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Alba Iulia
Thursday, October 22, 2020

Brief Clarification on the Role of Zambia Privatization Agency or Its Hired Consultants

Columns Brief Clarification on the Role of Zambia Privatization Agency or Its Hired...

By Amb. Emmanuel Mwamba

Introduction

The Privatisation Programme pursued since 1992 remains a conflicting process and spawns divisive intense debate. It was a government flagship program but supervised by the International Monetary Fund(IMF).

The government was determined that the programme succeeded as debt cancellation, international Aid and, restructure and reform of the economy, was tied to the success of the programme.

The IMF hailed it as a model and successful program in Africa, while many Zambians have realized and regarded it as done in a hasty and deeply flawed manner. It has since been recognized that it was also a program that allowed the corrupt acquisition or looting or cheaply selling of prized state assets. But what is clear is that after the sale or liquidation or disposal of over 270 state-owned enterprises, Zambia was left de-industrialised with an almost dead manufacturing sector, unpaid workers in many cases, and a shrunk formal employment sector.

Therefore we have to face the facts, if we do not look into this matter, one day our children will!

Back to the issue.

The Evaluator/Consultant or ZPA set the price and selected the preferred buyer. To divorce and avoid political influence and political corruption from the process, the price and selection of preferred buyer were left to the Zambia Privatisation Agency or its hired consultants.

For each sale, ZPA management was assisted by an independent negotiating team whose appointment was approved by the members of the ZPA board. This always comprised an independent chairman, a lawyer, at least two technical consultants from ZPA staff, and specialist consultants/advisers, as required.
The negotiating team liaised and bargained with each selected bidder and eventually hammered out a deal with the selected buyer.

Overall, the team was responsible for securing the best possible deal and for ensuring that agreement was reached on all issues of concern to the Government of Zambia.
These included making sure that the new owners honoured existing conditions of work and pledged to fulfil agreed investments in the business. Was the use of independent negotiating teams ensured in each and every sale?

The use of consultants or independent negotiating teams was considered as a good way to avoid political interference in the sales and, by and large, negotiating teams or consultants were appointed in accordance with the Privatisation Act. But it was noted in many evaluation processes as far back as 1998 that the independent consultants or independent negotiating team also acted dishonestly in some cases and also perpetrated private sector driven illegalities.

But both government and the IMF were focused on branding the programme as successful and making it a model, and despite the deep concerns, these matter were shelved or did not attract much attention or scrutiny.

The Exceptional Case of ZCCM

The ZCCM privatization – by far the most important of Zambia’s parastatals – was one notable exception. Negotiations over the sale were led initially by the international Merchant Bank, N.M. Rothschild until, at the end of March 1997, Mr. Francis Kaunda was appointed by the President, rather than by the ZPA board, to head the ZCCM Privatisation Negotiating Team. This decision was drawn up to ensure the process remained free from undue political influence. What Happened After Consultant/Evaluation/Negotiating Team Finished Their Process?

Once each individual agreement had been finalized for the sale of the entity by the negotiating team or consultant, the process came back to the Members of the ZPA Board with the proposed price and selected bidder for approval. The ZPA Board and the Attorney General would review the draft agreement reached. The Privatisation Act specified that the Minister of Finance would sign the final Sales Agreement to transfer shares to the selected bidder.

Conclusion

To respond to the current debate that the consultant/Evaluator/ or Negotiating team had no hand in determining the price or in picking a successful bidder is not informed by law or by facts as they happened! The Privatisation Debate is multifaceted. I will return with any other angle if need be.

The Author is the Zambian Ambassador to

33 COMMENTS

  1. You see now PF and your Nawakwi… Your number 1 ambassador Emmanuel just exonerated HH and Edgar, that those 2 can’t be blamed for selling 270 companies.
    You people only listening to Nawakwi with ka house HH bought, you forgetting thousands of UBZ buses and trucks.
    I come back with more if need be. I like that boyi Emmanuel, iwe wailibako real.

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  2. I think Mr Mwamba you can directly tell us how HH benefited from the sales, you sound to have more facts than back Nawakwi.

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  3. “It has since been recognized that the it was a program that also allowed the corrupt acquisition or looting or cheaply selling of priced state assets”
    Please elucidate this statement.Who
    has since recognized the program as such.when was it recognized as such?How and who corruptly acquired,looted or under prized state assets?

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  4. Mwamba is a civil servant and need to know that civil servants are not permitted to issue press comments. He is a diplomat and must act on Zambia ‘ interest in Ethopia….. I haven’t heard foreign diplomats disparaging their home government whether for or against the government…. my Zambia diplomat ni cadre….. very soon he will campaign…..

