recorded losses of K50, 648,000 in 2011 and K224, 039,000 in 2012.

It also shows that although revenue had decreased from K573, 120,000 in 2011 to K390, 381,000 in 2012, the cost of sales had quadrupled from K4, 968,000 in 2011 to K19, 426,000 in 2012.

From the statement of financial position, shareholders’ funds had greatly reduced from K624, 258,000 in 2011 to K385, 980,000 in 2012.

The report shows that technically, the Company was insolvent and required urgent recapitalisation by the Government who was the only shareholder.

In 2012, Zamtel had a current ratio of 0.62:1 implying that the company could not settle current liabilities as they fell due.

The ratio was below the recommended 1:1 in 2012.

The company had a negative working capital of K183, 031,000 in 2012 meaning the company’s current assets were insufficient to cover the company’s short term liabilities.

As of October 2014, the current auditors of Zamtel had not yet finalised the 2013 Financial Statements due to the lack of official position from Government on how the K1, 521,211,274,372 for the settlement of liabilities prior to privatisation of Zamtel to Lap Green.

In 2010, prior to the privatisation of ZAMTEL, it was a requirement in the takeover agreement for Government to settle all forms of debt owed by Zamtel before the actual takeover and Government funded amounts totaling K1, 521,211,274,372.

An analysis of the statement of financial position as at 31st December 2011 and 31st December 2012 revealed that Zamtel treated this settlement of liabilities by Government as a Capital Reserve but since 2011 and 2012, there had never been any official position from Government as to whether it was a Grant or a Loan to Zamtel.

The International Accounting Standard (IAS) 20 states that a Government Grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in the income statement of the period in which it becomes receivable and that Grants related to income are government grants other than those related to assets.

Grants related to income are sometimes presented as a credit in the statement of comprehensive income, either separately or under a general heading such as ‘Other income’; alternatively, they are deducted in reporting the related expense.

During the period under review, Zamtel had no ICT Strategic plan and no approved information security policy as of August 2014 resulting in procedures related to backups, password management, change management, mobile computing, user acceptance administration, disposal of IT equipment and privacy issues being conducted without any policy direction from the board.

As of August 2014, Zamtel did not have a Continuity Plan (BCP) and Disaster Recovery Plan (DRP) and related infrastructure necessary to support continuity of business operations.

The audit report shows that if adverse conditions occurred including fire or significant damage to infrastructure such as the office buildings housing the customers’ records or data center significant financial and information losses would be incurred.

It is, therefore, unlikely that Zamtel would be able to resume normal operations within a reasonable time period and recommended that management should ensure that a BCP and DRP are developed and implemented.

On a review of the asset register for Zamtel revealed that the Company had one hundred and fifty nine (159) properties without title deeds. While these properties exist, there was no proof that they belonged to Zamtel as the company did not hold title to them.

The Lands Act No. 29 of 1995 requires that institutions or individuals owning land should have or possess title deeds as proof of ownership.

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131 COMMENTS

  1. Uko wapya munzi again.

    There is no way parastals run on family tree basis can be profitable.This is why some of us opposed the re – nationalising of already privatised companies. Best way would have been to get it back and sell it to locals.

    The state of affairs at ZAMTEL means, the company is a financial drain instead of being a net contributor to the government coffers.

    The trend I fear is the same for all state controlled companies.

    What happened to the INDECO re-establishment plans?

    Best way is to sell the company’s shares to local investors like UK did with their BT.

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    • hmmm imwe are these figures in rebased or base currency before sata? pant ama trillion tulemona an d millions are scary figures. elo bambi ati we are in good hands kaili niba dr. mwanakatwe running it. there i prove my point again. zambias so called educated are the worst of us. just mere regurgitators of knowledge. slaves more or less.

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    • They have made Rupiah a hero for he is now able to make reference that he was after all right to have privatised Zamtel.
      Government has no business doing such business; leave it to corporates. Government is to govern; that is its mandate. Privatise Zamtel as it has failed to pay us the owners dividents.

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    • I agree with you 100%. I think us Zambians need to change our mindset. When Zamtel was nationalized by Sata, people were busy clapping for the PF government. Reality has dawned on them that it is not as easy as they thought. If Zamtel goes under, it will leave a lot of casualties in the economy and it will take take time to recover. The idea of getting fresh capital injections from government is unthinkable because of serious cash constraints.

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    • Check Zampost as well. The Auditor was asked to leave when he queried most of the Irregularities was asked to leave by the Post Master General PMG.

      The PMG has now teamed up with the Union President and they have retired the Union General Secretary without following procedure because he wanted the audit reports to be made public and errors corrected.

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    • Correction:

      Check Zampost as well. The Auditor was asked to leave when he queried most of the Irregularities by the Post Master General PMG.

      The PMG has now teamed up with the Union President and they have retired the Union General Secretary without following procedure because he wanted the audit reports to be made public and errors corrected.

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    • Ifintu ni Lungu…continuation is the name of the game…try to educate a Kaponya and he will tell you that “Ni Lungu chabe”….well ni Lungu chabe when the country is now moving in reverse gear…and the kwacha keeps falling…Zamtel is running at a loss since 2011….since when….2011,ok then

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    • If Zamtel has made such loses what more Zesco and ZRL. I fear even money meant for pensioners at NAPSA is just figures on paper while the real cash grew wings and flew away.

      All government run institutions that handle money should be audited to find out how the money allocated to them was used.

      This culture of recklessness can only be corrected if the president is an experienced corporate manager like HH.

      For things to get better, Zambia needs a technocrat to lead the nation and give it a sense of direction.

      ZWD is on record saying PF has bankrupted the government coffers. Some thought it was a lie. Here we are now, the chickens have come home to roost.

      Only HH ‘s team can manage this country better.

