News

Having learnt bitter lessons from some failed privatisations in the mining and textile sectors, the majority of Zambians have said that ZAMTEL is a viable business that should be recapitalised through offloading of shares to the public on the Lusaka Stock Exchange, a move already taken by private mobile phone operator Zain (Celtel). Zain is also borrowing from the World Bank’s private sector lending arm, the International Finance Corporation (IFC).



The government had rejected the union’s earlier calls to recapitalize ZAMTEL through the treasury or by acting as guarantor for the company to borrow from financial institutions.



The government insists that ZAMTEL is insolvent and should be sold off quickly to avoid liquidation, but public opinion is that political interference was largely to blame for the current state of the company.



The public has also questioned the engagement of RP Capital of Cayman Islands as valuators of ZAMTEL and financial advisors to the Zambia Development Agency (ZDA), the body charged with the privatisation of the state-owned company.



The ZAMTEL evaluation report done by RP Capital has not been made public. There are concerns that the assets of the company could have been undervalued to corruptly sell off the ZAMTEL to a bidder preferred by the government.



The Communications Minister Ms. Dora Siliya had to resign her position following the ruling of the tribunal that found her guilty of having breached the constitution by disregarding advice from the Attorney General concerning tender procedures for the appointment of valuators of ZAMTEL.



The partial privatisation of Zamtel has so far attracted over 30 pre-qualified bidders.



Meanwhile, the National Union of Communications Workers (NUCW) says the 2,445 ZAMTEL workers should be paid off in full before the privatisation of the company.



In a position statement to management signed by the General Secretary Clement Kasonde, the union says, “It is a fact that when a company is made to undergo any business re-organisation, the employment status of workers is likely to be affected. It is in the interest of unionised employees to be paid off separation packages in accordance with the existing conditions of service before being engaged on new contracts of employment.”



“Those workers whose services may not be required in the post-privatisation ZAMTEL should be paid retrenchment packages as compensation for premature termination of employment in addition to gratuity in accordance to existing conditions of service.”



The union and ZAMTEL management are currently locked in negotiations for severance package.