Libya’s Lap GreenN mulls dragging Zambia to court

previous government but the new government is threatening to repossess the company, saying there were a lot of irregularities in its sale.
The move to repossess the company follows findings of a commission of inquiry instituted to establish how the company was sold.
The report has revealed that there were glaring irregularities in its sale and the Zambian government is now on the verge of repossessing the company.
But the Libyan firm’s chairman Wafik Alshater said the company has now been forced to explore legal options to “protect its reputation” following what it terms “willful misrepresentation”.
The senior company official said in a statement that the company was being subjected to a “concerted campaign of misinformation” through the local media.
“LAP Green Network categorically rejects any allegations of wrong-doing during the acquisition of its 75 percent stake in Zamtel.
At all times, LAP Green followed due process, facilitated by a consortium of internationally renowned professional service companies.
“The open and competitive bid process was overseen by the Zambian Development Agency and included direct involvement of the Attorney General and international legal advisers, Simmons and Simmons,” he was quoted as saying by the paper.
He further stated that accusations that Zamtel was undervalued at the point of sale were “completely baseless”.
The report has revealed that the company was undervalued and that the Libyan firm was supposed to have been disqualified because it did not meet some of the criteria set in the bidding process.
The Libyan firm beat seven other bidders to get the company and paid US$257 million for the 75 percent shares.
Zambian president Michael Sata has called for the prosecution of the LAP GreenN Network officials, saying they were the ones who had the “dirty money” to corrupt Zambian officials.
The impending repossession of the company has divided the southern African nation with some arguing that it will send wrong signals to international investors.
Renowned local economic commentator Professor Oliver Saasa said early this week that the government needed to be cautious on the way it is treating the whole thing, warning that it might result in “investor flight”.
The former government has also maintained that there was no wrong-doing in the way the sale of the company was done and has challenged the new government to point out specific wrongs committed. Former finance minister Situmbeko Musokotwane has warned that the reversal of the sale of Zamtel will be costly to the government as it will be made to pay back the Libyans colossal sums of money of between US$400 million and 1 billion dollars. – Xinhua.