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  5. The person selling has the final answer to accept or reject any Price and seek for another negotiator or Evaluator. Nawakwi and others who were in government need to be taken to court and not the negotiators or evaluators. Why is PF still selling government assets? Who sold ZNBC? PF has contracted much debt. Where has the money gone? We need to ask abuse by PF before we ask questions about Privitazation under MMD. PF is using a corrupt political failure Nawakwi to divert people’s attention to its corruption

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  6. This is a delicious subject ripe with conspiracy because it has no strait-jacket within which an argument can be advanced. A lot can be said for unethical behavior that law tolerates as well as nuances that present an avoidance of illegality while bordering on exactly the breaking of laws. This is why politicians will boldly stand up and say what they can to suit the situation. What we now need is to know exactly what role the players under the microscope did and not innuendos or insinuations.

  7. Why should Privatization which was implemented 30 years ago by the MMD Govt be a topical and election issue today? This is just diversionary tactics by the PF Govt from their corruption and mismanagement record. The Economy is in the Doldrums and the issue should be which Presidential Candidate is best qualified to turnaround this Economy. The State of the Economy proves that the current PF Govt has failed and needs to be changed in August 2021. Any progressive and suffering Zambian should vote for change of govt. In 2021 People should vote for HH and UPND if they want a change in their lives. HH has been consistent and besides he has managed his own businesses successfully. He is worthy a try.

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  8. Most of the people involved acted dishonestly and ended up with assets of the entities they were tasked to sell. Nsansa School is one such asset and those involved were successfully prosecuted. Others collaborated with foreign bidders and hid their crime just like the Great Mwene Mutapa. Emmanuel Mwamba has just dealt with fundamentals, I challenge him to go in further detail. The Task Force on Corruption was also a targeted exercise, that’s why it achieved very little. Even some of the recovered assets were abused by some officers. Let’s just accept that we have failed ourselves, no amount of laundering will clean some people. Even people’s pensions were squandered. Union leaders were also accomplices. Emmanuel Mwamba hasn’t exonerated anybody

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  9. When a statement is written in English, don’t rush to interpret otherwise, you would misinterpret the meaning.
    The nigga was right in the thick of it. Right in the middle.
    He stinks the filthness.
    He looks corrupt.
    He thinks corrupt.
    He talks corrupt.
    He is a corrupt brag.
    Don’t trust the pompwe.
    He has no remorse.

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    • The same pf orifices that say he has never held any public office, lelo ati he sold public property, how and under whose authority? And if privatization has been so demonized made to look like the shadow of valley of the dead, if all who participated in it and walked through it have not made it like HH, then I guess we as Zambians should reward him for his tenacity and will to survive such horrid evolution , he is the fittest of them all.

  10. There is a difference between explaining a process VS what actually happened. The ambassador is telling us what ought to have happened but the reality was different. Crooked hh was too quick for mmd. In fact they all worked together to siphon many funds to panama. Taka teke uyo

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  11. Hichilema needs to be visited by the Forfeiture of Proceeds Crimes Act so he can explain how he became wealthy all of a sudden.

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  12. The ones with CASES is NAWAKWI… Knowing how PF mafia works, they have blackmailed him, like they did to GBM. NAWAKWI knows that she can be arrested anytime because evidence is there. Even GBM dealings at Defense ministry are very clear. So Feel pity for Nawakwi, she is trying to SAVE HER SKIN. But if i were HH, I was going to sue her using internal lawyers. NAWAKWI knows that locally, she will be protected by the corrupt local justice system. Now iwe KA @KZ (Not the UK boy but the REAL ONE), Why are you under State Protection…Ufisanji….. Very soon you will PAY…Time is ticking…. You can attempt to RIG ELECTIONS AT YOUR OWN PERSONAL RISK… And let me not BEAT ABOUT THE BUSH HERE… READ MY LIPS…. RIG 2021 AT YOUR OWN PERSONAL RISK..YOUR OWN PERSONAL RISK

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  13. Boz timba you are just a small insignificant boy. Please try and talk like that to my face if you are man enough. Some of you become brave on the internet. Learn to have respect. What UK kz are you talking about. Stop dreaming. There is only one kz and that is me. This website has viruses and many people have tried to hack me. Only a dull person would not use a vpn to access it. For all you know I am using your IP yet am in Zambia. You are very shallow

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  14. I am often amused when people say, ‘To avoid political interference’ when the politicians appoint the people who are not supposed to have political interference. Every person or officer who is appointed by a politician is politically influenced. Who appointed the Zambia Privatisation Agency members? In Zambia there is not a single institution that is not politically influenced. He who pays the piper calls the tune.

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  15. Mr Mwamba, thanks very very much, these are the leads we want. Mama Nawakwi, we’re really grateful for beginning the conversation on a complete different note, it’s been a skeleton news all along, but for the first time you started reinstalling the missing flesh on the bones. We need more flesh on them as we are eager to to see the actual image of the matter.

  16. Let SEER 1 prophesise on the matter of privatisation of Zambian companies. SEER 1 seek judgement from GODFATHER so that we can end this debate. Lungu takapite!

