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Alba Iulia
Wednesday, February 19, 2020

Vedanta’s KCM profit revelations an indication Zambia’s economic managers are sleeping

Headlines Vedanta's KCM profit revelations an indication Zambia's economic managers are sleeping

Nawakwi
Nawakwi

Forum for Democracy and Development (FDD) leader Edith Nawakwi says revelations made by Vedanta Chairman

that Konkola Copper Mines has been making a minimum profit of $500 million per year is clear indication that all economic managers in the country are sleeping.

Ms Nawakwi told Qfm News that it is unfortunate that the country is losing huge amounts of money in taxes as a result of the insincerity of some international companies operating in Zambia.

Ms. Nawakwi said she strongly suspects that some certain elements in the ministry of Finance are conniving with some international companies to deprive the country of the much need resources.

The FDD leader said it is unfair for Vedanta to be insincere by claiming that KCM has been struggling to make profit.

Anil Agarwal in a video taken in March 2014 posted online by activists from Foil Vedanta shows him telling an audience in Bangalo, India how he bought KCM for just $25 million.

Agarwal claims KCM is giving him $500 million every year in profit, plus an extra $1 billion.

Meanwhile Vedanta has continued to claim that they are making losses or a minimal profit at KCM.

Video below shows Vedanta boss, and 69% owner, Anil Agarwal, telling a large audience how he bought Konkola Copper Mines for just $25 million, rather than the $400 million asking price, and receiving loud cheers when he states that the company brings in $500 million in profit each year.

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139 COMMENTS

  1. Silly, all it revealed was that, you people there are sitting on millions of dollars but you dont know what to do with it.

    A whiteman will genetically be smarter and uncanny and they have made more money in this business more than all you lot.

    Nothing wrong , it is like stealing sweets from a child. Look in the mirror and be ashamed simple.

    Non story for me

    Thanks

    • @ Mushota

      Your comments are always posted 2 minutes after the story has been posted. Always number one! (Are you the admin)

      All you irritating bloggers with images on your profiles running this wordpress website should stop your nonsense!

    • For your correction, vedanta managers are not white but indian . however the story is the same conned by foreigners.Why do still have the mentality that foreign is always better??? Poor levy was at the helm when all this nonsense happens.We should take a leaf fat Botswana and learn how they have managed their resources. Its painful to see one of the biggest mine sold for a song!!! Very painful

    • Let this not be a platform to compare which race is smatter or superior to the other. This is very serious for an investor to be claiming to make losses and later seen in a video boasting of supernormal profits! If our government is smart it seriously needs to investigate this matter. It is disappointing that an individual can play the whole nation and this indeed is very embarrassing. We need someone to show leadership or else we shall continue to remain a laughing stock.

    • Mushota,
      Please go and shave you pub!c hair. It has started growing on your chin. It will be time better spent instead of making a fool of your self here. Clearly you need psychiatric attention, that is why you spend hours on the computer waiting to pounce on fresh articles and then post rubbish to get a response, regardless of the type.

      As for the matter at hand, shame on us indeed.
      It is clear certain peoples including Maureen Mwanawasa were the beneficiaries of these mines sold for a penny. Musokotwane better get on one of his many Kamwala bicycles and cycle very hard towards western province!

    • To add salt to the injury, apart from being raped in tax evasion, we are being raped in undeclared produce of even more valuable minerals.

      It is known ‘secret’ which can not be denied that all 3 mines in N/W (Kansanshi, Lumwana and now Kalumbila) produce significant quantities of Gold and other minerals such as Cobalt; and that non of these are declared but rather airlifted straight of the country.

      If the govt was really serious about this country’s welfare, investigations should have been launched to establish the truth. It is time we Zambians know the actual story behind the so-called ‘secret’.

    • Based on this self confession by the Chairman of Vedeta KCM,ZRA should mere issue a revised assessment covering the past 9 years including penalties for KCM’S false Tax Returns they were submitting.No more excuses.

    • ZAMBIANS ARE NOT SMART BUT DOMICILE. EVEN THE HIGHLY EDUCATED (IN THEY ARE THE MOST CTUPID IN ZAMBIA) CAN’T SEE. THEY ARE VERY BLIND. HOW ON EARTH CAN A COPPER MINE BE SOLD AT $25M? IS IT HIGH STREET BOUTIQUE? I HAVE BEEN TELLING PEOPLE LEVY WAS MORE CORRUPT THAN EVEN CHILUBA, THEY DON’T SEE. HOW DID A LEGAL MAN FAIL TO JAIL ANOTHER THIEF IN CHILUBA WHEN ALL EVIDENCE WAS THERE? LEVY’S GOVERNMENT WAS MORE CORRUPT. IN FACT MORE CORRUPTION HAPPENED DURING HIS RULE THAN EVER. THERE YOU ARE. AN EXCITED CLEVER INDIAN IS TELLING IT ALL. SO NOW LET’S SEE WHAT THIS GOVERNMENT DOES?

    • @Mulenga and Jelita, can you tell us how Musokotwane specifically comes into this? Do you have selective memory? The question you should be asking is who is running ZRA and what exactly have they been doing?

    • Iwe LT,
      Can you do a speedy interview with the so called leaders of this land on this issue? Am desperately itching for a solid response from ba kateka on this indian who was mocking the entire nation! But nachikalipa each time I view that clip!

    • SO, Boniface(Mushota), how’s Portland? Or did you move back to SA? ps, your github page is kinda sparse, care to populate so I can get more insight into what makes you you?

    • He’s incriminated himself, reposses the mine and escort the all lot of them to the airport. If the PF neglects to carry out its duty on this one then i would have had it with them, i’ll be shifting camps.

