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Tuesday, January 21, 2020

Vendata Resources Appoint Nchitos to fight the liquidation of KCM

Economy Vendata Resources Appoint Nchitos to fight the liquidation of KCM

Vedanta CEO, Srinivasan Venkatakrishnan
Vedanta CEO, Srinivasan Venkatakrishnan

VEDANTA Resources has appointed Nchito and Nchito a firm in which former Director of Public Prosecutions (DPP) Mutembo Nchito is a partner to represent it in its legal battles with the Zambian government to take charge of Konkola Copper Mines (KCM – in liquidation).

In their first filing in court, Nchito and Nchito have questioned whether Messrs Ellis and Company, Messrs Makebi Zulu Advocates, Messrs Andrew Musukwa and Co. and Messrs DH Kemp and Co. who are appointed by the provisional liquidator, can appear on behalf of KCM to support or oppose the appointment of the provisional liquidator and the winding up petition generally.

Srinivasan Venkatakrishnan, a London based director of Vedanta and a KCM director has asked the High Court to state whether liquidation of the mining company can be conducted without being heard through lawyers of its choice.

Vedanta owned majority shares in KCM before ZCCM-IH, a minority shareholder on behalf of the government, applied to the High Court to allow it to appoint a liquidator to wind up the partnership.

Messrs Nchito and Nchito Advocates has filed a notice saying when the matter comes up on June 11 this year, the court should determine whether the lawyers representing ZCCM-IH and KCM could represent the companies.

In this matter ZCCM-IH placed KCM under liquidation after which Milingo Lungu was appointed provisional liquidator.

Mr Lungu has retained Bonaventure Mutale to represent him while Makebi Zulu advocates to represent KCM.

But Mr Venkatakrishnan, who is also KCM board chairman and chief executive officer of Vedanta Resources Limited, the parent company of Vedanta Resources Holdings Limited which is the majority shareholder in KCM with 79.4 of the issued ordinary shares, raised preliminary issues arguing that lawyers appointed by the provisional liquidator cannot oppose his appointment.

According to a notice of motion to raise preliminary issues, Mr Venkatakrishnan said his argument was supported by the fact that the advocates appointed by the provisional liquidator had not filed an affidavit in support of or in opposition to the application to appoint a provisional liquidator.

He said at law, a provisional liquidator could not appoint a legal practitioner to support or oppose his own appointment or the making of a winding up order of the company.

Mr Venkatakrishnan contended that the power of the provisional liquidator was specific to things the liquidator was empowered to do but was unable to do personally.

“I am advised by counsel and verily believe the same to be true that at law, a provisional liquidator cannot appoint a legal practitioner to support or oppose his own appointment or the making of a winding-up order in respect of a company such as the respondent, notwithstanding that a provisional liquidator has been granted powers of the kind,” Mr he said.

The matter comes up again on June 11.

[Read 8,907 times, 1 reads today]


    • All those Lawyers appointed by that scavenger Milingo Lungu appeared in FIC reports as the worst thieves in Zambia.
      KCM is been raped on a daily basis, praise Amos Chanda for excusing himself from that staged robbery.

    • Do you even know what a RECEIVERSHIP is? You want KCM to be given back to those Indian crooks after creditors are paid their dues? You are a Mbuzi for real!!

    • If the host country does not want you, then pack and go. Do not give these indians any work permits or Visas Chapwa!

    • Now you got a legal fight on your hands…Nchito will chew these crooked lawyers from PF…I wonder why that moron from State house did let technocrats handle this matter.

    • Mutembo Nchito, The so and so, celebrity lawyer is back. And here comes the Matrix.

      First and foremost this is an opportunity for Mutembo Nchito and his brother to make money. And why not !!!

      As a Lawyer, Solicitor, Barrister, Paralegal, Attorney…..

      1. He failed to save Zambian Airways.

      2. He failed to save The Post.

      3. He failed to convict Rupiah Banda, with his Vuvuzela associate Fred Mmembe and the whole PF Machinary that striped RB his Immunity. They found nothing against RB

      4. He failed to convict Frederick Chiluba even as a private prosecutor, he had the government machinery, and personally backed by Levy Mwanawasa as President.

      Now I will not go into private cases that he failed, that he should have won for his clients. But his success…

    • Cont…

      …. But his success rate is poor.

      Put it simply, Mutembo Nchito is a {Wanna Be Lawyer}. He has raised his name against the backdrop of just being a below average lawyer.

      All I can say he will prolong the case to make money for himself.

      Mutembo Nchito as a celebrity lawyer, get me out of here !!!!!!!

