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Alba Iulia
Thursday, June 30, 2022

Zambia Revenue Authority to verify reports that KCM is making annual profits of US$500 million

Headlines Zambia Revenue Authority to verify reports that KCM is making annual...


THE Zambia Revenue Authority says it is verifying reports that Konkola Copper Mines (KCM) is making annual profits of US$500 million. This is to determine if KCM has been paying appropriate taxes to the Zambian government.

A ZRA source said yesterday that the authority has interest in recent press statements attributed to Mr Anil Agarwal, the chairman of Vedanta Resources, the majority shareholder of Konkola Copper Mines Plc.

In a statement posted on various media houses, including video footage on You Tube, Mr Agarwal has reportedly stated that KCM Plc has been making a minimum of US$500 million per year since the mine was acquired by Vedanta Resources Plc.

“Obviously, it would be prudent for Zambia Revenue Authority to check whether this statement is at variance with profits declared, and if need be make tax adjustments with possible resultant penalties and interest,” the ZRA statement read.

Mr Agarwal is reported to have said that KCM Plc is making US$500 million each year after buying the mine at only US$25 million from the Zambian government in 2004.

But Vedanta Resources has refuted the media reports.

KCM executive vice-president for group communications and corporate social responsibility (CSR) Roma Balwani said in a statement in Kitwe yesterday that Mr Agarwal’s recent speech at a business forum in India was used negatively by an activist.

“Our chairman, Anil Agarwal, recently addressed business people in India when he spoke engagingly about the human side of running a multinational mining business.

“In an anecdote, he referred to Vedanta’s 2004 acquisition of KCM, our Zambian subsidiary. Unfortunately, one activist has taken a small part of the video of this speech and used it negatively out of context,” Mr Balwani said.

Mr Balwani said nearly all the returns from KCM have been re-invested into the mining company.
And KCM chief executive officer Tom Albanese said Mr Agarwal and Vedanta Resources continue to believe that KCM has a great future despite short-term operational challenges.


    • ZRA has no capacity coupled with ill qualified personnel are given jobs because they know someone up there.
      Give us a break !


    • Let Professional Auditors such as Deloitte, KPMG, Price Waterhouse Coopers come in coupled with international Activists , Action Aid has stood to the challenge and can be involved

    • What verification? Are you saying the guy was not being honest when addressing those grown up aspiring millionaires? If you come up with any less amount than stated in that clip you are worse than the mockery itself!
      For now let me serve my anger until you come up with your lousy inverstigation, hope you wont ruin this week on LT!

    • British Inland Revenue spent close to £8m investigating these offshore transfer pricing schemes by these multi-national companies ….I highly doubt it if our ZRA has the capacity or the manpower to investigate such schemes. Where would you start if KCM sells its copper to Venenta subsidiary at a very low price stores it then sales via another firm. You have enough evidence here to spend this CEO a backdated tax bill.

    • blaming ZRA in this case is not the solution. Instituting investigations in this KCM saga will cost more than what it is supposed to be collected if the current taxation policies are still in place. The problem Zambia and other countries are experiencing is dealing with multinational companies that are too powerful and sophisticated . KCM has been practicing tax avoidance schemes to avoid paying correct taxes to ZRA. Can you blame a ZRA officer at the border for allowing a KCM importation of tyres for excavators or dump trucks with each tyre costing USD 1 million each, KCM has attached proof of payment from their supplier in India and an approved rebate certificate from Ministry of finance which exempts from them paying duty?KCM is inflating values for their imports which are rebated.

    • …So what this entails is that Zambia is losing out money ,firstly from remittance of money (USD) to international bogus suppliers who have offshore accounts and secondly rebates issued by our own Ministry of Finance. These inflated import values end up in KCM books of accounts as expenditure which reduces KCM profit margins. If you were to investigate who are KCM auditors? the same multi national companies who are paid using offshore accounts to report that KCM is not making profits The way forward here is to reintroduce windfall tax as it is charged on production volume not profit and abolish taxes exemption schemes for mining firms. If this is not done these investors will continue laughing at us Zambians and our Minister will continue borrowing expensive money for consumption..

