ZAMBIA Consolidated Copper Mines Investment Holdings (ZCCM-IH) has broken its silence regarding the whereabouts of the US$167.5 million Barrick Gold paid for a 2.28 percent stake in Lumwana Mining Company (LMC).
“The funds are placed in short-term investments with local financial institutions,” ZCCM-IH said in a statement placed in the Daily Mail following concerns from minister of Mines and Minerals Development Wylbur Simuusa that the company might have either ‘misplaced’ or ‘misapplied’ the money.
ZCCM-IH, in a management statement, said it will disclose the whereabouts of the money after a board approval next month because doing so before the board’s consent would be tantamount to flouting listing rules. The company is listed on the Lusaka and New York bourses.
Last week, Mr Simuusa gave the company a one-week ultimatum to account for the money which in Kwacha terms stands at tens of billions and could provide a major boost to poverty reduction programmes.
Former minister of Finance Situmbeko Musokotwane, in an interview via phone from Zimbabwe where he is doing some work, said he is confident the money could not have been misapplied.
[pullquote]ZCCM-IH, in a management statement, said it will disclose the whereabouts of the money after a board approval next month because doing so before the board’s consent would be tantamount to flouting listing rules. [/pullquote]
“If there are any suspicions by the minister (Mr Simuusa) that the money is missing,” Mr Situmbeko said, “the matter must be reported to the police.”
The Peter Munk owned gold digger paid Australia’s Equinox Minerals up to US$7.5 billion for LMC and insisted on buying off the 2.28 percent stake Zambia had even after the local competition commission advised that ZCCM-IH must maintain the stake which by extension gave ZCCM-IH a stake in the multi-billion Jabil copper and gold mine in Saudi Arabia.
Criticism mounted regarding ZCCM-IH’s decision to take a ‘measly’ US$167.5million from the largest gold digger in the world instead of actually demanding a large stake in the mine that has an extendable 35-year lease life.
However, speculation has been escalating that ZCCM-IH only agreed to give up the 2.28 percent stake in LMC after Canada’s Prime Minister from 1984 to 1993 Brian Mulroney visited State House with a Zambian author based in the United States.
Barrick Gold is a Canadian owned mine. The nature of discussions Mr Mulroney “quietly” had at State House with the Zambian author and State House officials remains unknown.
[Zambia Daily Mail]
Not a mathematician but in my ideal world if I had a resource that could raise 7 billion I would try to find a way to partner up to raise a lot more than a couple of hundred million. Lesson learned hopefully. Would be interested to hear from fellow bloggers what the positive way forward is for our current resources.
Lack of forsight by zccm ih
Daily Mail are just full of innuendos now.
This was a no brainer , you heard it first from me right here. I told you that a Minister cannot just bulldoze his way to get information for a publicly listed company internationally. Procedure must be followed. It does not matter whether you own 98% of the shares or not. Listing rules need to be respected. Ask the new CELTEL owners, to learn a thing or two, when they wanted to sweep aside the minority share holders and delist CELTEL from LuSE.
So, the minister needs to wait for the board approval, mandated by shareholders, to get the full information about the money. It will certainly be in the next financial statement or will be issued as a trading update to the market.
I hope the Minister has learnt something Kulima Tower Economics never taught him
but why didnt these clons tell him this dame information they sare putting out to the publi now when he inquired? Its that simple isnt it?
So why didnt these clowns just tell him that inaformation when he was asking? I dont get it. THey are spendiong money issuing a public statement when they could have easily told the Minister the same info and put the matter to bed once and for all
Great point. You see some of the bloggers on the block are from the streets and have very little understanding to such, I appreciate your educated insight you posted especially with regards to this topic. Thumbs up!
Govt of Alarmists for Alarmists by Alarmists.Wylbur is behaving like he has never been to school,or is it because he has spent so much of his time on the Copperbelt?
MMD Chief Bootlicker is a sharp dog…kudos to him/her…he/she is a sensible person..an am beginning to have respect for the him/her. kEEP IT UP BA MMD bootlicker
I like “A Phiri ana bwe” way of looking at issues.The question is how much returns has that money earned compared to the dividends Lumwana Mining Company (LMC) would have paid our country.
Typical of Kopala thinking being exhibited by Simuusa..just like his Kopala counterpart in Kambwili.
What is clear so far is that PF leaders in govt luck education and generally how the professional world works.
Noise noise noise dats o they are making these chaps nothing tangible has come out from them!!don’t kudabwa!!!
I think the mistake has been rushing to the media otherwise it is within the Minister’s rights to know what happened to the proceeds. I do not understand why this communication could not have been kept confidential between the Minister and the Head at ZCCM IH. Keeping quiet was recipe for suspicion and rushing to the media on the other hand was recipe for embarrassment.