    • @1.5 Independent Observer
      1. Rupia set out to destroy Zambian Airways
      2. The Post was a hatchet job by judge Sunday Nkonde and ZRA. Even now, Sunday Nkonde is fighting his censure from the Judicial Complaints Commission who found him with a case to answer over the liquidation of the Post. ZRA disobeyed a High Court order as well as the Tax Tribunal to hand the Post back.

      3. He did not fail to convict RB. ECL saved RB from the gallows by illegally removing Mutembo from DPP. Up to now, ECL has failed to produce the report he used to fire Mutembo. All their pretended reasons failed to convict him.
      4. FTJ was saved by RB. We still remember that the then DPP withdrew an appeal in the High Court against the acquittal of FTJ by a magistrate court.
      That is Zambian justice for you!

    • The learned judges are patriots and they know that at law and equity you use prosecutorial discretion for the common good.

      Vedanta’s actions have not been for the common good and thus this joiner should be thrown out on Tuesday.

      Zambia Is Greater Than Any Single One Of Us ~ B R Mumba, Sr.

      Let’s roll …

      Original Content; No Copyrights Reserved

    • This where the Legal begins. Vedanta is going fight for its Majority Shareholder Rights in terms of the KCM Shareholders Agreement. There is no way GRZ will get away with this Legal mess without paying Damages and Compensation to Vedanta. The writing is on the Wall.

    • 1.7 # Kadabwisa

      1. RB did NOTl set to destroy Zambian Airways. Thats BS.

      RB just stopped the ROT he found. He did not want Zambian Airways to continue getting more #favours & #funding that they got from Mwanawasa via Mangande who was his Finance Minister to Zambian Airways, co-owned by Nchito and Mmembe.

      Today National Airports and Inland Revenue are owed overdue monies, which both Mmembe and Nchito were deliberately refusing to pay when Mwanawasa was in Plot 1.

    • Continue..

      And for that they hated RB. And thats the reason why they wanted Mangande to take over from Mwanawasa and continue the ROT. MMD said no. Our man is RB at the Kabwe Convention.

      Prior, Mwanawasa was being blackmailed by Mmembe. Mmembe told him that he lost the election. The Post was the first print to announce his victory because it was popular than GRZ Press ( Times of Zambia and Daily Mail )

    • Continue..

      2. In as much as both Nchito and Mwanawasa went after Chiluba, they failed to pin him down. Nchito saw an opportunity to make money. He was hired as a private lawyer, when surely the ministry of Justice had capable Government Prosecutors. Mwanawasa was fighting corruption by using corruption.

      I was among the people who supported the campaign online to ensure that if it was ( proved ) that Chiluba, stole money, then Justice was to visit him. Regardless of who he was.

    • Continue.

      The cost of prosecuting Chiluba sky rocketed. Mwanawasa tried to make a deal with Chiluba, openly asking him if he could pay half the money he stole ( supposedly).

      Thus coz, Levy realised that Mutembo had spent too much time shooting blank bullets, while he fattened his Bank Account on daily rates in US Dollars

      Again, without doubt or just using circumstantial evidences, Chiluba had cases to answer. But Mutembo was shooting blank bullets.

    • Continue..

      This reminds me of the OJ case in the late 90’s. The Prosecutors failed to pin him down. John Cochrane as a defence lawyer got OJ free.

      The bottom line is that Nchito Mutembo failed as a prosecutor.

      By the way, they found nothing on RB. Sata asked Mutembo & Mmembe not to use he (Sata) to fight their personal wars with RB. Sata realised government money was being wasted to chase RB. They went to Nigeria, they found nothing.

      I can go on and on.. but thats for another day.

      They did the same with Sata, arrogantly refusing to pay taxes. But when Lungu took over, he said this ROT cannot continue. Mmembe lost his beloved baby.. The Post.

    • We can expect these PF Crooks to play games in Zambian State Captured Courts but after 30 days this Domestic Legal Circus will come to an end and International Arbitration will takeover. They will not be able to manipulate the International Arbitrator and GRZ will lose this Case and pay Damages and Compensation to Vedanta. The writing is on the Wall.

  1. Zambia’s Agriculture or Mines sector can best be developed by Zambians. That’s the one key lesson one can learn from the case of; Vadenta Vs the People of Zambia ????????

    Let’s look at the legal and etymological intelligent analysis of the ending paragraph which forms the basis of the intention to seek legal redress in an international court over the subject in question.