    • ZRA,is just wasting our precious time there is nothing that they are going to do,unless if it was a zambian company they would have moved swiftly,

    • There is a difference between Tax avoidance and Tax evasion and this clearly looks like Tax evasion. By contrast, the term “tax avoidance” describes lawful conduct, the purpose of which is to avoid the creation of a tax liability in the first place. Whereas an evaded tax remains a tax legally owed,Tax evasion is criminal, and has no effect on the amount of tax actually owed,although it may give rise to substantial monetary penalties,an avoided tax is a tax liability that has never existed.Business One sells the property and underreports its gain.In this instance,tax is legally due.Business One has engaged in tax evasion, which is criminal. Business Two consults with a tax advisor and discovers that it can structure the sale as a “like-kind exchange”Business Two has engaged in tax avoidance

    • All Zambian Systems including ZRA and Immigration need to be restructured. Learn from USA where investors doing Business in the USA are double taxed whether as legal immigrants or citizens in the USA and on whatever businesses they have in other countries, you can’t hide from the USA Internal Revenue Services (IRS) equivalent to ZRA they will get you whether one stashes profits, incomes in other overseas Businesses they will find them and tax them.

    • Not reporting income from foreign sources may be a crime. The IRS and its international partners are pursuing those who hide income or assets offshore to evade taxes. Specially trained IRS examiners focus on aggressive international tax planning, including the abusive use of entities and structures established in foreign jurisdictions. The goal is to ensure U.S. citizens and residents are accurately reporting their income and paying the correct tax. You will face serious consequences if the IRS finds you have unreported income or undisclosed foreign financial accounts. These consequences can include not only the additional taxes, but also substantial penalties, interest, fines and even imprisonment.

    • The IRS encourages you to report promoters of off-shore tax avoidance schemes. Whistleblowers who provide allegations of fraud to the IRS may be eligible for a reward by filing Form 211. In addition to reporting your worldwide income, you must also report on your U.S. tax return whether you have any foreign bank or investment accounts. The Bank Secrecy Act requires you to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if: You have financial interest in, signature authority, or other authority over one or more accounts in a foreign country, and The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.Irs dot gov

    • Instructions for Completion of Form 211:
      Questions 1 – 4
      Information about the Taxpayer– Provide the taxpayer’s name, address, taxpayer identification number –last 4digits(if known), and the taxpayer’s date of birth or approximate age.
      Question 5 – 6
      If you reported the violation to an IRS employee; please provide the employee’s name, title and the date the violation was reported. If known, provide contact information.
      Questions 7 – 8
      If you reported the violation to another Federal or State Agency, please indicate so and identify which agency (es) the violation was reported.Note:Information related to this claim will not be shared with any other agency.
      Question 9
      If you have not previously submitted a Form 211 regarding the same or similar non-compliant activities, or the…

    • Question 9
      If you have not previously submitted a Form 211 regarding the same or similar non-compliant activities, or the taxpayer(s)identified in this information have no known relationship to the taxpayer(s) identified in a previously submitted Form 211, check the box for “new submission.”
      If you are providing additional information regarding the same or similar non-compliant activities identified in a previous submission, and are identifying additional non-complaint activities by the same taxpayer(s), check the box for “supplemental submission.” If you are
      identifying additional taxpayers involved in the same or similar tax non-compliance identified on a previously submitted Form 211, and those additional taxpayers are related to the taxpayer(s) identified on a previously submitted…

    • Form 211, check the box for “supplemental submission.” A Form 211 helps the Whistleblower Office and the IRS in evaluating a supplemental submission, but is not required. If this is supplemental information list previously assigned claim number(s).
      Questions 10 – 11
      Indicate the type of tax that has not been paid or the tax liability that has not been reported and describe the alleged violation. Explain why you believe the act described constitutes a violation of the tax laws. Attach all supporting documentation (for example, books and records) to substantiate the claim. If documents or supporting evidence are not in your possession, describe these documents and their location.
      Questions 12 – 19
      These questions ask how and when you learned of the alleged violation and what…

    • Questions 12 – 19
      These questions ask how and when you learned of the alleged violation and what relationship, if any, you have to the taxpayer.
      Questions 20 – 21
      These questions are asking for an estimate of the tax owed and the years/periods that the tax applies.
      Questions 22 – 26
      Information about the claimant – Provide the claimant’s name, address, date of birth, Taxpayer Identification Number (last 4 digits) , email address, and telephone number.
      Question 27
      Information provided in connection with a claim under this provision of law must be made under an original signed Declaration under Penalty of Perjury. Joint/multiple claimants must be signed by each claimant.

