ZCCM IH has advanced a loan of up to US$19 million to the Industrial Development Corporation (IDC).
The IDC says it will use the funds to finance its investment projects.
For its part, the IDC will use its 360,937,534 ordinary shares in ZANACO as security.
The IDC is the majority shareholder in ZCCM-IH, holding 60.28% of the total issued share capital of ZCCM-IH.
According to a notice from ZCCM IH, the IDC requested bridge financing from ZCCM-IH.
“The Board of ZCCM-IH considered and approved IDC’s request on 29 March 2018. Therefore, ZCCM-IH has advanced a loan to IDC at commercial terms.
Interest accrued is payable at maturity of the facility agreement and the maturity date is 12 months from the date of issuance,” the notice said.
According to the notice, an Independent Expert conducted an analysis on the terms of the Transaction to ascertain the extent to which the terms of the Transaction are fair and reasonable as far as the minority shareholders of ZCCM-IH are concerned.
The Expert has declared that the Transaction is fair and reasonable, and the fairness opinion will be available for inspection by shareholders at the ZCCM-IH offices for a period of 28 days from Friday, 15th June 2018.
It says the nature of the Transaction is classified as a Small-Related-Party Category 2 Transaction and is not subject to regulatory and Shareholder approval according to Section 10.7 of the Lusaka Securities Exchange Listings Rules.
Borrowing from Peter to pay Paul …you might as well wave goodbye to that money!!
The dealings at IDC are highly suspicious and could be used for Money laundering activities. How come its now borrowing USD 19million? Can it explain to us exactly what this money is for ? Just about last year this same bogus entity chaired by one Chagwa bought Zampalm oil a deal that absolutely didn’t make sense ….now we are told as part of austerity GRZ has to find ways to divest from none performing investments ? Ba PF katwishi ichatukolele to vote u into power.
And you wonder why our companies never grow …any smell of a profit and the numbskulls want to borrow money to misuse
Mr. Editor
Can you please do follow up story on what investments IDC intends to use this money for?
When was an Independent Expert, who conducted an analysis contracted? Who is this expert? When was job advertised by ZCCM-IH? Where is the report? What are the terms of the loan? On which projects will the money used on? Did the Minister of Finance approve the transaction?………This is how ZIMCO ran down viable companies in UNIP era. We are back to square one!
President Lungu should take keen interest in the operations of IDC before its too late otherwise he will be answerable big time. As Chair of the board of IDC these shady transactions will come back to haunt him. Management and board members of IDC are plundering big time and the consequences will be bad. ZCCM-IH has minority shareholders who just ZCCM-IH sued kansanshi over similar shareholder loans they might also create sue ZCCM-IH over the same. IDC bought Zampalm for US$16 million, have invested in intermarket bank which has serious issues, not to mention that the CEO of IDC is clueless as he was just a civil servant with no private sector experience of running business profitably. Ba kateka please wake up!
They have found another cash cow to bleed dry…
colleagues the president is the board chairman of IDC so he has more than first hand information he is party to the transaction and had to approve it as part of the board.
Why didnt IDC borrow from ZANACO, which a Bank? Or better still why didnt IDC borrow from BOZ? Or indeed borrow from newly created Industrial Commercial bank? Since when was ZCCM-IH converted into a Bank so as to start lending money? Is ZCCM-IH authorised under the Banking and Financial Services Act of 2017 authorised to operate as a lending institution? So many questions…..I foresee an illegal transaction here. Lets wait and see!
they are borrowing to fund some of its new investments i.e. the newly created bank. don’t forget that is the latest investment by IDC!
ZCCM-IH is run from STATE HOUSE SO DONT QUESTION THE TRANSACTION, WHEN U FATHER GIVES A LOAN TO UR NEIGHBOUR DO U QUESTION HIM? U SHOULD EVEN BE LUCKY THAT U ARE TOLD ABOUT IT
Not soon after the austerity measures are announced by the minister of finance not to contract any more loans and yet you start borrowing again from each other.
So, Hanimo Farm, also reads the Bible but he denies the Lord Jesus! Where did you read that, Hanimo Farm? Demons beat up the sons of a Jewish Priest who were trying to cast out demons in the name of “Jesus whom Paul preaches.” Thery run away naked and bleeding! I would love to see that happen to one HantiChrist.
Companies don’t grow because Inside Traders took the best of them and sold the others to friends! Have a chat with HaLoser. He will confirm to you the truth. You still want to know?
This is insider dealing period.
And this IDC, Board of Directors politicians, Chairman of Board politician, what do you ecpect from? Doubt that it can repay the loans, how? By “investing” borrowed money in Mulungushi textiles and other non-profit making “enterprises”? Come on ba Lungu, lets be more serious.
Inside dealing happened during privatization and HH was a beneficiary.