ZAMTEL Headquarters
ZAMTEL Headquarters

The London High Court has ordered that Zambia compensates Libya $380million for nationalizing Zamtel.

This is a matter in which the Libyan Investment Authority (LIA), the investment arm of the Libyan government dragged the Zambian government to court for abruptly reversing the sale of Zamtel without compensation.

The Libyan company owned a 75 percent share of Zamtel while the Zambian government owned 25 percent.
According to the Financial Times of London, the Libyan Investment Authority reportedly pursued similar action against Chad, Rwanda and Niger.

In the report, the LIA claims that the four countries took advantage of “Libya’s political turmoil to nationalise assets belonging to the country’s $66 billion sovereign funds” following the eight-month long conflict that brought a brutal end to Muammar Gaddafi’s 40-year rule.
At the beginning of 2011, LAP Green Networks, a subsidiary of LIA, held stakes in nine telecoms operators across sub-Saharan Africa, including Chad’s Sotel Tchad, Oricel in Côte d’Ivoire and Gemtel Telecom in South Sudan.

On 2 May, Niger’s parliament voted to nationalise telecoms asset Sonitel, pulling back from a privatisation agreement to sell a 51% stake to LAP Green for $62.16m.

In January, then President Michael Sata seized a 75% stake in telecoms company Zamtel that LAP Green had purchased for $257m during a privatisation exercise in 2010.

LAP Green challenged the government’s actions in court and was asking for $480m in compensation.

The Financial Times quoted Hassan Bouhadi, chairman of the LIA as saying the legal action related to technology assets in the four countries named.

“The LIA is determined to regain what was squandered from the Libyan people,” Bouhadi Mr. said recently.

On Friday, Finance Minister Felix Mutati told Parliament in a ministerial statement that the court had ruled that Zambia should compensate LAP Green for seizing Zamtel from the Libyan sovereign fund in 2012.

Mr. Mutati did not give details over which court made the order nor payment timeline.

The company was sold in 2010 by the Rupiah Banda administration for US$394 million on grounds that it had failed to recapitalise the business.

In 2012, the PF administration under President Michael Sata forcefully took over Zamtel’s operation from LapGreen Network claiming that the 75% shares the company owned were corruptly sold by the previous administration.

Lap Green Networks denied any wrongdoing in the manner it acquired the company and said it would challenge the country’s authorities in the courts of law.

LapGreen Network then took the matter to the Lusaka High Court, where the government failed to defend its decision to repossess the company.

Instead, officials decided to enter a consent judgement to compensate LapGreen Network its initial investment in Zamtel amounting to US$252 million plus interest, calculated at 8%, and other charges.

The total amount payable to LapGreen Network came to US$382 million.

According to the settlement agreement, the government was supposed to make an initial payment of US$114 million in November 2016, followed by biannual payments of US$35 million in February 2017 and August 2017 respectively.

The opposition, the Forum for Democracy and Development (FDD) issued a statement through its spokesperson Antonio Mwanza demanding the government inform Zambians why it has failed to pay LapGreen Network and how it plans to settle the issue.

Almost three years ago, a Zambian High Court allowed Lap Green Networks to take the matter to the London Court as it was considered neutral ground after the Libyan company expressed concern that it would not be given a fair hearing in Zambia.

The court’s decision came after all foreigner directors of Zamtel were deported from Zambia.

In 2012, President Sata constituted a commission of inquiry to investigate how Zamtel was sold to the Libyans.

The Zambian government has failed to make public a report by the Commission of inquiry into the sale of Zamtel.

However, a leaked copy of the Commission Report however shows irregularities in the manner in which Zamtel was sold, alleging that Lap Green and RP Capitals, which was appointed as financial advisor, bribed senior Zambian government officials.

The Zambian government has repeatedly said it can only compensate Lap Green Networks for its investment in Zamtel, but that it will never surrender back the company to the Libyans.

In 2014, the Zambian government agreed to repay the US$103 million loan that Lap Green Networks obtained from China’s ZTE in 2011 for the expansion of Zamtel network.

The loan was obtained by Lap Green Networks in 2011 from ZTE in order to implement Zambia’s Global System for Mobile Communication (GSM) phase IV and Universal Mobile Telecommunication System (UMTS) projects.

The repayment of the $103 million loan was considered to be the first step in compensating Lap Green over its investment in Zamtel.

Secretary to the Cabinet Rowland Msiska instructed the Secretary to the Treasury to secure a loan from China’s Import and Export Bank (EXIM) to pay back the loan to ZTE on behalf of Lap Green.

Dr. Msiska however, refused to discuss why the Zambian government decided to pay back the loan, and why it has decided to do so while the case was still in court.