    • @1.3 The same external auditors you are talking about have been auditing KCM for years and were engaged by Anil as a share holder to cover up, because KCM has been submitting audited financial reports to ZRA. its beter our own DEC ACC ZP with the help of British government, and for ZRA there is nothing to verify as this information has come from the Horse’s mouth who is Anil so just do the estimated income statement to arive at $500m and charge him for penalties and other taxes also cage the KCM management they should have been inside by now. where is ZICA and LAZ useless indeed!

  1. Let’s wait and see what happens. I am certain that the profit figures submitted to ZRA are below the actual amounts (Under rated.


    • Waste of Time, ZRA has the most corrupt Employees. I am sure someone from ZRA, has already gone to Anil to advise him how he can hide this.
      These Mines should be repossessed, it is unfortunate Chiluba sold them for peanuts. Let’s wake up Zambians. How can this Indian be make so much in our own backyard???

    • @THE PRINCE, Let’s excuse Chiluba on this one honestly. Well, Chiluba sold the mine to Anglo America Corporation which pulled out of Zambia the moment Mwanawasa won the elections.

      These guys bena Vedantta/Agarwal came in under Mwanawasa, who was desperate I guess to offload this “burden, as taunted by World bank and IMF, in order to qualify for HIPC completion point.

    • Why did the PF rescind its policy to introduce windfall tax when it formed government? The Zambian people deserve an explanation. The government cannot say it had no knowledge about the high profitability of the mines at the time PF took over. How Milupi and Hakainde were mocked and insulted for continuing to urge the government to introduce windfall tax. They were so articulate arguing with figures but they were called names. MMD was in the forefront too!! Zambians!! That is how funny we can be. Can one not say someone in PF/MMD stood to benefit from not introducing windfall tax and at the expense of Zambia!! And we are ndwii. The Police are busy hunting for opposition leaders who want to exercise their democratic rights! Funny.

    • @ Chindakwanda-Galileo Galilei: Noted My Fellow Country Man. reversed my blame on Chiluba. Now that both are Gone, the current government should take up the matter. It is mockery that this Indian Guy uses Zambia as his destiny to riches. I live in Asia and just cannot believe how Zambians take Indian as serious Investors. Nothing personal about them but they don’t have ethics, never faithful and will always cheat. We are better off taking back the Mines, He has already recouped his ROI (Return on Investment). Let him go.

    • @THE PRINCE, indeed you are right. I share your sentiments. Since both FTJ and LPM are not here to defend themselves, the buck stops at the door of my PF government to do something about this.

      Chingola town is full of bad roads I understand.

  2. So annoying, but it is due to political failures that fail to get advice because they themselves are corrupt.

  3. There is nothing to verify here he was caught on camera talking nonsense about zambia no PR can work it is all there for the world to see all we need is action from the government and for his own good that stupid Ower should never stop foot in Zambia he will not get the Vip treatment he said he was given when he first came to Zambia but a beating for his own safety let stay away from zambia, this is a life ban.


    • I totally agree with you, ZRA have no capacity and never had. They do not have the expertise but just pretending to know something. Instead of asking for help from tax experts say from UK they want to make us believe that they have what it takes to undertake such jobs on there own. Please ZRA asking for assistance as you do not have the capacity to tackle KCM and similar companies alone. If they go it alone all you will hear is that KCM has been cleared of any wrong doing (tax evasion or avoidance). Yes tax avoidance is not a crime, the UK companies or individuals who have operated such schemes have been visited by HMRC equivalent to ZRA. The difference is, HMRC have the skills and ZRA do not and add to that corruption all the way throughout the government.

    • There is a difference between Tax avoidance and Tax evasion and this clearly looks like Tax evasion. By contrast, the term “tax avoidance” describes lawful conduct, the purpose of which is to avoid the creation of a tax liability in the first place. Whereas an evaded tax remains a tax legally owed, an avoided tax is a tax liability that has never existed.For example, consider two businesses, each of which have a particular asset (in this case, a piece of real estate) that is worth far more than its purchase price. Business One sells the property and underreports its gain. In this instance, tax is legally due.

