Zambia will take back a 75 percent stake in local fixed-line operator Zamtel that is currently held by Lybia's LAP Green Networks, Finance Minister Alexander Chikwanda said on Monday.
"We made a decision to restore Zamtel back to the people of Zambia," Chikwanda said at a media briefing.
"The plight of the workers may be affected temporarily but we are trying to put up something permanent. If we find Zamtel is not adequately capitalised we will avail fresh capital."
Zambia last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation. The company has denied any wrongdoing.
Under its previous government, Zambia sold a majority stake in Zamtel to the Libyan operator for $257 million. A government inquiry in November ruled that 2010 transaction illegal.
(Source: Reuters)
This is absolutely not acceptable at all, bearing in mind that the current Libyan government is not in a position to defend its assets abroad so governments such Zambia's decided basically to nationalises a Libyan-owned company. It's against the law but again I guess there is no much law in Zambia as was in Libya when Gaddafi ruled the country.
Zambia in not lawless. The sale of ZAMTEL was opposed by Zambians from the first day. It was a corrupt and hastily arranged deal. There three pre-qualification conditions and LAP GreenN failed all of them and should have been discualified. The opposition then (government now) warned that they will reposses the company. Before you comment please read the government report on the sale on www.lusakatimes.com/2012/01/20/zamtel-final-report/