Commerce, Trade and Industry Minister Felix Mutati says he will never insult the integrity of the Zambian people.
Addressing journalists during a press briefing held at his office this afternoon, Mr. Mutati said his statement that the people of Zambia would not understand the ZAMTEL Valuation Report was not meant to insult the integrity of the people.
Mr. Mutati explained that what he meant was that the people would only understand fully the matter after government makes a presentation of a comprehensive statement to parliament immediately it resumed sittings next month.
He said a comprehensive statement would highlight the details of the RP Capital Valuation Report and other details pertaining to the sale of ZAMTEL.
Mr. Mutati said his statement was based on how people might find it trick to understand the motive behind government’s sale of the country’s telecommunications company before a detailed comprehensive statement is made available to the public through parliament.
And Mr. Mutati disclosed that government decided to sell ZAMTEL because it was financially ill.
He said government did not have money to recapitalize the company because it was not budgeted for in the 2010 national budget.
He said the money that was needed to recapitalize ZAMTEL amounted to over US$200 million which he says government could not afford.
He noted that the only option government had was to find an investor who would inject money needed to revive normal operations of the company, which he says was a good idea because government will now receive dividends and taxes, as opposed to recording zeroes before it was sold.
Meanwhile, Mr. Mutati said the Zambia National Commercial Bank, ZANACO, is currently performing well in the wake of its privatization.
He said government has been benefiting well from ZANACO through dividends and taxes it receives from the investor in the commercial bank since it was privatized.
[ QFM ]