Accountants body cites irregularities in grabbing of Zamtel, rebasing Kwacha

The Zambia Institute of Chartered Accountants (ZICA) disapproves the savage manner government grabbed Zamtel from LAP Green Network of Libya.

Speaking at a media briefing in Lusaka today, ZICA Chief Executive Officer Hapenga Kabeta said government should have engaged LAP Green with a view to reaching  a consensus that would have  given more benefits to the people of Zambia.

Kabeta said that government should have alternatively reduced of the shareholding for LAP Green from 75 to 49 percent.

He hoped that the move by government to repossess Zamtel will not prove to be costly to the Zambian people.

And Kabeta has objected the manner in which the Zamtel Chief Executive Officer Mupanga Mwanakatwe has been appointed.

He says ZICA does not question the professional standing of Dr. Mwanakatwe but that the principle used to appoint him was not appropriate and not in conformity with good corporate governance practices.

He says government should have appointed an interim board of directors which a chairperson which would have appointed the Zamtel CEO rather than appointing an individual who at the same time is chairman of the board.

On government’s move to rebase the Kwacha, the ZICA chief executive officer says government should have taken a more consultative approach in this regard.

Kabeta added that the six months period stipulated for implementation of the rebased Kwacha raises challenges such as the designing, tendering and printing of new notes and coins, the process of withdrawing the old notes and sensitization of the general public.

He has since advised government to consider moving the implementation date to January 1, 2013 adding that this will give the nation adequate time to adjust to the development.

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