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Tuesday, July 14, 2020

Vedanta fights back against KCM liquidation

Economy Vedanta fights back against KCM liquidation

Vedanta Resources PLC Chief Executive Officer MS Mehta
Vedanta Resources PLC Chief Executive Officer MS Mehta

Vedanta Resources Holdings Limited wants to be joined in the matter in which ZCCM-IH Plc is seeking an order to have KCM wound up.

Vedanta says if it is not joined to the proceedings by the court, it stands to suffer great prejudice as it has over 79 percent shares in the mining company.

On Tuesday, High Court Judge Anessie Banda-Bobo granted ZCCM-IH an order to appoint lawyer Milingo Lungu as provisional liquidator of Konkola Copper Mines, who has since taken over operations.

ZCCM-IH says the mining company is engaged in massive tax evasions through transfer, mispricing and other unscrupulous means, adding that it is insolvent and has failed to pay outstanding invoices to suppliers and contractors as and when they fall due.

According to an ex-parte summons for an order for joinder of a party to the proceedings filed in the Lusaka High Court, Vedanta wants to be joined as second respondent.


  1. Ama crook aya achilamo mwe. They need to go!

    I was listening to the BBC World Service the other day, Vedanta mining operations seem to be running in similar problems and skepticism from people in Australia. Their not-so-good reputation seems to be universally known.

    • KCM screwed themselves the moment they decided to DELIBERATELY ignore their obligation to settle debts. This case is between ZCCM-IH as petitioner and KCM as respondent. The tricky part for Vedanta is that their company KCM is now being represented by the Provisional liquidator, and knowing PF lawyers, a Consent Order (agreement between ZCCM-IH and KCM represented by the Liquidator) is on the way. Bye Bye Argarwal

    • The crooks that need to go are the PF. With a thinking government KCM can do very well interms of complying with regulations and giving back. With a crooked government even investors see an opportunity to defraud Zambians. The fact of the matter is that KCM will even be worse in PF hands. There will be cosmetic advantages in the beginning but the real rottenness will eventually come out. Edgar and PF with their mwibala thinking have no capacity whatsoever to run anything. They just have to be thrown in the dust bin of history.

    • @Just asking

      **PF is a Political Party whose reputation only matters to Zambian voters. And as far as I can tell, it’s reputation looks pretty good. Especially with actions of this sort by their Party/Republican President.

      **ECL is the President of the republic and good reputation should be his least worries. His concern and worry should always be for the people of Zambia and their well being, period! By the way, aren’t you the same characters who call him “SOFTY”. Now he acts tough and you are worried about his reputation? You have been urging him to emulate the Magufulis and Kagames of this world. So what’s your problem? By the way, I have not seen INVESTORS leaving Tanzania or Rwanda in droves. So what the h3ll are you scared of in Zambia?

      **Judiciary is an arm of Govt…

    • Continue….

      It ain’t going anywhere no matter what reputation you think it has. I am sure you wouldn’t be saying the same thing if this happened the U.K. And quite frankly, enough of this inferiority complex!

      **Vedanta is a corporation whose reputation should matter to them if they plan on being around longer. Otherwise these bad episodes will soon prove FETAL to their businesse. Reputation (Good or bad) can make or break a Corporation. But Zambia will be just fine with or without Vedanta!

    • Yambayamba,

      PF has a good reputation? From doing what exactly?

      Yes Vedanta are crooks. PF are worse, a lot worse.

      By the way, how is the Zambian economy doing? What happened to the US Dollar reserves?

      Unless you are a direct beneficiary of the corruption and theft in Zambia, there is no way you can say this government cares for its citizens.

      I mean how does the president wake up one day with a heavy hangover and declare that he is repossessing KCM?

      And the lazy Lungu said this decision on KCM is final. Really? Is he that naive? Or plain simply stup!d?

      Lesson to Zambians, drink alcohol in moderation. That applies to Maggie as well.

    • @Indigo….

      Well, you may not like it. But PF seem to have won quite a number of elections since they have been in existence. In fact even since ECL became President. So that one barometer by which a Political Party’s reputation can be measured. Whether you yourself sees what they have done or not is irrelevant as far as Zambian voters are concerned.

      The truth still remains, PF must be doing something riight for them to be winning elections except for a few. It is not my place to enumerate what PF has done. Zambians are perfectly capable to see and tell for themselves!

    • Yambayamba,

      I am actually disappointed you said that.

      Museveni, Mugabe, Al-Bashir, KK, etc. etc. all used to win elections hands down.

      That is not the barometer you can use in Africa. Elections are constantly rigged, and majority of voters are illiterate.

      Let us demand much better from our leaders.

  2. it would really help if Lusaka times could have gone a step further to explain in simple terms what this Joinder issue means. I can’t understand fully, i have googled but still feel am not understanding the meaning

    • @Chipamo, thats not fun, only PF idyots say such.
      @Buga, Vedanta is acting as husband to ZCCM-IH to say, how can you file court order to chase me from our KCM mine? It is also my mine, I need to join the case so I can get a share if PF cadres start sharing all vehicles and office furniture, as head of KCM I deserve a bigger share….

  3. Lets hope the State has quantifiable evidence of the Prejudice to the State thru Transfer Pricing and Under invoicing. At law its evidence that matters and not perceptions or unsubstantiated allegations. This Case will affect Zambia’s relations with Foreign Investors and Creditors. Investors and Lenders don’t look at Nationalisation of Assets kindly. If this matter is not handled carefully Zambia could end up in a worse off position.