    • @ Mitchie

      Answer to your question who is running ZRA is available in the report of the Commission of inquiry in to the operation of ZRA.
      Unfortunately, current administration has not acted on the recommendations. As a mater of fact, Hon. Chikwanda has legalized all wrong doing by issuing S.I. No. 97 of 2012

    • Very Annoying. Someone to say in your face that he has been stealing from you. Very annoying!!! As if this is not enough, he goes on to tease our president for receiving him in such a manner. This is very serious. This story has changed my way of looking at our country. I have been transformed. Zambia is my country and I need to make my money here. Foreigners come here and insult us like this and walk away with millions. No ways!!! This is un acceptable. To all Zambians let us get united and fight for what belong to us. These minions are up to steal our resources. To Mr SATA, take heed Mr President.

    • Even after these revelations NOTHING will happen..so why should i bother… |I would have been in the forefront if we had a govt that care about its pipo…all what this means is that pf chaps will be oiled and thats it…

    • @22
      YOU ARE REALLY AN !DIOT. SO, IN YOUR OWN THINKING YOU WOULD RATHER SIT BACK AND JUST WATCH. DON’T ACCUSE SATA. SATA HAS ALREADY SHOWN THAT HE CAN GET SOME OF THESE COMPANIES IF NOT RUN TO EXPECTATIONS. AND IT’S YOU ZAMBIANS WHO EVEN STARTED BLAMING SATA WHEN HE GOT ZRL AND ZAMTEL. YOU MADE A LOT OF NEGATIVE NOISE AGAINST HIM INSTEAD OF SUPPORTING HIS ACTIONS. YOU ARE FUULS YOU ZAMBIANS. EVEN TODAY SATA IS DEVELOPING INFRASTRUCTURE YOU ARE NEVER BEHIND HIM. INSTEAD, YOU ARE THE SAME PEOPLE POURING COLD WATER ON THIS PROJECTS. REAL !DIOTS. INDIA IS ENJOYING YOUR MONEY FROM COPPER.

    • @ Peter

      Unfortunately, current administration has not acted on the recommendations of the Commission of inquiry in to the operations of ZRA. As a mater of fact, Hon. Chikwanda has legalized all wrong doing by issuing S.I. No. 97 of 2012.

      Who is now misinformed !diot?

  2. A lady who was very influential in the 3rd republic was probably the major beneficiary in this transaction. It was always known that the KCM sale to Vedanta was a scandal that benefited the leader of one local NGO than any other Zambian. The same thing happened with tax concessions given to Tata Zambia and shortly after a multitude of USD denominated Cheques (each deliberately not exceeding $5000) were issued by Tata Africa to the lady.

    • @2020.
      PLEASE, TELL US THE LADY. THIS IS YOUR COUNTRY. NOT FOR INDIANS OR OTHER BAMWISA. LET’S BE PATRIOTIC ABOUT OUR BELOVED ZAMBIA. MENTION THAT LADY SO THAT THE SECURITY SYSTEM HAVE SOMEWHERE TO START OR THEY KNOW ALREADY. OR IF THE SECURITY SYSTEM WERE INVOLVED THEY COULDN’T PRETEND TO HAVE NO KNOWLEDGE AND BURRY THE ISSUE. IT’S YOUR COUNTRY MIND YOU.

  3. Still waiting for ALL former and current Finance Ministers to say something especially Dr Musokotwane and Mr Chikwanda

  4. This video is an eye opener to the authorities who are fighting the restoration of windfall taxes on mines. More taxes would have been collected and the lust to go round the globe begging for loans with very high interest rates, and grants with absurd terms would have been avoided or minimized. These matters must urgently be attended to instead of sleeping at the pass-out parades and boasting about how useful one’s wife is! Stop this nonsense of rushing to Facebook and attend to real issues affecting your voters.

    • @Suntwe.
      Suntwe, that’s how you demean the whole issue by bringing in stuff which is not related to this important issue. Anyone can praise his/her spouse. If you mix these issues up your argument (which I think is valid) is trivialised. That’s the worst part of we Zambians- we can’t debate. At the end of the debate people just discover that you just talked about irelevants. In fact you are not being fare. The man you want portray as lacking action has even gone to the extent of grabbing (for lack of a better word) back ZAMTEL and ZRL. Even when it was the right thing to do (taking back those companies) all Zambians were up in arms blaming him. However, your argument is very valid.

  5. Don’t worry Nawakwi, with these revelations, PF will spring into action with it’s powerful economic managers led by the able Chikwanda under the direction of the ever alert (oh puuulliizzz!) Sata and investigate KCM and then come up with a tax structure that will ensure Zambia gets what is due from these greedy chaps!

    • That’s what I highly suspect is coming. This is a very good excuse for implementing those high taxes. We can’t trust these multinational companies. They are mainly, thieves who have been stealing from poor African countries ever since they discovered Africa and it’s wealth. Umusuku umo ubifye mpanga.

    • Who in PF can know? Why this question because even school boys and girls have heard about this?

      I am not a PF cadre but on this one, I think the PF govrnement has been more tranparent than all governmrnts which came before them.

      Guys lets learn to be objective otherwise people will start seeing this debate as ilyashi lya nsaka….musenda chipuba.

    • @HRH.
      That’s what am saying. This must be taken seriously. Ukulaleta mo ifyabu Tonga nobu Bemba muli ili lyashi outsiders will just be thinking, yeah these chaps are not serious at all. Let’s learn to debate an issue intelligently. Or just bringing issues pertaining to it. And whatever the solution the government comes up with in order to sort out these BIG thieves- especially, if it is to benefit Zambia in a positive way, let’s support the government. Unlike what happened on ZAMTEL and ZRL where some Zambians started talking against the government when it was more than evident that we were being robbed.

  6. Surely this is sleeping on a mattress of wealth (cream, sugar, chocolates butter) while hungry and an outsider creeps in and takes it slowly. This will still continue as long as we don’t start making things.

    I think we can even stop all explorations currently taking place and let our geologists do them. Tell our dull engineers to find ways of extracting those things. Its very painful the way we are being cheated.

