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'FREEZING Of ZAMTEL Accounts To Cause UNCERTAINTY'
The Private Sector Development Association (PSDA) has observed that the freezing of Zamtel bank accounts by the Drug enforcement Commission (DEC) is mostly likely to cause uncertainty among investors in the country.
PSDA chairman Yusuf Dodia has told QFM that the freezing the Zamtel accounts without any court order may imply especially to the investor community that the Zambian government interferes with the running of businesses in the country.
Mr. Dodia has urged government not to handle the Zamtel saga in a manner which will erode investor confidence but instead base its decisions within the confines of the rules and regulation.
Mr Dodia has further observed that the freezing of the Zamtel accounts is also most likely to cause misuse of cash at Zamtel.
But finance minister Alexander Chikwanda has assured the nation that government will ensure that it safeguards the interest of the Zambian people in the Zamtel impasse.
Mr. Chikwanda says the PF government will not legitimatize any illegal transactions that were done by the previous regime.
Qfm
Posted by Admin
on January 24, 2012. Filed under LATEST NEWS.
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quest
January 24, 2012 at 9:28 am
But the international investors know the saga of this zamtel issue so there are no fears which should raise any eyebrows. the report was published. imagine if it was in UK this time chaps involved would have been arrested. Them even issues of tax evasion it very serious, so what investors are you talking about
Mpangula Mputyu
January 24, 2012 at 9:31 am
The Americans and British betrayed Ghadaffi. I think they wont care if we go ahead and reposses Zamtel.
Ayatollah
January 24, 2012 at 9:56 am
I fail to follow Yusuf’s line of arguement. What will bring uncertainty is the honoring of a fraudulent transaction. Investors, both local and foreign, must know that crime doesn’t pay. As for misuse of funds, how will that be possible when accounts are restricted? They can deposit into but can’t pay out of those accounts. This move has prevented massive externalisation of funds. It would have been difficult to recover such funds once externalised. Govt has decided to reverse this fraudulent sell, it’s LAP GreenN that should go to court if aggrieved. Govt will defend its decision, period.
Munalian
January 24, 2012 at 1:56 pm
@ Ayatollah
Mr Dodia’s logic/argument is that freezing the accounts WITHOUT a COURT ORDER is dictatorial in nature,ie likely to put off other investors (be local or foreign) because theit investment/assets might be taken over (or nationalised) ARBITRARY by the govt!! In other words,he is merely saying something like:
“if Lap Green acquired Zamtel fraudulently/illegally,let that be determined by an (independent) court of law…”
Put this way,would you invest in a Zimbabwean farm knowing that Mugabe might/will take over whenever he pleases -even if you are complying with the law??
If your answer is no then you’ll understand Mr Dodia’s logic
Munalian
January 24, 2012 at 2:09 pm
@Ayatollah,
I am not a lawyer but I think you are wrong in saying that “it’s lap green that has to prove it’s case,ie acquired Zamtel legally”
It is the prosecution (in this case the govt) that has the burden of proof to show that the defendant (lap green) is guilty of fraudulent acquisition!!
My own view is that the govt has every right to reconsider the Zamtel sell but needs a court warrant to freeze assets and/or re-issue shares!! Failure or unwillingness or the govt to act legally is recipe for abuse of authority for the govt would be prosecutor and judge,ie ANY govt might/will freeze any business “just because it wants to!!”
Matters of law are usually cumbersome but better the rule of law than an authoritarian govt that dictates every aspect of life
tom maatomola
January 24, 2012 at 2:45 pm
this zamtel story is not new to all zambians .when it was being illigally sold everyone heard AND can tell what hAPPENED where was the likes of the yusuf and others to advise the mmd and dora rb and others why some pipo now are worried about its resersal ya ya ya some were given something to try to speack for the wrong doers go go pf yu are in the right track.
Kapuli Wa Ng'ongo
January 24, 2012 at 2:49 pm
Perhaps govt should go further and issue restrictions on asset disposal by Zamtel and place caveats on all fixed assets (land, buildings, machinery, telecommunmication equipment and vehicles as Zamtel bosses mays start selling these and buy dollar for externalisation. As a matter has the board being dissolved and a cate taker board appointed? Can the Zamtel MDs passport be withdrawn and his movemets monitored?
Nak
January 24, 2012 at 4:19 pm
Viva Zambia Viva, Viva PF and Viva MCS. once again Zambia may be a proud country. I am one proud Zambia who has always been mocked by people because of how Zed has been. Go Zed go. What should scare away the investors? The reversing criminal activities by selfish individuals who do not care about their country and the common majority? Let those investor go if they do not want to abide by the Law.
I feel proud to be a Zambian where ever I am now.