    The statement reads;

    “…….In fulfilling the terms of its investment agreement, Vedanta has invested over $3 billion to restart KCM, adding processing capacity and extending the mine life consistent with the commitments made when it acquired the business in 2004. Almost all the cash generated by KCM was reinvested into the operations.
    The business has continued to be largely unprofitable, and its financial…

  2. The business has continued to be largely unprofitable, and its financial situation has been exacerbated by rapid increase in input costs such as electricity, disruption caused by rising and onerous duties and taxes, restrictions on the import of concentrate that was necessary for processing activities and the vastly delayed payments from government in VAT refunds.” End of official public statement by Vandenta

    I wonder if this statement was made by an experienced officer of the court ( seasoned lawyer) or just by the public relations officer or lay spokesperson.

    The key word in the matter is; “……The business has continued to be largely unprofitable…”

    Largely in legal and etymological
    perspective means; predominantly making losses that are…

  3. Largely in proper etymological
    perspective means; predominantly making losses that are challenging to reverse. It means the company is facing bankruptcy. The Legal step to make is two fold;either to voluntarily declare bankruptcy or seek bankruptcy protection.

    In business terms; it means the company has been insolvent. It seems the Zambian government was inorder to invoke: The Corporate Insolvency Act No. 9 of 2017, Cap 279 of the laws of Zambia ???????? to place Vedanta under corporate liquidation.

    Insolvent liquidation means that a company is closing because it cannot pay its bills as they fall due (cash flow insolvency), or the value of business assets is less than its liabilities (balance sheet insolvency). Vandenta may have invested US$ 3 Billion, but it has not…

  4. Is it true that NCHITO BROTHERS & ADVOCATES are all – time – enemies of state(since 1999 during FTJ cases)
    Is it true that NCHITO BROTHERS & ADVOCATES presided over highest profile criminal-cases concerning state’s affairs…?
    By appointment of named lawyers ,Anil Agarwal is suggesting a head – on collision between the state and the former DPP.
    Let’s wait and see where this all saga is going on.

  5. Vedanta may have invested US$ 3 Billion, but it has not yielded good returns to the Zambian ???????? side for over 10 years, going by their statement. The question is;how are other mines surviving in the same environment?Vedanta is on record that they bought the mines for a song – 25 million USD and and that they have been making 500 million USD per year since 2003. Vedanta has not been sincere, the company not being liquid could be due to mismanagement or excessive siphoning of cash by the same CEO who publicly boasted on being so rich on the same mine he bought, among other reasons. The evidence is so notorious for every one to see. We can see the case is now moving to the technicalities of the liquidation process. But what is liquidation?

    Liquidation is basically the process of shutting…

  6. What is liquidation?

    Liquidation is basically the process of shutting down a business and distributing its assets to claimants. Its assets include any cash it still possesses and all of its physical property and equipment, or the cash that is raised by selling those assets.

    Key Points to note.

    1. If a business goes into liquidation, all of its assets are distributed to its claimant or creditors.
    Secured creditors get first priority.

    2. Next in line are unsecured creditors, including employees who are owed money.

    3. Stockholders are last in line.

    In short the step taken by government is proper under corporate governance and legal procedure, regardless of the constraining policy and regulatory framework or business environment in general. The onus is for every business to…

  7. As long as Mutembo is involved, there’ll be twists and turns. This will be a lengthy legal battle

  8. The onus is for every business to formulate strategies to navigate the challenges and survive, but with due regard to sustainable development.
    Government has a justifiable obligation to protect the interests of it’s nationals. Therefore investors who are not pro Zambia are not worth having. We the Zambians are capable of being the best of investors in our own great country called Zambia ????????. We just need to reform our mindset and work ethics. We can do it. We the citizens are partners in development with government. God bless Zambia.

    • @Rev … It’s great to see you come along and sing with me, Hallelujah, Hallelujah!!!

      Amen … let’s roll!

    • @Rev. Ernest C. Bwalya
      From your good explanation,its evident that receivership and/or restructuring of KCM under VENDATA is a non starter.

  9. Nchito brothers? Easy meat, in court I will just point to the liquidation of Mmembe and the Past newspapers.
    Imwe ba Vendetta just shut up and leave us in peace. No legal gymnastics will take you anywhere. Your greed has killed you, neglecting to pay your creditors is what has taken you to your grave in Zambia.
    But not all hope is is lost, Vendetta still has one and only one chance available: Anil Argawal pay up all the creditors in full and there will be no need or justification for liquidation.

    • What happened with the liquidation of the Post? Was that not a hatchet job by Sunday Nkonde for which he is still running away from the Judicial Complaints Commission?
      What was the ruling of the Tax Tribunal?

