United Liberal Party (ULP) president Sakwiba Sikota has said the leaders of PF/UPND pact Michael Sata and Hakainde Hichilema are allegedly naive and too simplistic by suggesting that they would reverse the sale of 75 per cent shares in Zamtel to Libya’s Lap Green Networks.
Mr Sikota, who is also a lawyer, said the two leaders lack a proper understanding of economic management from a legal perspective because renationalising companies was costly as the new owners would demand several other costs apart from the principal purchase value.
Mr Sikota was reacting to continued statements by Mr Hichilema and Mr Sata that they would revoke the sale of 75 per cent shares in Zamtel sold to Libya’s Lap Green Network.
He said the cost demobilisation, projected profits, the amounts invested, compensation and the actual profits, which would be lost, could rise to un proportional levels that no government would pay.
The country’s rating had already been threatened because of such statements, which do not give hope to the present and would-be investors.
He warned that Zambia’s world credit rating would collapse if Mr Hichilema and Mr Sata continue to threaten renationalisation of the privatised companies like Zamtel.
Mr Sikota said Mr Hichilema and Mr Sata should avoid such thoughts because they were almost legally unrealistic.
Mr Sikota said Government operated on the principle of continuation of sovereignty, which ensures continued economic and political stability.
He said Mr Hichilema and Mr Sata should not become a risk to national economic development by issuing statements that would threaten the country’s increased confidence internationally.
He said whether or not Government changes after next year’s elections, the Government of the Republic of Zambia would remain with the mandate of encouraging foreign direct investment.
And Minister of Commerce, Trade and Industry Felix Mutati said that Zamtel made losses that amounted to K385 billion in the last three years and that it saved US$200 million which was required to save the company from closure.
Mr Mutati said at a media briefing in Lusaka yesterday the company had become technically insolvent with shareholders’ fund collapsing to negative K270 billion in 2009 alone.
Mr Mutati said the company had terminally collapsed with more than 50 per cent of monthly revenues going towards salaries while its competitors, Zain and MTN only spent less than 25 per cent on the payroll and made contributions to the economy through taxes.
[ Times of Zambia ]