Zambia’s cabinet may reverse the sale of its fixed-line phone operator Zamtel to Libya’s LAP Green Networks after a commission of inquiry found that it was illegally sold, said President Michael Sata.
Libya’s LAP Green last year bought 75 percent of Zamtel for $257 million and the remaining 25 percent shareholding was retained by the government amidst criticism from opposition parties and civil society groups that the transaction was not transparent.
“If cabinet decides then we will have no choice but to reverse the decision,” Sata said after Justice Minister Sebastian Zulu reported that the sale of the company was fraudulent and illegal as LAP Green failed the pre-qualification tests and Zamtel was undervalued, Reuters reports.
The long-time opposition leader had said after the sale of telecoms firm that he would reverse the sale once elected president.
Since his election in September, Sata has thrown a spotlight on a number of deals executed under his predecessor Rupiah Banda, who was criticised for taking a relatively lax line on graft.
Sata in October scrapped the $5.4 million sale of unlisted Finance Bank to South Africa’s FirstRand.