Monday, May 20, 2024

KCM Court hearing adjourned

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Vedanta Resources Head office

A court hearing following the government’s decision to name a provisional liquidator to run Konkola Copper Mines business was adjourned for a week yesterday without tackling Vedanta’s demands to be involved.

Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, is KCM’s majority shareholder while ZCCM-IH holds a stake of about 20%.
In a statement, Vedanta said the judge had considered preliminary issues brought by ZCCM and reserved judgment until June 11.

It said Justice A.M. Banda-Bobo reserved her judgment on the preliminary issues until Tuesday 11th June 2019 and is expected to deliver her ruling on those issues on that date and will then proceed to hear the joinder application.

Vedanta says ZCCM has chosen a route which seeks to exclude Vedanta, by having a Provisional Liquidator appointed ex-parte.

Vedanta’s application was to allow the company to appear and make representations at any hearing in the winding-up proceedings, including in relation to the appointment of the Provisional Liquidator and the hearing of the winding-up petition.

A date has not yet been set for the hearing in relation to the confirmation of the appointment of the Provisional Liquidator. Vedanta does not consider that there are just and equitable grounds to wind-up KCM and will defend all attempts to do so.

It said appropriate dispute resolution Under KCM’s shareholder agreement, Vedanta, ZCCM and the Government of Zambia agreed a process to amicably resolve disputes about the business.

ZCCM violated this agreement when it chose to initiate court proceedings instead of using this mechanism.

Vedanta launched the dispute resolution process defined by the shareholders agreement by serving ZCCM with notice of a dispute on 30th May 2009.
President Edgar Lungu on Tuesday said the government would press ahead with the intended liquidation of KCM.

41 COMMENTS

  1. For a poor country like Zambia we waste a lot of time and money in courts. It’s a sign of poor uncertain leadership. Only hh knows how to resolve this.Anyway last night was very special as Elisa my Swiss wife and I joined the Labour party for dinner following our appearance at the trump protests. Elisa was donning a tight Armani dress. 17 years of marriage and I still get the same feeling inside and down stairs when I see her in such tight outfits. I love her

    • N.E.Z #1

      Go F***CK your mother so hard that she passes out. We are sick and tired of your sickness and your retarded family.

    • @Zalomis – I am just pleading with you not to come too hard on N.E.Z. He is still on the moon celebrating his love with SWISS WIFE ELISA. Let us allow him to do so as we have also allowed MUSHOTA to celebrate her love with her fimo fimo NICK THE SCOT guy.
      The only thing N.E.Z and Mushota need to change is STOP undermining our beloved country in their comments.

    • @Zalomis – I am just pleading with you not to come too hard on N.E.Z. He is still on the moon celebrating his love with SWISS WIFE ELISA. Let us allow him to do so as we have also allowed MUSHOTA to celebrate her love with her fimo fimo NICK THE SCOTT guy.
      The only thing N.E.Z and Mushota need to change is STOP undermining our beloved country in their comments.

    • Lusakatimes this numpty is clearly posting things unrelated to your article tell us exactly why you are entertaining or not banning ‘it’.

    • How am I undermining a failed government? They have undermined themselves by stealing with impunity and yet here you are insulting me over offering my checks and balances. It’s not my fault your wives are so ugly you don’t see the need to embarrass yourselves by mentioning them here. What has my mother got to do with anything? Your sickness and retardness is reason Zambian is gettingg nowhere.

    • Zalomis people who disrespect their elders tend to die very young in our zambian society. I can tell by your demeanour and name that you are not an indigenous Zambian. Please leave our country in peace. You have no right to speak about internal issues. If your mother slept around with Zambian men to make ends meet then please ask her who your father is. So that he whips some manners in your thick skull. You infidel

    • 1.7 N.E.Z. (New Educated Zambia)©

      WOULD IT BE FAIR TO SAY TO YOU THAT – YOUR FATHER WASTED HIS SPERMS ON YOU

      You are very sick with a very short memory. On the 26th May, you posted the the following after someone just criticized HH. This was under the article:

      —— HH’s RADIO INTERVIEW ON MINES AND NDF ——-

      *** A contributor posted the following about HH

      @ 1.4 flag Hakainde May 26, 2019 at 8:49 am

      “”””Waste of space
      No answers just the same jargon
      No solutions just the same bitterness maybe even worse “”””

      **** BELOW IS WHAT YOU POSTED JUST BECAUSE THE CONTRIBUTOR (aka #Hakainde ) DID NOT AGREE WITH YOU. HE DID NOT INSULT YOU OR YOUR PARENTS AT ALL.

      @1.5 flag N.E.Z. (New Educated Zambia)© May 26, 2019 at 9:24 am
      “””” To the person who has…

    • 1.7 N.E.Z. (New Educated Zambia)©

      **** BELOW IS WHAT YOU POSTED JUST BECAUSE THE CONTRIBUTOR (aka #Hakainde ) DID NOT AGREE WITH YOU. HE DID NOT INSULT YOU OR YOUR PARENTS AT ALL.

