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Monday, 12 July 2010

How much was ZAMTEL sold for?

“We are all aware that LAP Green will pay $257 million for the 75 per cent shares they now hold in Zamtel. And this money will be broken down as follows: $117.7 million will go towards employee benefits and liabilities; $64 million will be injected into the company; $32.7 million will be used to settle external Zamtel liabilities, while $42.6 million will come to the treasury.”
According to the above description by Hon Musokotwane the actual net value paid for ZAMTEL is $106.6m. That is $42.6m to the exchequer plus the $64m which was given to GRZ by LAP on condition that GRZ invests it back into ZAMTEL.  In theory we can say that government bought the 25% shares using the $64m. But then why not just be honest with the public and say that 100% shares were sold for $106.6m and then government bought 25% shares?

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