ministerial statement on zamtel and un resolutions 1970 & 1973

8/7/2019 Ministerial Statement on ZAMTEL and UN Resolutions 1970 & 1973

http://slidepdf.com/reader/full/ministerial-statement-on-zamtel-and-un-resolutions-1970-1973 1/13

M IN IST R Y O F F IN A N C E A N D N A T IO N A L PL A N N IN G

f.

MINISTERIAL STATEMENT BY H ON. DR SITUM B EK OMU SOK OTW ANE, MP, MINISTER OF F INANCE AND NATIONAL

PLANNING, ON TH E POSITION OF Z AMTEL AND OTH ER LIB YAN

INVESTMENTS IN LIGHT O F U NITED NATIONS RESO LUTIONS ON

L I B Y A

M arch 2011



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M R . S P E A K E R , S I R

I TH A N K Y O U FO R T HE O P P O R T UN IT Y TO I S S U E A

S T A T E M E N T ON T HE I M P L IC A T IO N S O F T HE U N IT E D N A T IO N S

S E C U R I TY C O U N C IL R E S O L U TI O NS N U M B E R 1 97 0 (2 01 1) O F

FEBR UAR Y 26 2011 AND 1973 (2011) OF MA R CH 18, 2011 AS THEY

R ELA TE TO THE R EP UBLIC OF ZAM BIA , AND THE A CTIVITIES OF

E N T E R P R IS E S , IT S C IT IZ E N S A N D IN P A R T IC U LA R L IB YA N

INVES TME NTS IN ZAM BIA.

ZAM BIA 'S UNITED NATIONS M EM BER SHIP

M R . S P E A K E R ,

TH E R E P U BL IC O F Z A M B IA H A S B E E N A M E M B E R O F

UNITED NA TIONS SINCE 1964 A ND DUR ING THE ENTIRE P ER IOD OF

IT S M E M B E R S H I P , IT HA S C O M P L I E D W I TH ITS D U T IE S A N D

O B LIG A T IO NS A R I S IN G T HE R E F R O M .M Y G O V E R NM E N T

THEREFORE WISHES TO EXPRESSIT S U N E Q U IV O C A L

COM M ITM E NT TO UN SE CURITY COUNCIL RE SOLUTIONS NUM BER

1970 AND 1973. WE WILL THER EFORE TAKE ANY AND A LL ACTION

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R EQUIRED TO ENSURE THE S UCCESS FUL IM PLE M ENTATION! OF

THES E RE SOLUTIONS.

T HE G O V E R N M E N T OF T HE R E P U BL IC O F Z A M B IA

FUR THER WISHES TO EXTEND ITS S UPPOR T TO THE P EOPLE OF

LIBYA IN THIS EX TRE M ELY DIFFICULT TIM E, TO EXP R ES S ITS HOPE

FOR A PE AC EFUL SOLUTION TO THE E XISTING S ITUATION, AND

FOR AN E ND TO THE VIOLENCE THAT HAS R OCKE D THE P EOP LE

OF LIBYA.

A S M Y H ON OU R A B L E C OL LE A G UE S M A Y HA V E A L S O

N OTE D , TH E R E H A S B E E N A C O NS ID E R A B L E D E G R E E O F

SP EC ULA TIO N IN THE P A ST FEW DA Y S A S TO THE FUTURE O F

ZAM BIA TELE COMM UNICATIONS COM PA NY LIM ITED ("ZAM TEL") IN

CONNECTION WITH THE R EC ENT E VE NTS IN LIBYA.

