Technology and Science Minister Felix Mutati has disclosed that Zamtel is in a loss-making venture as a business, with about 90 percent of its revenue being utilized for administrative expenses.
Mr Mutati said government will however, not recapitalize Zamtel because it has other priorities it intends to spend its resources such as funding the teacher and health-workers recruitment, Constituency Development Fund and youth empowerment.
Mr Mutati said estimates show that Zamtel currently needs a sum of US$265 million in order to survive as a company by way of investing in its co-networks, infrastructure and other business support services.
Mr Mutati said this is in exception of a staggering debt of around K3 billion and the over $500 million owed to Lapgreen, without taking into account other liabilities.
He said Zamtel as a company has a deficit on working capital of around K1 billion with its balance sheet unable to support programs such as maintenance of current infrastructure, expansion and modernization, a key issue requiring to be addressed urgently.
Speaking when he visited the Zamtel Head Office on Thursday, Mr Mutati said no matter how well-written a letter requesting funding may be, government is unable to finance Zamtel because there is no resource envelope at Ministry of Finance.
He said said Zamtel now needs to find an answer to its insolvency beginning with where it will find the $265 million required for survival.
Mr. Mutati said President Hakainde Hichilema was clear when he launched the public-private dialogue forum recently that there is need for government entities to be consultative with the private sector in order to find solutions to their problems, hence the need for Zamtel to take advantage of such clear government policy in order to construct sustainable solutions.
“Go there and think, dialogue and find innovative solutions particularly the $265 million needed, then give us a roadmap to implement a solution. That solution will then be referred to the steering committee chaired by the President. We need to find solutions and that should be our target” Mr Mutati said.
He said the Minister of Finance has his hands tied for him to begin financing Zamtel’s operations as he has to deliver value to the people.
“If it means we need to cut some limbs in order to save the life of Zamtel, so be it because that is where the solution for Zamtel lies. Let’s not take it as an easy conversation” the minister told Zamtel Acting Managing Director Joshua Malupenga.
Mr. Malupenga said the visit by the Minister will help the company’s aspirations to accelerate the universal access to communications and digital agenda.
Among other plans, Zamtel wants to expand its 800 Mega Hertz frequency spectrum to upgrade its 2G network to 4G for it to support e-government services.
This is the DEATH SENTENCE for Zamtel. Both MTN and Airtel will have popped the champagne, as Zamtel will now NOT be able to compete. Just when they were on the way back. Bad decision Mr President!
When I said Sydney Mupeta former MD was not fit for CEO role but cold IT server rooms people thought I was just being malicious..now look at what is under the woodwork. This is a company that was giving out bicycles during political campaign.
ZAMTEL AND ZAMPOST BOTH OVER STAFFED AND FOR WHAT ??
AND SO MUCH RED TAPE INVOLVED IN DOING BUSINESS WITH THEM
Is he minister of communication?
This is because hh only knows how to sell and privatise state assets. Mutati is every where and clearly campaigning to overthrow incompetent hh. Popcorn please as I watch this unfold
THERE IS A LOT OF CORRUPTION IN ZAMTEL. THEY SIGN OVER-PRICED CONTRACTS IN SECURITY AND OTHER SERVICES. IT EXPLAINS WHY MOST OFN THEIR RESOURCES GO TO ADMINISTRATION. ANOTHER PROBLEM IS INCOMPETENCY.
Deja Vu – Last week he was talking about hospitals and some deadlines …this is Mutati for you
He’s actually focusing on his presidential bid.
The company needs funds and its CEO is busy handing out goodie bags to the Minister as shown in the photos …what does that say about the acting CEO’s mindset?
RB (MHSRIP) saw this and sold ZAMTEL to Libyans. He was demonized and called all sorts of names. Therefore, when King Cobra (MHSRIP) entered State House, one of the first things he did was to grab back ZAMTEL from Libyans and hand it back to GRZ. Libyans went to the International Court and won the case. That is why Mutati is now saying that part of the huge ZAMTEL liability is what they owe Lap Green. Felix is the luckiest Zambian because he was in the previous Cabinet that sold ZAMTEL!
Ba PF even Zamtel you were caderising – You congolese monkeys!
F00lish cows moonyellow
NDONANO Mafupa – Take over of Zamtel by the govt was not a bad idea but then can the execution of the plan was the problem even with paying off the $200m ..this is where African govts lamentably fail…Pay Forward put cadres in there and its an open secret that ZAMTEL is where ministers used to take their side chicks,
“Mr Mutati said this is in exception of a staggering debt of around K3 billion and the over $500 million owed to Lapgreen, without taking into account other liabilities.”
So Pay Forward never reduced the $200 million debt owned to Lapgreen now its grown to $500 millionn…Sydney Mupeta was busy buying all sorts of tech stuff.
That nincompoop sata just because of gaining popularity decided to grab zamtel back from lap green and now zamtel is owing lapgreen a staggering $500 million which it has no way of paying. Meanwhile the nincompoop is lying somewhere underground leaving all the problems to those above.
Hon minister
I believe ZICT College falls under your portfolio.
Kindly intervene in this college. The institution has totally collapsed in terms of standards.
“Mr Mutati said government will however, not recapitalize Zamtel because it has other priorities it intends to spend its resources such as funding the teacher and health-workers recruitment, Constituency Development Fund and youth empowerment.”
I keep warning these sleepy New Dawn govt that Mutati is busy campaigning for himself …who is he to make such statements every week he is somewhere he is the defacto Minister without portifolio because the Govt Spokeslady is mere a useless empty suit there to make up gender numbers.
Ukupela icipuna ku wa matako ayakulu