President Edgar Lungu says government is making progress in the process of dis-engaging from Konkola Copper Mine (KCM) a subsidiary of Vedanta mineral resources.
Speaking when he met representatives of the tripartite Labour movement at State House today, President Lungu said the decision on KCM is final and will be done within the confines of the law and in a consultative manner.
President Lungu has also stated that the implementation of the proposed sales tax is non reversible but that government is open to consultations on the modifications and the manner in which it should be implemented.
He also explained that government came up with the National Dialogue Forum (NDF) in order to provide stakeholders with a broader spectrum, were contentious and critical issues about national matters can be addressed.
He disclosed that he has heard people’s concerns regarding some resolutions that were made at the NDF such as the coalition government, re-introduction of Deputy Ministers and the removal of clause 189 from the constitution, which compels employers to keep retirees on the payroll until their terminal benefits are paid, among others.
President Lungu disclosed that the NDF is an going process, adding that the resolutions are not final as they have to go through parliament before he can assent to them or decline.
And President Lungu has expressed concern with the current economic situation and other fiscal constraints in the country, assuring that he will engage the Ministry of Finance and the Bank of Zambia to see how best the situation can be addressed to lessen the impact it may have on the Zambian people.
And Zambia Congress of Trade Unions (ZCTU) President Chishimba Nkole commended President Lungu, for his decision made regarding mining companies, noting that it is estimated that three billion United States dollars is lost annually through illicit financial transactions in the mining sector.
Mr Nkole said there is now need to ensure that long term measures aimed at increasing participation of Zambians in mining is put in place.
He also called on President Lungu to intervene in some of the proposals that were made at the NDF which have raised concerns among members of the public.
Earlier, the Zambia Federation of Employers Action President Stephen Sikombe appealed to government to consider implementing the proposed sales tax in the next financial year, adding if it is implemented in July 2019, it is likely to increase the cost of doing business thereby affecting the economic performance of the country.
Meanwhile, the High Court of Zambia has appointed Mr. Lungu Milingo of Messrs Lungu Simwanza and Company as Provincial Liquidator for KCM following an application by ZCCM – IH.
According to the order, the provisional liquidator will among others things have the powers to carry on the business of the respondent so far as is necessary for the beneficial of the winding up, make any compromises or arrangements with creditors, make any agreement on all questions in any way relating to or affecting the company or its assets.
The liquidator will also take possession, custody and control of all the assets of the respondent and bring or defend any action or other legal proceedings in the name of or on behalf of the respondents, dispose of assets by public tender or the most transparent manner under the circumstances, sell the real or personal property and things in action of the respondent by public auction public tender or private contract.
Part of the Presidential delegation assigned to institute the undertaking includes;
1. Mr. Lungu Milingo of Messrs Lungu Simwanza and Company,
2. Minister of Mines and Mineral Resources, Hon Richard Musukwa, MP,
3. Minister of Labour and Social Security, Hon Joyce Nonde-Simukoko,
4. Special Assistant to the President for Press and Public Relations Mr Amos Chanda,
5. Special Assistant to the President for Political Affairs Mr. Kaizer Zulu,
6. Special Assistant to the President on Economic and Development Affairs, Mr. Hibeene Mwiinga,
7. Special Assistant to the President for Legal Affairs, Mr. Sukwana Lukangaba,
8. The Labour Commissioner.
Part of the Presidential delegation assigned to institute the undertaking includes;
1. Mr. Lungu Milingo of Messrs Lungu Simwanza and Company,
2. Minister of Mines and Mineral Resources, Hon Richard Musukwa, MP,
3. Minister of Labour and Social Security, Hon Joyce Nonde-Simukoko,
4. Special Assistant to the President for Press and Public Relations Mr Amos Chanda,
5. Special Assistant to the President for Political Affairs Mr. Kaizer Zulu,
6. Special Assistant to the President on Economic and Development Affairs, Mr. Hibeene Mwiinga,
7. Special Assistant to the President for Legal Affairs, Mr. Sukwana Lukangaba,
8. The Labour Commissioner.
-NO Mining expert
-No tax expert
-Amos and Kaizer each drafting their own reports for the boss
-EL, please humble yourself and choose…
Another highest SABOTAGE by same thugs.