“Government does not discuss its plans and programs in the media,” Msiska had said.

[Read 509 times, 1 reads today]
Loading...

93 COMMENTS

  1. London court must first repay Zambia all the riches and jewels it stole plus Broken Hill man then we will in turn pay Lapgreen! Fa-ckin meddling imperialists

    0

    1
    • You are right about our ancestor broken hill, and all the robbery committed against our country…. but let’s not justify irrational behaviour of not paying what we owe to another African country. We must pay what we owe and in future we must not irrationally repossess businesses.

      0

      0
    • @Nubian Princess it is shocking that you have come up with distorted opinion about the action of another issue to hold ransom a clear case of abuse of authority! I know Mushota is your first cousin, so I not surprised in the least with your aspersions!

      0

      0
    • That’s what it costs when the leaders of a country are too lazy to think and ridiculously smart to be outsmarted.

      0

      0
    • Ubututu… don’t expose your self! What did you expect. First learn to hold your leaders accountable.

      0

      0
    • This is what you get when you vote for a illiterate liar and ignoramus! Now Zambia is BROKE from all the PF stealing, the Libyans will have to wait for their money until this PF Government can borrow more kaloba. So the cost will be much, much more than the $380 Million. Who will have to pay that? OUR CHILDREN !!!

      We should sell all his houses. And make Kaseba repay the millions she has recieved from the State. And just dig Sata up from his mausoleum and throw his corpse in the bush! Then SELL it to somebody so we can recover the money that he wasted with his stuupidity!

      0

      0
    • THERE’S ALSO OUR BROKENHILL MAN (KABWE MAN) IN ONE OF LONDON MUSEUMS AND IT HAS MADE BILLIONS OF POUNDS FOR THE UK GOVERNMENT. SOME OF THE MONEY CAN COME FROM THERE- APART FROM NUMEROUS RESOURCES GOT FROM ZAMBIA TO DEVELOP UK. DO NOT ACCEPT THIS IMPERIALISTIC STANCE ON ZAMBIA.
      BESIDES- THIS SHOULD BE A LESSON TO ALL GOVERNMENTS OF ZAMBIA (PAST AND PRESENT) FOR NOT PRACTICALLY AND EFFECTIVELY HAVING ENCOURAGED HOME-GROWN CORPORATE ENTITIES LIKE IN THE CASE OF NIGERIA.

      0

      0
    • BRING THE CASE TO ZAMBIAN COURTS – A NOLLE IS EMINENT: WE DON’T LAUGH, WE THROW CASES OUTA WINDOW.
      =============================
      ….and RB is just smiling. These leaders mwandi. Nibvuto!

      0

      0
    • INFACT THE FAULT REMAINS WITH GADAFFI POST HUMOUS AND THE LIVING RB
      =========================================
      “LAP Green challenged the government’s actions in court and was asking for $480m in compensation.
      Lap Green Networks denied any wrongdoing in the manner it acquired the company and said it would challenge the country’s authorities in the courts of law.” No LapGreen, you lie. The deal was corrupt.
      “However, a leaked copy of the Commission Report however shows irregularities in the manner in which Zamtel was sold, alleging that Lap Green and RP Capitals, which was appointed as financial advisor, bribed senior Zambian government officials.” Now this is the statement. This is how HH got rich.

      0

      0
    • The evil activities of the likes of Dora, Felix and Rupiah their evil deeds of corruption during Banda’s regime that resulted in Zamtel being sold to Lapgreen are coming back to haunt the nation!

      This is why when we say Dora Out! Mutati Out! We know what we are saying! These people have come to rob, steal and destroy! Look at what they have done with the maize floor price and this fake FISP programme!

      0

      0
    • International contracts always have a clause on court of arbitration. In this case, London. The problem with some of our leaders is that they act as if we live in a country of illiterates. Why wasn’t proper procedure followed in taking over from Lapgreen? Reckless use of power unnecessarily leaving us in deep sh1t. If there was corruption, why didn’t they prosecute the corrupted ones with RB? Today RB is treated as a darling by PF. What is all this? I tell you, PF is one of the biggest jokes that have ever happened in governance.

      0

      0
    • HAS ZAMBIA EVER BEEN COMPENSATED FOR ALL THE COPPER LOOTED BY THE BRITISH?
      THEREFORE LET ZAMBIA COUNTER – CLAIM IN THE VERY FOREIGN COURT AND LET THE MATTER DRAG FOREVER.