      @1.5 flag N.E.Z. (New Educated Zambia)© May 26, 2019 at 9:24 am
      “””” To the person who has commented above me: your father wasted his proteins on you. “”””

      MAN YOU ARE THE ONE WHO IS UNZAMBIAN. PLEASE GET OUT OF LUSAKATIMES

    • @ Mambo 1.9

      Sir or Madam, thank for extracting his past comments.

      1# N.E.Z NEW EDUCATED ZAMBIA does not realise how think and sick his mind is.

      He has done this to so many bloggers. I will make it my project to make sure that I insult his parents every day until he comes to his senses.

    • @ 1.7

      “ If your mother slept around with Zambian men to make ends meet then please ask her who your father is. ..”

      Your mixed race children you claim to have will be told the same…….

  2. In as much as we know Vedanta has not been a good corporate citizen, the government should not abrogate the rule of law and render our courts to be kangaroo courts. Infact, it is not right for the President to be making pronouncements at airports on matters which are before the courts. I bet Justice Bobo is now caught between the rock and the hard place as she does not know how to proceed with so much political pressure resting on the case. Even the robber Barabas had a right to be heard in the bible. Let the rule of law prevail.

    • I remember my coursework over two decades ago in post-grad school in international finance and international business. The lecturer, a Brit, was saying that in some countries the legal process is either too slow to make decisions and/or where it makes decisions, those decisions do not throw any light on the dispute. Because of that, international arbitration in neutral countries was established to help international business to live with third world inertia. I know that much of international business is crooked, especially when it comes to tax issues. But that is a topic for another day.

    • And I agree with you 100% Two wrongs do not make a right. Vedanta has definitely been bad in matters of corporate governance and CSR, but that does not mean that it is right for us to ignore basic law and attempt to liquidate KCM without following due process. It is definitely wrong for politicians, even head of state to be seen to be influencing the outcome of the process.

    • Mwenya – Any case of this magnitude is going to political pressure…the Honorable Lady Justice Anessie Banda-Bobo wont need to distracted all she has to do is refer to the law and the Shareholders Agreement on the matter…these are professionals not your Kingley Chandas of ZRA who say things like you should have brought this matter before the goods reached Zambia I would have sorted them.

    • U are spot. ECL should respect the Rule of Law and follow the Liquidation Procedures and the KCM Shareholders Agreement. KCM Villagers approached London Courts becoz they felt they would not Justice in Zambian Courts that are controlled by ECL. Vedanta should press on with International Arbitration in JHB. Vedanta will Never get Justice from the Lungu controlled Courts. GRZ will lose this Case in International Courts. Wait and see.

  3. Vedanta must know by now that they will Never get Justice in Lungu State Captured Courts in Zambia. The decision is Political and not Legal. Lungu has decided to eject Vedanta as a KCM Shareholder at whatever cost. Vedanta will not be heard in Zambian Kangaroo Courts. The only way for Vedanta is to fight and protect its Legal Rights as per KCM Shareholders Agreement, thru International Arbitration in a JHB Court. The writing is on the Wall.

    • This case is lost it will be refered to International Arbitration…yes KCM needed to kicked out by following laid down rules and regulations now issuing fooolish statements without even meeting them…why are you afraid of meeting them? Is because you have eaten their bribes and too ashamed to see them.
      But hey …Zambians are docile gullible people they like to lied to like Jesus will come to save you suffer now heaven will look after you in the next life.

    • *…yes KCM needed to kicked out by following laid down rules and regulations NOT issuing fooolish statements without even meeting them….

  4. Get rest assured, court case will take a long time. Preliminary applications will consume most of this year. Hearing main application will consume 2020. Judgments and appeals will go up to 2021 or even 2023. No sane investor can come on board before conclusion of court processes. Meantime, KCM operations will require funding to keep afloat. Who pays for operations in intervening period? Will Vedanta continue to do so when President Lungu maintains his government is resolved and determined to part ways with Vedanta group of companies who are currently funding KCM? If Vedanta stops, is Government or ZCCM-IH in position to do so? Game Theory and Chaos Theory permutations show that this game will surely boomerang in government face. Watch this space!

    • Chaos Theory Reloaded, much as I appreciate the reasoning in your posts I don’t like the fact that you chose to plagiarise my screen name.

      I have gone to look for a Swiss wife…

    • @Dr Chaos Theory, our name is a taxonomic name. Bwalya Mulenga is not a plagiarized name for Dr Bwalya Mulenga of Father Bwalya Mulenga the Immaculate….. How I wish you had a Bemba wife. Perhaps, she could have explained the art of names and their meanings…. as names, whether screen or otherwise, are usually given because of the meaning they convey.

      Meanwhile, thanks for compliments

    • @5

      Kcm was not running at a loss, they were mining copper and selling and managing to pay wages and keep the company going……if it was not making money , do you think the Indians would be around ?

