Konkola Copper Mines says it views the recent attempt by the Copperbelt Energy Corporation to restrict power supply to the company as an act of lawlessness and in contempt of a Court Order obtained from the Kitwe High Court.
KCM General Manager Corporate Affairs Shapi Shachinda says whilst the agreement between CEC and KCM has expired, the power that KCM is receiving does not belong to CEC for CEC to interfere with.
Mr Shachinda said the debt owed by KCM to the CEC, is a direct consequence of the insufficient investment by Vedanta into the company which created a situation where the costs have remained at a higher level compared with the company’s revenue.
He says the attempts to restrict power at KCM by CEC are not new as they in 2014 restricted power to KCM for two weeks.
Mr Shachinda said a company is only placed in Provisional liquidation if it is unable to pay debts as and when they fall due.
He said the placing of KCM in provisional liquidation is a step in resolving the problems at KCM.
Mr Shachinda said ultimately, the solution lies in selling the company to an investor with sufficient capital to operate the company.
In the last 20 years, Konkola Copper Mines had a Power Supply Agreement with the CEC, which was underpinned on the Bulk Supply Agreement between Zesco Limited, and the CEC.
“Our agreement with the CEC expired on 31 March 2020, but was extended by mutual agreement between the two companies to 31 May 2020. KCM extended the agreement to the end of May to allow CEC to agree on a new Bulk Supply Agreement with Zesco or any other Power Producer. To date CEC has failed to agree with any producer for a Bulk Supply Agreement”, said Mr Shachinda.
He said this state of affairs left KCM with no other choice but to enter into an agreement directly with Zesco, leading to the signing of a Term Sheet Agreement by the two parties.
Mr Shachinda has explained that decision by KCM to enter into an agreement with Zesco makes for commercial efficacy on account that the power sourced from Zesco shall be cheaper than CEC’s power.
Very right, sir. The most fundamental part is THAT POWER DOESN’T BELONG TO CEC AND ZESCO POWER WOULD BE CHEAPER.
So failure to pay debt isnt lawlessness but restricting power supply is lawlessness?? just pay so that problems are resolved.
You, CEC has no power to restrict as it is not accessing power from ZESCO to transmit to KCM. ZESCO is supplying the power in question to KCM.
The only solution here is to remove PF from power next year this country is upside down under PF and if we continue like this as a country we are finished PF can not manage this country it’s too big for them.PF is trying to kill CEC the same way they kill the post newspaper same way they did to Prime TV there are too good at destroying Zambian owned companies and promoting Chinese companies.You want ZESCO to supply electricity direct to KCM bypassing CEC so that all the profit goes to your ZESCO which you know very well that you have already given to Chinese what is there for Zambians in PF Government nothing everything is for Chinese.
An invisible hand is at play in this issue. Let’s talk about debt repayment plan not the signed agreements.
……and you expect KCM to run professionally with such low level or midi over manager? Who say restricting power to defaulting customer is lawlessness? Is not paying for a service you have use lawlessness too? Just concentrate on managing the company and pay all the suppliers or quit for incompetence!!
“Our agreement with the CEC expired on 31 March 2020, but was extended by mutual agreement between the two companies to 31 May 2020. KCM extended the agreement to the end of May to allow CEC to agree on a new Bulk Supply Agreement with Zesco or any other Power Producer. To date CEC has failed to agree with any producer for a Bulk Supply Agreement”, said Mr Shachinda.
HAS A COMMON CARRIER MADE AN AGREEMENT WITH THE ELECTRICITY SUPPLIER AND HAVE THEY AGREED ON FEES TO BE PAID FOR THEM TO START USING CEC INFRASTRUCTURE? IF NOT THEN HOW DO YOU START USING THEIR INFRASTRUCTURE, ON TOP OF THAT THE CLIENT YOU WANT TO SUPPLY ELECTRICITY TO HAS MORE NKONGOLE TO CEC?
I am busy with cleaning up mess in Lusaka caused by dirty Lusambo. For You on copperbelt just hanging there, HH is coming to fix it next year.
@Zambian citizen
A simple definition of a common carrier
What Is a Common Carrier?
A common carrier is defined by U.S. law as a private or public entity that transports goods or people from one place to another for a fee. The term is also used to describe telecommunications services and public utilities.
@Zambian citizen have the the power supplier and common carrier made any agreements to supply power to a defaulting customer after the first one expired?
KCM is under liquidation . the legal person to act for the company is the provisional liquidator. The general manager corporate affairs must never speak for the company. it is irregular in the face of law…. it is my opinion
The only solution here is to remove PF from power next year this country is upside down under
PF and if we continue like this as a country we are finished PF can not manage this country
it’s too big for them.