    • contd Business One has engaged in tax evasion, which is criminal. Business Two consults with a tax advisor and discovers that it can structure the sale as a “like-kind exchange” (formally known as a 1031 exchange, named after the Code section) for other real estate that it can use. In this instance, no tax is due because (legally, under Section 1031) no sale took place. Business Two has engaged in tax avoidance (or tax mitigation), which is completely within the law.In the United States “tax evasion” is evading the assessment or payment of a tax that is already legally owed at the time of the criminal conduct.[15] Tax evasion is criminal, and has no effect on the amount of tax actually owed, although it may give rise to substantial monetary penalties. Wikipedia

  5. Govt is a shareholder, it should know about all production and financial reports whether they are compiled in Zambia or UK. If its in UK the High Commissioner can easily verify statements with the HM Revenue Authority. Why wait for verifications anyway? Figures are already there. If they bought new equipment for investment the govt should have known, unless govt has been sleep wallking or sleep talking. Govt should have mechanisms of cross checking and cross examining business transactions on monthly basis even on weekly or daily basis. Don’t just wait for scandalous statements for you to react. Be proactive, design mechanism of knowing whats happening with our mineral wealth. People can fail us but robust monitoring mechanism can’t. Sleep walking or sleep talking is not good at all.

    • I could not have put it better myself.
      ZRA is disconnected from many institutions that it should be monitoring. How do you explain a person withdrawing K2.1B without leaving a trace? In the USA, you move $10,000 in or out of your personal account, the IRS gets to know about it. You pay somebody $600.01, IRS provides and incentive for you to report.
      Our ZRA can’t even find records of payments it received. If you don’t have a receipt, you are done for….pay again!

      At the border…they want to squeeze every penny they can from a Zambian. More often than not, they use fictitious figures to determine how much you should pay for a 2-band radio. In the meantime, Agarwal is siphoning billions under their nose, or should I say with their blessing! Why do we hate ourselves so much?

  6. How wud you verify it without all the books? You honestly think they will give you full access and crucify themselves? He already told you the truth,the next step is ACTION against them.Don’t waste time

    • It’s like a murderer confesses on video tape (not under duress) to have killed a named person and described how it all started and ended. The police comes up and says, we need to verify the claim. It is not an allegation! It is an unsolicited confession!

  7. The best thing to do here is just to issue estimated assessments based on USD500,000,000 per year for 9 yrs. Mines are taxed at 30%. This works out to be USD1,350,000,000 for 9 yrs. What was the point of borrowing USD1billion through Euro bonds when you have opportunities to raise even more locally without burdening your nationals? You are just enslaving Zambians whilst their resources are just being plundered by foreigners. Now I seriously believe that report by ActionAid that Zambia Sugar Co was not paying appropriate taxes to ZRA. Another huge source of revenue just let scot-free by Govt. What a Govt we have!!

  8. The problem with ZRA is that they are all corrupt and keep a blind eye when big imports and exports are carried as they are bribed. They would rather make life difficulty for fellow Zambians importing personal effects such us cars. Its not only Vendeta swindling us but Mopani, Lumwana mines the all lot are at it. And this is down to our own greed. Even though they are incompetent, how difficult is it to monitor and police copper leaving the country. We should let an independent organisation to investigate both the ZRA and Vendeta at the same time, otherwise ZRA will cover up stuff.

  9. With the level of corruption that is at ZRA, I will be very surprised if anything will be found. We might not even get to hear the report. Black people are their own enemy…yet we always rush to condemn IMF and World Bank and the developed economies. Here is somebody who openly admits stealing from you and openly says that you are bunch of retards who don’t know what you are doing, and we are still investigating. The fact is that KCM are not keeping such records in Zambia….simple. Nothing will be found and it will soon be business as usual….sleepy Africans.

    • It has nothing to do with the color of your skin, iwe!
      These schemes are found in whiteman’s countries too!
      You probably don’t know that. How are you better than the institutions you are condemning?

  10. Just wait those Zambians willing to sell out, will clear KCM. Money talks, most of the people in zambia will sell out for the quick buck. But in the long term they are killing this nation. We have this attitude amongst ourselves, we want someone to look down. It’s engraved in our DNA, we always want someone to look down on, we cant stand a win win situation. We have to kick the other Zambian to the ground.

  11. ZRA staffs are really a total disaster and their statements are nauseating.

    Tell me – what are they going to investigate REALLY? We have already got it direct from the horse’s mouth (Argawal) that he has been raking $500million per year without paying Tax! This can only happen after bribing the corrupt ZRA officers!! So now they want to carry out a fake investigation while they in fact want to do a cover up and let Argawal off again!!

