31 October 2011
Page 3 of 114
Recommendations of the Commission of Inquiry1.
The immediate termination of all Agreements relating to the sale of Zamtelto LAP GreennN and the immediate return of 100% of Zamtel to the peopleof Zambia for the following reasons:
LAP GreenN failed ALL the 3 mandatory prequalification criteriarendering this transaction null and void ab initio;ii.
The price at which Zamtel was sold clearly shows that the companywas grossly undervalued and GRZ paid more than it received;iii.
In effect, GRZ paid LAP GreenN to receive a gift of 75% of Zamtel;iv.
The ZDA negotiating team was not independent as required by Lawand did not negotiate in the best interests of the Zambian Nationresulting in Zambia receiving the same amount of cash equivalent tothe amount paid to a single consultant for its sale of the whole of Zamtel.
The immediate termination of LAP GreenN appointed and secondeddirectors and management for the following reasons:
As a natural consequence of 1.1 above;ii.
In order to ensure compliance with the UN sanctions on LAP.
The immediate reconstitution of the board of Zamtel for the followingreasons:
In order to ensure compliance with the UN sanctions on LAP;ii.
In order to reflect the recommended new shareholding.
A thorough and comprehensive audit of Zamtel post privatization.2.
Zesco Optical FibreImmediate termination of the IRU between Zamtel and Zesco and return of control and ownership of the optical fibre to Zesco for the following reasons:
It was illegal;ii.
It was signed by Zesco under extreme duress;iii.
It was not in the interests of Zesco and was solely designed to benefitLAP GreenN at the expense of the Zambian people.
Zambia Development Agency
The ZDA senior management must be held fully responsible andculpable for the grossly negligent and cavalier manner in which they
conducted and “oversaw” the sale of Zamtel.