PF is trying to kill CEC the same way they kill the post newspaper same
way they did to Prime TV there are too good at destroying Zambian owned companies and
promoting Chinese companies.You want ZESCO to supply electricity direct to KCM bypassing CEC
so that all the profit goes to your ZESCO which you know very well that you have already
given to Chinese what is there for Zambians in PF Government nothing everything is for
Chinese.
“Konkola Copper Mines says it views the recent attempt by the Copperbelt Energy Corporation to restrict power supply to the company as an act of lawlessness and in contempt of a Court Order obtained from the Kitwe High Court” .
Not sure if this statement was understood by this blogger??
There is dire need for KCM to settle debts owed to CEC. It is a matter of glory, honor and dignity to pay off money owed to suppliers. It does not matter whether a new supplier is cheaper or not. What matters is tot pay for services delivered under contractual agreement. The incident makes the commercial court particularly appropriate as a vehicle for resolving commercial differences between supplier (CEC) and consumer (KCM). As a business players, governments can not be forced to pay whereas KCM could be forced to pay or risk loss of assets through liquidation. Where is the payment plan? Is it possible for KCM to liquidate a fraction of the debt owed to CEC as a matter of urgent? Is arbitration between CEC and KCM possible? The social media will not help the situation. Rather, social…
Bwezani nkngole imwe. Dont hide in semantics. CEC supplied to you and you havent paid. Just pay and all will be well
I can not wait to see this government out next year because these people have been eating alone and now am going youtube to let the world know about what is happening in Zambia.
@Aristotle: but that’s exactly what the SI says. CEC is suppose to sit down with ZESCO and agree a fee, not for free. CEC cannot dictate to ZESCO to give them power. It’s ZESCO and KCM. ZESCO deals with CEC. CEC doesn’t deal with KCM. That’s the order of the “new normal”.
Nostradamus you claim your hallucinating hyena (HH) bally will sort everything out and yet he has never even held a single public post. Not even public toilet manager. And yet you seem to think he can manage an entire country. You will cry again in 2021. I already have the predicted voting pattern statistics . Contact me to find out how we will wallop your small bally
KZ
HH has never held a public post but has an enviable cv with a fraud conviction like lungus , whose cv is full of failure and crookendness …..
With out …
And KZ ……
Since you seem in answering mood today , can you tell us why PF were gassing our people and why lungu is shielding the perpetrators ?
Yes PF, you successfully closed the Post, u closed Prime tv.but not CEC. During yo high school days have u ever heard of a Tonga bull sir?
If Yes ,then u know the story, if No, then u are herd-on dealing with one right now, and when the war is over, i ll come back to u so u can explain to me what a Tonga bull is.
Its tantamount to economic sabotage, to borrow KK’s words
We are following.
The issue here is that KCM owes money which it must pay because KCM is still producing and selling copper. Where is the revenue from copper sales? Why is the Liquidator not talking about a payment plan? Before anything else KCM is supposed to make a down payment. There’s now Mwisho Nafimwene ndo? at KCM. All PF jackals are now suppliers and contractors, why has the liquidator shunned the old suppliers and contractors. Kaleza many PF goons will end up in prison. They’ve brought this country to its knees and they’re still doing more. What kind of human-beings are these????
Whether you get power from zesco or cec the debt is still there and you cannot contract another debt for power when you haven’t cleared the previous. Its like you defaulted in paying for the first bicycle that you got on credit and now you want to get another one from the same supplier, again on credit.
Mind you, an injunction is not a judgement. Lets wait and see who will be lawless when the judge rules on the injunction.
What I dont understand is that Zesco has agreed to take a customer who has a oroud record of refusing to pay its bills. I thought that Zesco belongs to us Zambians and we must demand that our company does not take KCM otherwise we will be losing our money subsidising milingo lungu. Refusing to pay nkongole and even suing your creditor is thieving. But then in PF thieving, corruption, fraud is the new normal. In PF when they read the constition they have to do the opposite in order to be normal. And imagine they even have an opposite president.
He has the courage to say it’s lawlessness because he is backed by a lawless government. In pf time wrong is right, right is wrong. Instead of negotiating with the party U owe U even stand up to defend yourself and try to force things. PF must go
As for kz your problem requires serious medical attention. Direct knowledge injections to the head. HH is a successful business man and U are successful fraudster and criminal. But the Bible says there is time for everything and unless you kill yourself U will be jailed without mercy. No one will pardon u
Simple solution
Just like all of us live on prepaid meters Put prepaid meters in the mine
Pay upfront or no power