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LUSAKA, Jan 24 (Reuters) - Zambia has dissolved the board of Libya-controlled Zamtel and appointed a new acting CEO, the government said on Tuesday, as it seizes 75 percent in the fixed-line operator from owner LAP Green Networks.
The government also said in a statement it would restructure the ownership of Zamtel to ensure Zambians own the bulk of the company.
"The President has ordered the dissolution of the board of Directors of Zamtel," Lusaka's State House said in the statement.
An official for LAP Green Networks said the company was preparing a statement.
Zambia's finance minister said on Monday the government planned to take back the 75 percent stake, which was sold by the previous administration to the Libyan operator for $257 million.
A government inquiry in November ruled the 2010 transaction illegal. Zambia last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation. The company has denied any wrongdoing.
Since his election in September on promises to fight corruption, Zambian President Michael Sata has chipped away at several deals made during the administration of his predecessor Rupiah Banda.
Sata in October reversed the $5.4 million sale of unlisted Finance Bank to South Africa's FirstRand <FSRJ.J>.
(Reporting by Chris Mfula; additional reporting by Mahmoud Habboush in DUBAI; writing by David Dolan, editing by Ed Stoddard)
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