    These lazy and corrupt ZRA bas.tar.ds have been letting the crocked Indian dinosaurs off the hook! They are busy mounting armed raids on the poor Zambian street vendors but busy helping the Indians loot our coffers!!

    Please DISBAND the entire ZRA and start afresh…hire proper Tax Experts, UK, South Africa, US, Australia, Malawi, etc and build…

  12. what other evidence do you need? he was caught on camera. just check how much he decklared in zambia and then send him a penaty bill. this makes me like uncle Bob more. no foreigner should own more than 51 % of mine shares. revist the mines ACT.

    • ” this makes me like uncle Bob more. ”

      I hate to say this in the ocean of lies and a decade long multi-billion dollar disinformation campaign against Zimbabwe and the Zimbabwean people, but Zimbabwe Leads The Way.

      There are some, who have never forgotten about Liberation, and those are the liberation movements, who are reviled by both the colonials and the banks alike. The core support of the ANC (EFF), SWAPO, ZANU-PF.

      This is about setting up a new dispensation, a new economic system, that has nothing to do with the old (neo-) colonial forms of extraction of resources for distant markets and London bank accounts.

      Colonialism had it’s own economic system, and democracy has it’s own economic system.

    • We need to use our resources to build a massive middle class, that means no extreme wealth, and no poverty. That has to be the vision. For Zambia, and the world.

      Also, only when the ownership of natural resources by the people of Africa collectively is acknowledged, will there be an end to the proxy warfare in Africa, that is killing millions of our people and preventing Africa to achieve the greatness it exhibited in Ancient Egypt, or the peaceful kingdoms of pre-colonial West- and Central Africa, encountered by the likes of Heinrich Barth.

      There should be an aggressively Middle Class Party. And stomp down on anyone who would make the middle class an exclusive little club.

  13. ..to verify..???..some one is inclined to hoodwink us. what I don’t understand is, why and how the govt as a shareholder would also be taken by surprise with Agarwal revelation?? Even if I’m a sleeping partner, I’m supposed to know the operations, costs/expenditure and revenue/income/profit of our company at all times.

    A few weeks ago, people protested at Zambian High Commission in London, if ZRA were that serious, why did they not issue the same statement then..??…

    Hardly few hours past when Sterling racial remarks licked and Obama had to comment just to show how grave the issue was to the people of United States…alas, we are still waiting for a high profile govt official to comment on Agarwal revelation….

  14. ZRA has got no capacity to investigate at all. And if at all KCM is stealing you can’t expect to find proper records to even audit. Every thing will be doctored. The only worry is the sleeping partner called government which is fast asleep. But you can’t be sleeping in everything,everything has stalled.

  15. ZRA is sleeping, zambian government sleeping,Minister of mines sleeping, president sleeping but a foreigner making huge profits out of Zambia just pretending we are making losses.Well if making losses why don’t you close it or sell it.It hurts that he is even boasting and mocking Zambians .

  16. You need to be tough to crack the indian corruption. When they want something they corrupt their way up to the head of state. They are a breed to reckon with. They have a huge population and poverty there is no better than Zambia’s. Those crack their way through the are extremely intelligent. When that intelligence is misdirected at schemes like cheating, theft, swindling, child abuse, business con, etc they do it with impunity. You have to be clever to know the tricks. Other wise they stuff the mouths of politicians, corrupting from top to bottom, and given our disjointed way of politiking among parties, no chance to know that copper is being stolen.

    • What KCM is doing in terms of selling it copper is no different to what FQM or Glencore is doing. …they all state to you docile people in Zambia that their holdings are unprofitable yet in at their AGMs these holdings are showcased as their most profitable subsidiary.
      You be the fly on the wall at these closed door meetings you will be shocked….this is a good wake up call for Zambians.

  17. first things first: the guy was neither drunk nor doing standup comedy. that part of the video is the only part of interest, even in court that is done, why waste time on the all video . and to you ba ZRA the guys is on video, guilty as charged, but for the sake of diplomacy, investigate. i just hope that our love for bureaucracy will not overwhelm the situation (learn something from the very recent Donald Sterling, Clippers issue in the USA). and for the moment can ba Police or some relevant authorities slap that guy with charges like disrespecting the OFFICE OF THE ZAMBIAN PRESIDENT, or something like that. you cook up one of such cases, eg the ramarks our very own VP made about SA, the ZED abassador was called and he went running just to apologize, this guy is playing defence ATASE.

