As the Zambia National Students’ Union (ZANASU) we are deeply elated at the public outcry being seen in our daily tabloids over the ongoing debate about the listing of MTN Zambia through Ikulileni Investment on the Lusaka Stock Exchange LuSE last week, which is in accordance with the ICT Act that provides that all foreign owned wireless communications companies must List at least 10 percent of their Stake on LuSE.
This must be a situation for all Zambians to air out their concerns especially that information in the public is that Ikulileni Investment is owned by Abdul Ismael and Valentine Chitalu where the latter happens to be the CEO at MTN Zambia.This in itself raises a lot of eyebrows especially seeing it from the Corporate Morality perspective.
If this was done in the interest of why the ICT Act was formulated it would have been through a very independent company that would represent the majority of subscribers wishing to own stake in MTN Zambia. People must know that this ICT Act was done in line with the CEEC initiative that aims at getting our Zambian entrepreneurs to participate in all Zambian businesses as it is our entitlement in our country. We are deeply worried about the information and we implore the line ministries involved to quickly protect Zambians as that’s their responsibility. Minister of Finance, Minister of Communications and Minister of Commerce need to be on top of things as it may represent a great corporate irregularity.
[pullquote]That’s why as ZANASU we feel Zambians must concentrate on dealing with real issues other than waste their resources, time and energy on Pilato this Pilato that[/pullquote]
That’s why as ZANASU we feel Zambians must concentrate on dealing with real issues other than waste their resources, time and energy on Pilato this Pilato that, let us open our eyes to serious things not this unnecessary media frenzy which yields nothing.
The platform the media gives us must be used to address real challenges and as Zambians also we should not allow the Media to dictate what makes our headlines, take for instance there are issues surrounding our high learning institutions of finances, all of the three public universities are struggling financially and that’s where public attention must be channeled to.
If you may be aware MTN Zambia is one of the biggest and best performing subsidiary of MTN and that’s why Zambians and loyal subscribers must own Stake. It is the only way to reward the faithful subscribers and employees, as this is their entitlement. Of course what ZICTA is saying is correct in terms of what the law provides, but it is issues surrounding the company Ikulileni that must be addressed. We also would like to commend the Securities Exchange Commission (SEC) and LuSE for standing firm.
Even if the offer closed last Friday, If MTN is a good corporate citizen it must do the right thing in the ambit of morality and following the tenets of our good corporate governance. This is tantamount to organized corporate irregularity, Let us protect LuSE as this will cause a severe dent on the image of LuSE. As a good corporate citizen MTN should reward the faithful subscribers and employees to own a stake without ulterior interests because it is their entitlement.
Thank You
By PRINCE J. NDOYI
ZANASU V. PRESIDENT
These rumblings coupled with LT’s lack of grammar skills leaves alot to be desired.
I thought so too! Please try to edit before posting certain News items. I could not get exactly what the students are talking about,….elated to an out cry how?
Does the Volcker rule say anything to you and your security markets and participants Can you see further the flows in market violation in this There is a rule that if the statutes are less stricter You use the most stricter standard of compliance which is contrary and most effective here do you know the flows in the above……………. apart from the slit injury on the Volcker rule do you know what has been violated or you are very blind like the SPV
Zambia Zambia Shibukeni and lets reform securities, participate and raise the whistle when flaws are clear
tell me something else please. This man never protected his face form whatever and you expect him to protect you Zambians. Where does he even start?
its against standards to form an SPV-acquisition vehicle-issuer sorely for purposes solely for the purpose of engaging in a bona fide merger or acquisition transaction that exists only for such period as necessary to effectuate the transaction and thereafter dry
Deal directly with MTN or unless MTN did its SPV There are other violations here that works to protect investors money
Gaming the system to achieve an objective is violation that is why you have registration in depository receipts etc. listed on luse to avoid such schemes that are critically dangerous without the investor owning directly the beneficial interest in MTN
There are three more other standards that negates this current set up and hiding in the security act to be repealed is not right Lets support the people at SEC and Luse and avoid market manipulation that is near and can result in fraud when it fells
will give you other three when others contribute for you to see why from regulatory to listing and settlement
These are issues the PF govt must come out clearly and let the people managing business affairs of our country clarify such that the majority of the citizens may appreciate what is happening. Masses must be able to participate in their economy but there is nobody to teach them such things like investing in the stock exchange. In the end the lack of knowledge leads some people to accusing others like Chitalu & HH of stealing money.
Its quiet proven dangerous schemes and people are not saying stolen but the potential for investors to loose money as not investing directly into MTN or MTN SPV as in MTN zambia
The starting point is to look at the ownership structure/model and the intrinsic value and negate that
Secondly look at the track record of the spv and see how it fits in MTN past 5 year or 7 year and See what you are investing in is it MTN or the SPV and if so what is the value
MTN MTN MTN SPV not ikulileni with related party issues at play
Work on rules and refine as they relate to share transfer Manage transfer agent rules and the services
Transfer agents rules are out of sync and need to be repealed to current best practice to avoid fraud in pump up strategy manipulating markets in stock prices as it where
Change and repeal the transfer agent rules
Underlying issuer is the only payment source nothing MTN in value
Zambia is badly lagging behind with how it is economically engaging with its ‘citizens’ in the diaspora. It should be acknowledged that a lot of Zambians in the abroad are sitting on a lot of cash that they can invest back home in Zambia. I remember when our late president came to London he insinuated that he did not want to allow dual citizenship because of the danger of Zambians in the diaspora economically overwhelming the local Zambians. It is strange how this belief has not been extended to foreigners who are investing in Zambia. It has been estimated that Zambians in the diaspora have as much as £500 million of disposable income, much of which could be invested in Zambia on all kinds of infrastructure projects to help the country to move forward.