    Its a clear indication that no foreigner can develop your land. Students, academicians, politicians in all of Africa needs to rise up to the occasion and provide answers. This is very embarrassing countrymen. Its not even something good to talk about.

    Its just time to introduce windfall tax no doubt. Even if KCM will threaten to relieve some workers its okay.

  7. We can do one of two things here: either we can get angry, or we can learn from it.
    I think it would profit all of us if we learn from this. If we are learning from this, two things can happen: we ask KCM to pay back 10 years worth of taxes bases on $1.5bn or we pay the investor back $25mil and run the mine.

    But we all know it is more exciting to get angry and hate investors. So let us get angry and riot and revolt — and wake up hungry and broke tomorrow.

    #OneZambia

    • I would for for paying back $25m and let the CEO continue boasting about how he conned Zambians but this time with no mine. This is very sad. How can we trust an indian. These guys mainly look down on blacks. They don’t like us. Even up to date- go to an indian shop in Zambia. You will find an indian kid of ten years manning the cash machine and instructing the black Zambian they have employed as cashier or bookkeeper to sweep the floor or just do some sort of cleaning up. I am not saying it’s wrong for the cashier to clean up. In most cases it’s part of her job. But, here I am talking about enslaving Zambians in their own country. Go to India and do the same as a black ZAmbian or anything African.

    • It’s high time we started laying standards in our country for the new comers to follow. We can’t just afford to have a country which is free for all. How does Botswana lay standards for foreigners to follow?

  8. We need strong leaders in Africa the likes of Mugabe and Dr Kaunda. I know Sata is also in that group but I just don’t know what has changed him. KCM is gone too far cheating on profits. this is my prayer.

    Who ever took part in selling my mines in Zambia and corruptly benefited from them, he shall not rejoice, who ever was is being corrupted and is stealing from my country while people in Kalingalinga, chibolya, Mazyopa lie in anguish from sunrise to sunset with lips as dry as charcoal tying to find something to quench them but in vain and yet a foreigner is digging my wealth and leaving a graven of environmental degradation shall not prosper.

    it is even better for the mines to remain closed and start farming and feed ourselves and only feed ourselves than being cheated. help me…

    • You need intelligent and wise leaders not ‘strong’ leaders. Aren’t these the 1diots who have messed up Africa and you are now reaping the consequences of their misrule?

    • Sata hasn’t changed. It’s the people who are with him who don’t seem to know where he wants to drive the country. And the opposition who are negatively talking about even most of the good things Sata and his government are doing. Sata is just Sata. The Sata you knew yesterday is the same Sata today. All I can say is that people must be encouraging. Besides, what Shamenda said about Zambians attitude towards work is very true. The Zambian government is there to create an enabling environment for investment and hard work by developing infrastructure and the citizens are supposed to take advantage to invest in various economic sectors. The govt offers incentives- we are supposed to take advantage of those incentives and work extra hard.

  9. I am almost throwing out!. Folks, see how people laugh at us. Lets put in legislation that will ensure that foreigner investors who partner with Zambians find it easy to register. A Zambian will not allow externalization of all the profits.

    • @Saba Asa.
      My friend you are very right. All investors MUST come to partner with Zambians. And tough laws with teeth enacted which harshly punishes anyone investor (foreign/local) found avoiding and evading tax. Or simply not declaring or declaring false profits. Those investments must be taken away. It’s land law. No one can argue with it.

  10. My thesis has always been that the greatest enemy to an African is an African. See, how greediness can change people to sale their own families. Its not that economic managers are sleeping, NO, its because they are so greedy to only see what goes in their stomach. Same is happening in Sudan, and numerous African countries. Ba PF, here is evidence, from the horse’s mouth; what have you got to defend?

  11. In Zambia we are robbed of our mineral resources in broad daylight because we blindly trust those people elected into office.Enough is enough! Parliamentarians should be educated at least have a degree from a credible university.All we have are villagers who swoon at the sight of a white or pale skinned man in their midst.They sign documents without realising they are recolonising Zambia all over again.Did we really gain independence in 1964.I don’t think so. We just changed slave masters.

  12. This is the reason Mwanawasa introduced windfall tax. He had realized he sold the mines especially KCM at a song. To correct the situation, he brought in windfall tax

    • @15.
      Just shut it. Its Mwanawasa himself whose government was more corrupt. It was him who lost direction to accept $25m instead of $400m. Do you understand the difference between $400m and $25m. The chaps were all corrupt. Anyway Musokotwane and his friend Magande are here. They will help in investigations. PF, now don’t show them your teeth. Mwilacensa, bakandeni. And by the way what are you doing with RB? Don’t deal with him the way Levy dealt with Kafupi. Why is it taking so long with too much evidence available to nail him. Deal with all these thieves as quickly as possible and put them where they belong.

    • @Peter, this Musokotwane you are insisting upon. Can you tell us why, since this man only became Finance Minister 4 years after KCM had already been privatised?. Why do you have this morbid obsession with Musokotwane?

  13. Show how greed businessmen can be. Trick stars, who must not be trusted 100%. WHAT A BOAST! meaning our own President and Ministers were conned! With such proof as the video depicts, can’t this man be made accountable for the wrongs contained in the video? Let him pay back something.

    • [email protected]
      …its too late my dear…the contract of sale is still binding. That’s the resultant trying to sell something under desperate conditions, selling something u don’t have any idea how much its worth….Beside the govt then, Anglo American must also take a share of blame of this SCANDLE…..When Anglo were leaving they left an impression that the mine was no longer viable and if no capital was injected soon, the mines would collapse and we foolishly bought it as a gospel truth and desperation set in us…..I wouldn’t be surprised Anglo advised Agarwal to do what he did….infact he was very generous to us otherwise he could have paid only $10m and we could have accepted……

    • You people have short memories! The source of all this sh1t started long before these companies were sold.

