Minister of Mines and Mineral Resources Richard Musukwa has said that the ruling handed by the South Gauteng High Court in South Africa this morning granting Vedanta Resources an urgent interim interdict against Konkola Copper Mines (KCM) minority shareholder, ZCCM Investment Holdings Plc, has no bearing on the current position of Government on the liquidation process of KCM.
Speaking to the media, after the ruling and flanked by Minister of Justice Given Lubinda and the Attorney General Likando Kalaluka, Mr Musukwa said that there foreign judgments are not enforceable in Zambia until they have undergone a rigorous process and that the Judgement has no effect on the processes going on in Zambia about the liquidation of KCM.
Mr Musukwa’s sentiments were further echoed by the Minister of Justice Mr Lubinda who said that Zambia had a working and effective Judiciary and before matters from outsided can take effect they have to be brought before the judicial system in Zambia.
Earlier, South Africa’s High Court granted Vedanta Resources an urgent interdict halting the liquidation of its Konkola Copper Mines (KCM) unit in Zambia until a final decision is made through arbitration.
Vedanta has been locked in a dispute with the Zambian government since May when it appointed a liquidator to run KCM, which is 20% owned by Zambia’s state mining company ZCCM and the rest by Vedanta. Zambia accused KCM of breaching the terms of its licence.
The dispute in Africa’s second-largest copper producer has intensified concerns among international miners about resource nationalism in Africa.
Mumbai-listed Vedanta denies that KCM has broken the terms of its licence and says it will defend its assets in the southern African country.
South African High Court Judge Leicester Adams said on Tuesday in a ruling seen as a big win for Vedanta that wind-up proceedings must be immediately withdrawn until a final decision is made following arbitration.
“Pending the final determination of the arbitration, the first respondent is interdicted and restrained from taking any further steps in the furtherance and prosecution of the winding up proceedings,” he said.
Vedanta welcomed the decision and said it was committed to resolving the dispute. The legal counsel for ZCCM declined to comment.
It was not immediately clear whether the ruling would be binding in Zambia.
Vedanta had sought the urgent order in South Africa to prevent KCM from being wound up, arguing that the dispute should be subject to arbitration, which cannot happen if the Zambian government is pursuing a new investor.
Some of us already knew that the south African high court ruling was just academic. It’s only upnd doomsayers and FRUSTRATED economic refugees who were excited with “we told you so”. Does anyone remember that the London high court ruling against FTJ Chiluba required registration in our Zambian courts before it could be enforced here?
Now there goes an 1diot,these issues are beyond you sir just drink Jemason from stolen money,this trajectory will have serious consequences…
My friend, check what happened to Congo DR for a similar ruling. Failure to follow the ruling my cause all govt assets in foreign countries to be seized just like what happened to Congo DR and Pakistan.
Danielle – the worst part about being a cadre is that even on issues at an international level you are still thinking at ward level…no one cares about your UPND here…you think you are dealing with ECZ and your appointee directors..really laughable!!
The Agarwals and Vendata are crooks..!
The point most of you frustrated morons are missing is this: There is no court anywhere in the world which can stop the compulsory winding up of a company if that company is deemed insolvent. Your Vedanta opened themselves up for liquidation immediately they stopped paying their bills and engaged in other criminality. A south African court has no powers to stop the liquidation legal process which is already underway in our Zambian courts. It doesn’t matter whether there was an arbitration clause in the contract because arbitration does NOT cover failure to pay bills and criminality because those are NOT DISPUTES.
If it has no effect, why appeal? Just ignore it and continue negotiating with other investors. Can see pressure in my friend Musukwa and Given, inchito shimo nshikumbwa, no lala.
Danielle – this is where you go of track irrespective of what the problem is….Vedanta Resources and ZCCM-IH have a shareholders agreement where they agreed that in case of a dispute this is what happens this is how we proceed. You dont just jump from A to J to Z there is due process let that sink in your hard shell you nincompoops!!!!!!!!!!!!!!!!!!!
sosoliso – Yes we agree that Agarwals and Vendata are crooks but these crooks did everything by the book…they were not crooks when Lazy Lungu was inviting them to State House pledging to invest billions when we laughed you said we were jealous.
@jay jay, Failure to pay debts when they fall due is NOT A DISPUTE that can go to arbitration. It is covered under Corporate Insolvency Act. Why do you want KCM to be subjected to south African rulings but not the laws applicable in Zambia where Vedanta was operating?
Please be informed that the two cases are different. In FTJ case it was a civil matter. In this case, in their own agreement, they stated that arbitration will be in South Africa and that is why it is binding in the parties concerned.
The confusion is why the Zambian government is leading the process and yet the parties concerned signed this. We may have a situation where sanctions or costs are awarded against Zambia(not Zccm). President Kabila lost his plane in RSA in similar circumstances. Under KK, Zambia again lost to a company in USA after we cancelled trucks supplied to then contract haulage. This should be handled carefully
Danielle – KCM would disagree that they are insolvent, they would say that their funds were tired up…the disagree with govt hence its a dispute right there. Dont bring in your emotions we all dislike Vandanta and we are all patriotic …the law does not operate like that my friend, its black and white; you cut corners you are punished.
