‘CANCEL HH HOTEL DEAL’
GOVERNMENT should cancel the sale of Intercontinental Hotels to Sun International because the deal was done in bad faith, Economic Equity Party leader, Chilufya Tayali has demanded. Mr Tayali observed that since information emerging shows that the deal was not in the best interest of the nation as it could be shrouded in conflict of interest through the lead negotiator, Mr Hakainde Hichilema having interest in Sun International, it should be cancelled. He wondered whether Mr Hichilema had declared interest when he was negotiating to sell the hotel on behalf of government. He demanded that the deal be cancelled because it was clear certain aspects were done to favour investors, who included Mr Hichilema himself. He told the Daily Nation that, it was immoral that for 19 years, this hotel has been paying 15 percent as company tax when other players in the industry were paying 35 percent. “What makes the deal stink is that the lead negotiator for Government has a stake in the same hotel whose sale he was in charge of,” Mr Tayali said. “That in itself should cause Government to cancel the sale,” he said. And Mr Tayali said it was highly immoral for a person who is aspiring to be republican president to disadvantage Government and the people through selfish tax incentives. "What more if he become President? It is clear that he wants to become republican President for personal gain and not to help poor Zambians. Remember, there was that land (Namwala) issue where he displaced people, so it's all about himself wanting to benefit," he said. He said Mr Hichilema reaped from Zambians and that it was only him smiling out of privatisation, adding that it would be a great mistake to give him power because the country might lose more. Mr Tayali said it was morally wrong for the UPND president, Mr. Hichilema to negotiate for a tax incentive clause for Sun International Limited when he knew that he was one of the people buying the same hotel. Mr Tayali was reacting to the national budget presentation to the National Assembly by Finance Minister Margaret Mwanakatwe last Friday, in which the tax anomaly was revealed. In her budget presentation, Ms Mwanakatwe proposed for the amendments of paragraph 5 (c) of the charging schedule in order to abolish the tax incentive that was granted to Sun International Limited under the 1999 development agreement. The minister explained that the provision gives an incentive of paying company income tax at a rate of 15 percent to Sun International Limited and its successors leading to distortions. Ms Mwanakatwe added that the incentive does not have a sunset clause and runs for an indefinite period. She pointed out that the removal of the provision would level the playing field because the clause gave Sun International Limited an unfair advantage as other players in the tourism industry pay company tax at a rate of 35 percent. It has, however, turned out that Mr Hichilema who was at the centre negotiating for the sale of Sun Hotel on behalf of South Africans during privatisation and for this particular clause is one of the shareholders of the hotel. Mr Tayali charged that Mr Hichilema selfishly negotiated for the tax incentive that was granted to Southern Sun Hotel under the 1999 development agreement for personal benefits. Mr Tayali has challenged Mr Hichilema to explain why he has shares in Southern Sun Hotel which he was engaged to evaluate in the privatisation process and personally negotiated for the tax incentive that was granted to the same hotel. "This is a true nature of HH, he always wants to maximise every opportunity that he gets to enrich himself at the expense of poor Zambians. HH benefitted heavily out of the privatisation and he has not changed. "That hotel (Southern Sun) has been paying 15 percent whilst these others are paying 35 percent because HH knew what he was doing and he might have done this in other areas that some of us might not know. But I know that HH has really taken advantage of the Zambian people through the various deals that he had done and signed during privatisation," Mr Tayali said.