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    • These PF appointments because of names, if you have a name of MWANAKATWE, then you are qualified to run a company of any size like ZAMTEL.

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    • This is really sad but it was expected wasn’t it? The Sata administration was way in over their heads.Prospects at Zamnet were starting to look up after LAPgreen but it’s like Zambian leadership has a way of attracting failure. Isn’t this the company father Bwalya was board chairman of? You can’t put cadres in positions that require critical thinking.Cry my beloved Zambia!!!

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    • @ Wanzelu

      ON THIS ONE, I TOTALLY AGREE WITH YOU MAN. REPOSSESSION WITHOUT A PROPER ICT STRATEGIC PLAN WAS A MESS. REPOSSESSED BUT WITH NO DIRECTION. THIS MONEY, RB MUST EXPLAIN WHERE THIS MONEY IS. WE CAN’T JUST FORGET ABOUT SUCH AMOUNTS OF MONEY.

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    • Bane

      Where are the following PF praise singers?

      @B R mumba Sr, @ Saulosi, @ Gen, @ Peter @senior citizen.

      I really want to hear their excuse for such gross mismanagement, and embezzlement on a grand scale as a result of PF running parastals on family tree basis and nepotism (tribalism).

      They must be ashamed even to comment on this matter.

      Please guys come out of your hiding holes and say something.

      PF political officials have privatised all the government money and sent it off shore.

      With such bad news, the Zambian economic outlook is really bleak under PF no matter who leads it.

      The kwacha will react badly to this and fall dismally. Then PF id0its will as usual attribute its fall to global trends.

      Only HH ‘s team can stop this recklessness.

      Viva HH and…

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    • @Wanzelu my Br, it pains me and heart bleeds.These people with thieving culture will mess up our country.Zambians missed a chance to know how much money Sata and Nsanda stole through euro Bond Road contracts.I am at pains how a standard 2 could dribble very educated Zambians by using road contract to steal money and Bank it in Turkey and the far east.What a shame to poor Zambians who are busy saying pabwato pabwato my foot when it is our children who will safer baying back these huge Kaloba through tax payers money,when Sata’s children will be rich till jesus comes.

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    • THE REPORT IS OUT BUT IT ISN’T SOMETHING ANY ZAMBIAN SHOULD REJOICE ABOUT AND START TAKING ADVANTAGE OVER FELLOW ZAMBIANS. THIS IS NOT JUST GRZ PROBLEM BUT EVERYONE, AND IS NOT A TOOL FOR GAINING A POLITICAL MILEAGE AS IT WERE. BETTER DON’T SAY “HH” THIS OR “LUNGU” THAT COZ BOTH WEREN’T PRESIDENTS BUT ONE IS NOW. EL IS NOT THE ONE TO BLAME, HE WASN’T THE ONE PULLING STRINGS NOW HE IS. WE JUST WAIT AND SEE HOW HE WILL HANDLE THIS AS OUR CURRENT HEAD OF STATE. PROBLEMS WE SOLVE ARE NOT ALWAYS CREATED BY US, SOME ARE JUST INHERITED, OTHERS ARE BROUGHT TO OUR TASK. THEREFORE I APPEAL TO UPND, PF EVERYONE: YOU OUGHT NOT TO FEEL VINDICATED COZ THIS IS NEW TO EVERYONE EVEN YOU. AND YOU OUGHT NOT CELEBRATE NEGATIVE NEWS.. GRANTED WE ARE ALL SADDENED BY THIS OUR LOSS OF HUGE SUMS OF MONEYS…

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    • This reads like ZISC in 1999. GRZ where ready to sale the insolvent company but then by some chance of fortune the GRZ brought a new CEO Singogo, things changed for the better am sure Zamtel can rescued by getting the right person at the top good directors and a clear plan… But I guess we have to wait for HH to make bold moves

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    • @Wanzelu, so true. All parastatals including Zesco, ZISC, Zamtel and Zampost be privatised. Give them to locals to turn them around like CEC and many other shining examples of Zambian run companies. A well known and well run Zambian conglomerate had shown interest to buy ZISC and Zampost as it fits well with their growth plan model. Had Mr. Sata been in good health this would have fructified in 2014. ZISC is another company resorting to living beyond its means and is being used to siphon of money through overcharging government and parastatals. Government officials are a part and parcel of the scam. Auditor General shall conduct audit of ZISC group of companies and expose the scam going on since 2011.

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    • The way ZAMTELwas sold to Lapgreen of Libya by RB and his sons was wrong and illegal. But the manner in which it was grabbed back by Sata was also wrong. Firstly selling off the only communications company to foreigners is absurd and a security issue. If Lapgreen had started a new communications company as competition to ZAMTEL it would have been understood. Secondly selling it to Libya which then did not allow freedom of speech was irresponsible. They even monitored texts within their borders.
      Sata grabbed back the company thereby financially punishing the Libyans whose only crime was to buy ZAMTEL. As soon as LG withdrew everything went down the swaney. Result is Zambians will suffer because they will be out of jobs. Will ZAMTEL ever rise?

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    • This is the true legacy of one leader and his party. PF no wonder you hate social media, because you are told the truth that you are a failed project, just forcing matters to become a programme.

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  2. This is what happens with vindictiveness,,, you kick out lap green and make the company your own then you employ cadres expecting to make profit

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    • I agree with you here. Its not only that they are cadres but it seems these cadres have cronies who choose to participate in the mismanagement of this company because they are somehow benefiting. Looks like this CEO is sleeping, he doesn’t look at the Financial statements. And the fact that they have been making such huge losses while still receiving grants and nobody said anything is appalling. Kaili in Zambia, when one steals from the govt ninshi “tebile mwi tumba lya banoko ch!kala”. Shame.