Couldn’t someone have said this the first time this question was posed? Now it is ZCCM-IH who knows where the money is instead of the Ministry of Finance or whatever Ministry these guys said was responsible for such things? This is how Government money disappear into a black-hole. Quite franckly, if the Minister didn’t ask about this, no one would have stepped up and give a clear account as to where the money went. And B4 you know it the entire amount disappears into corperate and people’s personal accounts through accounting gimicks—-well done Mr. Minister to keep these people on notice that Zambians are watching and they demand facts!!!!!!!!!!
all we need is our money accounted 4 keep it up simusa
#10 even after the explanation of ZCCM-IH you still don’t seem to understand or get the explanation that ZCCM-IH is a listed company therefore whether the minister asks or not when they make there quaterly reports this infor is made public. Simuusa should have just gone to the Ministry of Finance and they would have advised him to wait for the quaterly report instead of making public pronouncements which have just highlighted his ignorance.
@MMD Chief Bootlicker , what do you expect from these PF minister? Some of them leave much to be desired. I am just hoping by 2016, Ionly hope that by 2016, our economiy will not be ruined likek our southern neighbour(Zim). God deliver us from this Government of thugs!!!
2016, Felix Mutati president, Kabinga Mpande veep!!!
What surprises me is that Mr Simussa at one time worked for Z.C.C.M IH in Kitwe and as a result I would expect him to be well versed with the policies and procedures of getting such information. Everybody in government wants to come across as tough like their leader MCS. There can only be one MCS and please stop being such alarmists. Get on with the job of developing the country and stop witch hunting.
Simuusa is educated and should resists the temptation to emulate his leader who, it appears, is likely to cost Zambia US$100 million due to his big mouth on the matter regarding one innocent Swiss!
Simuusa – settle in the job and concentrate on developing policy; not policing and rumour mongering!!!
Listing Rules Indeed!!
How on earth has ZCCM-IH managed to stay listed not just on with their primary listing on the LuSE, but with their secondary listings on the London Stock Exchange and the NYSE Euronext in Paris when they have not published audited accounts since 2007?
How do we the shareholders (the Zambian Government owns 87% of the shares) keep track of what is happening with our investment?
Please enlighten me!!!
Spot on!! I support PF but lets get real, they are the majority shareholders should they be asking questions through the press? PF need to settle down and start governing rather than politicking. We voted you in … get on with the job!
PF Cadres have no data I think. They are just loud mouths
But we voted out your father Allabee, so what data did he have
Wilbur behaved like a mine manager. That is exactly what they used to do in Zccm, bossing people about and thinking that it will work, and is there any wonder that the Zccm failed to produce? Modern management is leadership by innspirationa and persuasion and not threatening and bullying. Get your act together PF and learn, otherwise come 2016, kuya bebele.
One wonders how many “quiet” words went on in that house for 3 years
Some one got a cut from the transaction and this is where PF is supposed to shade more light now that they are ruling Party. I wonder if PF consults th govt technocrats who know more about the transaction than just ranting. We have big brains in various govt departments and parastatals.
Disclosure of public investments is mandatory. Why should this particular investment be shrouded in mystery? Who is kidding who? Wow!! Children at play!
THE minister asked for information. why was he not told initially through a memo that the information can not be released before the board approves? Why wait until he goes to the press? The Minister was speaking for the many Zambians who did not know the answers. Please let us assist the new government to settle. From the look of things in Zed now, a lot of stuff was being done with question marks. Remember this is a new government!
IN MOST GOVERNMENT INSTITUTIONS CAN ACCOUNT FOR THE EXACT MONEY RECEIVED BUT NOT THE INTEREST ACCRUED.WHEN WAS THE MONEY PAID AND WHEN DID THE INVESTMENT DONE? IF ALL THIS HAPPENED BEFORE 31ST MARCH 2011 THEN IT SHUD HAVE REFLECTED ON THE FINANCIAL ACCOUNT RECORDS.THE MINISTER COULDN’T COME OUT LIKE THAT PIPO? BOOTLICKER WHEN WAS THE MONEY PAID AND WHEN DID THE INVESTMENT OCCUR?
last annual report published by ZCCM-IH are 2006-2007….:nothing said on last half year financial report
Simuusa is voluntarist and dynamic , he must shake these indolents in their ivory tower built by “the corrupt and incompetent Mwale“
Mukela Muyunda must be fired
A rupiah ‘s corrupt henchman who sold zamtel for a song cannot manage efficiently the zambian watchdog ZCCM-IH !
Simuusa is voluntarist and dynamic , he must shake these indolents in their ivory tower built by “the incompetent Mwale“
Mukela Muyunda must be fired
A rupiahs corrupt henchman who sold zamtel for a song cannot manage efficiently the zambian watchdog ZCCM-IH
ZCCM-IH last published accounts are for y/e 31.3.2007!! How are they maintaining their LuSE listing with such profound absence of up to date publicly available financials? If you are thinking of buying ZCCM-IH shares you would be extremely foolish to base your decision of 2007 financials!!. If the inept ZCCM-IH directors and senior management had exercised responsible corporate governance and adhered to LuSE listing requirements, the information on the K850bn would be easily available.Producing update financials in this day and age is not rocket science