  18. Let Professional Auditors such as Deloitte, KPMG, Price Waterhouse Coopers come in coupled with international Activists , Action Aid has stood to the challenge and can be involved.

  19. Non-starter!!!! ZRA is controlled by Sata and other corrupt Government employees. Even before ZRA does the audit or verification, WE ALL KNOW THE RESULT!! The best thing to do is to engage reputable international auditors who have no interest in KCM or Vedanta.

  20. A CNN reporter was the first to state that Zambians were docile people. If you doubted this overwhelming evidence is staring you in the face right now. Now if this reporter had gone on to say we are the most stup!d, mentally fu~cked up on the planet she would have been right on the ball. What’s happening and has been been happening just doesn’t happen anywhere else in the world but Zambia. Have you heard the resounding silence coming from state house? Not even the insipid and emotionally charged Chellah has the balls to utter anything. Have you noticed the lightening speed at which the president and his minions react to anything if it’s petty? We don’t need to wait until 2016, act now to get rid of the filth!

    • I was once told by a European that Zambians are cowards, it was at the time it was discovered that the late Levy had passed on but everyone was left in the dark! My defence was, Zambians dont like shedding blood of the innocents! At the time I became so angry at him that I retalliated with all the examples I could find about Europeans tearing at each other and being the most ruthless and thieving breed that the world has ever witnessed, but slowly am begining to realise how true and accurate he has been!

    • @Cindy
      When I first heard this lady on CNN giving Zambians this ‘docile’ tag, I was incensed and expected someone from our so-so govt to come out and refute this, nothing happened except a few ramblings from citizens who felt hurt by this insult. Then I remembered what happened in April 1979 when Ian Smith’s dozen soldiers drove in their jeeps all the way from Zimbabwe by ROAD up to Lusaka and attacked Joshua Nkhomo’s residence a short distance away from state house. OK, it wasn’t our war, but we were hosting liberation movements. But to allow foreign forces to DRIVE up to where president operates from and not do something about it bespeaks of a weakness proportional to impotency. Yes, cowardice and docility seems to be genetic in our collective Zambian consciousnesses.

    • @ Wantashi,
      Jaw dropping! I think this is a gong sounding for this generation to rise up and influence change or else the future of that nation is doomed! Though I love history I would love to see yet a patriotic Zambian give us a nice piece of a positive Zambian History. I would love to see a safari guide written by a Zambian, maybe I should take it upon myself for all I see is Tourists making money on such topics while we watch! There are many fields we need to rise in on so the this docility tittle is burried! Thats why when I read the other day on LT how Robert Sichinga jr is rising up in that interesting field of Art I started salivating! There is so much we can do but how we found ourselves in such a poisition as the winners of cowardice and everyones pleaser……. I have no idea!

  21. This issue is simple but requires committed and experienced personnel to deal with it. We need a thorough audit of accounts and if it is established that there has been falsifying of accounts then our government is entitled to claim all the money that has been embezzled with backdated interest. We need to freeze the assets pending investigation incase the owner plans to abandon ship. All the mines should be audited incase this is a tip of the iceberg.

  22. As I read through this case scenario I agree again with the authors of ‘Why Nations Fail’. Zambia is a classic example. I will be interested to see what structures both your ZRA and the law have to ‘verify’ this allegation. Chances are it is a cycle of dysfunction and archaic processes that will result in bureaucracy, stagnation and out-moded measures…

  23. I’m beginning to have serious doubts about PF and Sata. Why is Sata and his minions not saying anything in light of this serious saga?

    • am just waiting for that VERY GOOD day when there will be news of a high profile funeral. all these bad news items will be a thing of the past.

  24. ZRA an institution entrusted to collect revenue was as well caught unaware about the profit margin KCM is making annually. we need a total overhaul of most cadres at that institution. $25000 and $500000 annually…. that a joke. anyway the system is rotten.

