Zambia prepares to pay another $50m to ‘LapGreen’

Zambia prepares to pay another $50m to ‘LapGreen’

“Robinson Zulu, Likando Kalaluka and godfather Rupiah Banda in another windfall cash”Following the payment of $49m to “Lapgreen”, Zambia is preparing to pay another $50m.

Most of the first $49 million was wired back to accounts of Zambian politicians including Edgar Lungu.

Lapgreen was a subsidiary of the Libya Investment Authority(LIA) a sovereign wealth fund owned the Libyan government.

Following the war and collapse of the central government the LIA has fallen to crooks whose claims across the world are being ignored until a legitimate government emerges that would have legal authority to control the sovereign wealth fund and assets such as those being held by the LIA.

But Felix Mutati, Attorney General Likando Kalaluka quickly entered into a consent judgment in the Lusaka High Court with LAP GREEN and further sealed by registering it in the London High Court Arbitration.
If the Zambian government proved corruption in the sale of Zamtel to Lapgreen, Rupiah Banda, Henry Banda, Dora Siliya and others would have been exposed for their corrupt role in the sale.

So phony LAPGREEN officials appointed Meanwood Proprietor Robinson Zulu as local agent.

Together with Attorney General Likando Kalaluka decided to enter a consent judgement to compensate LapGreen Network its initial investment in Zamtel amounting to US$252 million plus interest, calculated at 8%, and other charges.

LIA, held stakes in nine telecoms operators across sub-Saharan Africa, including Chad’s Sotel Tchad, Oricel in Côte d’Ivoire and Gemtel Telecom in South Sudan and all these countries have refused to recognize the authority by a so-called LAP GreenN chairman Dr Faisel Geigab.

The Arbitration process set up by London based Meanwood proprietor, Robinson Zulu under the London High Court Arbitration had ordered that Zambia compensates Libya $380million for nationalizing Zamtel.

This was a matter in which the Libyan Investment Authority (LIA), the investment arm of the Libyan government dragged the Zambian government to court for abruptly reversing the sale of Zamtel without compensation in 2011.

The Libyan company owned a 75 percent share of Zamtel while the Zambian government owned 25 percent.

According to the Financial Times of London, the Libyan Investment Authority reportedly pursued similar action against Chad, Rwanda and Niger.

In the report, the LIA claims that the four countries took advantage of “Libya’s political turmoil to nationalise assets belonging to the country’s $66 billion sovereign funds” following the eight-month long conflict by the West that brought an end to Muammar Gaddafi’s 40-year rule.

At the beginning of 2011, LAP Green Networks, a subsidiary of LIA, held stakes in nine telecoms operators across sub-Saharan Africa, including Chad’s Sotel Tchad, Oricel in Côte d’Ivoire and Gemtel Telecom in South Sudan.

On 2 May, Niger’s parliament voted to nationalise telecoms asset Sonitel, pulling back from a privatisation agreement to sell a 51% stake to LAP Green for $62.16m.

In January, then President Michael Sata seized a 75% stake in telecoms company Zamtel that LAP Green had purchased for $257m during a privatisation exercise in 2010.

LAP Green challenged the government’s actions in court and was asking for $480m in compensation.

But Likando Kalaluka corruptly ended this process by entering into a consent judgment and later registering it at the London High Court Arbitration process set up by Robinson Zulu.

The Financial Times quoted another LIA Chairman, Hassan Bouhadi, as saying the legal action related to technology assets in the four countries named. “The LIA is determined to regain what was squandered from the Libyan people,” Bouhadi said.

After a corrupt completion of the process, Finance Minister Felix Mutati then went to Parliament in a ministerial statement that the “court” had ruled that Zambia should compensate LAP Green for seizing Zamtel from the Libyan sovereign fund in 2012.

Mr. Mutati did not give details over which court made the order nor payment timeline.

The company was sold in 2010 by the Rupiah Banda administration for US$394 million on grounds that it had failed to recapitalise the business.

In 2012, the PF administration under President Michael Sata forcefully took over Zamtel’s operation from LapGreen Network claiming that the 75% shares the company owned were corruptly sold by the previous administration.

Lap Green Networks denied any wrongdoing in the manner it acquired the company and said it would challenge the country’s authorities in the courts of law.

LapGreen Network then took the matter to the Lusaka High Court, where the government failed to defend its decision to repossess the company.

Instead, Attorney General Likando Kalaluka decided to enter a consent judgement to compensate LapGreen Network its initial investment in Zamtel amounting to US$252 million plus interest, calculated at 8%, and other charges.

The total amount payable to LapGreen Network came to US$382 million.

According to the settlement agreement, the government was supposed to make an initial payment of US$114 million in November 2016, followed by biannual payments of US$35 million in February 2017 and August 2017 respectively.

The opposition, the Forum for Democracy and Development (FDD) issued a statement through its spokesperson Antonio Mwanza demanding the government inform Zambians why it has failed to pay LapGreen Network and how it plans to settle the issue.

Almost three years ago, a Zambian High Court allowed Lap Green Networks to take the matter to the London Court as it was considered neutral ground after the Libyan company expressed concern that it would not be given a fair hearing in Zambia.

The court’s decision came after all foreigner directors of Zamtel were deported from Zambia.

In 2012, President Sata constituted a commission of inquiry to investigate how Zamtel was sold to the Libyans.

The Zambian government has failed to make public a report by the Commission of inquiry into the sale of Zamtel.

However, a leaked copy of the Commission Report however shows irregularities in the manner in which Zamtel was sold, alleging that Lap Green and RP Capitals, which was appointed as financial advisor, bribed senior Zambian government officials.

The Zambian government has repeatedly said it can only compensate Lap Green Networks for its investment in Zamtel, but that it will never surrender back the company to the Libyans.

In 2014, the Zambian government agreed to repay the US$103 million loan that Lap Green Networks obtained from China’s ZTE in 2011 for the expansion of Zamtel network.

The loan was obtained by Lap Green Networks in 2011 from ZTE in order to implement Zambia’s Global System for Mobile Communication (GSM) phase IV and Universal Mobile Telecommunication System (UMTS) projects.

The repayment of the $103 million loan was considered to be the first step in compensating Lap Green over its investment in Zamtel. Secretary to the Cabinet Rowland Msiska instructed the Secretary to the Treasury to secure a loan from China’s Import and Export Bank (EXIM) to pay back the loan to ZTE on behalf of Lap Green.

Dr. Msiska however, refused to discuss why the Zambian government decided to pay back the loan, and why it has decided to do so while the case was still in court.

“Government does not discuss its plans and programs in the media,” Msiska had said.

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