      The REAL blame can be squarely laid at the door of KK. He was the one that took over the mines (and the whole country) and ran them into the ground with his stupid ideas.

      That was what gave this bunch of thieves their chance.

  14. Being hammered right left first it was the British and now its by Chinese, Indians ohohooo. foolish Zambians what can we do. At least the British built a lot of things roads, the rail line, Kariba dam Lusaka city and some Copperbelt towns now with these Indians all towns in Zambia would have been like Chibombo or Zimba

  15. This is a typical case of bad negotiation skills. We need to put the right people in the right jobs. We sold KCM for a song because of this curse of wanting to eat. Yes, people wanted to benefit and it did not matter how much the concern was sold at! This country will continue being at the receiving end of bad deals if we do not discard this practice of wanting to eat even when you are contributing nothing. Its not only KCM, a horde of companies went for a song in similar circumstances. Others stripped the machinery found and shipped them away….and we were all left clapping and ululating. I dont blame Argawal, he was just responded to a stimuli. Lets learn from this and do things better next time. I

    • But my friend, aren’t the HHs of Zambia the right people? They are the ones who were determining the prices- the so called intelligent and highly educated. Those were the chaps who fixed the prices to suit buyers so many folds and in the process most likely bribed and in turn also fixed the prices of companies to suit their little pockets. And then Zambians want to put them in leadership- the allegedly known thieves. Guys, let’s not belong to tribes. Let’s belong to Zambia.

    • @Peter, HH never privatised any mine nor determined the price of any mine. How can you find solutions to a problem when your understanding of the problem is based on a lie? Grant Thornton was appointed Administrator when Luanshya mine was put under receivership for failing to settle over $20m owed to ZANACO and ZESCO. Once these companies got their monies Grant Thornton handed Luanshya Mine back to government. GRZ through ZPA then proceeded to privatise the mine. So please let us stop with the cheap political propaganda.

  16. …..sleeping is an understatement…..economic managers are simply not there….non existence. ‘Natural forces’ are at work. Programmed like traffic lights…..even for an ambulance with a critical advanced maternity case, it will turn red.
    Some govt wings if not all are on auto-pilot….while the pilot catch a snooze……compounded by unpatriotic indigenous/Zambian KCM employees who are in the position to see and know what has been going own. They were supposed to be whistle blowers….but because their bellies and mouths have been clogged with a few extra dollars, they are unable to blow a whistle…..

    • @20.
      That’s the difference between a white guy and a black guy. A black African will be satisfied with a few bribes. A white guy may even take a bribe or not take it at all but still blow the whistle. That’s what we call patriotism. He is very patriotic. He practically, loves his country and defends it’s wealth. An African will sell his country and his people for two lolly pops or a piece from a broken mirror- splinter. Zambia needs a paradigm change. And teaching a Zambian to change should start from nursery. School curriculums must be rewritten with emphasis on loving the country, respect for public property, loving our natural resources, etc. And these should be inter woven in all subjects, Maths, sciences, vernacular, and all the way it is here.

  17. I know we have been through this route before. Imagine if KCM was being run by State owned firm. All that massive profits would be sitting nicely in Zambian commercial banks. Let government identify local key experts to venture into mining, help them to set up and run at least one mine, give them the $1billion Eurobond. They can pay back that 1 billion in less than 5 years

    • You are really dreaming! The mines WERE run by the State and what happened?

      They collapsed! Can you imagine Sata and these PF IDI0TS trying to run the mines?

      He cannot even organise a PRESS CONFERENCE!

      Look at the mess they have made of Zambias economy!

  18. REPUBLIC OF ZAMBIA,
    STATE HOUSE,
    LUSAKA,

    DEAR PRESIDENT SATA

    RE: KCM/VEDANTA COPPERGATE SCANDAL

    YOUR EXCELLENCY, IT IS MY SINGULAR HONOUR TO WRITE YOU.

    THE CRIME IS TAX EVASION.

    THE SOLUTIONS ARE:
    1. CALCULATE (DECLARED) TAX BASED ON ANNUAL PROFIT OF $500M & BACKDATE FOR NO. OF YRS THAT HAVE PASSED. FOR NOW IGNORE PENALTIES, SINCE IT WAS OUR FAULTY.
    2. ZAMBIAN GOVT SHOULD PAY VEDANTA $12.5M (FROM No. 1 ABOVE) WHICH WAS 50% OF SALE PRICE & BUY BACK 50% SHARES OF KCM. OWNERSHIP IS 50%-50%, THEN WE PROCEED AS PARTNERS. IF THEY DONT WANT THEY CAN GO TO HELL!
    3. DONT TRY WINDFALL TAX BECAUSE KCM WILL CONFUSE YOU WITH FIGURES & BRIBE A LOT OF PEOPLE IN CHAMBER OF MINES, MINISTRY OF FINANCE, BANK OF ZAMBIA AND YOUR CABINET TO CONFUSE YOU.
    4. AS I END SIR,…

    • DEAR THIEF JUSTICE,

      FORGET IT, BLACK TRUNK CASES WILL PASS UNDER THE TABLE. THE WORDS WILL BE “WE HAVE MADE BILLIONS, WE WILL GIVE YOU AND YOUR PARTY X MILLION DOLLARS IN 2016 FOR ELECTIONS”

      WHO ARE ZAMBIANS TO MISS SUCH AN OPPORTUNITY?

    • Well stated Thief Justice;
      I would also add that we evoke article of the Constitution as was applied to nationalise Zamtel.
      We shall pay just compensation equvalent to US$25m and depreciated over eight years. Ultimately he walks away with Nothing given that he has made his money already. MUMBA MALILA shows that you can advised President SATA accordingly.

  19. ZCCM was run by Zambians what was the main reason of selling the mines some one please help me. I am sought of stuck.

