RUPIAH has defied all logic and common sense on Zamtel, Patriotic Front (PF) leader Michael Sata said yesterday. And UPND leader Hakainde Hichilema said President Banda is dismantling Zambia in a Mafia style.

Commenting on the disclosure that State House is insisting that Zesco's optical fibre network must be sold as part of Zamtel assets, Sata said the Zamtel transaction was not a business transaction.

“Zamtel is not a commercial transaction. It's a fundraising project for Rupiah Banda. Dora Siliya was just being used. In fact, I also know Rupiah wants the Zamtel headquarters to be moved to Lusaka. Rupiah is up to no good. He wants take that optical fibre network from Zesco and give it to Zamtel,” Sata said.
He argued that Zamtel and Zesco were two separate entities.

“So why should they get the property of Zesco? The people in Parliament have to stand up and be counted. Rupiah has defied all the logic and common sense on Zamtel,” Sata said. “I will not be surprised to hear that the whole deal is being done at State House because that's what is happening. I know Rupiah… Zambia will remain a much bigger empty shell than what remained of Namboard when he left.”

And Hichilema said President Banda was destroying Zambia.
“Rupiah and MMD are destroying Zambia in a Mafia style, selling Zamtel assets without any tender and now they have graduated on to Zesco assets. They now want Zesco to hand over the optical fibre network to Zamtel so that they can benefit from both the Zesco and Zamtel assets,” Hichilema said.

“It has come to our knowledge that RP Capital in consultation with State House has demanded to control both the optical fibre networks of Zamtel and Zesco. The Zamtel line is estimated at 1600 kilometres and its worth approximately US $48 million. The Zesco line is estimated at 1300 kilometers and it's valued at about US$ 15 million. Both lines are valued at US$63 million, which is about K380 billion. All of this value Rupiah and his network would like to hand over to the new buyer who has already been identified from the time RP Capital was corruptly recruited.”

He said it was clear that there were issues because right from the beginning, the Zamtel privatisation had been riddled with corruption.
“We warned the people of Zambia that Rupiah wants to steal public assets.

They now want to dubiously privatise Zesco without any tender, which basically amounts to an illegality and asset stripping by using RP Capital to transfer the Zesco optical fibre network to Zamtel so that it ends up in the hands of a known buyer,” Hichilema said. “This is a clear manifestation of greed by Rupiah to steal from the people of Zambia. The implications are that Zesco assets are being stripped by officials we put in office because there hasn't been any announcement that Zesco was being privatised.

“Zesco currently earns about US $500,000 per month from the optical fibre network, which is about US $6 million per annum. So Zesco will lose its earning and Zesco is being obliged to invest in phase two at a figure of US $30 million so that it can also go to Zamtel but they want that to be done at the cost to Zesco.”

Hichilema said the implications were also that the move would compromise Zesco's technical capability to supply electricity to its customers.
“Even the proposed contract between Zamtel and Zesco through RP Capital basically has no proper exit clause,” he said.

Hichilema warned that Zambians have not seen enough yet.
“Rupiah and MMD intend to sell to their known friends some of Zesco's generation assets. We understand that Rupiah intends to move these assets from Zesco through illegal transactions into private hands by wanting to engage into privatisation of these generation assets,” Hichilema said. “And yet so far an estimated figure of about US $300 million has been spent in the rehabilitation of these assets through Zesco's own money and through the budget support. This is mafia style!”

And well-placed sources yesterday revealed that RP Capital with the assistance of one of President Banda's advisors has been holding late night meetings with some members of the Zesco management.

“Sometimes these meetings have even lasted up to 02:00 just to coerce Zesco to accept the transfer of this investment. For example, one meeting was chaired by the President's advisor on 10th October 2009, which was attended by energy permanent secretary Peter Mumba, a director at the Ministry of Energy, a representative from RP Capital and a Mr. Sakala from ZDA.

In this meeting, instructions from the President were passed for them to proceed as such,” the source said. “Several meetings have been held where such pressure has been applied and there are strict instructions that no minutes of such meetings should be recorded. The Zesco management have tried to explain over the months that this optical fibre network was installed as a commercial entity.”
The source said although Zesco management has tried to put up a commercial justification, it appears State House would carry the day.

“This network is connected to the National Control Centre, which is important in the supplying of electricity to Zesco's customers. In fact, the Minister of Energy Honourable Kenneth Konga on or about 20th October 2009 directed Zesco that Cabinet instructed that they hand over the optical fibre network,” the source said. “As a consequence, an extraordinary board meeting was convened on 21st October 2009 where a number of Zesco board members argued against this as they saw that it was working against Zesco's commercial interests. But finance permanent secretary Berlin Msiska insisted that the board cannot defy the shareholder's decision.”

Another source disclosed that Zesco board chairman Songowayo Zyambo has suddenly become so powerful because of the support he enjoys from State House.
“We all know where he stands even though he tries to conceal his positions on a number of issues,” the source said. “What he doesn't seem to know is that we all know why he is suddenly flexing his muscle, he wants everyone to feel his weight. Anyway, he knows where he is leaning and he thinks we don't know.”

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