Zambians are docile for real.
KCM given to same group who stole through firetrucks, The Post Newspaper etc?? Same cartel laughing at you?
“ECL….expressed concern with the current economic situation and other fiscal constraints in the country, assuring that he will engage the Ministry of Finance and the Bank of Zambia to see how best the situation can be addressed to lessen the impact it may have on the Zambian people.”
This is not leading, ITS FIREFIGHTING !!!
“Part of the Presidential delegation assigned to institute the undertaking includes….”, do these people understand mining for them to be in the forefront? Amos Chanda, sure?
THIS ANOTHER JOKE.
The rest is just ma labishi.
This is PF here is an opportunity to do things right…you go and put Amos Chanda, Kaizer Zulu and Nonde in there…no expert from outside why are we cursed with shambolic leadership?
More money in their pockets at the expense of poor Zambians who cannot afford to buy a bread and Sugar…
If I was Lungu I would be cautious on this one. Because once it’s all done and dusted the workers who will loose jobs at KCM will vow never to vote for PF again.
PF is in self distrust I’ve mode at the moment.
Next it will be other mines to go. Investors do not want to continue in a country without stable policies. Today this tomorrow that.
This just shows the State capture we always talk about as no right thinking leader would temper with such a hot potatoe then start appointing his close advisers and a lawyer with zero experience…I mean what’s so difficult getting the best there is out there to handle this? Get a Mine expert in there…if this man wants a peaceful retirement he would have done so but the BUM is detached from reality.
I just hope this is a well thought out decision and the government has put in place contingency measures to reduce the negative impact on workers, families and the economy. So far I have not seen indication this is the case apart from people singing praise songs without clarity
A normal leader would have hosted Press conference not this coward
So PF runs out of money to pay Avic. Avic downs tools. PF takes over KCM… to hand over to Avic&friends. Watch this space
Let’s roll …
Good Move but Wrong people, Damn Lungu is he confused or what?? We need to play it smart and get back all our mines.
Looks like this liquidation is being done by state house
Like I said Kaizer is rubbing his hands with glee
Is it the State House gunman and Special Assistant for political affairs Kaizar Zulu who last week physically beat up one Chomba Kaoma at protea hotel Ndola. He has since been reported to Ndola police.
According to our contacts, Zulu found Kaoma seated with Amos Chanda and Fawazi Shawi and pounced on him with punches while hauling insults at him.
Kaiser was caught on Protea hotel cctv punching Kaoma.
Kaizar then threatened to kill Chomba Kaoma if he dares to report the issue to the police.
But according Ndola Central police sources, the matter has been reported and a docket of assault has since been opened but kaizer has threatened charity Katanga of firing her if she goes ahead.
And protea hotels NDOLA has described what happened as shocking and so disheartening.
Both  hotel and…
State House liquidation, there nomore money spinning contracts coming in. So with KCM presenting itself it’s a blessing in disguise. Did anyone expect Lungu to do it any other way and leave his team by awarding this to outsiders. This is the Swaziland team he can’t let down.
The goal should be to force KCM to make concessions.
Chapwa twa pakama……lol
KCM Liquidation
Government has placed KCM under liquidation. We are told that the Liquidator, Mr Milingo Lungu, will keep operations and all workers in place while a smooth transition to a new owner is made. I googled Mr Milingo Lungu and found he does have a rich CV as follows:
1.He is on the LAZ Council
2. He was one of the lawyers that won President Lungu the right to stand in 2021 in the Concourt
3.He is the Chairperson of Zambia Airports Cooperation
4. He is a part time lecturer in civil and criminal procedure at the University of Lusaka
5. He holds a LLB from UNZA.
I was not able to find the Liquidator’s experience in this kind of complex liquidation. I am sure we will be told. As we will be told the experience that he will bring to overseeing the management of a mine.