      0

      0
  2. just pay them. plan: first print a lot of money and then pay them. Get also mines from those failing to run and reduce the number of Chinese who are coming in the country. poor salaries from chinese

    0

    0
  3. Meanwhile Old man Sata is permanently retired in peace…we the children, grandchildren will clean up their mess!!

    0

    0
  4. Tell that London court to take late Michael Sata to court.its him who grabbed Zamtel from the Libyans in 2011 and he did well.
    Whatever the case,we must appeal this useless judgement.plus Zamtel can settle this by paying in instalments.
    No evil politics here from upnd cadres.dont call ECL names on this issue because he wasnt in cabinet in 2011.blame GBM,Kambwili,Wynter Kabimba who were senior ministers then.

    0

    0
  5. This was long coming. I wonder what the powers then saw in Zamtel, employment opportunities for relations and cadres probably? Otherwise as far as I am concerned, under the circumstances prevailing then (after selling) we could have lived with Lapgreen the way we live with Airtel, MTN, and the way we shall live with the forthcoming fourth mobile service provider. Just tax them, neater than useless court cases which you know that you are guilty.

    0

    0
  6. ‘If you think education is expensive, try ignorance’…so goes the saying.

    When you act WITHOUT admissible evidence and rule of law, but only with vindictiveness and ignorance, this is what you reap. This is the legacy ba Sata is leaving behind.

    This is going to cost Zambia’s future generations a bundle of money, which money is badly needed for developmental programs, i.e. schools, hospitals, security, you name it, etc…

    0

    0
    • Kaili ba tata ba Sata eba landile kuti twachi chita shani?Ok twala yeshako aka nkongole kuili abaiche ba kwa chairman Mao.Nomba nabena naba tuwela mo kaili ekulya abaiche abena K nabambi.

      0

      0
  7. If these company was run properly they would have made 5 times that amount and paid off that figure!!

    0

    0
  8. Looks like it’s time to swallow the bitter pill and pay.

    This is where our government can learn why sovereign funds are so important for protecting a country’s assets. In this case, the court has ruled that Libyan money is returned to Libya, which is absolutely right.
    We risk suffering a similar fate if we do not wise up and become major shareholders in our copper mines.

    0

    0
    • You are the selfsame ones who supported this 7 years ago dont try to seat on the fence…really laughable ..you mention increasing shares in mines when your Lazy Lungu is eager to offload ZCCM shares to his Israeli friends for a song inexchange for a few silver coins in his pocket!!

      0

      0
    • The move was supported because of the irregularities in which Zamtel was sold in the first place: way below it’s value. Nevertheless, it does not change the fact that investors brought 75% of the capital to the table and they must be reimbursed.

      On the other hand, the econimic environment keeps changing and we cannot rely on politicians to make the right decisions at all times. Their terms will be over one day but our country will always be there. We have to think about our collective progress as a nation and this is why I generally support long term solutions as opposed to short-term sentiments.

      0

      0
  9. Inconsistent and abrupt policy changes were the 1st sins of MCS govt.We saw this coming plus the sharp economic slowdown that followed till today.

    0

    0
  10. it’s called “Learning it the hard way.” What a hefty price to pay for our ignorance and groping in uncharted territory!

    0

    0
    • @Imute wa Kalilo, what “Learning it the hard way” are you talking about? You must be too young to remember that KK “nationalised” all the copper mines! And Zambias economy collapsed!

      Doing the same thing again and again and expecting a different result is the mark of a FUUL!

      So what else did you expect from Sata?

      0

      0
    • @12.1 Dora:

      Dora, it’s when you have to pay for that which was already previously yours, that’s what makes it “Learning it the hard way.” The ZAMTEL Saga was like putting one foot forward and the other back – a jumbled walk. If you nationalize then nationalize. If privatize then privatize. It is damn do both in one breath.

      0

      0
    • @12.1 Dora:

      Dora, please check Enka’s observation @11 above. It’s like paying lobola for a woman who once was your wife and had divorced because she was shabby and unattractive; but now since your divorce, has been transformed into a beauty you cannot resist proposing again.

      0

      0
  11. It was good to grab back Zamtel for security reasons…Let anyone name one country in the whole world which has it’s communication solely under private sector…What late President Sata did was good he just reversed what some educated danderheads in Zambia did…So we shall just pay them back and the fact still remains that Zamtel is for Zambians…

    0

    0
    • Government needed to have at least 51% in the Zamtel to protect the National interest…That’s what I meant…It’s good that this transaction can be treated as a lease-back where Govt raised money when it needed it most…Kikikiki

      0

      0
  12. And the guy who repossessed the company has just celebrated his third year at Embassy Park. This can happen if we try to repossess the mines. What a pit we’ve dug for ourselves.

