PROMINENT Lusaka businessman Andrew Sardanis has said there was a lot of secrecy about the sale of Konkola Copper Mines.
Mr Sardanis said in a statement yesterday that “the generosity to Vedanta, the holding company, during the sale knew no bounds”.
“The Mwanawasa government had been very secretive about the deal. I tried to obtain details about my book ‘A venture in Africa’ but I struck a wall of silence,” he said.
Mr Sardanis said the nation received nothing from the sale.
“Anil Agarwal [Vedanta chairman] received KCM shares against his US$25 million, Zambia Copper Investments got US$23.2 million but the only money Government was allocated is US$16.8 million, which disappeared,” he said.
And Alliance for Democracy and Development (ADD) president Charles Milupi has said the MMD should be held responsible for problems KCM is facing.
He said there was no need for the MMD government to privatise KCM because the mining giant was economically viable after Anglo-American Corporation left.
He said that when Zambians took over the running of the mine after Anglo-American Corporation, KCM’s profits were soaring.
“What was the purpose of selling KCM at US$25 million when the mining company had a value of US$400 million and was actually making profits?”
Mr Milupi said on MUVI TV’s The Assignment programme on Sunday that the sale was at a “giveaway” price and was not appreciated by those who understood mines’ operations.
Mr Milupi said when KCM was being privatised, some of the hurdles like the price of copper were not bad as the government then portrayed.
Meanwhile, THE International Council on Mining and Metals (ICMM) says there is substantial doubt about the data supplied by mining companies in Zambia on the total level of production including the sectors contribution to the gross domestic product (GDP).
The UK-based organisation said several international data sources suggest that the official Bank of Zambia figures overstate production levels.
“With regards to the GDP contribution of the mining sector, the 2013 official data which is in the process of being revised, understates the GDP contribution of mines. The unofficial estimate is that the sector contributes at least 12 percent of GDP,” ICMM says.
It says in contrast, the official data suggest that the mines contribution to GDP is less than three percent in constant prices and around eight percent in current prices.
This is according to a study released last week by the ICMM on enhancing mining’s contribution to the Zambian economy and society.
ICMM says the projections made by Kansanshi, Lumwana, Konkola and Mopani copper mines indicate that the future contributions of mining are likely to increase.
“These projections are based on already approved investment programmes and imply an increase in production to 2016, and roughly a doubling in Government revenue,” the study notes.
Meanwhile the ICMM says lack of appropriate data on which both Government and the mines rely on to guide decisions has affected the quality of debate on mining in the country.
The ICMM says the poor mines data has also negatively affected the quality of policy decision by Government.
It says both Government and mining companies could play a key roles in addressing this problem.
“In June 2013, the Chamber of Mines and the government committed to work together to address the quality and availability of data on the mining sector.
The problem is already being addressed by the government-appointed Zambia Revenue Authority Mineral Value Chain Monitoring project which is assessing industry production figures,” ICMM says.
In recent times the mining companies have become under serious scrutiny and criticism regarding the production level statistics along with the true value of their tax contribution to Government.
With Konkola Copper Mines at the centre of what is now being term as the mines ta saga, many business analyst are wondering why Government has not address the matter.
Levy presided over a very corrupt government. There was massive corruption under the MMD rule. Starting from Kafupi, Cabbage and then Nyama Soya. They established the foundations of destruction for this country.
And the sad legacy has been consolidated under ukwa, in spite of his preaching when he campaigned for the high office!
The only solution is to get rid of all there Old Rugs that have been around since 1960’s together with there followers.
This country deserves to start on a silver plate.
For the departed ones….may their souls rest in pieces. For the one still alive may the courts and Mmembe toture and torment him until death does us part.
Unfortunately, the comedy & destruction of national resources have continued under the current regime. What hope do we have as citizens of this country?
@DITTO are you forgetting that hh benefitted fully from this criminal privatisation. Zambians should ask for his comment. Hh makes noise on useless things and shys away from important national issues such as this one.
Joe, you have just reminded me about HH. He’s so quiet as though he’s off the planet. Am waiting for his comment…………. if it will come.
Out of Hate, you may blame HH. In normal sense it is the seller who is to blame. KK warned you against voting for thugs, they destroyed all what he built to please their masters. While zambians are enslaved in their own country 🙁
Thats the norm in Zambia,Politicians are not held responsible untill they leave office.We have a scenario currently were all roads contracts are controlled by one person who cant be questioned on anything and gullible people are busy supporting the crap!
KCM’s case is that of Tax avoidance and not Tax evasion, and urge ZRA to look at this matter from these Angles. All major purchases for Vendanta for KCM are from INDIA and INDIAN firms, and there was a clear reason for that. KCM pays 6 times more than the normal price for most items, the reason why Agrawal makes $500million, while GRZ doesn’t.
Can ZRA go ahead and Tax Vendanta based on $500million per annum at compounded Company Tax Rate + Penalties & Interest over the past 9 years?
The new mantra is ‘we did nothing illegal’.
Transfer pricing (selling your product to a foreign subsidiary of your own company at a loss to avoid taxation) is not tax avoidance, it is tax evasion. Tax evasion is a crime.
Bribing government officials is a crime. At least if you are a US or Canadian citizen, I don’t know what the law on corruption in India is.
Creating hazardous conditions for your workers, especially when it leads to injury or death, is a crime.
Polluting the Kafuwe river is a crime.
If you look closely at Vedanta, I have no doubt you will find plenty of crimes to put Anil Agarwal in jail with.
