PARLIAMENT yesterday heard that Konkola Copper Mines (KCM) Plc paid K782,269,066.72 in form of taxes to the Zambia Revenue Authority (ZRA) in 2012.
Mines, Energy and Water Development Deputy Minister Richard Musukwa told the House that KCM was not selling copper to Vedanta Resources but was selling at the international market on the London Stock Exchange.
Mr Musukwa was responding to a question for oral answer from Lumezi MMD MP Isaac Banda who wanted to find out what the total number of workers employed by Vedanta Resources Plc was, whether KCM sold copper to Vedanta Resources, how much copper was sold in 2012 and how much money was paid by KCM in form of taxes to the Zambia Revenue Authority (ZRA) in 2012.
He said the company had a total number of 7,553 workers as of August 29, 2014. Opposition MPs in the House, however, took the Government to task over the auditing of KCM.
Mafinga MMD MP Catherine Namugala wondered what the Government was doing about suspicions by many Zambians that KCM was under-declaring its earnings considering that Zambia had 20 per cent shares.
Ms Namugala and Chipangali MP Vincent Zulu also wanted to find out why the Auditor General was unable to audit KCM operations.
But Mr Musukwa assured the House that the Government was working to eradicate the suspicions that KCM was under-declaring its taxes so that Zambians, as shareholders in the mine, could get the best in terms of tax.
He said Zambia owned KCM and was determined to ensure the value of its 20 per cent shareholding in KCM was realised.
Keembe MMD MP Ronnie Shikapwasha and his Chavuma counterpart Kenneth Konga also called for the Government to ensure that KCM was audited by the Auditor General’s office for the benefit of the Zambian people.
But speaking on behalf of the Government, Sports Minister Chishimba Kambwili maintained that KCM had its own auditors, adding that ZRA did audit KCM.
And Parliament heard that the Government would soon start working with the American government to construct 144 bridges throughout the country.
Transport, Works and Supply Deputy Minister Panji Kaunda said the Government was determined to work on the critical areas for the benefit of the Zambians.
He urged members of the House to support local contractors for the benefit of the Zambian people.
Information and Broadcasting Services Deputy Minister Poniso Njeulu said the Government had procured 70 cameras to be distributed to Zambia News and Information Services (ZANIS) throughout the country this year.
Mr Njeulu was responding to a question from Kaputa PF MP Maxus Ng’onga who wanted to know when ZANIS in Kaputa District would be provided with cameras and other related equipment, including a vehicle.
Kalomo UPND MP Request Muntanga urged the Government to address the serious deforestation that had taken place in some parts of the country like Chikankata.
He was commenting on Chipili PF MP Davies Chipili who wanted to find out from the minister of Lands, Environment and Natural Resources when the tree planting project in Kawambwa would be completed.
Colonel Kaunda said more than 20,000 hectares of land had been set aside for the tree planting project in Kawambwa.
He, however, assured the House that the Government was revising the Forestry Act for the benefit of the Zambian people.
Other opposition MPs in the House, including Chembe MMD MP Mwansa Mbulakulima, Choma UPND MP Cornelius Mweetwa, Chikankata UPND MP Munji Habeenzu, UPND Kabompo West MP Ambrose Lufuma and Mr Muntanga urged the Government to complete school buildings that had remained incomplete for years throughout the country.
This followed a question by Sesheke UPND MP Siyauya Sianga who wanted to find out when the construction of a classroom block at Kaale Primary School in Sesheke District would be completed.
It is important to realise that GRZ does has a minority stake in the mines. These mines were privatised a long time ago. They are as much private property as other former parastatals like Lafarge, Zambia Breweries, Zanaco, Afrox, Nakambala, Inters etc. The Auditor General has no mandate over private property.
It is possible Auditor General can carry out a Joint audit with KCM Auditors in respect of Government 25% Stake.
ZICA should be able to appropriately advise Government on this matter.
Where are the Zambian Professionals, please stop sleeping..that is why politicians are taking show and end up messing our economy.
Wake up from slumber.
Rüschlikon is a village in Switzerland with a very low tax rate and very wealthy residents. But it receives more tax revenue than it can use. This is largely thanks to one resident – Ivan Glasenberg, CEO of Glencore, whose copper mines in Zambia are not generating a large bounty tax revenue for the Zambians. Zambia has the 3rd largest copper reserves in the world, but 60% of the population live on less than $1 a day and 80% are unemployed. Based on original research into public documents, the film describes the tax system employed by multinational companies in Africa. https://www.youtube.com/watch?v=WNYemuiAOfU
Can we have the break down please. You may be talking about PAYE which is paid by kcm employees. I know the govt gets something from mineral loyalties but how much tax on profits does it get? vat?
Is the money mentioned re-based?
KCM saga will remain a nuisance to the Zambians, unless someone takes some decisive action such us repossession. KCM has borrowed unsustainably and created a Web where a number of companies would have to go down with it. This is what is scaring most of our leaders in making the most difficult decision on KCM. At the moment, there is too much hiding or seemingly lack on transparency and I would not be shocked to hear that some of our ministers are benefiting in this chaos through extended contracts with KCM. As for the taxes, we need a break down of this to make informed comments
Can parliament also report how much KCM evade tax
Thanks