THE R ES OLUTIONS AS THER R ELATE TO ZAM TEL

M R S P E A K E R ,

5 . S E V E N T Y-F IV E P E R C E N T (7 5% ) O F T H E E Q U I TY IN

Z A M TE L IS O W N E D B Y L A P G R E E N N , A M A U R IT IA N C O M P A N Y

HEADQUAR TERE D IN UGA NDA WHICH IS ONE HUNDRE D PE R CE NT

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(10 0% ) O W N E D B Y TH E L I B YA A F R I C A I NV E S T M E N T P O R T F O LI O ,z ,

K N O W N A S L A P . LA P I S I N T U R N W H O L L Y O W N E D B Y TH E L I B YA

INVE STM ENT AUTHORITY, WHICH IS L IBYA ' S SOV ER EIG N WEA LTH

F UN D . TH E R E M A I NI NG T W E N T Y -F IV E P E R C E N T (2 5% ) O F T HE

E Q U I TY IN Z A M T E L IS O W N E D B Y TH E G O V E R N M E N T O F T HE

RE PUBLIC OF ZAM BIA.

UNDER RESOLUTION 1973, THE UNITED NATIONS

S E C U R I TY C O UN C IL R E S O L V E D , A M O N G S T O TH E R T HIN G S , TO

EXTEND ITS EARLIER RESOLUTION ON ASSET FREEZING

AP PLICABLE TO KE Y INDIV IDUALS IN THE G OVE R NM E NT OF L IBYA

AS STIP ULATE D IN RE S OLUTION 1970 (2011) OF FE BR UAR Y 26, 2011,

TO APPLY TO THE ASSETS UNDER THE CONTROL OF THE

AUTHORITIES OF LIBYA.

TH E R E H A S B E E N C O NC E R N S E X P R E S S E D B Y TH E

Z A M B IA N P U BL IC A S T O TH E E X T E N T TO W H IC H T HA T F R E E Z E O N

A S S E T S C O UL D IM P A C T O N Z A M T E L . A S G O V E R N M E N T, WE H A V E

B E E N A S U S U A L D IL IG E N T , A N D H A V E A T A L L TIM E S C L O S E L YFOLLOWED AND CONTINUOSLY ASSESSED THE EVOLVING

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S I TU A T IO N , A N D W E H A V E M A D E S I G N IF IC A N T P R O G R E S S I N

a A SS ES SING THE S ITUATION IN THIS VER Y SHORT TIM E FRA M E.

IMP LICATIONS ON ZAM TEL

M R S P E A K E R S IR ,

THE G OVERNME NT WISHES TO REA SS URE THE PEOPLE

OF ZAM BIA, THOR UGH THIS A UGUST HOUSE , THAT THE RE IS NO

RE AS ON FOR CONCER N RELATING OF THES E DEVELOPM ENTS AS

THEY R ELATE TO ZAM TEL. THE PUR POSE OF THE RE SOLUTIONS

O F THE UNITE D NATIO NS SE CURITY CO UNCIL IS TO PR EV E NT

FU ND S, F IN AN C IAL A SS ET S OR OT HER EC ON OM IC R ES OUR C E S

B E I NG U S E D T O S U P P O R T V IO LE N C E O R U S E O F F OR C E . TH E

PURP OSE OF THE R ES OLUTIONS IS NOT TO PR EVE NT OR IM PE DE

THE OP ER ATIONS OF COM PA NIES IN WHICH LIBYAN E NTITIES HOLD

E Q U I T Y .

ZA M TE L IS N OT IN A U N IQ U E P OS ITION . TH E L IBYA NINVES TME NT AUTHORITY HAS A SS ETS UNDER M ANAG EM ENT OF

AP PR OXIM A TELY USD 70 BILLION. A S IGNIFICANT PR OPOR TION OF

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T HE S E A S S E T S A R E L OC A T E D O UT S ID E O F LIB YA . T HE L IB YA

IN V E S T M E N T A U TH O R I TY IS A S O V E R E IG N W E A L TH FU N D

M A N A G IN G T HE S E A S S E T S F OR T H E BE N E F IT O F P E O P L E O F

LIBYA, THE VERY SAME PEOPLE FOR WHOSE BENEFIT

P R O T E C T IO N IS B E I NG A F FO R D E D B Y TH E U N I TE D N A T IO N S

S ECUR ITY COUNCIL RE SOLUTIONS. IT IS THER E FORE IN THE BE S T

INTER ES T OF THE PE OPLE OF ZAM BIA A ND LIBYA THAT NORM AL

OPER ATIONS A T ZAM TEL CONTINUE.