    Why were they sold. I think the MMD really messed up, who was behind all this mess. I thought when you sell the idea is to do something much better with the funds but oops its opposite.

    • The IMF and World bank cheated us that once you privatise every state enterprise, every thing will be rosy. In the mean time they knew that even America has state run Enterprises. ( My people perish for the lack of knowledge- Hosea 4:6)

    • YOU ZAMBIANS JUST DON’T KNOW WHAT YOU TALK ABOUT AT TIMES OR AT ALL TIMES. JUST YESTERDAY, THE GRZ ANNOUNCED THAT THEY WILL BRING INDUSTRIAL DEVELOPMENT CORPORATION. WHAT WAS YOUR RESPONSE? I DON’T NEED TO TELL YOU, YOU KNOW IT. THAT WAS WHAT THE GRZ MEANT. SOME OF THE COMPANIES MUST BE PUBLIC RUN. IT WAS BECAUSE OF SUCH ISSUES. BUT, YOU STARTED INSULTING THE PRESIDENT WITH YOUR HH AND OTHER OPPOSITIONS. THERE’S NO GOVT ON EARTH WHICH HAS NO HAND AT LEAST IN SOMETHING. THE BRITISH GOVERNMENT SUBSIDIZES PUBLIC TRANSPORT WHERE IT IS NOT PROFITABLE FOR AN INVESTOR JUST TO MAINTAIN THE SERVICE FOR THE ELECTORATES. WAKE UP YOU PEOPLE.

    • KCM IS JUST ONE EXAMPLE WHICH THE GOVERNMENT MUST RUN 50/50 WITH THE PRIVATE INVESTOR IF NOT COMPLETELY TAKEN AWAY FROM THE CLEVER !DIOTS. PLEASE, PF, MAKE A DECISION AND ZAMBIANS MUST SUPPORT THE DECISION. IT’S NOT LIKE YOU ARE GOING TO START INVESTIGATING THE PROFITS MADE BY KCM. THE PROFITS ARE FROM THE HORSE’S MOUTH. THE HORSE HAS MADE YOUR JOB EASY. JUST THINK CAREFULLY ABOUT THE DECISION YOU ARE GOING TO MAKE AND ALUTE CONTINUA.

  20. Yes, we can blame the economic managers over the KCM deal, but the truth is that in Africa and especially this part of the continent, we have been losing resources to white people and other foreigners from as far back as the early 20th century. At that time, the chiefs presiding over our lands were illiterate. The looting has continued well into the information age 21st century. Our people are at their most educated. Still we are not getting the picture. Where is the problem and how can it be corrected?

  21. WHAT DO YOU EXPECT?
    WE ARE A CORRUPT NATION
    INDIANS MAN THE FINANCE AND COMMERCIALSECTIONS TO ENSURE MONEY IS SIPHONED OFF TO INDIA
    LABOUR AND IMMIGRATION MINISTRY OFFICIALS ARE BRIBED TO ALLOW THE INDIANS TO MAN CRUCIAL DEPARTMENTS.

  22. This should call for National Unity and any political bickering should be put aside. Leaders of PF, MMD, UPND, NAREP should meet behind closed doors and decide how the nation should handle this embarrasing situation. While this position was propagated by MMD, PF has done nothing to rectify it and it the masses that are suffering not the politicians. If any political leaders mind the plight of ordinary zambians, this is the time to show leadership. Finger pointing and trying to score points of each other wont take us anywhere. In developed countries, there are times for partisan and national politics. For Zambia this is a national issue and for once let us come out as victors. Simple solution is to shan greediness.

    • I couldn’t any agree more Amayama. We can forgive ourselves for being exploited by colonialists decades ago but not for expecting fair treatment from these so called investors of this time.

      None but OUR PEOPLE can free OUR LAND. Everything else is a study in disillusionment.

    • I CAN ASSURE YOU HERE, THE OPPOSITION WILL NOT IDENTIFY THE PURPOSE OF UNITY. JUST WAIT AND SEE. IN ZAMBIA THE OPPOSITION WASTE A LOT OF TIME ON TRYING TO RUSH INTO PLOT ONE EVEN WHEN THEY ARE VERY FAR FROM THAT QUALIFICATION. NIMATUVI BA OPPOSITION.

  23. I Would like to know if the government has already reacted to this! I don’t know but this is very painful to watch.

    • EVEN IF THEY HAVE THEY CAN’T HAVE IT FOR DISPLAY IN PAPERS. IT’S TOO EARLY. THE BEST APPROACH IS TO BE CAUTIOUS ABOUT IT SO THAT WHEN A DECISION IS MADE IT’S FINAL.

  24. This fool of an indian is simply implying how sleepy our so called educated economic advisers are with their degrees in Economics. Cry my beloved Zambia!

  25. This is shocking rotten DEAL was negotiated and done by LEVY MWANAWASA & MAGANDE single handedly against the Zambians. This deal is / was treasonable and MAGANDE must be made to account for this nonsense. He defended their decision now look… All MMD new was sell sell sell sell.. things they had no input in building.. now the chap is mocking us and people laughing… I AM VERY ANGRY….

  26. It is worthless, it is worthless! says the buyer; but when he goes his way, then he boasts [about his bargain].
    Thats what the bible says….and thats what this indian is doing

  27. We need lawyers to review the sale of KCM and if there are any lacunas in the contract of sale, let us revoke the sale. We can then sell it to Chinese or indeed any other good investor at a good price. BUT this is where the issue of proper tax structures for the mines come in. There was no point of resisting by Govt to impose windfall tax and other tax regimes in this sector.

  28. can we v magande to comment, then his excellence the president. is he going to do the same he did for zanaco?
    can someone post this on his facebook page in case he has not seen it.

  29. This is a sad story for Zambia and embarrassing at the same time. I cant wait to hear the feedback from our Government.