Why are some of you people so obsessed with HH and UPND? Even when you have a valid arguement, you spoi? it by bringing innocent HH into it, even though he hasnt said anything. Its so embarassing how you twisted minds work.
Sata got Zamtel from LapGreen of Gaddafi without compensation.
Fuuck Vendata!!
What nonsense is this? Why is this trash of story even being credibility?? Picture this: A south African investor suing the South African government in the Lusaka High Court. Can that ever happen? Can it be tolerated by South Africa?
Let’s laugh off this stupid pronouncement by whoever received ‘brown envelopes’ from Vedanta at SA high court! For once we should not politicize this issue. We have National Interest to protect. Lets move on..
@Danielle:Only imb.eciles and idy.ots like you who are so naively ignorant of the law can afford to say this! Your Govt had signed an arbitration clause that meant any dispute would require arbitration to be held in South Africa. The Investor knew well in advance that Zambian Courts are full of political cadres and have no credibility! Again, you have such an hopeless judge Mrs Banda-Bobo presiding over this simple case which is already failing to manage and has already messed up; thanks for her gross incompetence which will cost us Billions!
You also have a horribly incompetent Attorney General, and Ministers Lubinda and Musukwa wrongly comparing this case to Chiluba’s London Judgement case where there was no Arbitration Clause – In all idyots and monkey justice in a failed state…
who paid Lap green millions of dollars over foreign court judgement?
that’s trying to save face
fact is you went to court in sa and the court ruled against you. the govnt is saying all this now, why did they send their lawyers to sa then, why did they abide by the subpoena? why didn’t they say no we’ve a functioning judicial system in Zambia..we’re a sovereign nation.. they knew they had violations, that’s what they tried to argue in court, but the court found them wanting (to borrow their own ligo)
you can’t after the fact say no, we don’t agree to this results you’ve lost the game/case.
100% correct. That’s what I wanted to comment. The fact that they went there means that they accepted the judgement. They could have refused in the first place. However, lets avoid this type of mistake in future. Hagawa is a crook and he has no right to come back. He need to go and never come back. Whoever is supporting him is a fool.
Ken
It is not about supporting “Hagawa”believe me i have not met any Zambian supporting him,the issue is that in trying to remedy the issue PF has complicated the issue and seriously messed up,we may end up paying him,already we have been ordered to pay his lawyers.
Really laughable one minister is a former Primary School Teacher and the other has a Diploma in Agricultural Economics ….Musukwa states that it is not enforceable but they will appeal the decision, all KCM has to do is sit back and tick the boxes as these foooooools breach every clause in the Shareholder’s agreement whilst they are politicking.
Yaba even the Attorney General was there?I feel sorry for professionals working under this government, there will be very little left of their integrity.Meanwhile PF can arrogantly say what they are now saying but it will have repercussions firstly their bonds will be hit next the taxpayer will eventually pay for this recklessness. If we only knew what this means…..more future debts in your children’s pockets….
What nonsense is this? Why is this trash of story even being credibility?? Picture this: A south African investor suing the South African government in the Lusaka High Court. Can that ever happen? Can it be tolerated by South Africa?
Let’s laugh off this stupid pronouncement by whoever received ‘brown envelopes’ from Vedanta at SA high court! For once we should not politicize this issue. We have National Interest to protect. Lets move on..
Appeal a decision from a court whose jurisdiction you claim not to recognise.
These are mere simpletons the likes of Lazy Lungu and Co.. very shortsighted useless chaps ….they dont understand what DUE PROCESS is they think because KCM has not been doing so and so..paying so and so …. they should simply be kicked out just like a football..it might win you votes in Chingola but its very costly mistake to the country as whole..really laughable..not even in a marriage can you do that to your wife even if she is unfaithful.
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). Vendata has to pay, not negotiate. It’s that simple.
The Zambian Government can appeal to a foreign court decision on the basis that the honorable foreign court misdirected itself in facts and law, to stay a court decision beyond it’s jurisdiction or lack of compliance to international law. The appeal is a way of formally communicating to the court, that;the decision to liquidate Vendata stands. The internal logic of liquidation is to protect the interests of the innocent stakeholders. A simple analogy could be; Killing an armed rober who is endangering many lives without following due process off arrest and trial by designated authority, can be the appropriate act. In law; to every rule, there is an exception, and to every exception, there is a rule.
These are cheap politics there peoples lives involved if only you know how people suffering you can not support the indian and blame brothers who are trying to save the mines from the hands of the infester not invester.
RECAP
A few months ago
1. A London court ordered KCM to pay U&M US $90 million for breach of contract
2. Vendetta was ordered to pay millions by a UK court for pollution
Has Vendetta obeyed any of the following court orders against them?
You are right. And none of our assets can be seized in South Africa. South Africa stands to lose a lot more in an economic/trade stand off with Zambia because they have invested more here than we have done in S.A.
