Zambia may scrap Zamtel's sale to Libyan firm

LUSAKA, Nov 17 – 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, President Michael Sata said on Thursday.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.

Source: Reuters Africa newsletter

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