Liquidation is liquidation. There’s no new owner being sought out here during this phase. It’s a process that brings a business to an end. It is an event that occurs when a business cannot pay it’s obligations when they fall due. With this option upon appointment of principal liquidator KCM under Vedanta will become history. On that day, all employees will become jobless.
Eish…no Attorney General Chambers, no Solicitor General in the team? Unbelievable. ….
We never learn…we just complain like we did in the 90s never put any measures to stop this mismanagement of resources again a chance has presented itself and our all powerful President has again appointed his backroom team. He doesn’t even need to answer to anybody….WASTED OPPORTUNITY WASTED LUNGU YEARS!!
?udelove there will be no new owner, as you already know it’s liquidation. You need to emphasise this point in your posts.
This liquidator was the dude who received $140,000 in his account as per FIC report
Ka Lungu was probably told by Kaizer that this will be their chance to beula big time.
This is why I can never respect one LAZY LUNGU….surely what does a Political adviser know about Liquidation even dull madam Nonde she couldn’t sort of an issue at a Lusaka restaurant. Jokers like Amos Chanda ….someone is going to get burnt here. He can not appoint even one outside to give it legitimacy even a lecturer from UNZA….the man is truly a tool for the corrupt elite.
ECL welcome back to Zambia. I am glad your eyes are now open for the people you are leading. Chingola and Chililabombwe are at the edge of collapsing. But ensure that the company to take over KCM bussiness is reliable and will be able to contribute to the society like Anglo did before.
Redpath
We went to school, we know legal terms of liquidation. To you laymen, State House has grabbed property called KCM. This is painful, where are people like Sinkamba?
KCM and other mines who have failed should be NATIONALISED. Meaning all employees start calling the government as their employer. Keep same managers or they leave etc.
This is the single most important thing to happen that empowers the citizens of this country to feel their resourced are within their interests.
Damn. It feels good to be Zambian today. Proud that we are seeing some action to bring to an end, callous self interested criminal activities by greedy Investors. MOPANI SHOULD, be liquidated too. Empty promises buys them more time to continue fleecing us. We don’t need to find other investors, let’s try to nationalise some of our mines.
This is serious but good news
For once all Zambians must support Govnt move to show KCM the door.The Indians running KCM have completely failed us.Chingola and Chililabombwe residents have suffered a lot at the hands of these greedy Indians since 2004.Yes,president Edgar Lungu is now so loved by residents in the said towns and some desperate politicians in opposition such as Kambwili and Harry Kalaba are now turning and blaming PF for taking this splendid move.For these fake politicians all they want is for PF to fail the Zambians so that voters can rise against this Govnt in 2021.Sadly for them,it is too late because ECL learnt a big lesson during the Roan by election recently.ECL is now on the side of majority Zambians.He even warned AVIC and many contractors to obey the law of giving 20% to local contractors!!!KCM…
Iwe Njimbu,
If you read above, notice that almost everyone supports the decision, the problem is that just at beginning ECL has lost it. Check out the decision to field the likes of Chanda, Kaizer, that is what is frustrating.
Why are you talking about Kalaba, Kambwili, that is not the point now and irrelevant. High time you focussed on real issues.
Really laughable….again we have failed at implementation stage why would LAZY LUNGU want that many STATE HOUSE officials in there privatization history just repeating itself. How can LAZY LUNGU warn AVIC to be allocating 20% to local contractors is it their job to do so? How do you warn when all projects are done and money has finished…is it not AVIC that built a free sports ground in Tasila’s ward? You can foooool all the people BUT you can not foooool them all the time!!
