
ATTORNEY-GENERAL Mumba Malila says Government will soon decide whether to compensate Libya’s LAPGreen Network following the reversal of the sale of Zamtel as the firm (LAPGreen) denies any wrongdoing during the acquisition of the 75 percent stake in Zamtel.
Mr Malila says Government will analyse the matter of compensating LAPGreen, after assessing the losses the country suffered in the transaction.
“The acquisition was done under a piece of law which provides for compensation and what remains is to determine the level of compensation, depending on the losses the country suffered,” Mr Malila said in an interview in Lusaka yesterday.
He said court action will commence in the High Court if the two parties fail to reach a compromise on compensation.
And in a statement released by LAPGreen on Tuesday, the Libyan telecommunications company complained that the Zambian government has not given it an opportunity to meet and discuss the matter.
“We are deeply worried by the announcement by the Zambian government that it is acting to reverse the sale of Zamtel, which is 75 percent owned by LAPGreen,” the statement reads.
The company says it has over the last few weeks made numerous attempts to find an amicable solution that satisfies both parties to the transaction and secure the best possible outcome for its employees and subscribers.
LAPGreen insisted that its acquisition of Zamtel was made through an open, transparent and competitive bidding process, overseen by well-respected international professional organisations and in strict adherence to Zambia’s established legal framework.
“We hope this situation can still be amicably resolved and we welcome an opportunity to work with the Zambian government to achieve this.
LApGreen said under its ownership, Zamtel has moved from a state of near insolvency to become a national success story.
“As well as growing Zamtel’s subscriber base by over 600 percent in just over 18 months, we have created 1,700 jobs in Zambia,” the statement reads.
The actual number of jobs according to government reports is actually 700 which is down from 3,000 when the company took over.
The government after a probe has established that RP Capital grossly undervalued the company before it was sold to LAPGreen and that thus far Zambia has only received US$15 million from the Libyan company out of the agreed US$257 million.
The transaction has sucked Dora Siliya, the outspoken Petauke legislator, George Kunda and Situmbeko Musokotwane, the former Finance Minister who yesterday faced investigators at the former task force offices.