STRUCTURE OF TRANSACTION AT PRIVATISATION


10. I WISH TO FURTHER A SS URE THIS HOUSE THAT WHEN

THE PR IVATISA TION OF ZAM TEL WAS COMP LETED IN JULY 2010, A

N UM B E R O F TR A N S A C T IO N D O CUM E N TS W E R E A G R E E D A N D

S I G N E D , B E T W E E N TH E G O V E R N M E N T O F T HE R E P U B LIC O F

Z A M B IA , Z A M T E L A ND L A P G R E E N N - TH E N E W S H A R E H O LD E R

A N D IN V E S T OR . TH E K E Y A G R E E M E N TS W E R E T HE S A L E A N D

P U RCHA S E A G RE E M E N T, THE S H A RE H OL DE R S A G RE E M E N T A N D

THE ES CROW OF FUNDS A GR EE M ENT.

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T HES E D OC UM EN T S W ER E N EG OTI ATED W I TH G R E AT

CAR E A ND GIVE THE G OVERNM ENT OF THE R EP UBLIC OF ZAM BIA

ALL OF THE NECE SS AR Y PROCEDURA L CONTROLS WITH RES PE CT

T O T HE M E A S U R E S W H I CH A R E T H E S U B J E C T M A T TE R O F T HE

ASSET FREEZE PROVISIONS OF THE UNITED NATIONS

R ES OLUTIONS. THIS WOULD A LSO BE THE CA SE FOR ANY OTHER

SIM ILAR TRA NSA CTION NEG OTIATED A ND ENTER ED INTO BY THE

G OVER NME NT OF THE R EP UBLIC OF ZAM BIA IN RE SP ECT OF ITS

ASSETS.


I T S H O U L D F UR T HE R B E N O T E D T HA T W H E N T H E

T R AN SA C TI ON W AS C OMP LET ED ON 10 T H JULY 2010, THE FULL

US$257 MILL ION CONSIDE R ATION WA S P AID. THE FUNDS W ER E

DISPERSED IN ACCORDANCE WITH THE TRANSACTION

D O C U M E N TS , W I TH US $ 6 4 M IL L IO N G O IN G S T R A I G H T IN TO

Z A M TE L 'S BA NK A CCOUNT TO RE CA P I TA L I S E THE COM P A NY. A

FUR THER US$ 70 M ILLION WAS SE CURE D BY ZA M TEL IN THE FORMOF VENDOR FINANCING BY ITS S UPPLIER S. THE BUSINESS PLAN

FO R Z A M TE L A S A G R E E D W I TH G O V E R N M E N T IS T HE R E F OR E

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F UL L Y F UN D E D A N D A R E N O T A T A L L A F FE C T E D B Y T HE

4RESOLUTIONS.

FURTHER M ORE ALL FUNDS THAT WER E E SCR OWED TO

/' " S E T TL E Z A M T E L 'S P E N S I O N I S S U E S , E M P L O YE E S A N D OT HE R

L IA B IL IT IE S H A V E A L S O B E E N FU L LY D IS B U R S E D A N D TH E

ESCROWING CONCLUDED.

FREE ZING OF DO NOT APP LY TO ZAM TEL BUT SHAR EHOLDER

M R S P E A K E R S IR

I T I S I M P O R T A N T TO N O TE T H A T T HE F R E E Z I NG O F

ASSETS, AS IT PERTAINS TO ZAMTEL RELATES TO THE

S HA R E HOL DE R L A P G RE E N N A ND ITS HOLDING OF S HA R E S I N

Z A M T E L . IT D O E S N O T I NV O L V E A N Y IN TE R R U P T IO N O F O R

IMPE DIM ENT TO NORM AL OPER ATIONS A T ZAM TEL. ZAM TEL WILL

THER EFORE CONTINUE TO OPE R ATE A S NORM AL, AND IS UNDER

NO RESTRICTION OR RESTRAINT DERIVING FROM THE

ABOVEM ENTIONED RE SOLUTION.