  30. Its the same echekelako that made HH rich when Luanshya mine was sold, they conived with the bogus investors to under value the mining assets and within weeks they became dollar millionaires without borrowing or doing any business or earning any salary/bonus (Laundering).

    • @Natty Dread, Stop mixing up issues. HH never sold Luanshya Mine. Luanshya mine was put under receivership through the insistence of ZANACO and ZESCO who were owed over $20m by Binani the owners of Luanshya mine then. Grant Thornton then headed by HH was appointed administrator . Once the creditors got their monies back Luanshya was put back in GRZ hands who decided to reprivatize it through ZPA. So this nonsense you guys and your PF leaders continue yapping about is just that: NONSENSE. Actually your ignorance is very nauseating.

    • YOU GUYS YOU KNOW THESE STORIES, WHY DON’T YOU BLOW THE WHISTLES. AT LEAST JUST PUT THE CARDS ON THE TABLE AND LET ACC AND BA FIMOFIMO START INVESTIGATING. I DON’T THINK THERE’S NO ONE WHO DON’T KNOW HOW HH STOLE HIS MONEY. ALL THIEVES IN ZAMBIA MUST BE JAILED IN ORDER FOR US TO START SETTING THE STANDARDS. DON’T THINK THIS COUNTRY WILL BE CORRECTED WITHOUT LESSONS FROM EXAMPLES. YOU ARE NOT DOING YOUR COUNTRY A FAVOUR IF YOU KNOW SOMETHING AND YOU ARE JUST KEEPING QUIET.

  31. The same people you think are very intelligent like Magande and may his sole rest in peace Levy Mwanawasa sold the mines at a song price. You say Magande is good but he sold our mine and ZANACO at a song price.
    If we don’t change the way we do things in Zambia then we have to forget. Let us support sensibly. All this corruption in mines were brought up by MMD. A story is told where when negotiators where sent by Levy to discuss Khe mine KCM, Levy himself sent sms to some of them to support his preferred investor or infester. That was the kind of corruption MMD had. President Sata can not just there and then get the mine back, he may bring done our country economically. I know when time comes he will react. But he is also surrounded by corrupt people. Look at his finance minister!

    • @And You.
      My friend if Sata used to be corrupt before he became president. My dear, not now when he is president. Sata is the most causious individual you are ever knowing. Sata is smarter than 10 Zambian professors put together. He may not allegedly have the education. But, he’s got an eye for detail. Sata is very clean (now) and he wouldn’t like his legacy to be messed up. He wants to leave a good and sound legacy. I can stand for him. He is not corrupt (now, if he were before). Most of his ministers may be corrupt.

    • Agarwal mocked the Zambian government for giving him VVIP treatment when he came to acquire the asset and eventually becoming majority owner of KCM at the current 69 per cent.
      Speaking to the Jain International Trade Organisation in Bangalore, India between March 22 – 23 this year, Agarwal told the cheering crowd how he bought KCM for a song, rather than the US$400 million asking price.
      In the 3:58-minute video, a bragging Agarwal describes his surprise at receiving a VIP welcome to the Zambian Parliament, and ridicules the then Zambian president Levy Mwanawasa for claiming that Vedanta would improve the lives of Zambians, especially those in Chingola and Chililabombwe.
      Agarwal reveals how he duped late president Mwanawasa on their first meeting that 30 members of his delegation missed…

  32. What this story proves is the following: (1) the corruption surrounding the sale of ZCCM and other subsequent ventures after the initial privatisation (2) Plunder of Zambia’s mineral resources that followed and continues even as I write this email and (3) confirms what I have always known that ZRA has no capacity and expertise as the authorised revenue collecting body to audit multinational companies not just mining firms. The solution to all this is simple: You cannot develop Zambia unless Zambians are empowered to contribute to genuine development. All countries that have developed [China, Malaysia, Singapore, UAE, Brazil etc] have put their citizens at the core of the developmental agenda. Zim will soon do better in mines because it’s citizens are involved as investors not labourers.

    • ZRA has no capacity to tax these multinationals. It can only tax these women who cross into Botswana to buy sugar and cheap wine.

    • @Mandaliza, very good. For us here, putting or supporting our citizens first may not materialize just yet. Look at the case of HH whose accounts were displayed for public view with the sole purpose of alienating him from the people. Nigeria is a very good example of black empowerment as some of the citizens there are doing so well that they are now investors in several African and other countries. As long as we do not have strong empowerment policies which work, Zambians will always play second fiddle to outsiders. Investors selling chickens, vegetables, sand in Zambia! Gimme a break.

  33. This vry disappointing, the country is wallowing in poverty and Chikwanda and govt are busy borrowing huge sums of money to build some infrastructure meanwhile someone is busy looting the country in broad day light. The Scott and his cronies where making a lot of noise about these issues when they were in opposition and yet they have turned a blind eye on these very issues. If the Zambian people cannot get any benefits from these mines, it is high time we closed ans stopped the whole mining business once and for all! Very shameful indeed!

  34. We have a dictator for a president, why can’t he wake up tomorrow early in the morning, instead of creating unnecessary districts, naming airports, harassing Chitumukulu, humiliating his subordinates, conducting meaningless swearing in ceremonies, for a change do something sensible like nationalising all the mines!? When you think of the sheer st.upidity that allowed a foreigner to steal our wealthy with our eyes open, it’s driving some of us insane! Bushe kanshi, do these punks have an idea how to calculate the value of an asset. May be they thought they were getting rid of a liability!

  35. It is too late to cry over spilt milk….actually 9 years late to be precise. The most affected people are in Chingola and Chililabombwe. Vendata is probably the most irresponsible corporation in Zambia….being who they are, there is no shame to talk about. Corruption and trickery is their way of life. I urge the government once again to grab these resources from Vedanta, because they have failed to honour simple contracts and pay outstanding invoices for over 4 years now. The local justice system is not helping!