  10. There is no justice in the so called Zambian laws.. How can a minority shareholder take over your investment with input from you? And even appoint lawyers of his choice to represent you? This is injustice and intended theft. Mutembo please help clear this lawless law. If minority shareholder is aggriv

    • Just go back to India.. in Zambia no one is above the law including the majority shareholder okay you danderheads…

    • Typical of hypnotized upnd sadists, always on the side of the people’s enemy! And you wonder why your ka god will never rule

  11. There is no justice in the so called Zambian laws.. How can a minority shareholder take over your investment with out input from you? And even appoint lawyers of his choice to represent you? This is injustice and intended theft. Mutembo please help clear this lawless law. If minority shareholder is aggriv

  12. Nchito has lost his cases .How is he going to win for vendata? Let him make
    Some money from KCM. It is impossible
    For Nchito to win here in zambia.

  13. 90% of Indians living outside India are crooks. Zambians are just learning from South Afrika

    • Jay Jay they know they cannot be crooks in America. They will be handled accordingly. America does not play.

  14. This is going to backfire for the Government! They messed up in the first place when signing the deal with Vedanta. Vedanta’s operation is so big in the world that their KCM operation in zambia is not even 2% on their balance sheet.

    Bottom line here is the leaders in Africa can’t make good deal for the people and their countries.

    • So we just fold our arms and let him do whatever they want because they are big in the world.

    • @15.1Ndanje, we do not fold our hands. We fight back! But we shud fo so intelligently and within the law. Remember Lapgreen? We thought we won, but we are still paying back $480million. The way we are going about this Liquidation with KCM, l can see us losing again! How is possible for a minority shareholder to take over a company? Which law? The govt has a signed agreement that dictates arbitration in RSA. Do you think whoever the arbitrator is will side with the govt?
      Let’s be more serious when we are dealing with international agreements.

    • @Ndanje 15.3
      “What intelligence?”
      Firstly, we have accused KCM of violating the agreement. The contract we signed states that we shud give them due notice and resolve whatever dipute thru Arbitration.
      When did you hear the Zambian govt give notice? The first we heard of it was at the Ndola Airport tarmac when HE said he wud refer the matter to the lawyers. 4 days later we heard that KCM was liquidated! Which judge is going to side with us?

    • @Ndanje, it is high time we grew up as Zambians and stop making emotional decisions! We behave as if the world owes us a living. We signed a contract, we shud be man enough to live by that contract! If we want to get rid of them, do it within the law! Itemise the points at which they have broken the law and fight them at those points! The way we are behaving seems to betray the fact that we know we cannot win and so we look for a short cut.

    • The problem is Zambian Government. It is Zambian government that sold Vedata 25 million dollars.

  15. Ba Nchito stop this rubbish of defending Vendatta please just let him go back to his country our people have suffered too much under him Zambia dont need his investment anymore thank you

  16. The case is in court be careful lest you be sited for contempt of court. It looks like the end result will be more suffering for we the Zambian children because it looks like this divorce will be very acrimonious. This is not like liquidating the Post, the Indians have a choice of going to international courts where things will be totally different from the Zambian courts. Thereafter which credible international mining companies will buy KCM other than the Chinizi?

  17. Chinese, choncholi tatulemufwaya, nelyo panono
    Let them not come here. Chinese a big NO.

  18. This case needs Keith mweemba and Gilbert phiri you would have seen this case moving well.nchito can not add any salt to this matter.if you want to know more about Gilbert and Keith ask kakoma kanganja how was schooled by these two lawyers.The following day for questions he got sick , that is the meaning of powerful lawyers not mutembo nchito.

  19. PF have bitten more than they can chew with this case, there come a time when your tricks come to an end. This government has been liquidating companies against their will like someone stated this is injustice and causing the country to lose jobs in the process. In this capitalist global world, too much government interference like this one is bound to have a negative effect on the country. I know some cadres think it’s okay to grab someone’s investment just like that without any repercussion, they will be proved wrong with time as things turn sour and investors will shun your country. Investors are all the same, don’t think you will get good ones.

  20. Observer , well articulated. These are facts which people don’t want to face. Once we remove the logs from our eyes, Zambia will definitely move forward. Currently people are only concerned with faked issues which can expose chinks of opportunity that can entrench their power or remove those in power. Basically it’s not different from the fiction we see in films. And people don’t know that one minister of finance had actually facilitated unfettered access for Mmembe and colleagues to get loans from state financial institutions. Or they know but don’t want to “know “. Actually we don’t know what we want. One minute we call government weak for failing to get the mine back, the next moment we complain against government for trying to to take the mine back.

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