I think this time around the Chinese have buttered both his hands, just how the president makes his appointments is really a wonder, just how do you appoint people with no mining expertise. This is a mess that EL has created and we in for major trouble because this is not about the people but him and his cronies.
Good move ,kudos Zambian government.
Although this initiative was suppose to be done long time before this mess by Vendata.
Hopefully, the whole transition of liquidation will be conducted in the transparency manner for the benefit of mine workers.
Am was just talking to my cousin who works in KCM-Chililabombwe.He is in night shift now and he has been with Konkola mine since 1989.He just confirmed that KCM miners are very happy with the move PF Govnt has taken because ECL has answered their daily prayer.KCM miners do not have anything to do with KCM.Miners in Chingola and C/bombwe are thanking Roan residents for openning the eyes of ECL’s Govnt.PF is now doing the right things and 2021 copperbelt votes will be for PF has ever before.Mopani mine tries and it is not as worse as KCM led by greedy Indians!!!IF KAMBWILI AND HARRY KALABA ARE NOT CAREFUL,THEY WILL SOON ANNOY MILLIONS OF VOTERS WHO HATE KCM ON THE COPPERBELT!!
Where do they think their salaries are going to come from next month? KCM are very smart they did things on the cheap in Zambia I doubt they have any tangible assets
I was just talking to my cousin who works in KCM-Chililabombwe.He is in night shift now and he has been with Konkola mine since 1989.He just confirmed that KCM miners are very happy with the move PF Govnt has taken because ECL has answered their daily prayer.KCM miners do not have anything to do with KCM.Miners in Chingola and C/bombwe are thanking Roan residents for openning the eyes of ECL’s Govnt.PF is now doing the right things and 2021 copperbelt votes will be for PF has ever before.Mopani mine tries and it is not as worse as KCM led by greedy Indians!!!IF KAMBWILI AND HARRY KALABA ARE NOT CAREFUL,THEY WILL SOON ANNOY MILLIONS OF VOTERS WHO HATE KCM ON THE COPPERBELT!!
jimbu you are only concerned about 2021 instead of the pf doing the right thing.This clearly shows that you are very worried that your pf may not pull through in 2021.
The mines are now going to be used to fund pf election campaigns. Why can’t lungu tell us how he plans on getting the kwacha stabilized and how he will move forward to ensure job security for miners. Lungu knows his time is up..they are looting as we speak
Be very careful Mr lungu , your friend gunnasse can not sell his emeralds on the world market after thinking there where no international laws that the Israelis he kicked out of grizzely mining could use ……
The Liquidation sounds good but we await the implementation. If it is for Political expediency then not good but if it is for economic expediency then well and good. We may also be treated to a long battle especially that Vedanta is listed on the Stock exchange. The Post Newspapers can be liquidated exparte but Vedanta is not Post Newspapers. If Vedanta does not challenge the move then we may be liquidating a shell. Another question is the mine should be kept running. KCM is the wettest mine who will be paying the bills?
Don’t worry, Amos Chanda and Kaizer Zulu have everything under control.
If we use the same measure of decision making as the NDF fiasco or the retirements in national/public interest of so many Zambians then we should be extremely worried about the KCM liquidation.Hopefully this decision hasn’t been engineered by cadres.This could spell real damage to the economy
I am taking a measured position here. Whereas I wholeheartedly have always advocated a control of our resources in a way that benefits the Zambian people who are the owners (even where we have investors), what is critical here is how we go about it. We should be discussing the modus operandi rather than the political emotions and populism quests that may initially ‘excite’.
To place this in context, as an example, Zimbabwe needed to clearly redistribute the land that the people had fought for. To this day, arguments still rage as to whether the manner in which this was executed is directly linked to Zimbabwe’s economic woes today. In short, we must ensure the best strategy, with the least pain.