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    • Cadres have infiltrated parastatals. The sad thing is these companies like ZESCO,ZAMTEL have the monpoly if the services. When they perform poorly everyone suffers. Thanks to Sata we are seeing thatZAMTEL is on its last legs! No plans to improve companies but just grab, grab and fikaisolva attitude.

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  3. Fire the CEO. We told you that Mupanga Mwanakatwe is a joker and a perpetual failure who was going to run down Zamtel but you insulted us. This financial position is a catastrophe. Fire this guy and dissolve the board. Get professionals to run this organisation.

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    • This is what happens when all appointments are made by Presidential decree.

      Wind the bloody thing down and voila, cadre back on the street.

      Grow up and learn to fend for yourselves rather than relying on relatives for jobs.

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    • I can run it better. Where do I submit my CV? Its unfortunate that in Zambia its the surname and who you know that counts not one´s achievements.
      Can one show us Dr Mwanakatwe`s record of achievement in industry?

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    • The Mwanakatwes here the mwanakatwes there! Mupanga will never equal his father John, a total failure attached to his wifes apron’s strings. If the Mwanakatwes were as intelligent as they are perceived they should have been running their own firms and employing thousands. These two are gullible and thrive on huge corporate salaries which do not reflect their intellect input. They are total failures in the REAL corporate world but revered in Zambia. Mupanga by now should have been running his own high ITC firm and Dudu a micro or macro financing fimo fimo, nomba matrix ya mu Zambia …..

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    • These Kolwestans come in Government to feast.HH has been proved right when he described late Chiluba as Monkey in the maize field and when he with draw from the PF/UPND alliance ,he told Sata to agree on plans not only sharing positions.Ati fintu ni Lungu we shall see if you will eat Lungu,when Zambia’s Economic problems reach the Zimbabwean level.When we talk you call as biter.

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  4. Since the era of cell phones companies dealing in landlines have been on the receiving end, not only Zamtel! How about that? Hahaha!

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    • So Zamtel does not have a cellphone service? Is it not Zamtel that have the primary towers that they rent to other cell phone providers and also ISPs? How old are you? Does your mum know you are playing on the internet?

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    • Bwana wake up. Zamtel can still make profits just from Mwembeshi satelite station alone. How about the CelZ section. Lets just accept that ba Sata balyonaula ifintu. President lungu has a lot of work to do to correct the wrongs that have been done in the past three years. RSZ na Kafue Nitrogen Chemicals will just keep on draining the national cophus. They will never be profitable! Bane Chiluba tantumpile! He followed advice from the experts. Wait and see uko tuleya. But Zambians we are to blame ourselves. We enjoy icimwela muma politics. Popularistic politics.

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  5. The monster is a liabilty to the treasury. Please God open Edgar Lungus Eyes. Let this entity be sold to whoever wants the hastle and liability. Sold for parts.

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  6. It’s quiet shocking to note that ZAMTEL is making losses.Where on earth a telecom company is making a loss?Zamtel can be the company to make profit in Zambia.Zamtel should make internet affordable to everyone in Zambia.Let them use internet as a source of income.Why can’t they reduce unlimited bundles to K150 to each house hold in Zambia?Iwe mwandi we need engineers in this country in order to develop.It doesn’t make sense a country to be full of accountants and lawyers.IT specialists and Engineers are paid nothing.This country will never develop so long as Engineers are not well trained and supported.There is no country which will develop without local innovations.

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    • @ 9 Moscow(Op)

      One needs a brain and business acumen to be able to run a business of any kind. Let Lap Green come back and you will be surprised to see ZAMTEL making huge profits again. It’s not any PF cadre who can be CEO of any company. But that has been the mindset within PF, at least during the Sata era, not knowing now.

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    • Mupanga Mwanakatwe the actual Zamtel Boss is an IT Expert. There is a difference between a person who relies only on theories and the one that puts to practice what one has been taught.

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  7. Hmmm indeed this is a disaster! Makes the Hans Paulsen management look like super heroes.

    Now you see a company bent on marketing campaigns at the expense of bottom line..extravagant buying anything their eyes could see. Apart from being fired these guys need to be investigated for embezzlement

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  8. Music to my ears! I now see God’s logic,,,, if HH had won, Zambians would have been shielded from the suffering they are about to endure and would not have learnt the bitter lessons of voting on tribal lines. God has insisted that you people reap your bitter fruits, only sad aspect of this is that the most innocent and vulnerable children who had nothing to do with the mess because they cannot vote in the first place will be the hardest hit. Shame on you!

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    • Call me what you want, but one of the opportunities missed during the just ended election was many financial exposure like the ZamTel debacle. One of the many should-be-audited entities is RDA. Its only when such truths start trickling through to the masses that people will realise what an incompetent and self fulfilling government we have lumbered ourselves with.
      How I hope time will expose all these iniquities.

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  9. This was an expected outcome. Zambians have always suggested that employment should be based on who is qualified for the job and not because someone is a son to this household name so he must run the Institution. It is not like father like son or daughter. Some of these people got their education not because they are intelligent but because they happened to be sons and daughters of Educated fathers who had the brains and may not be said the same for their progens. ZAMTEL of course all of us agree should not be sold out or privatised, but let us get qualified personnel. Already there is an issue by named appointed Minister with the Ministry of Finance. As Zambians let us not be mediocres when it comes to our industrial base issues. You may play around with community development.

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  10. Though i m not sure of the exact figures, the loses by Zamtel are expected, given that the company has been run by unqualified people

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  11. Meanwhile through mr PROPAGANDA the government is busy strategizing on how to clamp down ZWD. This whole thing is really a circus. We told you so!