  25. Most of the bloggers on this news item are frustrated with the government and living with their own guilt. And majority are simply jealous people with no agenda for Zambia or genuine concern and path for ordinary Zambians. It is not easy for any mining company to get away with huge profits without complying with tax laws and “Development Agreements”. What Mr. Agarwal said and in which context he said does not make any sense. Politicians and businessmen alike issue statements to suit the audience. Instead of getting surcharged and painting all foreigners red, like we do when there is a news item on Indians, Chinese and alike. Fellows, you are making life difficult not only for Zambians in the diaspora but also for ordinary Zambians who get carried away by emotional outburst and find…

  26. Fellows, you are making life difficult not only for Zambians in the diaspora but also for ordinary Zambians who get carried away by emotional outburst and find solace in hatred. Such outbursts bring temporary happiness but take away the joy. Uganda saw it, Tanzania saw it, even Zambia saw it with Sata under UNIP. KCM accounts have been audited by Deloitte and Touche and Ernst and Young. They have to go through all underlying agreements and documents and make provisions for tax liability, not only current but deferred as well. Both of these audit firms are 100% Zambians owned and headed by qualified Zambians. All those talking bad are doubting the integrity of fellow Zambians and indirectly telling the authorities to engage and waste national resources on foreign professionals. Even NGOs ha

    • Well then the previous audits need to be reverified using international standards and if there were gaps then the Zambian auditors need to be held accountable. Bring on an independent international Auditor who was not part of the initial audit process and has no ties with KCM , also let the international activists who unearthed this issue participate in this process and include Action Aid and other genuine concerned local stakeholders.

  27. ZRA is full of muppets. As soon as Agarawal throws crumbs like one throws bread in the pond, all ZRA fools will rush there and come out with nothing. HH bwela ukwapule!

  28. ZRA is free to hire consultant/s. The consultant/s need not be Zambian compan(y)(ies). What is required is capacity to deliver a bankable report. After that, government would be free to decide on future action.

  29. To confirm ZRA incompetence, just check how may outlets where u can buy goods without getting a till receipt which monitors VAT and excise duty. It is the whole of Kamwala & Lumumba Rd. And guess who the majority traders there: Yes you are right, the same damn Indians!!! Also 200metres from ZRA HQ, Just Chicken food outlet on Cairo Rd has been operating without tills for last 5yrs. You can only fill their weight @ the borders coming in…!!

  30. We have all been told that both Mopani and KCM have tens of subsidiary companies that buy copper very cheaply from Zambia and sell it to the next company @ a higher price until the final company sells it to the Chinese @ the Londom Metal Exchange (International price) through transfer pricing and thus avoiding taxes. So ZRA, you will find nothing!!
    My suggestion though is fire then arrest ZCCM IH management & board and investigate them 4 economic crimes.

  31. What verification is required when we heard it from the horse’s mouth. ZRA should quickly send a tax bill to that company! This is government failure and corruption!

  32. ” My suggestion though is fire then arrest ZCCM IH management & board and investigate them 4 economic crimes. ”

    I wholeheartedly agree with that. The ZCCM-IH board is complicit in this criminality. They should all be arrested and have their finances put under a microscope.

    At the same time, this issue is too big for the ZRA. This has to be resolved at at parliamentary and presidential level. We shouldn’t be paying the ZRA to chase down shell companies all around the world.

    Instead, they should be either taxed heavily at the point of production, or nationalized, so that there is complete government ownership, accountability and transparency, which has to include parliamentary and media oversight.

    • These are our natural resources, and our children and grandchildren’s futures.

      And think of everything that could be done with an interest free, no strings or conditionalities attached, $500 million a year. Think of the expansion of infrastructure, agriculture and manufacturing. Think of free healthcare and education through college.

      Or, think of the strength of a Kwacha backed by copper, let alone other resources Zambia has like diamonds or gold.

      In one way Anil Agarwal is right – you have to take a chance, take a risk.

      We have to take our resources back.

  33. And still not one word from the President of Zambia surely how much do we pay this man; even a parrot can do a better job. …where is the immature PA called George Chella.
    The Indian CEO didn’t just ridicule the previous regime but Parliament and all Zambians….maybe this CEO is the one that pays Sata’s hospital bills in india someone needs to investigate that as well.

  34. By announcing that they will verify, the ZRA people are merely advertising themselves for bribes. By now, they are already given a lot of $ and we therefore know what the result will be. Let some world body like IMF come into it, otherwise even your president has probably by now been given the $. Ciza uli?

    • The selfsame IMF and World Bank that advised you to sale….who do you think are the main shareholders in these companies.
      Wake up!!