“President Lungu said the decision on KCM is final and will be done within the confines of the law and in a consultative manner”
Isn’t this statement contradictory? Decision is final …but there will be consultations?
zwe are the next zimbabwe. all the signs are there: 1)worst performing currency (2)kicking out investors without a plan or strategy with the aim of gifting loyal unskilled cadres with roles in the mining sector (3)skyrocketting cost of living for essential products like mealie meal (4) strong affinity for the chinese who turn blind eye to human rights and workers rights (5) all the above happening under the poor leadership of a “patriotic front” party.
Do not say we in UPND didnt warn you. Vote UPND in next eleciton, and if they steal the vote demonstrate in the streets like professinal associal of sudan
N.e.z
Chief Strategist of the UPND
If we are serious for once especially that minerals are wasting assets we dont need solidarity matches about kcm liquidation rather we should ask GRZ serious questions about the next steps on kcm. This could be a tipping point for the economy.Experts are not saying much but cadres are yapping and real substance isnt discussed.This is a huge national asset and drunken decisions should be treasonable
The list of the people assigned to institute the undertaking does not inspire confidence. It’s frightening and goes back to my point of HOW this ‘reclaim of our resources’ is being implemented. Political ‘ululation’ or the need to stand back and assess the method and consequences?
Is Liquidation the best strategy and are the people above the ‘A’ team?
THE LIQUIDATOR HMM…A SON OR RELATIVE TO LUNGU ALSO RELATIVE TO BISHOP MILINGO I SMELL A FAT RAT HERE
It’s a Wako no wako my dear.
Why is it that the tribalism by Easterners is treated as sacred and that of other regions evil? One issue I have with my cousins from the East is the Yes Bwana mentality! Even when their president is messing up, they won’t tell him but continue with their blind loyalty! This explains why ruling parties are buried in Eastern Province!
It is also clear that when Easterners are ruling, this country’s economy goes bust! History is there – from KK, RB and now Lungu! It’s time to try other regions! It’s just that we are fed up with monopoly of power by Easterners! Best, let’s go Federal!
Does it mean in Zambia they dont have chapter 9 bankruptcy?
“Liquidation is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims”
As far as I know, it’s the creditors or directors that can start the process – after a resolution to that effect. They then ask the court to appoint a Liquidator. It states here that the high court has made the appointment. Who are the creditors or directors that initiated the process? In what position has govt. acted? Details anyone?
Grz is the main creditor in this case. Thank you. Follow us on our fb page Movement For Multiparty Party Democracy MMD for more interesting posts.
After liquidation, operations can be restarted later – but under a different company name as the liquidated one will have been de-registered. But having distributed the assets or used them to meet obligations, it means a new start. Re-capitalization? What happens to the workforce in between – which can be a long winding process?
Don’t be too quick to praise GRZ!
The devil is still in the details!
KCM needed attention. The question is: Is Liquidation the best strategy? What happens to the employees when a company is liquidated? What happened to Post Newspaper Employees when The Post was Liquidated? When did State House become the lead Liquidator? I think Zambians are yet to see the smelling rat! It smells like another Donchi Kubeba on the citizens by plot 1. Let’s roll!
The body language of the labour minister told it all. She was deep in a maze and could not believe what was happening. The question is, what was Kaiza Zulu and Amos Chanda doing there? You call this a high powered delegation like for real? Where were the technocrats and the attorney general? This will boomerang in your faces. Even the so called liquidator was lost in the jungle of oblivion. Does he understand the mining jargon and later alone the intricacies of mining? These Indians are way head of you and have manipulated the system already, all the money is in India as we speak. They will soon respond in court with a barrage of information that will leave you dumbfounded. Political antics wont take you anywhere be professional in your approach.
