Call for Accountability: Investigating Ndola Lime Company Scandal
In a press release issued by Thierry Charles, President of ZCCM Defense, serious allegations have been raised regarding a $120 million procurement debacle at Ndola Lime Company, now renamed Limestone Resources Limited.
The statement calls for immediate action from Zambia’s Anti-Corruption Commission and other stakeholders to investigate a suspected syndicate, which allegedly defrauded the state and left the company in financial turmoil.
Full Press Release Below
Request for Investigation into Ndola Lime Company, Renamed Limestone Resources Limited
1. Background
Ndola Lime Company (NLC), a wholly-owned subsidiary of ZCCM-IH, has lost nearly $120 million to replace, among other things, a kiln.
As NLC had been loss-making for many years, ZCCM-IH had to pump money into it. Suspicions soon arose that the kiln was poorly designed and inoperative. In an unconventional move, full payment was made without any prior verification. The Italian suppliers then immediately went bankrupt. Zambian accomplices to defraud ZCCM-IH were suspected. (Zambian press articles – appendices 1,2).
2. Requests of the Commission on Parastatal Bodies to Industrial Development Corporation (IDC)
In its report for the third session of the twelfth National Assembly (page 19 – Appendix 3), Chairperson P.M.W. DAKA wrote:
- 8.8.9 Investigations through Interpol on the Procured Kiln: The Committee observes with serious concern the handling of the procurement process relating to the VK2 kiln at Ndola Lime Company. The Committee further observes that the turn of events where the company that supplied the equipment went into liquidation soon after the kiln failed to operate appears to suggest that there was a syndicate to deprive the state.
- The Committee, therefore, strongly recommends that IDC should engage Interpol to pursue the matter in which over US$ 7,976,140, which was part of the recapitalisation project under the contract total sum of US$ 100 million.
- The Committee further recommends that a forensic audit should be conducted with a view to bringing to book all the Zambian consultants and employees of NLC who may be found wanting in this transaction.
3. Requests of Our Group of Minority Shareholders of ZCCM-IH to IDC
IDC is the main shareholder of ZCCM-IH. Zambian parliamentarians have explicitly requested IDC to initiate the necessary prosecutions and forensic audits in July 2019. No formal proceedings were subsequently conducted, so I wrote a formal email to former IDC CEO Mateyo Kaluba on 7th May 2021 (Appendix 4). In the absence of a response and a commitment to investigate, I repeated my request to the current IDC CEO Cornwell Muleya on 1st November 2024 (Appendix 5). Again, I received no response.
4. Suspicious Inaction
IDC is bloodless. ZESCO is a financial liability. ZCCM-IH is one of IDC’s very few assets, along with Kagem, capable of generating income. What is more, the Chairman of IDC is the President of the Republic of Zambia, who, after his election, undertook to fight firmly against corruption and embezzlement and to prosecute those responsible.
IDC’s silence and inaction despite its poor financial position, the PAC’s recommendations, and the President’s commitments are therefore highly suspect.
5. Requests of Investigation to Anti-Corruption Commission
The sums involved in this scam are colossal and have plummeted the company’s accounts. By way of comparison, they are equivalent to about half the former dividends received from Kansanshi Mining Plc over the last two decades, which were ZCCM-IH’s main source of income.
In addition, Ndola Lime Company has been renamed Limestone Resources Limited. ZCCM-IH plans to pump again tens of millions of dollars. It is therefore urgent to identify the members of this “syndicate who deprived the State” so that they do not re-offend.
This is why, on 17th December 2024, I have requested the Anti-Corruption Commission to investigate this swindle with commitment and determination to protect the interests of the shareholders of ZCCM-IH, in particular the Zambian People.