  5. Zambians are unfortunately when it comes to presidential leadership. Here are the situations;
    1. Dr Kaunda, he removed colonialism and introduction of nationalism. He built the public infrastructure, created employment and standard of improved. Disadvantage he maintained one party state and over stayed. Kwacha lost value afterIMF sanction.
    2. Dr Chiluba; modernize the country and liberalized the economy. But created a run-away corruption with matrix
    3. Mr Mwanawasa; initially not liked by most the people but he turned around both the economy and people’s choice. He died before completely his second term of office
    4. Mr Banda. Bilizakale; Economy stalled and Politically chasing the diplomats for criticism him with Dora emerging as front runner in a storm of corruption at Zamtel and…

  6. 4. Mr Banda. Bilizakale; Economy stalled and Politically chasing the diplomats for criticism him with Dora emerging as front runner in a storm of corruption at Zamtel and National Airport
    5. Mr Sata. He managed to beat Mr Banda without counting last seven constituencies because of the wide margin. The economic and political was brought to normal but suddenly died.
    6. Mr Lungu.The emerging of crime-minded gang of politicians with Mr Banda as chief advisor with MMD Easterners diverted the path from Sata’s direction. 99% government running corruptive, violent cadres, indisciple police, biased judges and incompetent electoral system. Economy submerged

    • There is a hint of bias in your evaluation. Love him or loathe him, Banda left a good performing economy with a surplus. How did Sata bring the economy back to normal when he was the one who employed his uncle and went on a spending spree within 90 days? Sata’s Government introduced stealing through procurement and he employed his relatives including his son and wife.

  7. LT I dont know where you got that article its full of irrelevant info …look at this article from Mining Review Africa Website.
    ZCCM violated relationship says Vedanta
    In response to queries, Vedanta has provided an update in respect of the legal processes currently underway relating to KCM.

    Court hearings in Lusaka
    The application by Vedanta to join as a party to the winding-up proceedings in respect of KCM was heard in the Zambian High Court in Lusaka .
    The judge considered preliminary issues raised ZCCM’s lawyers before hearing the joinder application. Justice A.M. Banda-Bobo reserved her judgment on the preliminary issues until Tuesday 11th June 2019 and is expected to deliver her ruling on those issues on that date and will then proceed to hear the joinder application.

    • The winding-up proceedings were brought by ZCCM, a minority shareholder in KCM and the representative of the Government of Zambia.

      ZCCM has chosen a route which seeks to exclude Vedanta, by having a Provisional Liquidator appointed ex-parte.
      Vedanta’s application was to allow the company to appear and make representations at any hearing in the winding-up proceedings, including in relation to the appointment of the Provisional Liquidator and the hearing of the winding-up petition.
      A date has not yet been set for the hearing in relation to the confirmation of the appointment of the Provisional Liquidator. Vedanta does not consider that there are just and equitable grounds to wind-up KCM and will defend all attempts to do so.

    • Appropriate dispute resolution

      Under KCM’s shareholder agreement, Vedanta, ZCCM and the Government of Zambia agreed a process to amicably resolve disputes about the business.
      ZCCM violated this agreement when it chose to initiate court proceedings instead of using this mechanism.
      Vedanta launched the dispute resolution process defined by the shareholders agreement by serving ZCCM with notice of a dispute on 30 May 2009. This is intended to allow good faith negotiations to take place.

    • If the dispute remains outstanding for longer than 30 days, it may then be referred to international arbitration.
      The dispute process is separate but parallel the legal proceedings mentioned above. While Vedanta intends to fully defend its legal rights, the company remains open to dialogue.
      It believes that the dispute resolution process is the best mechanism for the resolution of this dispute as it will provide expeditious and appropriate outcomes for all parties (including the many thousands of people employed by KCM).
      Mining Review Africa (05th June 2019)

    • Your article doesn’t even specify where the hearing was…please learn to select clearly written out articles!!

  8. The other thing that I have noticed is that ZCCM has no CEO at the moment and is involved in such a matter who is acting CEO dont tell me its Kaizer Zulu or the Chairman Eric Silwamba the crook who is also principal partner of the infamous law firm Messrs.

  9. I am not sure why there is confusion on this matter in the minds of some posters.
    1. The agreement/contract/licence made by the parties in this matter IS NOT ABOVE THE LAW nor is it out of OUR jurisdiction IN Zambia.
    2. Any person, Organisation, Corporate entity can seek Legal intervention NO MATTER WHAT SUBORDINATE AGREEMENT WAS MADE IN A CONTRACT,/AGREEMENT OUT OF THE LAW.
    In view of the seriousness of Vedantas’ breach where, pollution and loss of life was caused by its failures and operations, it is judicious to have taken recourse to a legal decision. NO ZAMBIAN SHOULD BE SUPPORTING VEDANTA NOR SEATING ON THE FENCE.

  10. The dispute resolution procedure in that shareholders agreement does not include failure to pay bills. Unless of course the dispute is about whether KCM/Vedanta should pay its bills or not. This is a proper case for liquidation or else the creditors will call in the sheriff.
    Trib.als must be careful with this case or else they lose marks big time, 2021 is just around the corner. Osalila ku Concourt.

  11. #11.1 Spaka, well done. We need to be patriotic and united on this one, trib.als and Zambians alike.
    For you Spaka, trib.al is suspended during this case…. kikikikiki.. welcome buddy!!

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