  36. The video shows business acumen and standard principle for success. It shows that those who have a will and stamina can make hay; be it a Zambian within, outside or a foreigner within Zambia like Jojo Mwanganza. It is a shear waste of mindset to think and insinuate the guy is stealing. Failure by all Zambians themselves to make of good of what they have is what is a major problem. Right now there are fights over the ‘black hill’ in Busakile. Which Zed man/woman has floated himself/herself for major processing of that heap of ‘rubbish’ to make money out of. And pls you need to watch the video and compare with the mining company’s investment position. He was speaking as a motivation speaker for all. Sold 4 a song, but it was Zed men/women that destroyed those mines.

  37. Right now there are people who are writting project proposals for mitigate the housing situation in Choma and could be using the same Banks in Zed for their loans yet all I see and read about are complaints and moaning. We need to stop that habit and start participating, all it takes is a will. There are a lot of uneducated Zed men/women who have used their minds to help their country, like that lozi lady in the emeralds mining. We nee to start thinking of how we can add value to copper, cotton, tobacco, maize before exporting as another opportunity which anybody willing could explore and make hay. with love guys

  38. People talk about Zed not making not even a needle, meanwhile that itself is business opportunity, so long you stop focusing on negativity and what seem obstacles. Make a business case for any business, whether KCM or whatever, with a good one it is yours and freely so

  39. UPND president and businessman Hakainde Hichilema is said to have fathered a 28 years old boy with a Scottish Woman.
    A Scottish woman who is believed to be a resident of Edinburgh, the country’s capital and second-largest city of Scotland has come forward seeking help on how best she can get in contact with Zambian opposition leader for United Party for Nation Development (UPND) Hakainde Hichilema (HH). According to her claims she knew Mr. Hichilema when they met at one of the University in United Kingdom as students.
    The woman has categorically started that she had a short relationship with Mr. Hichilema during the time they were University students here in UK at University of Birmingham.
    According to her, during this short relationship with Mr. Hichilema she had conceived…

  40. Those interested in making business proposals or areas of business, get in touch with me. We can think together, access the CEEP funds and others. So long your hopes and mindset are not just about ‘akatemba’

  41. Forget the procrastination and cry over spilled milk. Focus on your lives, you are Zambians that have survived hills and mountains, yet still you have remained unscathed, and still with the big smile of called ‘Zed smile’. Let us focus on how we can harness our country for prosperity by taking advantage of huge opportunities unavailing in the country; Enock Kavindele is doing good through a good business case, now he runs a railway line; you all can do it and even more. brother love for country

  42. All of us are angry and genuinely annoyed (which is fine). However, the President will appreciate brilliant ideas such as the one above from Thief Justice. Mr President, that is the best advice among all these blogs. Prepare school of mines to be more practical in this exercise. Thanks.

  43. This Indian Guy is good.He has just saved the Zambian people at with the right information.So everyone hold your fire.What the gentleman is saying is that all the mines are hiding a lot from you humble ,friendly,sleepy Zambians. However, be assured of someone coming up with a senseless cover up statement for the same.No wonder that Kalumbila mine manager was on TV trying to sooth the government with some funny suggestions about harmonizing the mining tax regime.Shame indeed.My recommendation is that government should grab the facility.The mine belongs to Zambians.Am sure our leaders are equally distressed by this mockery.

  44. It has always been clear, that privatisation and deregulation are about the enrichment of the elites at the expense of the masses. The politicians have taken the bribes, but the extractive industries make the profits, as do the banks that own them, and the families that own the banks.

    The answer is clear. All taxes must be replaced by a strict Windfall Tax, or the mines must be privatized.

    Anil Agarwal just made it clear that Zambia people have lost at least $4.5 billion to this guy.

    Will the politician step forward, who will call this ‘development’?

    People from ZCCM-IH board of directors need to go to jail. They haven’t received dividends, and when they received a paltry $18 million they were falling all over themselves to give it back?

  45. IMF, World Bank pressured govt to privatise mines – Nawakwi
    By Chiwoyu Sinyangwe and Chibaula Silwamba
    Friday November 02, 2007 [03:00]

    FORMER finance minister Edith Nawakwi has revealed that the IMF and the World Bank pressured the Zambian government to privatise the mines on the pretext that copper prices would not increase in 20 years.

    According to a report by Action for Southern Africa (ACTSA), Christian Aid, and Scotland’s Aid Agency entitled, “Undermining development, Copper mining in Zambia” dated October 2007, Nawakwi – who is Forum for Democracy and Development president – admitted that the International Monetary Fund (IMF) and the World Bank told the Zambian government that copper prices would never increase, hence they should privatise the mines.

  46. “We were told by advisers, who included the International Monetary Fund and the World Bank, that not in my life time would the price of copper change. They put production models on the table and told us that there (was) no copper in Nchanga Mine, Mufulira was supposed to have five years life left and all the production models that could be employed were showing that for the next 20 years, Zambian copper would not make a profit,” the report quoted Nawakwi as having told its author in an interview on July 26, 2007.

    “Conversely, if we privatised we would be able to access debt relief, and this was a huge carrot in front of us – like waving medicine in front of a dying woman. We had no option (but to go ahead).”

  47. The report further revealed that in 1999, the donors withheld aid to Zambia until the government agreed to privatise the mines.

    “Privatisation of ZCCM (Zambia Consolidated Copper Mines) was a condition repeatedly attached to several loans from both these institutions (IMF and World Bank) and was a pre-condition for Zambia to qualify for debt relief through the Highly Indebted Poor Countries (HIPC) initiative. In 1999, with the Zambian government still reluctant to privatise ZCCM, major donors withheld some US $530 million in aid until the government conceded,” the report revealed.

  48. According to the report, the negotiators argued that increased investment by the new mine owners would generate significant profits that would be channelled back to the Zambian government through taxation and dividends.