    0

    0
  13. And now, our moment of reckoning, that we may mourn him in earnest, him who was our hero – our King Cobra. What a generous inheritance he left behind for us!

    0

    0
    • Zambians are a docile people …trust me this is a drop in the ocean compared to what the Chines will come to collect when the debt is due for these overpriced “sonta” projects!!

      0

      0
    • You are also docile if you’re not you’re going to be the first one to demonstrate on Independence Avenue.

      0

      0
    • Jay Jay and Ndanje khakis stop it.
      Whatever your beef is about stop it especially you Ndanje.
      Meanwhile is it just a coincidence that all this is coming up when ba tata ba Sata is commemorating his 3 years down under?And today Edgar says he has failed to emmulate Sata.What a bench mark.

      0

      0
  14. Guaranteed they will borrow $1.2 billion and repay $400 million and the remaining $800 million will disappear and then when the loans become dew and the guys no longer in governments the next government will increase taxes and queez the living daylights out of the poor zambian. I can assure you, our children will pay for this, already we are sitting on a national debt of $10 billion from just over $900 million in about five years!

    0

    0
    • I wonder what Lazy Lungu would publicly say about this if he was asked in the presence of RB and Dora??

      0

      0
  15. Hehehe! We saw it coming. The late really wanted to be heard and said we reverse the sale politically without thinking. And we were all clapping without thinking. NOW – You reap what you sow!
    What a disaster!

    0

    0
  16. We can easily pay this unfortunate debt if we demand efficiency specially starting with our dear Jonathan ……BUT THEN ….no way he’s gonna give up on Kalaba travel agency at FORIEGN Affairs. This is why IMF is reluctant about the bailoutt.This is country mismanagement live and unedited edition!

    0

    0
  17. Let us clean house here. Foolish mistakes where made by foolish people.
    MEET LAP GREEN. SETTLE OUT OF COURT WITH PARTIAL RETURN OF SHARES (less than 51%) AND CASH FOR REMAINING FIRE TENDERS.
    Use the same thieves for fire tenders to negotiation for us out of this before you lock them.
    Yaba SATA LEGANCY. ECL MOVE DAMN IT. Make a smart move. No more stupid errors.

    0

    0
  18. Our plight has always been to mistake political egoism for leadership acumen. This is what has tended to define our demise. Sadly, however, political egoism has little of a stature in a competent court and before a prudent judge. Are we not already that impoverished sector of mankind? Or are we talking about borrowing again, so we can pay? And where do we now turn to borrow? Who will lend us such a colossal sum of money just to dump it in our man-made lake …. our over-flooded Lake Kariba?

    0

    0
  19. I fail to understand how a company with state monopoly makes losses, I mean all the internet service providers buy their bandwidth from Telkom and make a profit, yet Zamtel being the wholesaler makes losses. The same goes for ZESCO no competition but prices are ever going up are they profitable or loss making as well. Eish. Are we really unable to run and manage our own resources everything needs a foreign investor!? What do we really own as Zambians… clearly nothing. The Lybians knew what they were doing, they paid money for an under valued but potentially profitable entity so they can increase their national assets for the benefit of the Lybian people.

    0

    0
  20. Do not worry we are only paying for the decisions of those who find it difficult to think correctly. Anyhow, jonathan airways will soon take off to borrow as some will be clapping saying the anointed is doing the correct thing just like they did not see anything wrong to date of the decisions made by the guy six feet down! Zambia the real africa concept i guess

    0

    0
  21. I blame people like Guy Scott, Lungu, Musa Mwenye, Mutembo Nchito who atleast went to school who could not advise uneducated Sata that you do not repossess companies as if niya Nyoko. Now see Zambia will be made to pay US$350 Million. Can you imagine what that could do to purchase Maize from our farmers? Is it possible that Zamtel can be given back to Lapgreen so that the country does not pay back such a collosal sum of money? What a cost for ignorance!

    0

    0
    • How does an illiterate first of all ask for advice worse still give an ear to advice even if it is unsolicited?People told you the man was cleaning railway stations but all you saw was ba Tata ba Sata like silly little dull George Chella.

      0

      0
  22. Mwanawasa was the worst president in the history of Zambia! He set precedents of honoring foreign courts judgment and you know that there is a court in Abuja, in Nairobi, in Pretoria, but London of all things? Why? This company made a lot of profits from Zamtel which they stripped of and benefited from ZESCO’s ingenuity and investments in telecommunications of over US $10 million! They robbed Zambia and they want to rob it again! Please Zambia just say NO! I wish Sata were here! Rupiah was so shortsighted.