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  12. so sad. Well, like all parastatals Zamtel is a mirror image of the govt, incompetent, directionless, clueless, visionless, a catastrophe that’s always happenning and will continue on the same disastrous path forever. Things can’t get more id!otic than this. I feel terribly sorry for Zambians to be at the mess of such a charlattan govt.

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  13. Face it guys,
    Business is alien to Zambians.
    You were made to be consumers.
    My 35 years in Chipata/Ndola/Kabwe/Chingola taught me this.

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    • I agree with you Ex Chingola Indian. Managing anything is alien to Zambians. This is why Zambia is just a province of South Africa businesswise.
      Zambian prsidents must move away from the habit of adoring certain names. Not everyone with a Mwanakatwe, Kapwepwe, Kaunda, Nkumbula, Mwanawasa, Banda, Sata etc. name has what it takes to hold positions of responsibility. They are not the same as their great fathers.

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  14. To add insult to injury ZICTA prop up this loser called ZAMTEL at the expense of other Telecoms and ISP’s on the market. It is the only entity allowed to operate both retail and wholesale. It does not allow any other ISP to share its fibre optic its killing the market as well as the treasury. Zambia will never have cheap internet at this rate.

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  15. A good reason for president Lungu to dispose of tired brain Alexander Chikwanda and his UNIPENOMICS.

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  16. As of May 2011, the Internet is a fundamental human right. The cost of accessing the net in Zambia is so ridiculously prohibitive that it makes the whole idea of running a national telecoms company a joke. By now this company would have worked out value added services to offset the urgently required roll out of Internet services to the population. What is wrong with us? Is it that we must always be personal even when we must serve!!??

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  17. An old dog will always be an old dog. That’s what Alexander Chikwanda is – he is un-teachable and un-advisable. What a liability he is to this newly refurbished PF!

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  18. This is plain gov’t corruption, fraud. Since 2010? What is the point of this Auditor Generals Office. They don’t do much Auditing do they? It seems they just announce when things go wrong!

    Zambia Airways etc. all over again. Nothing to do with education, or lack of management. Just plain thieving mindset.

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    • @Patriot Abroad
      Don’t you think the timing of this report is suspicious? Its not a coincidence that just when Lungu takes over, they release the information that Zamtel is making losses meanwhile they were busy issuing grants even when they had knowledge of the losses. This is why Henry Banda ran away, the Lap Green issue. Now, I wonder who is going to broker the next deal for the ZAMTEL takeover because I see it happening soon.

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    • DOWNLOAD COMMISSION OF INQUIRY REPORT OCT. 31 2011
      Recommendations of the Commission of Inquiry ( Report 31 October 2011)
      www(dot)lusakatimes(dot)com/wp-content/uploads/2012/01/zamtelfinalreportp(dot)pdf

      UPND Cadres are all over this story like a rash. A lot of misinformation and current gov’t bashing. But really this problem of ZAMTEL and ZDA mismanagement has been around for a while. ZDA was tasked to monitor the progress of ZAMTEL after it reverted back to gov’t.
      —-
      3. Zambia Development Agency
      31 October 2011
      i.
      The ZDA senior management must be held fully responsible and culpable for the grossly negligent and cavalier manner in which they conducted and “oversaw” the sale of Zamtel.

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    • ii. ZDA should immediately account for and render the balance of GRZ proceeds received for the privatization of Zamtel and must immediately transfer the same to GRZ.
      iii. ZDA must forthwith focus on monitoring post privatization a provided in the ZDA Act.

      The Zamtel sale was a clear case of economic sabotage which pervaded and compromised key GRZ institutions to the extent that GRZ decisions and policy were being managed by a foreign consultant. The full extent and continuing effect of these actions can only be determined if a full scale and thorough comprehensive forensic audit of the Zamtel privatization process is instituted.
      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…

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    • 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.

      It’s clear this is a complex matter and the current gov’t inherits the problems. As for President Sata, he WAS CORRECT to takeover from LApPG. Because the sell was undervalued and illegal. SO WE HAVE NOW A PREORDAINED ‘SPOT OF BOTHER.’

      It’s UPND ‘Cadreism’ Manic Friday the 13th behaviour! Today ALL THE GHOULS ARE OUT OF THEIR SUBTERRANEAN ABODES.

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  19. Ba Zambia finshi mulefwaya natwishiba fwe bene eeeeh Lungu eeeh Lungu eeeh Lungu eo tulefwaya x2

    This song will be meaningless in the next few months….mark my words
    PF has failed and Lungu will make things even worse…no vision of his own….continuing on Sata’s failures

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  20. And a PF Cadre on the street is busy saying “ifintu ni Lungu ” sad sad sad sad very sad indeed.

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    • Meanwhile he has family members queuing up at the hospital only to be told there are no chemotherapy drugs, no ARV’s and is given a prescription for Panadol.
      He has no food at home, can’t afford to send his kids to school.
      why? A combination of ignorance, hero worship/idolatry of certain leaders and misplaced pride…
      The system is broken, has been for a while. when someone wants to fix it a iyo he is the wrong tribe. Mano ya shani?

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  21. I applied for a Zamtel line transfer and paid them cash in November 2014. Todate, the line hasn’t been transfered. The reason: The man in charge is on leave. Can you imagine how, a company with such attitude can survive?

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  22. UNIP and Kaunda did all that experimentation before: courtesy of Karl Marx, Russia and Cuba. It was needless for PF to re-invented the wheel. Now, it’s Lap Green’s turn to laugh at us.

    For Sata and Chikwanda at the time, it was heroism – a case of national pride; or so they thought. That is what one does when he is clueless – put his ignorance on display for all to see! The longer Mr. Chikwanda is allowed to continue messing things up, the worse it will turn out for this seemingly sharp and vibrant young president.

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    • @Mei matungu

      You are absolutely spot on. There is no need to re -invent the wheel.