In fact Anil Agarwal is already in trouble with the law in India.
add the sale of zanaco on top of that and even ramcoz to JW for $750000 and you have in mwanawasa the epitome of greed.l for one refused to drink the cool aid of magande and levy-they wasted the boon from record copper prices and left no infrastructure to show for it except for a stadium in ndola constructed from a gift from china
New FDI hotspots are emerging
There was significant movement in the list of top 10 countries by FDI projects in 2013. Only South Africa and Nigeria retained their first and third positions from 2012 with 142 projects and 58 projects, respectively. However, FDI projects in both these countries witnessed a slight decline. Countries such as Kenya with 68 projects, Ghana with 58 and Mozambique with 33 all moved up the ranks.
Zambia and Uganda were the new entrants in the top 10 list in 2013 with 25 and 21 projects respectively, an increase of more than 20%. In contrast, North African countries such as Morocco, Tunisia (ranked 8th in 2012) and Egypt slipped on the rankings.
In 2013, both West and East Africa surpassed North Africa for the first time, becoming the second and third most…
ME I HAVE THE SOLUTION TO ALL THESE PROBLEMS ITEMISED AS FOLLOWS;
1. WE DONT KNOW THE PRODUCTION COSTS OF THE MINES, THEREFORE
2. WE ARE AFRAID TO IMPOSE WINDFALL TAX & THEREFORE
3. WE ARE AFRAID TO BE SHAREHOLDERS & BECAUSE OF THIS
4. WE DO NOT KNOW THE PRODUCTION OUTPUT OF THE MINES.
SIMPLE. LETS TURN ZCCM IH AND ENACT A LAW FOR THAT PURPOSE TO MONITOR & BUY ALL THE COPPER AS SOON AS IT LEAVES THE MINES AND RESALE IT AT THE INTERNATIONAL MARKET PRICE. THAT WAY THE MINE COMPANIES SUBSIDIARIES WHICH ARE INVOLVED IN TRANSFER PRICING (& TAX AVOIDANCE/EVASION) ARE CUT OFF. FOR ALL MACHINERY AND EQUIPMENT, WE VERIFY SOURCE & PRICE AT BORDER AND MINE ENTRY & GIVE CONCESSION WITH PROOF. HOW DIFFICULT IS IT TO MONITOR TRUCKLOADS OF COPPER, SINCE WE ARE SO…
This makes a lot of sense….!!! How come no one has thought about if before?
Ba President, you want everything that can be done within 90 days. Here is the solution for you.
HOW DIFFICULT IS IT TO MONITOR TRUCKLOADS OF COPPER, SINCE WE ARE SO LAZY TO COUNT ANYTHING ELSE?
Sound s good idea overrally above, why not? After all, they are mining companies, so let them mine!! Lol…!!
” HOW DIFFICULT IS IT TO MONITOR TRUCKLOADS OF COPPER, SINCE WE ARE SO LAZY TO COUNT ANYTHING ELSE? ”
Not lazy, not incompetent, just bought off and browbeaten by the IMF/World Bank and it’s agenda, which has nothing to do with developing Zambia and everything with amassing wealth for the banking families which funded colonialism in the first place, and are now at the center of neocolonialism, from Zambia to Russia and the Ukraine.
Google: de beers history rothschild
The mines are there for only one reason – provide the cash so that the rest of the economy can develop.
We need public ownership, accountability and transparancy.
LEVY NABANANKWE BALIPENA MUKWIBA. LEVY WAS A BIG PRETENDER. MWIPUSHEKO BANA CHIPO.
Oh shame! Kanshi ba Levvy nabo balelyamo! No wonder……now we know why !
Ifiiiiii …..eh eheh.. i do notiiii get ..any thing my self , thennnn….KCM will will…..nnonot be beebee sold!!
My Brothers – I am surprised why we are wasting so much time on this news item ? was this not known at which rate KCM was sold ? Its a known secret and even daily functioning of KCM is well known to Government by virtue of government nominated directors who sit in KCM board , KCM did earn when copper price was high and cost of mining was low however depression of 2008/09 has left every mining company in bad health. KCM did earns in Millions in initial years and that’s how new investment/new mine/new equipment was brought in KCM. Vedanta is listed in London and companies of such magnitude respect books of account and law of land. Lets allow KCM to work and come out of its current tough situation, such unnecessary publicity is not helping the great company and its manpower efforts – 1…
Our leaders are a bunch of jokers that do not deserve any respect? Inchito kuyumfwa, yet they are dull and corrupt chaps that do not deserve an inch of our respect. That is why…ine I do not have no regard for our plunderers. MCS talks down to them like kids…..no balls! look at the pictures when MCS is addressing them…fimoneka fye fiyalokwa with arms folded….sign of respect…..sign of stupidity.
Interesting; a crook complaining about crookedness.
I totally agree with the comments of both Mr. Sardinis and Mr. Milupi. As for the data fino fino coming from ICMM, this is not the time for that. We will certainly come to that sometime in the future, for now that data is irrelevant. We know that treasonable fraud of KCM nature did not just happen at KCM, this cancer was wide spread. This is way punitive punishment of treason should be meted out to all the culprits, to send a message that there are consequences for betraying Zambia.
Please advise the role Rajan mathani played in the sale of Kcm.A lot of people seem to exclude the chairman for finance bank. The Indian community has been amassing a lot of wealth from this country at our expense, and the ill activities are championed by Rajan. Rajan was in the forefront in negotiating for cuts for magande,President mwanawasa and Maureen.
Rajan must be trailed for most of these scandals against Zambia. We cannot go like this.
Every dog has it’s day they say. Rajan’s time to pay back is coming and fast approaching.
Just like he all of sudden had a terrible Heart Attached when) short circuited him will he pretty soon.
Thank you Mr Sardanis for your useful insight. Perhaps you can also enlighten us on the mysterious collapse of your Meridien Bank during Chiluba’s reign? I also tried to investigate a XX million Dollar bank transfer to a certain bank in Barbados but hit a wall of silence. Any comments?