  4. Chilli boys must go, no need to include them. We have all seen how they have been running KCM. Just go japati boys

    • I call them curry munchers. By the way why are people coming up with this nonsense of legal implications? Are these implications just there to punish the government only. Reading the 86 page sale contract between the two parties, I see that these implications can affect either party depending on who’s committed the breach..

  5. I can see no wisdom in how the government is handling KCM when the people of Zambia is behind the government. I see lots of weakness in the government approach. How can the government say KCM has not paid the contractors while the government has not paid KCM US$180 million. It is unfortunately that the people who surround the president are not very competent to rise good points against KCM. I hope no miner will losing a job. Taking action with tantrums with substance mixed with weakness will not do a good job even if you a point.

  6. Every company run by the indians must be checked by government. This practice of bringing in expatriates with skills that even zambians can do better is very worrying and has kept vibrant skilled zambians out of employment. These companies do not adhere to labour laws as most people go 45 days before getting a salary meant to be paid in 30 days. While expatriates who are unqualfied earn ten times more than a qualified zambian of government has let these indian companies operate freely. However the government is weak and all this will end in nothing.

  7. He bought the mine at 25million USD from hh and would make 500million USD annually

    That’s what he said at a talk show in India hehehe..

  8. So we have Zambians here who are very happy with Mr agarwal and his tricks and boasting about exploiting zambia??? No wander we are like this. In South Africa it can’t happen like the way investors always wants to exploit us and go Scot free. @just asking and your friends, even if you hate Lungu and everyone in govt, but being taken for granted by Vedanta is above politics, because every Zambian remember very well how Mr agarwal was sold KCM in order to save jobs in Cb by late LM. And how agarwal went about boasting about making $500million per month. Surely, let’s use logic sometimes, even HH the one u really want will also face challenges and sometimes it will not be because of him, some issues are above politics. Feel for Zambians who have been cheated out many times, politicians…

    • @Petros, most of the people who are siding with KCM’s Agarwal are frustrated economic refugees doing three work shifts a day.

    • We are like a man who’s been looking for a woman but when that woman is availed we don’t know what to do with her.

  9. Please GRZ do a very thorough job so that KCM is taken back to Zambians. If this is done it will give us much impetus to revive the ounce vibrant Kopala. The other mine owners will start behaving and they will not cheat because we will have a reference— our KCM. Work hard guys.

  10. This Case is more Complex than People think. Vedanta will fight this induced Liquidation in Court. Vedanta is the Majority Shareholder in KCM while Govt thru KCM-International has 20%. Vedanta has Shareholder Rights to protect thru local Courts and in need International Courts.This Case will have a Bearing on Zambia’s relations with International Investors and Creditors and complicates its Debt Sustainability situation.

    • The point being made by @Musonda is very valid. Do you think Vedanta will sit back and let KCM be wound up? Have you looked at the Agreement? Consider the following:
      1)The Zambian govt was supposed to give them 1 Month’s notice of any material breach. The notice l heard was at the airport tarmac in Ndola on Friday
      2) The agreement has an Arbitration clause which KCM will invoke. And that Arbitration is not in Zambia, but in Johannesburg.
      This issue wud have been handled more carefully. Remember we are still paying off the $480million to Lapgreen.

    • @Musonda, you can’t let Criminals get away with crime because the other criminals will have a bad opinion of you!!!!

    • @Kadabwisa, it’s not valid nor is your mom legal reasoning.

      In this case Vendanta are in breach of the contract by material failure to perform in a legal manner. They are robbing creditors, suppliers and employees. Among other things is the damage to environment.

      In view of these serious breaches, the govt can immediately seize as is stated in the contract. Any complaint by Vedanta is noise as they are in breach.

  11. PF thievery is beyond redemption. Even if Jesus resurrected 5 times they’ll never be redeemed!
    The Vedenta issue is all about opening a new window of sustaining stealing not service to Zambians.
    It’s a game of stealing wits set in motion by FTJ, sustained by RBB, exacerbated by MCS and now dwarfed by ECL who has made his predecessors’ thievery before him a child’s play!

  12. Zambia has a lot of educated *****s who have not done a single thing for the country apart from masquerading as the most enlightened of all Zambians. That is why their parties lose elections all the time. When you criticise you also tell people (Zambians) how things should be done. So far I have not heard from any of those who call themselves “Not crooked” how they call turn around the fortunes of this great country. All that comes of their mouths is trash.

    The saddest thing about Zambia is that people don’t know what goes on around the world. Even when they are living in Western countries. Just look at China. The West asked that country to open up and introduce democracy. When China opened their economy but returned their own democracy, the west still stayed in china. Over time,…

  13. When all is said and done for today, where is Trib.al Hacks in all this? Probably does not understand a single thing, too complicated for him and his trib.al mind… he is truly a victim and prisoner of his own trib.alism.

    Just wait for his statement, it will be totally off tangent.

  14. We do want a control and benefit of our resources. The issue is still the methodology. Is that the best in the circumstances? Liquidation? Or receivership? What is the interest of the group ECL constituted to ‘implement’ the liquidation? Are we in danger of leaving the frying pan and ending up in the fire? Were there consultations as to the best course of action?
    Not everyone understands what this means in relation to jobs, revenue, assets, re-capitalization if any (having sold the assets and perhaps in future starting again under a new registered company?) This is where you require leadership to address the nation and explain the whole picture – for people to make their own judgement or assert their rights if they feel a loss or threatened by the course of action chosen.

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