      In the face of this huge loss, you will hear Kambwili ‘s reaction to this.I guess he will say Zamtel needs to increase the fees it charges to stay profitable.

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  23. @JO. I AGREE. HAVING DEALT WITH ZAMTEL DURING THAT PERIOD OF LAPGREEN I COULD SEE THE ATTITUDE OF WORKERS WAS SLOWLY CHANGING AND IMPROVING. TODAY THE ZAMTEL OF PTC ERA IS WHAT IS PARTAINING. ZAMTEL WORKERS HAVE A HORIBLE, HORIBLE ATTITUDE TO SAY THE LEAST. JUST GO TO LEVY MALL OUTLET AND C 4 YOURSELF. THEY ARE ALL BOSSES!!! ITS THE ONLY ISP COMPANY WITHOUT CUSTOMER CARE. IF YOU HAVE A PROBLEM WITH ANYTHING TO DO WITH ZAMTEL ON FRIDAY AFTERNOON JUST WAIT FOR MONDAY. THESE CHAPS ARE THE LAZIEST WORKERS I HAVE EVER SEEN. NO MANAGEMENT WHATSOVER, NO SENSE ON BELONGING, AND ALL THESE WORKERS JOINED AFTER SATA REPOSSESSED FROM LAPGREEN. ZAMTEL SHOULD BE PRIVATISED AND ALL NEW WORKERS WHO WERE EMPLOYED BY SATA BE RETENCHED.

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  24. Okay on this one now that the Cobra is no more (MHSRIP) this new man must make reforms as soon as he possibly can. Otherwise this ZAMTEL monster is a goner! The problem is it is run by meat heads!

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  25. I once sent them a proposal to help them fix some of their technical issues for free since i thought im a Zambian let me help where i can. That was almost 4 years ago. Till now, no response….. so you can see that the fish is rotten from the head in that organisation

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    • Okay Zamtel, like many parastatals for example ZESCO have not been prudent in their performances. How can ZESCO be owed $110 million dollars in debt by one company called KCM? What about other things that we don’t know yet?

      Mr President, now that you have your cabinet, please ensure your bring sanity in these institutions by making serious changes. They are brilliant young people who can do better than these people who survive by support from some failed Ministers some of whom you have retained in your cabinet like ba Chikwanda. The man is tired and cannot be Minister of Finance in today’s competitive world.

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  26. And someone wants to place blame on ECL after only 3 weeks in office? Get real! When LapGreen was kicked out it was to the jubilation of the whole country and you don’t want us pulling up what Upnd and hh said in support of the decision. I believe the reasons lie where they can be found and solutions cannot elude a country full of self-praising pseudo-intellectual Tongas….koseni tuchili tuleteka

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    • @ Kapolyo

      Have guess, who signed deportation order for LAPgreen MD? Who sent armed police to his office? Who reappointed senile Chikwanda?

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  27. Ati ifintu Ni Lungu Kaili, here is a real problem that needs proper vision and guidance to fix. It’s not a small problem as it might seem on this fora. It’s a problem that could yield dire consequences if not addressed prudently and urgently.

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  28. fire the CEO, change the all account, purchasing and the advertising departments. these are the results of a bad working culture especially in government institutions. some worker only reports to work for two weeks and still get a full salary. some bosses will just drop off the jacket and off the go till to 16hrs just to come and pick up and close the office. to them its all well as long as the get paid

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  29. THE BIGGEST PROBLEM ZAMTEL HAS IS THE WORKERS DO NOT UNDERSTAND BUSINESS ETHICS IN ANYWAY ,THIS COMPANY HAD A WELL TRAINED INTERNAL AUDIT DEPARTMENT BEFORE PRIVATISATION MAYBE THE BEST IN ZAMBIA AT THAT TIME WITH PROPER UNDERSTANDING OF ZAMTEL OPERATIONS /A SOLID ADVISORY DEPARTMENT BUT THESE ARE THE PEOPLE THEY RUSHED TO CHASE OUT OF ZAMTEL LOOK AT THE MESS NOW THERE JUST BUSY WINDOW DRESSING.

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    • ITs not the issue of managment but Bukabolala culture.Kolwestan a thieves by birth.ati awe Nachitola fye ,how do you tola in some one’s yard?Lets wait and see.Dont say we never told you.

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  30. And you want to create a national airline. ….you fail to run something as profitable as telecoms where you are charging K400 for residential broadband…if you put job creation before prudent management this is what you get!
    “Zambian Enterprise” indeed! 

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  31. This is the PF you keep voting for. When are Zambia’s going to wake up!! If we carry on like this there will be no Zambia soon

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  32. This vindicates the rationale of privatization. ZAMTEL started to overtake some of these other communication companies when it was under Lap Green. What did PF under Sata do? Nationalize it. I predicted what happens to parastatals – make losses, engage in corruption, everything not do to run a profitable company. Sata also started to threaten ZANCO with taking over as well. So that you get what by nationalizing it? To make it loss making. Here we are again. It always happens in Zambia. Pity!

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  33. AND YET SOME PEOPLE ARE IN DENIAL WHEN WE TELL YOU THAT PEOPLE IN PF GOVERNMENT ARE LOOTERS. HUGE SUMS OF MONEY ARE STOLEN EVERYDAY FROM OUR NATIONAL TREASURY. THESE GUYS GIVE EACH OTHER JOBS SO THAT THEY CAN SIPHON OUR MONEY FROM ALL CORNERS OF OUR ECONOMY AND AT ALL LEVELS OF OPERATION. THESE MANAGERS ARE APPOINTED BY THE POLITICIANS ACTING AS THEIR ARMS OF PLUNDER,CORRUPTION AND LOOTING IN THESE ESTABLISHMENTS. LUNGU CAN NEVER IMPROVE THIS COUNTRY. ZAMBIA WILL CONTINUE TO WALLOW IN ABJECT POVERTY.