Issued by:
Thierry CHARLES
President of ZCCM Defense
19 December 2024, FRANCE
Press release – Request for investigation into Ndola Lime Company – ZCCM Defense – 2024 12 19
- Appendix 1 – NDOLA LIME, ZCCM-IH IN $100M SCANDAL 2019-06_08
Appendix 2 – Engineers demand answers over Ndola Limes dysfunctional kiln 2019_11_11 Appendix 3 – Parastatal bodies 2021 – page 19 Investigations through Interpol on the Procured Kiln
Appendix 4 – 2021 05 07 – Inaction of IDC concerning Ndola Lime scandal – email to Mateyo Kaluba-1
Appendix 5 – 2024 11 01 – Inaction of IDC concerning Ndola Lime scandal – email to Cornwell Muleya
This a country of scandals if it’s not sending money BY MISTAKE to China it’s a government official awarding himself a contract. ….
How….explain with the aid of a diagram. Otherwise….see you kusogolo. Innuendo yaiyi
@Deja Vu, Kainde just shot an elephant and in three years the carcass is still very big. So every manner of scoundrels can take his share and hope that no one notices. It’s a government of thieving angels. People power will stop this nonsense and not those he’s targeting.
This is a big case. The board chair of Ndola Lime Company when this happened was a veteran accountant who should have known better than allowing management to go ahead with the transaction. You will not hear a word from the PF on this one. The inaction of the UPND government is quite troubling.
Who owns Ndola lime? Was there no a court case between Mathani and the Italian family that also laid claim?
How does ZCCM come in?
This investor with a minority stake….why cany people just buy his stake and this noise maker is gotten rid off.
Most of tge issues he has raised are not balance issues, but unfound otherwise legal action would have resorted..
Is he a front for someone else? Digging …..
What you have written about this investor may well be but I think the CEO of Limestone Resources Limited and the ACC ought to offer a comprehensive response to these grave allegations. That is the best way to dispel any comments and allegations that are unfounded. Otherwise we are bound to start thinking the alleger is on to something. Can the accountable persons please do the right and responsible thing??!!!
How….explain with the aid of a diagram. Otherwise….see you kusogolo. Innuendo yaiyi
So this muzungu is speaking of a scandal that took place in 2019, under PF.
This email to Cornwell Muleya, what does he want Cornwell Muleya to do? Peter Daka is now PS energy; I believe. And at the time it was raised in a Parliamentary commitee.
Is Parliament above IDC and are aware of the issue? So you as Shareholder of ZCCM-IH havr also noted that Kasolo and Mwanashiku were both removed from ZCCM. What do you want to happen? They were both relieved of the duty.
Last Bwana Muzungu belela, you claim to so knowledgable all things ZCCM. But are only a minoroty shareholder. When HH came in 2021. He expressed disgust at some of the issues that were brought to his attention during the PF era. We have read of payments to Chinese companies to build Universities and barely any work was done. A number of these matters have been and being prosecuted. Others are still at an investigative stage.
As citizens that read these issues, we appreciate the rigor that institutions have to go through to seek justice. Not just in Zambia, but we read also of State Capture and what progress is happening in South Africa.
Yes, its disgusting that those that are named as perpetuators or at the helm of these occurances are the same people bragging and seeking the highest offices of the land not just in Zambia, but South Africa and the said hail of Democracy….these United States of America…an insult and a joke to all the standards/values you suggest we fight in this lime Resource company. So before you have a stroke, save yourself the trouble and spare us the alarm by selling your interest as its now begining to be a source of irritation as when the issue is solved.
These funds will be forfeited to the state (if ever as your countries are a source of irritation when it comes to the extradition of stolen money. Remember the the stolen Nigerian funds in western accounts in the General Sani Abacha (17 November 1993 to 8 June 1998) case?
The opportunity cost that we invested in seeking justice under Mwanawasa and the results were frustrating sometimes you may want to argue political will.
So give it a rest bwana…Zambia is a soverign state when it comes to the state investigating. I believe the issue is being dealt with and the noise you make helps the perps just elude the issue further. We have a saying…ntodolo busuma. Still waters run deep is the equivalent of the english saying
The Kiln scandal happened in 2019…..