  35. Why is HH silent on this matter? Is this not the time to speak for the voiceless? is he some KCM activist? What a Leader, rising to the occasion on dumb things and passing important matters. Show them Nevers!

  36. There are two treacherous acts here against the Zambian State:
    Treachery by Mwanawasa, Kaunda Lemba lemba, Magade, Jordan Soko and others who did not exercise vigilance, diligence, and prudence and care when purported to sell KCM on our behalf Zambians for US$ 24 million. The standard test is that they should have exercised the same care that they would have done if they were selling their own property. It is clear even for the blind to see that there did not exercise this due care. Therefore the property rights of Zambians could not haven transferred to this chap their corroborator in the fraud the so called Anil Agarwal. He has no rights in KCM. All his Zambian conspirators and corroborators’ in this fraudulent purported sale will be charged with treason.

  37. The second treachery, betrayal, faithlessness is on the part of all former finance ministers after Magade , that is Musokotwane, Chikwanda and ZRA who have been accomplices to this crime by willfully not taxing the illegal proceeds that Vendetta was milking from our KCM. To be clear the amounts involved are US$13.5 made up of profits of US$500 million and US$1 billion per year in transfer pricing for 9 years.

    Everyone should take note that this is a case of treachery, betrayal, faithlessness against the state of Zambia and all accomplices will be charged with treason after Sata goes, who has been protecting criminals, destroying the judiciary and hiding the draft constitution

  38. For God’s sake, what is really there to verify? I thought ZRA should have been in a position to give the zambian people the exact figures this mine is making? Correct me if I am wrong, thought the institution is there to collect taxes and verifying right amounts are collected? Zambian leadership is too corrupt the reason can not see the wrongs going on. Zambians need to wake up from slumber, we have over slept and enough is enough. Nobody will correct the wrongs like the constitution and being swindled by these stingy investors. We need to rise up, we the people are the the decision makers. Let us cast this devil in a pit latrine.

  39. People should rise up and do a non-stop heavy demonstration country wide to force this government to resign.

  40. The Agarwal – KCM issue is so disturbing that most of us feel that probably to hang Agarwal on the nearest tree and end it all would be the best course in order to restore the rapidly crumbling zambian image . Of course we understand what is at stake, but for a second, reading your inputs bloggers rings a bell that the issue is not a child’s play. It needs expertise and precision . Great thanks to the likes of Floyd Chitalu, Auditor Chisenga, Examiner, Sattish to mention but a few, your lines are pretty interesting .With this kind of analysis i believe we will shame our critics and gain economic freedom !

  41. UN General Assembly Resolution 1803, of 1962 (the year after the diamond/De Beers inspired murder of the Congo DRC’s first elected head of government, Patrice Lumumba):

    1803 (XVII). Permanent sovereignty over natural resources

    The General Assembly, Declares that:

    1. The right of peoples and nations to permanent sovereignty over their natural wealth and resources must be exercised in the interest of their national development and of the well- being of the people of the State concerned.

  42. Does ZRA even have the brains to verify?!!! In any case, what is there to verify if the owner of the company said they make $500m per month?!!!!

  43. we have Zambian metallurgical accountants, cost accountants etc @ KCM. They can give us accurate data on the amount of copper produced & production costs its that simple info aint hard to get

  44. ZRA has always been given manipulated financial statement and its agents are aware of this even the local brothers of Asian origin have corruptly been duping ZRA. The general view is ZRA should re-strategize its basic function of collection of revenue.

  45. Read the tax law. With the current tax law the price you sell copper for is irrelevant for your taxable income. Your taxable income is the number of tons of copper at the London Metal Exchange price at the date of the sale. No deductions for for losses on hedging or anything. Multiply the tons of production with the average LME price, and you get the gross income.
    Read the annual report. It is not that easy to smuggle some hundred thousand tons out of Zambia.

  46. Agarwal start packing and take Dipak Patel with you! There is a generation of Zambians coming up that will not tolerate your kind of filth. You have been cautioned. A generation of Zambians has had enough of foreigners exploiting Zambians in their country. Broad daylight robbery from Indian business men(ie scam) must not continue. Start packing because there is a generation who unlike our forefathers will not be cheated, robbed, bribed or treated like *****. Start packing because our justice will be fair but we will be ruthless in our hunt to root you out of our society for good.

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