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  34. LT kindly show us the Statement of financial position for the period and the statement of cash flow for the same from the auditor general’s office so we can make an informed decision because making losses in finance does not necessary make a company insolvent what matters is the cash flow position for the period and the investments being undertaken.

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  35. Wanzelu, Sido mark and Mushota.

    Zambians are naive on election of quality leadership.
    To lament of dysfunctional economic performance in Zambia is a self inflicted national pain.
    Zamtel disaster is just among the many failures the nation will experience in years to come if correct leadership is not voted into government. Last month Zambians voted in leadership into government but change will not come with a government that has not said anything about new ideas of progressive change. EL Lungu has not addressed the nation on any economic strategic plan different from old PF that is resulting into losses such as Zamtel.
    Unless Zambians vote for radical change of national leadership, losses and poverty will still be our guest to put up with.

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  36. This was expected Zambia has really gone to the dogs. We have people like Dandy Crazy who are *****s. @ kolopa.com very foolish . be warned never set your foot in SP and barotseland you will be dealt with you kolwe ,monkey.

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  37. You buffoons like Wanzelu- There was nothing wrong with renationalising Zamtel. Now that Management has failed, all we have to do is find and employ new management. We can even employ the former CEO from Lapgreen but selling Zamtel to foreigners shouldn’t be an option. Lapgreen itself was and is a Libyan Parastotal. For your information, in Scandivian countries, governments have stakes in almost all companies and that’s why their economies are so stable. Just because, a CEO has failed, we don’t have to sell the company to foreigners but we need to get someone that can do better. in my view Zambia got more from ZCCM as parastatal than we get from these combined private mines. Learn to think objectively. No need to politic but think what good for Zambia as whole

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    • @ 42 Habazonda

      What you are suggesting is an experiment you will keep on doing forever with the same result. We have ZIMCO, INDECO, FINDECO, MINDECO etc. to our record.

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    • @habazonda,I am with you. There is nothing wrong in having parastatals but everything wrong with our lack of discipline for public resources. LAPGreen is a parastatal except that it is well managed due to discipline. Zamtel can still be profitable all we need is to find proper management and remove negative political interference. Privatization is not always a solution as we have seen how some privatized companies got stripped and how the mining houses are have cheated us. If indeed we just want privatization,then let us start evolving a national strategy of how Zambians can run some of these companies.

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  38. Profits and losses are strictly speaking private sector concepts. What government considers gains, particularly ownership in itself can not be wished away by certain unpaid loans or investment in new equipments and new technologies. It is advisable for the parties concerned to study each case individually and then provide the roadmap for attaining solvent levels. Zamtel is more than a cellphone company and the units that make up Zamtel are viable. As for title deeds, that is for the Legal Department to expedite. It is simple and straight forward. Or is it the Borad of Directors that had forbiden the issue of all the title deeds? Let the Legal Counsel convince the Board first. The title deeds will be ready almost immediately but company revenue will pick up as soon as possible.

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  39. Awe mwalosha bane,
    naumfwa ubulanda bwenu. But life goes on…you are yelling the agony because you do not have an option. Some of you are wishing ‘nga ebo’ pakuti balyapo.
    Am sure it is the attitude of a government worker who sees nothing wrong to report for work daily 15minutes late and knocking off 10 minutes earlier. The attitude of saying fya boma after all the ministers also come late and take things and even get wrong allowances. Also the terms CEOs are offered… who for instance may even get unlimited talk time free.
    Worked in parastatal company where my supervisor could not understand why I was working so hard, to him I was all out to take over his position. I quit, thus for the past nine years I’ve worked outside Zambia. Filwisheni tukabwele naifwe. Amen

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    • i feel you, the Zambian work culuture is pathetic to say the least, this atitude is very retrogressive to the economy of our country, i think we should copy the work culture in the private sector if we are to make tremedous headways in our economy . In Zambia , if you work hard, someone thinks you want to get somebodys position. am a very hard working person and i do it for passion my boss accused me of taking over from him.we Zambians are too lazy and we feel jealous for each other

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  40. Ifintu ni Lungu, but boma ni RB. Brace yourselves for things to come under Lungu and his PF. Cry the beloved country has gone to the dogs.

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  41. Habazonda, if you do not understand the history of parastatals, do not show your ignorance here. In zambia, we can not manage parastatal companies successfully due to a lot of reasons like nepotism, corruption, theft, political interference etc. Previous leaders who agreed to privatize these behemoths were not fools. The funds that will now be injected into zamtel to revitalize the sick beast should have actually been coming into the treasury coffers in the form of taxes from an investor. The nationalization was a PR excercise by PF in order to please their cadres and people from one region. Zambians need a drastic mind set change and usher in competent national leadership, otherwise we are sadly headed for rocky shores. There is a limit as to how long we can tolerate incompetence.

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  42. @ wanzelu ,you are right Zambia need a technocrat and an economist to clear out the mess in govt institutions, afterall two heads are better off than one, so let HH become Commerce minister while Lungu mantains the presidential sit he suits well for this position. HH should not wait until he is president to fix the economic mess in this country ,he should accept a ministerial position. Lungu must approach HH and ask him to become Commerce minister then Mwanakatwe should move to ministry of Finance.

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    • @Doss

      A technocrat who fully understands how to run a business needs to have absolute power to effect real change. If he is a yes man or woman, nothing can be achieved my friend.

      PF government is awash with able people to turn these government businesses around, but they can’t because the president who wields ultimate power, has less understanding of the corporate world. All most Zambian presidents cared about and knew is amassing political support at the expense of productivity by allowing family trees and nepotism to determine who gets a job in these institutions.

