The Zambian government has frozen all bank accounts belonging to the embattled Zambia Telecommunications Company (Zamtel), operated by LAP Green Networks of Libya.
The government claims the move aims to stop the Libyans from externalising money as investigations into the alleged fraudulent sale of the company continue.
The freezing of the accounts follows the decision by the government to reverse the sale of the company to LAP Green Networks by the previous government.
Zambian president Michael Sata said in a statement on 21 January that the government now wants to sell majority shares in the company to Zambians in order to empower them.
Zamtel MD Hans Paulsen claims the freezing of the accounts in various commercial banks would halt the operations of the company.
The telco has, however, been allowed to continue depositing money into the frozen accounts, but is not allowed to withdraw any money. The Zambian government said it only spared one bank account, the salaries account, to ensure that Zamtel workers are paid.
Sata said through his special assistance for press and public relations, George Chella, that the freezing of the accounts is in the public interest and is a measure aimed at preventing money from being withdrawn by Zamtel management.
“Zamtel is a viable proposition when things have been realigned and streamlined. The temporary setback of the workers will be attended to quickly so that workers are not subjected to uncertainties anymore,” said Sata.
Sata adds: “Government has both the will and capacity to meaningfully capitalise Zamtel.”
The previous government sold Zamtel on the grounds that the then-management had failed to recapitalise the company, and as a result, the company was on the verge of collapse.
Last week, Zamtel announced that it has seen an increase in mobile subscriber numbers from less than 100 000 a year ago, when it took over the company, to one million, in just 12 months.
Zamtel chief commercial officer Amon Jere attributed the one million milestone to diligent leadership with an unabated focus on investment in the Zambian network.
The nation's only total communications service provider, Jere said, has, over the past year, invested to expand GSM coverage from 261 sites to more than 400 sites, while at the same time deploying over 250 new 3G sites in key towns across the country.
The company also claims that its broadband subscriber base has grown from just over 100 at the beginning of 2011 to surpass 4 000.
“In addition to the above positive developments, management also extended the network core, implemented a new billing system, and developed a new ISP core and a number of value-added services, all adding up to the growth of Zamtel,” said Jere.
Despite this, the Zambian government is reversing the sale of the company following a report that exposed glaring anomalies bordering on corruption in the manner in which the company was sold.
Sata refers to specific issues in the report, such as the $12.6 million paid to RP Capital, the UK-based company single-sourced by then minister of Communications and Transport, Dora Siliya, to evaluate Zamtel assets, as evidence that corruption existed in the deal.
According to the report, the money paid to RP Capital is believed to have been shared between senior government officials and RP Capital.
Zamtel management has since taken the matter to court in a bid to force the Zambian government to unfreeze the bank accounts and allow the company to have full access to the money.
The freezing of the bank accounts also means that Zamtel's operations have ground to a halt.
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