    “Although this has happened to some extent, evidence from a variety of reports suggests that the amount of revenue transferred to the Zambian government by new mining companies is relatively small compared to the revenues transferred to governments in other resource-rich countries,” the report read. “For example, according to Christian Aid’s Rich Seam report, Botswana’s largest diamond mining company Debswana pays at least 70 per cent of its profits to the government through revenue transfers of different sorts, including dividends.”

  49. “Given the lack of information available, the figures cited below are approximate. We firmly believe that Zambia was placed under considerable pressure, which weakened its bargaining position, leaving it unable to replicate models that had been successfully applied elsewhere,” read the report.

    The report indicated that in the financial year 2006/07, KCM would have paid in excess of US $6.1 million despite the company extracting ore that generated revenues in excess of US $1 billion.

    It also stated that it was not clear whether the mining companies had paid “even these low rates of royalties”. The report also highlighted the practice of price participation that evidenced Zambia’s weak negotiating position.

  50. “Price participation constitutes a separate contract in its own right. We’ve been unable to obtain a copy of the contract, but a ZCCM official told us that, if the price of copper at the London Metal Exchange exceeds a specific benchmark (US $2,700 -2,800 per tonne) then government through ZCCM-IH starts to claim back a certain percentage (in KCM’s case, 25 per cent) of the difference between the benchmark price and the current price,” read the report.

    “According to the same official, ZCCM-IH rarely receives the full percentage as “there are conditions (attached) and a cap on the amount that ZCCM can receive from KCM in one year (roughly US $16 – 19 million).

  51. In our view the net result of these clauses is that the Zambian government is unable to derive what would normally be considered its rightful or normal rewards from the extraction of the country’s key natural resource.

    “One would expect that the Zambian government/ZCCM to benefit from these profits through its shareholding in KCM. However, sources suggest that KCM has distributed only four percent of its net profit to shareholders in form of dividends for the financial year 2007.”

    The authors of the report recommended an end to the culture of secrecy that surrounded the mining industry.

    It recommended that development agreements should be published.

  52. It recommended that development agreements should be published.

    “The mining companies should pay the Zambian government a larger share of the difference between the actual copper price and the trigger copper price in the price participation scheme, and also pay value added tax at local business rates,” the report recommended.

    “Develop the political will and institutional capacity to effectively enforce existing labour, safety and environmental legislation, update national pollution laws in line with the latest World health Organisation guidelines, and to ensure that companies agree to include these standards in their environmental management plans as part on the renegotiations process.”

  53. They also recommended that the Zambian government revisit the development agreements from the perspective of the Zambian people rather than that of the companies.

    They also recommended that mining companies approach the renegotiation exercise, not as an opportunity to pursue their own interests, rather to revise the government’s share of revenue upwards for the long-term benefits of both parties.

  54. Let Maureen Mwanawasa, Magande, Kaunda Lembalemba, Mmembe, Mutembo Nchito, Mark Chona, Mumba Malila and Jordan Soko explain how they moved from the asking price of $400 million to $25 million, and for Mr. Chikwanda to explain the inability of ZRA’s to appropriately tax the US$ 13.5 billion that KCM has made in the past 9 years. They were making US$ 1 billion per year in transfer pricing and US$ 500 million in profits per year. Further Mr. Chikwanda should explain why this is not confirmation of incompetency and reason for him to resign.

  55. It’ s very possible for KCM to be making such enormous profits per annum because Miners at KCM especially, those in the KCM1 -KCM5 categories earn slave salaries. KCM/ Vedanta has employed special people from India who makes sure that huge amounts of money is siphoned secretly out of the country. This year, there has been no salary increments at KCM because the company has stated publicly that it has got no money. Who is going to redeem the Zambian Miners at KCM since even the President has got no muscles to speak for his people?

  56. mayo mwalikwata amano.economic managers have gone to sleep spot on.but you where the finance minister in FTJ what did u do to reverse the sale of the mines.We demand as citizens to see the contracts signed by ftj and all the mines.Mopani claims most of the in kitwe.where is the contract?

    • ” economic managers have gone to sleep spot on.but you where the finance minister in FTJ what did u do to reverse the sale of the mines.We demand as citizens to see the contracts signed by ftj and all the mines. ”

      The problem is that first KK was strongarmed out of office by withholding donor aid and watching the gvt budget collapse, which brought in the neoliberal MMD. Then in 1999, the MMD was strongarmed into privatising the mines.

      The problem is the IMF/World Bank, and the banks who own them. The only solution is to stand together in SADC and the AU, and coordinate with organisations like Foil Vedanta and Action for Southern Africa (ACTSA), Christian Aid, who have been tracking Vedanta for years.

      Zambia has lost $10s of billions. How about getting them back?

  57. I am waiting for that stupid ***** fred bantubonse to give his opinion now. Always defending the mines as if he is the only one who understands mining industry. Stupid landa nomba

  58. IF YOU NOT PART OF THIS FISCAL AS ZAMBIAN GOVERNMENT INSTALL THE WINDFALL TAX SO THAT WE GET 90% OF THE PROFITS MADE. DON’T PRETEND YOU FIGHTING CORRUPTION, THIS IS REAL CORRUPTION AND ONE OR TWO KNOW WHAT GOES AROUND. MIND YOU WHAT GOES AROUND COMES AROUND. DON’T FIGHT THE OPPOSITION, FIGHT THIS BILLIONAIRE IN THE MAKING. WAKE UP.

  59. the allegation of collusion makes sense. Look at our own Minister of Finance shooting down the push for windfall tax from the mines when he does not have money to allocate to the Health Ministry for much needed drugs in the hospitals! Zambians have become greedy and lost the love for the motherland and the nationalistic spirit that fired our freedom fighters to spearhead the fight for decolonisation.

  60. It’s either the people who sold KCM where so dull or corrupt. Shame on all of them. What legacy? Now we can force Vendatta out. Let’s use public pressure on the government to correct this situation #kickoutvendata

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