Bloomberg News

Zambian President Sata Dissolves Zamtel’s Board of Directors

January 24, 2012

(Updates with comment by LAP Green in fourth paragraph.)

Jan. 24 (Bloomberg) -- Zambian President Michael Sata dissolved the board of Zambian Telecommunications Corp., the fixed-line operator the government took back from LAP Green Network yesterday.

Mupanga Mwanakatwe is appointed as acting chief executive officer and chairman of Zamtel in the first step to “regularize” the operations of the company, Sata said in an e- mailed statement today from Lusaka, the capital.

The government of Africa’s biggest copper producer reversed the 2010 purchase of a 75 percent stake in Zamtel by LAP Green after a state investigation found the sale was “irregular.” The Libyan company paid $257 million for the stake.

LAP Green “categorically rejects any allegation of wrongdoing” during the acquisition, which was made through an open and transparent bidding process, the company said in an e- mailed statement today. The government hasn’t given it an opportunity to meet to discuss the decision, it said.

“We hope this situation can still be amicably resolved, and we welcome an opportunity to work with the Zambian government to achieve this,” LAP Green said in the statement.

--Editors: Gordon Bell, Emily Bowers

To contact the reporter on this story: Anthony Mukwita in Johannesburg at amukwita@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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