GOVERNMENT SHOULD NOT BUY ZAMBEEF CHIAWA FARM-George Mtonga
A financial expert and diaspora supporter of the UPND Government, George Mtonga has stated that it is wrong for Government to buy the Zambeef’s Chiawa Farm as some shareholders are very close to President Hakainde Hichilema.
Aflife Financial Services, an insurance, pension and investment management company which is a major shareholder in Zambeef, is owned by Muna Hantuba and Valentine Chitalu, longtime business partners of President Hakainde Hichilema.
George Mtonga wrote;
Given the proximity of the shareholders of zambeef to the president and government, I personally would have not had the government get involved in purchasing the asset.
The conflict of interest is too much. That’s just me though…
First I presented on the valuation of the land as an asset.
I then shared with you the shareholders and their information.
And I showed you why I wouldn’t have advised anyone in government to purchase an asset from Zambeef considering the major shareholders proximity to the president.
I rest my case on the matter.
Mr. Mtonga what is your valuation based on? Besides what you did is exactly what Miles Sampa reguritated. Took the valuation of the company. Based on its stock value not the net book value. As some said, valuation is not an exact science. Each sector has a prefered way of looking at the value of assets.
Let Zambeef speak to us. As the Public we would like to understand their strategy in the sale. They sold an aspect of their operation; a farm and got more than what they would have gotten if the sold asset by asset or Zambeef as a whole.
Conflict of interest: Do you have the board minutes of the sale? The said people you mentioned are just share holders of Zambeef. How did shareholders benefit from the sale? As NAPSA is also a shareholder. The same benefit that accured to the other Shareholders and its not like because of the “inflated price” as you suggest this only accured to the two. Zambeef benefited.
Your understanding of business structures are not the same as “kantemba” Zambeef is a public company. Issues of possible conflict have to be reported. Have you bothered to go to SEC/LUSE to bring this up or just ran to post this? Remember the ZCCM transaction that caused Dolika Banda to resign from the ZCCM board? Look at how the regulator addressed the issue when found wanting? ZCCM was suspended from the London Stock exchange.
So if you think you have a credible basis. Report the conflict and lets see you have a credible basis.
What you may want to raise is the transparency of the transaction. The state should have raised the issue in Parliament. Not that ZNS cant buy. No! But like debt contraction, maybe all transactions should go through Parliament.
However, does the law provide for that? Remember the noise you made about Mopani? Some of you even threatened to sue. Where is your law suit? All talk but no action.
As Zambians lets stop the demagoguery. There a progressive manner to engage with one another. This antagonistic approach is driven by self serving motives.
What alot of you do ask for right now is, how effective is the CDF since was rolled out? Lets see the audit reports on the fund utilisation?
To me the Minister of Finance can be asked in Parliament (Ministrial statement) for an understanding what this transaction was, why government opted to buy this farm, why at that price, what is the benefit of the purchase to Zambians, if Zambeef has financial issues (as someone suggested) what are those issues? Why the purchase instead of capaitalisation through IDC as a shareholder? When you ask questions as opposed to speculating, all parties engage learn and corrective action is done than this finger pointing approach.
My two ngwee
What is annoying is the opposition has not commenced impeachment proceedings against Mambala!
Enough is enough!
Ayende kwao!
When you look worse than PF, then you are really rotten!
Asking the Finance Minister about the sale in Parley wouldn’t be ideal because nothing would change.That is my take ,though…
Who is the custodisn of Zambia’s money? Who engages ot transacts on behalf of government?
Some people live abroad but honestly wonder if they engage in anything that is of intellictual substance or learn anything while they brag that they live in Germany.
Looking worse than PF, then you are really rotten,,, HH must go!.
There’s nothing wrong in this transaction including the price. It is an investment worth having.
If you look at that farm there quite alot of Investments in place than just looking at a bare land NO. Even bare land this time is quite expensive depending on the location. But that CHIAWA FARM have almost everything that ZNS and ZCS will start utilising and money paid will within a short period of time be returned and they will continue making profit.
But the noise that is being heard have no basis and have no use in this our Zambia. Otherwise, there’s no issue here it’s just that we have many Emmanuel Mwamba now who always want to create a bad impression from a good thing.
Otherwise, it is worth it.
Clapping….well said
Financial expert so this article refers to Mr Mtonga. I wonder how Mtonga seems to write similar to bwamba’s by selectively some but not all information obviously to create a narrative.
For instance he claims Aflife is owned by Muna Hantuba and VC, when infact not true otherwise he would’ve provided the shareholding. Fact is at least 70% of Aflife is owned by Sanlam, a South African financial services company. But then again like I said it’s all bwamba.
Further he puts aflife as a major shareholder when they only hold 13% according to article which means the rest of the shareholders have 77%, which is more than 75% threshold needed for the board to make and execute decisions even without aflife. Again bwamba style.
So ati financial expert ka or just another pfidiot???