    0

    0
    • Ati “..these guys are a conspiracy..”
      The statement says alot about what the man has between the ears.Sadly we started accummulating these dull fuuls after we gave up on subsdising education.If you ask the donkey called Victor he probably has a “Cavendish” or “Copperstone “degree.Sad.

      0

      0
  23. MMD is at it again. Stealing in the name of PF, corruption scandles, provoking civil servants by paying them late and sidelining honest people. ECL should not forget that Rupiah Bwezani lost it all in 2011 elections because of the above mentioned reasons. I foresee a very painful loss of election and no doubt about it in 2021 presidential elections. Be ready to concede defeat ba ECL, you are a let down!

    0

    0
  24. A lot of comments about the force of an international judgement against our sovereign nation.

    You see, all international payments are routed through a system called SWIFT. If you do not hounour your international judgement, your creditor can get a writ against you compelling SWIFT to garnish any funds passing through it relating to GRZ.

    0

    0
  25. Iwe zipha, banda could have been a lot of bad things but he most certainly never paid civil servants late!

    0

    0
  26. Investors don’t like unpredictable countries with arbitrary rules and a lack or respect for private assets.Sata did a lot of damage to Zambia’s economy with his toxic approach.

    0

    0
  27. Take note brothers and sisters: time is coming all the companies belong to Zambia will be our companies lets just stop blaming our leaders on the ideas they opt to but lets us learn how to invest the money through buying shares into these companies, then we will take charge bit by bit until we will enter them,i cry for my nation over what has passed through but i know everything shall be well. Please understand me Zambia is rich and she has got a lot of local upcoming billionaires. My advise to the government officials don’t give back this sweet company to Lap Green, allow to pay this debt in installment with the consideration of our poverty in our nation, this means that you will pave way for the future of this country. My fellow Zambians lets not insult one another but i urge you that…

    0

    0
    • The starting point is to change our attitude towards public entities. We can start by making sure ZAMTEL is run by the best Zambian professionals we have. Unfortunately, our politicians rarely think professionally.

      0

      0
  28. I have seen and really enjoyed the many good and bad comments in this debate. But if anyone is suggesting or hallucinating that under5 can do better, they will spoil a good day and a good debate. Surely by now under5 has demonstrated and proved beyond reasonable doubt how empty he is, except for attending tribal (not traditional) ceremonies while shouting the “need for national unity” at the top of his voice and shouting equally loud that he “will fight corruption” with GBM and Chishimba Kambwili, and conveniently not mentioning his own bunch of starving MPs eagerly waiting for an opportunity as scavengers. Not even southern region will be spared the looting that would emerge in the very unlikely event that under5 became president in 2026.

    0

    0
  29. All you bloggers jumping on the anti colonial sentiment.. … read the article, it is between Libiya and Zambia, the Zambian court decided in favour of the Libyan request for the matter to be heard in a London court due the Libiyans concern of an unfair hearing!! Ni British person/institute said this matter should be heard in London…. stop your useless excuses of blaming everything in your life that doesn’t go your way on Colonalism!! Better take responsibility for your life, get up off your backside and privide solutions, It has been 53 years of Independence…..stop excusing bad governance, poor decisions of the leaders, lack if accountability, corruption, lack of jobs etc etc on Colonalists!!!

    0

    0
  30. Zambia’s problem is Zambians themselves.From Chiluba and HH selling our mines at almost free value, to Rb and his flights. We continue paying for these leeches.

    0

    0
  31. We should now understand why grz is reluctant on kcm and mopani nonsense ,Unless they pull out themselves others thats why this companies acts foolishly they know wat is at steak

    0

    0
  32. This is Rupiah Banda’s fault. See now, that huge sum of money could have been channeled towards the poor of this country. Rupiah Banda and all those who were involved in that fraudulent sale of Zamtel won’t even feel the pinch of paying back that money. They are already rich. It is us the poor people to feel the pinch. Was lapgreen not refunded their money?

    0

    0
  33. This was long coming I knew Satas emotional decition will cost us…i don’t know how he and the people sorounding him thought they will get away with it….

    0

    0
  34. Now we see more money leaving the economy at a time when we don’t have any. So if we say a bailout is imminent, then that’s a whole lot going out.

    0

    0
  35. I wonder how much Western govn’ts have paid Libya for the unlawful removal of Ghadfi, and forceful removal of Sadaam …….

    If you look at the history of compensation, we paid Britain for taking back our Lands, Mines and yet there has NEVER been financial reparations for the damage of Imprialism, or slavery.

    Zambia has the right to remove with no compensation terrorist investments if it suspects it. They should never be allowed back. I suspect there were dirty European private investors involved.

    1

    0

Comments are closed.