Friday, March 29, 2024

KCM sued for llegedly failing to pay for the supplied fuel

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KCMKOBIL Zambia Limited has sued Konkola Copper Mines (KCM) over alleged failure to pay K7,793,000 for fuel supplied to the mining company.

In a statement of claim filed in the Lusaka High Court, the Kobil said it was engaged to supply the Heavy Fuel Oil (HFO) according to operational requirements of KCM as instructed from time to time according to an agreement covering a period of two years from the time the contract was signed on April 1, 2014, date.From the courts small

The oil marketing company contended that it was agreed that invoicing of supply be done every month to cover deliveries made from each month-end to the next and that payments be done within 30 days of the date of receiving the invoice.

Kobil argues in the claim that despite several reminders and demands made to KCM, the mining giant allegedly failed and neglected to pay the money owed to it.

The plaintiff said it made several deliveries of the fuel to KCM and issued invoices for payment, but had the miner had breached the agreed terms and to date, so that the total principal sum of K7, 793, 550.77 was still owing.

Kobil wants the court to order KCM to pay up for goods supplied plus interest at the current bank rate.

12 COMMENTS

  1. KCM is not a good corporate citizen . Companies both local and international must really be cautious before extending goods and services to KCM on a credit basis , those who do so must realize they are doing so at owners risk.

    • Instead of suppliers scrambling for orders from a mining “giant”, they now have to be extremely cautious!! I see similarities with Luanshya mine under Indian owned Binani. Very sad indeed

  2. All well meaning suppliers must withdraw their services from KCM unless they make up-front payment. KCM is notorious for late payments which suffocates companies.

  3. This good for nothing Mine should be reposes-ed forthwith. Why are we allowing these Indians to be exploiting our people with impunity? Do we have government at all? The mine minister is corrupt to the bone, first he goes on to threaten KCM with repose sing their mining license, after being given some kickbacks he is quite.Just revoke the license even for a week and all these creditors will be paid at once. These I Indians were only scared of Sata and now that he is no more your vision less leader is inept and can not act. Everyday KCM this, KCM that, we are tired of this nonsense.

  4. LT, do something about this Feza nonsense which has started to appear in the comments. I wonder what truly goes on at LT, such incompetence.

  5. Please what are the signs of failing to run a mining company other than what KCM have displayed so far. What are we waiting for and when are we going to act to save ourselves from this fake so called investor. The disadvantages of retaining KCM overshadows the advantages. We have heard a lot of failure to meet corporate obligations and non compliance to institutions and above all our dear environment. Please lets act accordingly.

  6. Is ZEMA alive? Where is the Government? The poor people are affected and the pro-poor Government is idle.
    God will punish hypocrites.

  7. KCM!!! Have failed to pay our small company as little as 2 000 000 kwacha in 2011. Have tried to get this money to no avail. They also give jobs to their fellow Indians! Very sad indeed.. Good for nothing to Zambia. They must go back to where they came from.

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