15. A S G OVE R NM E NT WE UNDE R S TA ND THA T THE R E I S A

HIG H LIKE LIHOOD THAT THE SHAR ES IN ZAM TEL WHICH AR E HELD

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B Y LAP G R E EN N AR E C OV ER E D B Y U NI TED N AT IONS S EC U R I TY

a COUNCI L R E S OL UTION 1973 A ND THE R E FOR E THOS E S HA R E S

S H A L L B E F R O Z E N . A S A C O N S E Q UE N C E , C E R T A I N A C T IO NS -

S U C H A S P A Y M E N T OF D IV ID E N D S O R R E G IS T R A TIO N OFw

TRA N S FE R O F S U CH S HA R E S , FO R W H ICH A S G O V E R N M E N T W E

ALR EA DY HAVE PR OTECTION IN THE TRA NSACTION DOCUME NTS,

SHA LL BE TEM POR AR ILY SUSP ENDE D, PE NDING R ES OLUTION OF

THE CUR R ENT ISSUE S IN LIBYA .


AS A FURTHER CAUTIONARY MESURE, AS

G OVER NME NT, WE WILL SE E K F INAL CLAR IFICATION FROM THE

SA NCTIONS COMM ITTEE ES TABLISHED UNDER CLAUSE 24 OF THE

UNITED NATIONS SE CURITY COUNCIL RE SOLUTIONS NUM BER 1970

WHETHER THE LAP G RE EN N HOLDING IN ZAM TEL AND ANY OTHER

R ELE VA NT AS SE TS FALL WITHIN THE DE FINITION OF AS SE TS TO BE

FROZEN UNDER THE FOREGOING RESOLUTIONS.

P E NDING S UCH CL A R I FI CA TION, G OVE R NM E NT WIL L

E X E R CIS E I TS R I GHTS UNDE R THE TRA NS A CTI ON DOCUM E NTS

ENTER ED INTO WITHIN PRIVA TIZATION OF ZAM TEL IN A M ANNER

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THAT IS SUPPORTIVE OF THE IMPLEMENTATION OF THE

FORE G OING UNITE D NATIONS SE CURITY COUNCIL RE SOLUTIONS.

A T TH E S A M E T IM E , A S G O V E R N M E N T, W E P L A N TO

`A D O P T FO R M A L G E N E R A L A D M IN IS T R A T IV E M E A S U R E S T HA T

SH OULD , U ND ER T HE F R AM EW OR K PR OV ID ED B Y Z AM B IAN LAW ,4 .

P R E V E N T A N Y B R E A C H O F T HE F OR E G O IN G U NI TE D N A T IO NS

S E CUR ITY COUNCIL RE SOLUTIONS 1970 AND 1973, INCLUDING IN

R ELA TION TO THE FRE EZING OF AS SE TS. THES E A DM INISTRA TIVE

M E A S UR E S W O UL D IM P A C T LA P G R E E N N A S A S HA R E H OL DE R IN

ZAM TEL, BUT NOT THE OPE RA TIONS OF ZAM TEL.

W E W I S H TO A G A I N S T R E S S T HA T T HE O BJ E C T IV E O F

THE FORE G OING R ES OLUTIONS IS TO E NSURE THA T NO M ONIES

A R E R E M ITT E D T O S U P P O R T O R O TH E R W IS E F A C IL IT A TE T HE

PE R P ETUATION OF V IO LENCE A G A INST PE O PLE IN L IBYA . IT IS

N O T, H O W E V E R , T HE P U R P O S E O F T HE R E S O L UT IO N S T O

MATERIALLY DAMAGE THE INTERESTS OF OTHER, NON-

SA NCTIONED SHAR EHOLDER S, OR TO DAMA G E THE UNDER LYING

AS SE TS OR DA M AG E THE INTER ES TS OF THE L IBYAN PE OPLE.

