Zambia takes control of telecom

The Zambian government has taken control of the country’s monopoly fixed line operator Zambia Telecommunications Company (Zamtel), reversing the hotly-debated June 2010 sale of the telecom to Libya’s LAP Green Network, TeleGeography CommsUpdate reported.

Zambia President Michael Sata announced last November the sale of Zamtel to LAP Green could be reversed if an inquiry found sale was illegal.

The Libyan company acquired 75 percent of Zamtel in June 2010 for USD257 million amid criticism the transaction was not transparent.

While campaigning for the office, Sata pledged to investigate the deal, alleging the sale was carried out for the benefit of officials in the previous government.

Zamtel services have not been disrupted, and Sata said that no job losses are expected.

However, Zamtel’s bank accounts were frozen as part of a money-laundering investigation, and on the back of the announcement that the state was retaking control of the telecom.

LAP Green said that it is “deeply worried” by the turn of events. The Libyan company has rejected all allegations of corruption stating, “Our acquisition was made through an open, transparent and competitive bidding process … Under our ownership, Zamtel has moved from a state of near insolvency to become a national success story.”