Vice President Guy Scott has revealed that very strange things are happening at Konkola Copper Mines (KCM) where the owners do not mind the company being declared bankrupt or placed under receivership in order for the company’s liabilities to be taken over by government.
Dr Scott told Parliament this morning during the vice president’s question that it appears KCM has externalized huge amounts of money, and that government is keeping a close eye on the company.
He said the mining company has liabilities in excess of $1.5 billion, adding that the company has not paid its creditors and repaid bank loans.
Dr Scott added that KCM also owes other mining companies monies for the processed copper concentrates which is also threatening the affected mining companies with reduced production and increased costs.
The Vice president added that government has also discovered that there are two companies known by the same name Vedanta, with the one owning KCM not being bound by the regulations of disclosure of the London Stock Exchange and the Financial Services Authority in Britain.
Dr Scott said Vedanta is hiding information from government.
He stated that Zambia stands to lose billions of dollars if the country does not stand together and show that it will not be taken for a ride.