      HH can not receive instructions from some one who has very little or no understanding of how the business world runs.

      If people like Dr Musokwane ,Felix Mutati, can be presidents HH would be happy to join them.

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  43. It’s high time Zambians started respecting education. As far as they are concerned, anyone can be president; as long as that person is able to speak a little bit of broken English or forge a certificate from a fake online university. Stories like this make all of us look dull and dumb.

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  44. @ Habazonda
    When we say PFs are kaponyas, ZAMTEL’s case now is a result of who their description fits. We dont know what our will become of our country by August next year with this drunkard running the steam engine!

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  45. Popularity is not nearly the same as successful, we Africans do not seem to have the capacity to distinguish these things. We also like to do the same things but expect different results. Parastatal companies even in developed economies are not easy to run. But in the wisdom of our so called popular leaders they think they can create monsters (parastatal) companies as conduits to fund their political ambitions but alas these monsters become rather a drain on Govt meager financial resources. FTJ (MHSRP) privatized the mines and now these politicians are fighting to milk more from these privatized mine because they are making money. Before then, tax payers were taxed to maintain dilapidated copper mines left by the UNIP govt. What kind of politicians do we have.?

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    • Spot on, when one looks at what reasons people vote for a leader, it only leaves a few of us wondering if democracy is the way to go. How can someone vote based on the ability to insult others or use ‘amabinda’. Really, is this developmental. Showing happiness by carrying coffins at state functions? really

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  46. Zamtel could still and would still have made a significant profit whether under privitization or recapitalization for as long as it had concentrated on its core business which is cabled network. There are so many new buildings being constructed which require most reliable phone service and Internet. Both of the can only be guaranteed by cabled wiring. The initial costs are huge but the long term rewards far outweigh initial costs. Zamtel can still do this

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    • @Kenzul

      No one is disputing Zamtel’s profitability. In fact most companies that were privatised by the state are highly profitable. But the problem lies in very model used to run them.

      Look the UK, it has CDC an international investment venture for the UK government running businesses in most former colonies. Its highly profitable because its run on strictly private business model where only qualified professional are given jobs on merit not on political grounds as it is in Zambia. The CEOs are appointed despite their political affiliations even if their party is not the one in power.

      In simple terms, UK parastatals have cut out inefficiency by cutting out nepotism be it political , family or tribal.

      That said, the best is to let private local companies run all these…

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    • @wanzelu
      Whilest I agree with your contention on the appointments of CEOs, I ask you to give an objective critique of the report and give objective recommendations.
      From the figures, Zamtel has been making losses not as a result of political appointees, but primarily due to the shift in its business model from landline network to mobile network and as such compete with seasoned providers like MTN and Airtel. BT in the UK for example concentrates on cable network as its primary business while mobile network as secondary. There are professionals within Zamtel who report to any political appointee in the name of CEO who would remind the appointee of the company’s objective!

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  47. I am just wondering if there has never been any audits on this company inn the past and why this is coming out now.

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  48. In Zambia, things only make sense after they have been found to have gone wrong. Had it not been for the Auditor General’s report, Wanzelu could instantly have been shot down for saying what he has said at @ 1 Wanzelu. The only reason Wanzelu and other like-minded people, are making sense today is because they have spoken in the context of the Auditor General’s report.

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  49. Looks like chase, Fire the CEO, and get a CEO who can turn things around. If this cannot be done it means some people are still fighting to wrestle this valuable asset from Zambians to give foreingners like LAP GREEN.

    Zambians becareful RB is close to Lungu so is LAP GREEN. In fact we have not even heard from the current CEO himself.

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    • Zambia is not a failed state. It enjoys a good image internationally and has potential for the future.

      We now have good Leadership in his Excellency President Lungu. We need to get behind him in full support.

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  50. Comrades,the comparison was given on 2011 and 2012 financial year. can we be provided also statistics for 2013-14. simply, updated factual information. as far as i am concerned zamtel has attained the break-even point.

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  51. DOWNLOAD COMMISSION OF INQUIRY REPORT OCT. 31 2011
    Recommendations of the Commission of Inquiry ( Report 31 October 2011)
    www(dot)lusakatimes(dot)com/wp-content/uploads/2012/01/zamtelfinalreportp(dot)pdf

    UPND Cadres are all over this story like a rash. A lot of misinformation and current gov’t bashing. But really this problem of ZAMTEL and ZDA mismanagement has been around for a while. ZDA was tasked to monitor the progress of ZAMTEL after it reverted back to gov’t.
    It’s clear this is a complex matter and the current gov’t inherits the problems. As for President Sata, he WAS CORRECT to takeover from LApPG. Because the sell was undervalued and illegal. SO WE HAVE NOW A PREORDAINED ‘SPOT OF BOTHER.’

    It’s UPND ‘Cadreism’ Manic Friday the 13th behaviour! Today ALL THE GHOULS ARE OUT…

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    • We now have great Leadership in His Excellency President Lungu. Yesterday, I recommended biblical text mistakenly as Jeremiah when it was supposed to be (Nehemiah 2:11–15); to encourage Zambians to see President Lungu’s task in good light.

      The story is of Nehemiah who rebuilt the wall of Jerusalem.

      When Nehemiah arrived, in Jerusalem he promptly made his famous night journey around the city, surveying the dilapidated city wall On the eastern slope, the wall of stones was so badly collapsed that his donkey could not navigate the path (Nehemiah 2:14).

      THIS IS WHAT HIS EXCELLENCY HAS INHERITED, a broken country.

