The Parliamentary Committee on Parastatals has recommended that government should consider shifting the US$280 million debt to the Treasury.
Lufubu Member of Parliament Gift Chiyalika who delivered the Report on behalf of the Committee suggested that government should consider shifting the US$280 million debt to the Treasury which was acquired to implement the GRZ project for universal accessibility.
Mr Chiyalika said the Committee further recommends that the government should consider seeking a strategic equity partner for
Zamtel that can offer financing to liquidate the other legacy debt in exchange for equity.
He said the Committee further recommends that a model be adopted where the Government will own 35% of shares of Zamtel to be listed on the Lusaka Securities Exchange and owned by the public while 40% shares will be owned by the equity partner.
Mr Chiyalika said the Committee has observed that Zamtel had recorded positive growth in its revenues under the supervision of Industrial Development Committee.
He said Zamtel’s revenue stream increased from K641 million in 2015 to K674 million in 2017 despite the dip in revenues in 2016.
“2016 was a notably a difficult year for business owning to economic challenges, management restructuring could have adversely impacted operations,” the report stated.
Mr Chiyalika said the Committee recommended that government should offer concessions on regulatory fees to Zamtel to reduce the operational costs incurred in implementing the Universal Access to ICT Project in unprofitable areas.
He said this is critical because Zamtel has had to extend its mandate by rolling out towers to unserved and underserved areas of Zambia in order to ensure universal access coverage in line with the Seventh National Development Plan.
Mr Chiyalika said the Committee acknowledged that Zamtel has introduced innovations in products and packages that have helped improve its competitive edge in the market.
“However, the Committee further observes that Zamtel has received undue pressure from the regulator instructing it to cancel such products due to pressure from other mobile network providers. Other mobile network providers have un turn duplicated the same innovations and eroded Zamtel’s competitive edge,” he said.
“The Committee strong recommends that ZICTA must formulate frameworks that should patent innovation from any player in the market. This will ensure fair competition and reduce replication of innovation.”
Am sure someone is already talking to some china man.
And this debt does not include the Lap Green debt still outstanding.
Meanwhile “humble” Lungu finds it appropriate to buy a luxury jet.
Same old story about this sick cow.
No meat, no milk.
One wonders why?
How competent is the captain? Did we not hear that the company was transforming digitally? THE NEXT GOOGLE OR MICROSOFT OR APPLE. Digital services my foot. Concentrate on Telecommunications.
At one point he is singing thing is doing fine, putting up appearances. The next moment, it is sinking.
That tower planting expedition is unbusiness-like, it’s political.
Send the CEO packing, find equity partner and and list it on LuSE fast fast.
So essentially,a Lapgreen is needed again. Lol. Iyo kwena, it’s truly Dunham reverse.
Dununa. Chi autocorrect.
Just give the damn thing back to LapGreen
it’s already under Huawei.
Why should they shift the debt to govt when ZAMTEL? Which debt is this anyway is Lapgreen debt or the Chinese communication tower debt.
ZAMTEL need to be streamlined as well
You can’t be seen to favour Zamtel this time in the face of competition. ZICTA has a mandate to effectively monitor and regulate unfair competition tactics. When Zamtel is seen to be doing things deemed unfair to Telecommunications business, the regulator needs to put the culprit to shape before the business in it’s entirety gets mess. The same goes to Airtel, MTN and other players. Zamtel should have asserted its position on the market ages before competition was born. You sound like it’s ZICTA’s fault that Zamtel is in a mess. Let Zamtel pay it’s debts. Or just sell it.
Damn it where is UZI? I guess reshuffled Mushimba has left with the answers.
Shift the debt from a private entity to treasury! This debt excludes the settlement for Lap Green so more than $500mn. We were told Zamtel would be competitive without an equity partner. Now you need one again, after Lap Green. Whose taking that risk?
And this debt does not include the cost of nationalising Zamtel from Lagreen.Lapgreen was efficiently running Zamtel and then came political rhetoric of 90 days,true to the rhetoric everything within 90 days became upside down and still today indebted nationalised Zamtel is is still limping financially.Question is,why did we nationalise a profitable entity if today a parliamentary committe is recommending for an equity partner?
This debt problem was caused by one incompetent leader who did know what he was doing in the name of Micheal chilufya sata. he lied that zamtel was sold corruptly but he did not mention or prosecute who was involved in the corruption for the sale of zamtel. Sata was clue less on economic management . I am happy God took him early other wise the country was going to be in serious economic meltdown now. even the national debts being blamed on Mr Lungu were actually obtained by Sata himself.
I hope this debt includes the monies owes to former Zamtel management employees who have not up to now been paid their dues that emanated from the industrial relations matter that they won after their retrenchment which was done due to the fi?m being sold to lapgreen.
Bitter hakiende H won’t understand this. It must not be a debt swap any GRZ bailout must be accompanied with a clear repayment plan which if abrogated must include the firing of the ceo