The Zambian government will take back a 75% stake in fixed-line operator Zamtel from Libya-based Lap Green Networks, Finance Minister Alexander Chikwanda was quoted saying.
LAP Green Networks, which is part of the Libya-Africa Investment Portfolio…
The Zambian government will take back a 75% stake in fixed-line operator Zamtel from Libya-based Lap Green Networks, Finance Minister Alexander Chikwanda was quoted saying.
LAP Green Networks, which is part of the Libya-Africa Investment Portfolio (LAP) group, acquired a 75% stake in Zamtel from the government for US$257m in 2010. The government reportedly retained the remaining 25%.
But since the transaction was completed, a new government has taken power in Zambia. Led by the Patriotic Front party, this new government has pledged to inspect some commercial deals organised by the previous administration.
Subsequently, Justice Minister Sebastian Zulu reportedly concluded that the Zamtel sale had been fraudulent and allegedly illegal because LAP Green had failed pre-qualification tests and Zamtel had been undervalued.
In a statement on 19 January, Lap Green Networks said: “LAP GreenN categorically rejects any allegations of wrong-doing during the acquisition of its 75% stake in Zamtel.
“The 75% stake sold to LAP GreenN in June 2010 for $257 million (ZK1.37 trillion) constituted the highest amount ever paid for a privatisation in Zambia and was at the time one of the higher valuations for a telecoms asset in Africa. Accusations that Zamtel was undervalued at the point of sale are completely baseless.”
In late January, Zambia also reportedly froze the bank accounts of Zamtel as part of a money-laundering investigation. Lap Green Networks was quoted as denying the allegations.
