Zambia considers compensating Lapgreen as expert says Zambia could lose $3 billion

In what appears to be an attempt to stop Lapgreen from going to International courts, Zambian’s Attorney General  Mumba Malila says Government will soon decide whether to compensate Libya’s LAPGreen Network following the reversal of the sale of Zamtel as the firm (LAPGreen) denies any wrongdoing during the acquisition of the 75 percent stake in Zamtel.

Malila told a government owned and heavily controlled Daily Mail that Government will analyse the matter of compensating LAPGreen, after assessing the losses the country suffered in the transaction.
“The acquisition was done under a piece of law which provides for compensation and what remains is to determine the level of compensation, depending on the losses the country suffered,” Mr Malila said in an interview in Lusaka yesterday.
He said court action will commence in the High Court if the two parties fail to reach a compromise on compensation.

Meanwhile, a legal expert based in England has warned that the PF government could unnecessarily lose over US$3 billion in legal penalties for grabbing LapGreen’s 75 per cent shares in Zamtel.

The Zambian legal expert said the contract between the Zambian government and LapGreen provided for arbitration for any dispute, a factor overlooked by President Sata and his apologists in the PF government by arbitrarily grabbing back the telephone company.

The expert said, should LapGreen go the legal way and decide to fight its case, Sata and his dogsbodies could lose more than $3 billion.

“LapGreen signed the contract for the purchase of Zamtel under the laws of the Republic of Zambia, England and Wales. Arbitration was mandatory for all disputes and the fact that the Zambian government grabbed back the Company without Arbitration automatically defaults to a breach of contract.,” the lawyer said.

“ At a minimum, Zambia will be obligated to pay back $257 million  and $195 million already invested plus capital in accounts and other legal fees. Total payback amount for Zamtel if LapGreen so choses to fight, will be in the upwards of $3 billion.”

President Sata on Tuesday announced that his government had decided to grab back the 75 per cent shares in Zamtel, which he said were “fraudulently” sold by his predecessor Rupiah Banda’s government at an “undervalued” price tag of $257 million.

 

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