Zambia’s takeover of Zamtel ‘illegal’
- Published on 19 July 2012
The law the Zambian government used to takeover Lap Green Networks’ 75% stake in telco Zamtel earlier this year could have been applied incorrectly, according to lawyers.
Libya’s Lap Green Networks is suing the Zambian government for taking over its majority stake in Zamtel.
The Zambian government used the ‘Land Acquisition Act’ to takeover Zamtel from Lap Green Networks in January this year, on grounds that the sale of the company by the country’s previous administration had been allegedly ‘fraudulent’.
However, Lap Green’s lawyers have argued that this law does not apply to the acquisition of shares, or any other type of property - but rather to land only.
“The said law must provide for the acquisition of the shares only,” Lap Green’s lawyers argued.
The Libyan company, as a result, has asked the court to quash the decision made by the Zambian government to reverse the sale of the 75% in Zamtel to Lap Green Networks.
The court case continues.