STILL THINKING ON KCM:
It looks like no turning back on KCM (assumed under the current situation.) What is needed to be done next? The president should urgently appoint a team of independent experts in the mining industry (not cadres) to evaluate the current state of KCM. This should be done parallel to the liquidation process, so that there is an informed decision on the way forward. This will be a cheaper option, than waiting until the liquidation process is done. Please avoid ‘cadeism’ this is a serious national economic issue and needs expert involvement. We are still paying for mistakes of the past and we can’t get another round of such mistakes. Zambia has produced high calibre mining professionals who have run mining houses in Zambia and abroad and will be in a better position to…
Well done Mr President ! The opposition leaders who thought they would earn political mileage over KCM are now disappointed that ECL has taken a bold decision in the best interest of Zambia.God blesss u always and never listen to noise makers who do not mean well for our country.
People are going to cry when KCM is closed. This liquidation is Political rather than Economic. Vadanta and KCM are going to assemble a Powerful Team of Lawyers and Mining Experts to challenge this Liquidation in Court.Has Govt followed the correct legal Procedures in seeking the Liquidation order? Illicit Financial Flows are difficult to identify as evidence of Transfer Pricing and Under Invoicing. The Team assembled by Govt is all Political and there are no Liquidation Experts. This Case has International Ramifications as Foreign Investors and Creditors are involved.This could backfire on Zambia. The Liquidation Legal Battle will take a long time to settle in Local and International Courts. The writing is on the Wall.
State House liquidation, there nomore money spinning contracts coming in. So with KCM presenting itself it’s a blessing in disguise. Did anyone expect Lungu to do it any other way and leave his team by awarding this to outsiders. This is the Swaziland team he can’t let down.
And that, ladies and gentlemen, is how the Chinese took over…
Im i ok with the president appointing his backbone to oversee things? Hell NO!…
But im ok with the fact that wen we look at the bigger picture the next investor will do their job on zambia’s terms…
He has one year left to prove he is for the people…
Lets acknowledge the good move but watch wisely also….
*2021 nipafupi…*
The next investor will come to do what in your country? Investors dont take their monies where theier investment is not secure due to unpredictable govt measures.
When democracy fails try autocracy. Sometimes it works out for you. Remember the Tanzanite issue which took place in Tanzania where the Government just put its foot down and said you go by our demands or leave our mineral, after all it is you guys who need it. Up to date the mining still goes on and the country is getting its fair share. I like the move.
Only cowards can criticise and politicise such a good action taken by the government.The foreigners called investors they come into zambia only to make profit, so the take over of kcm by government is a welcome move.These so called investors they even shoot their workers , so president lungu has taught them a resorn .They even say dziko ni wanu ndalama niwatu especially these so called investors from India they treat zambians like animals locking them in their companies and searching them even in the paints for suspecting that they can steal. Last time workers were shot died at the mine by the chinise investor and records are there you can search on Google.These people who are criticising and politicising a move taken by the government really never know how these foreign investors…
Foreign investors say dziko ni wanu ndalama ni watu but president Lungu has shown and taught them a leason that what belongs to zambia is for zambia and not for them the foreigners. This should be a leason to other foreign investors who think that they are untouchable and mistreating hardworking zambians in their companies.
It is high time for government to take over and reposes all the companies which were sold to foreign investors by chiluba and hh.These so called investors think zambians are their tails between their legs and they treat zambians like slaves or animals.They come into zambia to make profit and put the money in the coffin and finally take it to their countries as if they are taking the funeral to their country leaving zambia with left over.President Lungu we salute you by giving you 100% support and you a a gallanty son of the land continue hammering them left , right and centre until they stop rooting our country.
The foreign investors come in zambia to feed their bellies and making profits especially these boko haram investors from india are really stinge but his excellence E. Lungu is fighting them on our behalf.
Welldone ECL save us from these colonialist kind of people who are still rooting minerals the way they were doing years back when we were slaves before zambia got independence.
The late beloved president Michael C sata M.H.S.R.I.P reposesed zamtel and president Lungu is following the foot steps of his honour the late sata by taking over kcm. Well done the gallant sons of the land.