Tuesday, 24 January 2012

ZAMTEL TAKE OVER

Today, the Zambian government has taken over the operations of ZAMTEL, the largest telecommunications utility company which was sold under circumstances which have now been confirmed to have been dubious, by a Commission of Inquiry set up to investigate the sale of ZAMTEL to a Libyan company LAP Green.

In fact this sale was opposed by different opposition parties at the time, not least the Patriotic Front, which is now the party in power. With this reversal of fortunes, leaders involved in the sale of this company now face possible prosecution for helping to fleece millions of  dollars from a public utility. What does this singular action by the government of Zambia tell us?

Firstly, it reminds us what we have come to know in the past 10 years: That each new President brings his own set of brooms to sweep his new turf for better or worse, but more importantly for me, that investors will think twice before sinking their money in ventures that could, by a singular action, be declared null and void and politicians will be more cautious about entering into dodgy deals.

If there is something the September 20th, 2011 election did for Zambian politics, it was to remind politicians that power lay with the people. Not even the suspicion of rigging that had reached ominous proportions could stop the people from removing the MMD government.  PF leaders now know this and they will do one of two things: Tread carefully and stay on the right side of the masses, or continue with the dubious distinction of using politics to enrich themselves.

The latter option would seem the 'natural' choice given our past, but I doubt this will be the case for most, principally because our politicians have become accustomed to living well off the backs of the sweat of tax paying Zambians and the thought of 'giving it all up' if they were caught with their hands in the till is frightening. There are too many lessons in our recent past and most of them do not have a happy ending.

But why am I still uneasy about  this new broom sweep? I am supposed to be happy that something is being done to end the rot right? Well, the repetitive nature of the lessons make me cynical about change. The past 10 years have shown us that politicians have a curious mixture of fatalism and hope. The fact that people were arrested during  President Levy Mwanawasa's time did not deter anyone, when President Rupiah Banda assumed office. Almost immediately, Mr Banda threw away Mwanawasa's broom and brought in his own, only his was already murky and he merely smeared over what had been 'cleaned' off by Mwanawasa.

His broom was like a paint brush, which erased any attempt at catching those who had stolen state money. Instead he made them his friends and what followed was a brazen scramble for whatever people could lay their hands on.  The sale of Zambia's national bank to First National Bank of South Africa at a pittance, the appropriation of a privately owned bank, Finance Bank, to settle political scores with its owner (Not that his own hands are clean), the shambolic sale of ZAMTEL... the list goes on.

With this history, cynics may be excused for wondering if Sata is driven by vengeance. Given what he went through on his campaign trail, I would be surprised if the thought of retribution hasn't crossed his mind, but at the same time, I am impressed with his bark, which so far has matched his bite. His unorthodox methods may not always go well with many people, but his heart seems to be in the right place. But in these times, we do not need someone who only has their heart in the right place, they should also do the right thing.

Sata's penchant for micro managing and making ill considered and lone decisions may prove fatal. He may be excused for running his household like that, but this is a country people! He has people scampering for cover with his sharp tongue and as the fashion in Zambia, the President knows it all. Anyone who challenges that is state enemy numero uno. This is where the fraternal twin adjectives of sycophancy and muteness find meaning.  One either prostates themselves before the President to gain favours or stay mute, for fear of saying anything wrong. But choosing sycophancy and muteness is one sure way of leading the ship to the rocks.

We need to be vigilant and check that our leaders don't go off the rails.

Let us continue the momentum started when the last government was shown the door. As for investors, beware! Don't go into Zambia hoping to make a quick back by circumventing the rules. Those days seem to be over, over, over.