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  52. seo tingololesha tyala paliye vitingalabile…kwasu ku Petauke
    kuliye ndeke koma lomba taiona ndeke. Tikweleko tikaliye kufwa…
    mankhwala a muchipatala tiliye nayo nchito, kaili lomba seo ndise mabwana..tikalwala tiutukile ku sasa filika..mweo ngati muliye ndalama nizanu izo…muzionele mweka,,,neo Edgar Chagwa Lungu mwana wa mu Nsenga nili mu enjoy lomba.

    Nikaluta ku Angola nigone mu hotela yodula ngako,,,nimwe na ma wiski odula osati ula moba nonzo kumwa ku chawama.

    Niyambe nakumanga ng’anda monga ya Jacob Zuma ku Mfuwe. Ndipo ikankhale ng’anda iyo…

    Naluta lomba ku Angola tikaonane nikayowelako. Mubauze onse banthu ovutika ati neo lomba niliye nao nchito.

    zikomo kwambili
    ndatha ndine
    Edgar Chagwa Lungu…

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  53. His Excellency now must rebuild. He has enemies left and right willing to tear him down…just like Nehemiah. But Nehemiah and his people fought to build that wall against all the hostilities, just like His Excellency is doing.

    Nehemiah rebuilt the walls and gates of Jerusalem in 52 days (6:15).
    Quite amazingly, especially considering its condition, the wall was rebuilt in a mere 52 days (Nehemiah 6:15). Nehemiah was able to accomplish this feat by assigning different sections of the wall’s rebuilding to various groups such as families, people from specific settlements, craftsmen’s guilds and so on (Nehemiah 3:1–32).

    It was the determination of the people who backed him which we need to emulate as patriots. Not tear the president down, but get cracking with our swords.

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    • DEALING WITH UPND WITH PRAYER
      Nehemiah 4v1-21
      1Now when Sanballat heard that we were building the wall, he was angry and greatly enraged, and he mocked the Jews. 2He said in the presence of his associates and of the army of Samaria, ‘What are these feeble Jews doing? Will they restore things? Will they sacrifice? Will they finish it in a day? Will they revive the stones out of the heaps of rubbish—and burnt ones at that?’ 3Tobiah the Ammonite was beside him, and he said, ‘That stone wall they are building—any fox going up on it would break it down!’ 4Hear, O our God, for we are despised; turn their taunt back on their own heads, and give them over as plunder in a land of captivity. 5Do not cover their guilt, and do not let their sin be blotted out from your sight; for they have hurled…

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  54. UPND IS OUR PLUNDER. THEY WILL NOT CONCEDE AND CONTINUE TO talk us down. President Lungu is doing good. Our attitude should copy Nehemiah.

    15When our enemies heard that their plot was known to us, and that God had frustrated it, we all returned to the wall, each to his work. 16From that day on, half of my servants worked on construction, and half held the spears, shields, bows, and body-armour; and the leaders posted themselves behind the whole house of Judah, 17who were building the wall. The burden-bearers carried their loads in such a way that each laboured on the work with one hand and with the other held a weapon. 18And each of the builders had his sword strapped at his side while he built. The man who sounded the trumpet was beside me.

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    • This report makes bad reading. But we are in change mode. Let’s accentuate the positive. With a good team in place in gov’t and governance bodies we will conquer all.

      We have a historical problem, but we can defeat it by Patriotic attitude. Not always tearing down.

      Let’s see what His Excellency does with this! He is thinking it over….

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  55. @Patriot…your posts truly depict what is very wrong with our country and the mind set their in. You depend on one person …saying lets wait and see what the president will do when credible solutions are already there for you to articulate and see. Give me one country that has run these parasite companies to great success without some form of commercialization eg ZANACO…or complete privatization of the entity. We need a can do attitude and we should listen to expert advice on these important issues. If the government is scared of complete privatization because of misplaced patriotism then they should commercialize all parasite companies. Just like LPM did with ZANACO. That way these entities will have much needed capital. GRZ should not even waste tax payers money on these parasites

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    • [email protected]… I agree with comments on NOT depending on one person and also having a commercialized model for government/public participation in the equity of companies. There are countries where Sovereign Wealth funds (eg. Temasek of Singapore, Khazanah Nasional of Malaysia) invest government money without imposing unrestrained political influence on the operations of the company. All influence should be as a shareholder. Our Zambian problem is the government attempts to operate the parastatals with nepotism/patronage filled appointments of management, like transfering Comrade Mulenga Simbotwe Banda from District Governor of Masaiti to Managing Director of the nation’s largest bank.

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    • [email protected]… I agree with comments on NOT depending on one person and also having a commercialized model for government/public participation in the equity of companies. There are countries where Sovereign Wealth funds (eg. Temasek of Singapore, Khazanah Nasional of Malaysia) invest government money without imposing unrestrained political influence on the operations of the company. All influence should be as a shareholder. Our Zambian problem is the government attempts to operate the parastatals with nepotism/patronage filled appointments of management, like transfering Comrade Mulenga Simbotwe Banda from District Governor of Masaiti to Managing Director of the nation’s largest bank.

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  56. Should have fired CEO as soon as the company started trending downwards. Typically you ask management to present a plan for reversing a downward trend and give them 9 months maximum to level the trend. After one year of level trend management should provide a plan to get to a positive trend or profitability. If there is no turnaround after 9 months management should be fired. If the trend goes positive let them stay and allow some bonuses for their effort. You only pay people for performance. Otherwise fire them. Keep them on their toes so they know that failure (to perform) is not an option. We should know this by now – 50 years after independence.

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  57. Zamtel has no BCP, no DRP, no IT security Policy, no IT strategic plan? I never understood up to now how I failed an interview at Zamtel because I clearly knew I was a great candidate. Now I understand, how can people who run a company without the above stated important policies and procedures see that I was a good candidate for that job?

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  58. Zamtel will be sold to the right bidder when the price is right. That is all that is there to say.
    Zamtel could be sold by the year 2017 in my projections.

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