M R S P E A K E R , S IR

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I M U S T R E IT E R A T E T H A T C O M P L I A N C E W IT H U N

I RESOLUTIONS ALSO RELATES TO ANY AND ALL OTHER

INVES TME NTS IN ZAM BIA BY LISTED RE PR ES ENTATIVE S OF THE

EXISTING LIBYAN REGIME, OR CONTROLLED BY LIBYAN

AUTHORITIES , AND ALS O TO OTHER A CTIVITIE S A S LISTE D IN THE

F OR E G O IN G R E S O LU TIO NS . M Y G O V E R N M E N T W IL L E N S U R E

COMPLIANCE IN THE M ANAG EM ENT OF THESE AS SETS TO COM PLY

WITH THE UNITED NATIONS R E SOLUTIONS, IN THE S AM E M A NNER

AS SE T OUT IN CONNECTION WITH THE S HAR EHOLDING IN ZAM TEL.

CONCLUSION


IT IS IM P O R TANT. TO PO INT O UT THAT THER E IS NO

SUG G ES TION THAT LAP G R EE N N HAS ANY INTENTION TO SE LL ITS

S H A R E S IN Z A M TE L TO R A IS E C A S H . R A TH E R , TH E C O M P A N Y

CONTINUE S TO BE COM M I TTE D TO Z A M TE L , A ND THE Z A M BIA N

M AR KE T, AND HAS INVES TED HEAVILY IN TURNING ZA M TEL INTO A

S U C C E S S F UL , S U S T A I NA B L E A N D P R O FIT A B LE O P E R A T O R . A S

G OVER NME NT, ARE VER Y HAP PY TO CONTINUE WOR KING OPE NLY

A N D IN A C O OP E R A T IV E M A N N E R W I TH LA P G R E E N N , W H IL S T

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SIM ULTANEOUSLY RES PE CTING AND ADHER ING TO THE TERM S OF

THE UN SE CURITY COUNCIL RE SOLUTIONS.

THE GOVERNMENT AS SIGNIFICANT MINORITY

S H A R E H O LD E R IN Z A M T E L IS C O NF ID E N T TH A T TH E C O M P A N Y

RE M AINS ON COURSE WITH ITS TUR NAROUND. THE G OVER NME NT

R E M A I N S C O N FID E N T T HA T W H E N T HE T UR N A R O U ND IS

COMPLETE, WE WILL EXER CISE OUR RIGHT TO L IST SOM E OR A LL

OF ITS HOLDING IN ZAM TEL ON THE LUSA KA STOCK E XCHANG E,SO THAT ZAM BIAN CITIZENS CA N PA RTICIPA TE IN THE OWNERS HIP

OF THE COM PA NY.


I W IS H T O UR G E T H A T W E E X R E C I S E C A U T IO N A N DA V O ID IS S U IN G U NN CE S S A RY S TA TE M E N TS TH A T A RE A I M E D A T

CRE ATING P ANIC AM ONGS T OUR CITIZENS. AS G OVERNM ENT WE

HAVE STATED THAT WE SHOULD BE J UDGED BY THE R ES ULTS AND

ON WHAT WE DE LIVER . IN THE CA SE OF ZAM TEL, I RE M AIN TR UE

T O M Y EA R LI ER C OMM IT ME N T T HAT W E S H OU LD B E JU D G E D B Y

H OW TH E C O M P A N Y P E R F O R M S . A N D TO D A T E TH E C O M P A N Y

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R E M A I NS O N C OU R S E T O R E C O R D I NG A S U C C E S S F UL TR A N S ITIO N

TO BE C O MIN G A C O MP LE TE TE LE C O M S O LUTIO N P R O VID E R .

2 4 . IN C ON C LU S IO N M R S P E A K E R , IT IS G O V E R N M E N T 'S

S I N C E R E H O P E T H A T T HE D E E P L Y U NO P L E A S A N T S I T UA T I ON IN

L IBYA IS BROUG HT TO A R AP ID CLOSE , TO THE S ATISFAC TION OF

THE P EOP LE OF LIBYA.


I THA NK YOU

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ministerial statement on zamtel and un resolutions 1970 & 1973

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