Government is neither a party to proceedings before court in Zambia nor South Africa.
Where on earth can you appeal against a decision in proceedings where you are not a party? What a pity!
AND WHY HOLDING ON TO UNPROFITABLE MINE AS VENDATA AS NEVER DECLARED ANY PROFIT.
THIS IS A SIGN OF BEING CROOKED.
What is liquidation? That’s the key question to ask and answer faithfully.
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…
Its sad that we have Zambians like Jay Jay who can do anything to denounce Zambia in any form. We all know what Vedanta did and are yet to do. Even if the process may be wrong but we need to defend our country. For me, the end justifies the means. Therefore, I stand with government on this one.
Jay Jay UK is not heaven. Your Swiss wife is not an angel either. You are proud man, God forbid.
Jay Jay might say some rather uncouth things in regards to Zambia, but I will defend him on the Swiss wife thing. The weirdo with a Swiss wife is that lost cause N.EZ. N.EZ is a problem and a pimple.
DENKEDE – I am not a fooooooool, I am not going to support something that has not been done correctly did we not tell you that there was not point of appointing Kaizer Amos in that delegation? Did we not tell you to appoint technocrats instead? How dare you confuse me with that village boy married to the Swiss wife.
The guy is not a Zambian.
Vedanta are about to find out that they are dealing with a new Africa. After them, we taking land away from south African farmers. As Africans we were too nice after Mandela became president. Land should have been grabbed then. Then all mines; these people do not care about Africans. Only Africans care about Africa and her people.
Listen to this 1diot ati “only Africans care about Africa “,go tell that to Mr 10 Percent,madam Mukula or Prof CBU
we have learned lawyers in zambia who are just quick to comment on issues were they know they will reap a few kwacha’s. l mean bo sakwiba sikota , can he kindly shed more light on this very important issue which a non profession in law justice minister Given Lubinda is making comments;can the likes of lawyers that understand this matter in court please explain the position our zambian government and vandetta ! we lawyers like winter kabimba,Ellias chipimo,Professor mvunga and many others.
vedenta is leaving whether rain or shower. I don’t believe if that running will ever bind. A south African court superseding over Zambian matters no mwaiche kuti akuseka.
Ever heard of the saying “KICKS of a dying horse” Yes, that is exactly where Vendeta is”Kicks of a dying horse”. there is no court, American or Russian that can stop the liquidation of a company in Zambia that declares itself insovent and does not fullfil its obligation(s). That is what vendeta has been declaring over the last few years. These guys did not see this coming, they thought they would lie their way out. Unfortunately that was not to be. The courts in South Africa are at liberty to make a ruling of their choice, remember their lawyers (South African) have been paid by Vendeta to do the job. And Zambia has absolutely nothing to do with it.
Ignorance is bliss
Let them deal with zuma and land distribution. PERIOD
If hh is not happy with Zambia let him go and set up business in sa like his friend gbm
Why are some of you people so obsessed with HH and UPND? Even when you have a valid arguement, you spoi? it by bringing innocent HH into it, even though he hasnt said anything. Its so embarassing how you twisted minds work.
Jay Jay
Sorry brother for referring you to someone else on the Swiss wife. Apology dearly.
Vedanta is quite happy to Exit KCM with kasaka kandalama. Zambia will pay the Price for breaching International Law. They are going to be sanctioned internationally. There is no intelligent Investor that will buy KCM Disputed Assets. The KCM Shareholders Agreement is subject to International Arbitration. Zambia can ignore International Arbitration Law at its own Peril. Wait and see!
No, I disagree. Thank God for China.
Listen UPND cadres,you shall rant whatever you want on this issue but nothing will change.VEDANTA WILL NEVER BE ALLOWED BACK AT KCM!!!Surely which normal Zambian can support these crooked Indians who have destroyed the good mine’s assets which ZCCM left in chingola and chililabombwe?The miners themselves do not want anything to do with vedanta owners and are 100% in support of PF’s stance on liquidation!!!SOMETIMES I TEND TO THINK THAT UPND FOLLOWERS ARE CURSED!!a judgement from a SA court has nothing to do us.Mr Sata grabbed ZAMTEL from Libyans and the rest is history,so even KCM is grabbed from those useless Indians and nothing will change!!IF UPND IS NOT CAREFUL,KCM ISSUE WILL COST THEM VOTES IN 2021!!!
To the person who sad President Sata grabbed Lapgreen and never compensated, please check this story on
https://www.lusakatimes.com/2017/10/28/london-court-orders-zambia-pay-lapgreen-libya-380million-compensation-repossessing-zamtel/
You can see how Musukwa is shivering because he knows that the President was misinformed, how can in you in the same breath say the judgement has no effect while at the same time say that you are going to appeal the judgement, is that not contradicting yourself.
That is the reason Musukwa looks so lost and that is the problem of having dunderheads in government because they do not look at issues from all angles but populist angles which are mostly short-lived. so in this case who is going to look unorganised or stupid for lack of a better word?
No, I disagree. Thank God for China.