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  17. Mwamba, is it true FTJ had a lot of properties in Brussels, Kitwe (parklands) and Lusaka (Naser road flats). The problem is the properties were registered in other peoples names and crooks have taken over. FTJ never used his name cause LPMwanawasa was determined to grab everything off him. Now the people or names FTJ used BY included have connived to get the properties at the expense of FTJ’s children. The problem is Crooks (BY included) cant reveal the properties FTJ left cause the man was denyin that he had properties and tu ma fake pastors who were praising FTJ would be shocked to know how much the man plundered from US.

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  18. “Finland’s national public service broadcasting company (YLE) has confirmed Zambia Watchdog revelations that about £28 million belonging to Regina Chiluba has been blocked in Europe.
    Regina is the widow of late president Fredrick Chiluba.
    But Emmanuel Mwamba says it is a lie”.

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  19. This Mwamba thinks he is smart but he is forgetting he was part of MMD and exposing the folly in PF campaign…really laughable….if this man loves writing articles about Zambia why can’t he just leave that cosy government job.

  20. Mwamba is joining in attacking HH through this article which he thinks has facts. When I read the article I realise that he is not well informed but wants to use journalistic writing combined with half twisted truth.

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  21. In fact, I want HH to privatize and protect my Private Parts because he will put them to good use unlike Nawakwindi and PF who will misuse them! Nawakwindi is a lumpen who is incontinent in her mouth! Remember the venom she spewed on FTJ when she was fired for incompetence and corruption (Carlington saga)? She is good at projecting her own filth on others. Very uncultured woman. No wonder she has a chain of failed relationships and Legana nonsense! 2021 kuchinja ubuteko! We want to try those who have not been contaminated by the system!!

  22. Can you please fix the economy we are tired of listening to this privatisation story that happened 30years ago .

  23. Mwanawasa cleared our debt our economy was getting better now the have messed it up they have lamentebly failed to resucite it and realizing that people are not Happy with them and they have lost ground what next for them let’s accuse HH that he is the causer of this cause he sold the mines?? please let’s be serious as a nation u have the duty to make sure that the economy is back to track not shifting blame on one individual mwe. For how long are we going to hear this rhetoric? u have created poverty in people’s homes and u want awez to be politicking and shifting blame to an individual on pertinent issues.

  24. Mwanawasa cleared our debt our economy was getting better now the have messed it up they have lamentebly failed to resucite it and realizing that people are not Happy with them and they have lost ground what next for them let’s accuse HH that he is the causer of this cause he sold the mines?? please let’s be serious as a nation u have the duty to make sure that the economy is back to track not shifting blame on one individual mwe. For how long are we going to hear this rhetoric? u have created poverty in people’s homes and u want awez to be politicking and shifting blame to an individual on pertinent issues.

  25. PASSIONATE REVENGE.
    Madam Nawakwi has been crushing on HH for so many years dating back to their school days. She was in the same class with the UPND President Hakainde Hichilema at the University of Zambia doing the same course (BBA) up to Birmingham university in the UK for their masters (MBA).
    We took time to analyze exactly what sin HH committed to madam Nawakwi our reports shows interesting results.
    “Ninkani yapa mutima”
    “I love HH with all my heart I will be the happiest person on earth if he ever married me” Edith Nawakwi in 1987 told a friend a record made available to CIC investigations…..

  26. I think Idith Nawakwi is not normal in her thinking. She is a woman for sale. She was their in the forfront as Minister, full time cabinet minister, an MP and had all powers today she comes with PF evil works of turnishing HH’s name. It will not work out in fact you have done well so that people will know who HH is and because of your careless evil mouth, you have made even those who doubted HH now to trust him as a man we need in Leadership today.

  27. The rats are going fullout to divert people’s attention from the collapsing economy……..

    Tell us about inflation , debt, GDP , unemployment ………?

    UPND media team needs to refocus the discussion on things above that are affecting people ……

    and the fact that lungu accumulated $2.3 million after 18 months in office , how ????

  28. The rats are going fullout to divert people’s attention from the collapsing economy……..

    Tell us about inflation , debt, GDP , unemployment ………?

    UPND media team needs to refocus the discussion on things above that are affecting people ……

    and the fact that lungu accumulated $2.3 million after 18 months in office , how ????

  29. The rats are going fullout to divert people’s attention from the collapsing economy……..

    Tell us about inflation , debt, GDP , unemployment ………?

    UPND media team needs to refocus the discussion on things above that are affecting people ……

    and the fact that lungu accumulated $2.3 million after 18 months in office , how ????

  30. MMD being used by PF in a last ditch desperate attempt to discredit HH. We know these machinations – including buying voter registration card details by offering K1,600. Zambia is at the pinnacle of either allowing this despicable regime to ride rough shod over the Zambians again, or kicking it out for the sake of ‘fresh air’ that will deliver meaningful sustainable livelihoods to Zambians who have suffered immensely over time.

Comments are closed.

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