Saturday, June 22, 2024

KCM demands for more than 59 million US dollars from Milingo Lungu

Share

Former KCM provisional liquidator Milingo Lungu has been asked to pay back more than 59 million United States dollars within 3 business days being money he illegally paid himself during the period he served as the provisional liquidator for mining giant KCM.

This is according to a letter of demand issued by Malambo and Company as well as Musa Dudhia and Company representing KCM provisional liquidator Celine Nair addressed to Lusenga Mulongoti Advocates acting as lawyers for Mr Milingo Lungu.

According to the letter of claim deposited in the civil jurisdiction of the Lusaka High Court,KCM limited (in liquidation) as the plaintif has sued Mr Milingo Lungu as the first defendant and Lungu Simwanza and Company as the 2nd defendant.

Mr. Lungu in his capacity as the provisional liquidator without permission of the court or Committee of inspectors did transfer surface rights of Lot number 694/M to Mimbula Minerals Limited at a cost of 20 million United States dollars.

The former provisional liquidator is further alleged in the letter of claim to have without authority of the Court or Committee of inspectors transfered surface rights to subdivision P1 of farm number 1452 and farm number 928 to Sensele enterprises limited at the cost of two hundred thousand United States dollars contrary to legal advise that the transfer would adversely affect the operations of KCM.

He is further said to have paid a total of $ 29,154,319.44 as legal fees to Lungu Simwanza and Company when no such services were rendered to the plaintif while several suppliers introduced to the plaintif by the 1st defendant were paid with no corresponding services and goods rendered.

Ms Nair in her capacity as the acting receiver and official provisional liquidator has since demanded that the 1st and 2nd defendants refund the $ 59,336,903 and $ 29,154,319.44 respectively being the money obtained illegally and without corresponding services to the plaintif.

He is further said to have restructured the plaintif Company into KCM smelter Company Limited and Konkola Mineral Resources without the authority of the Court or Committee of inspections leading to the declaration of 5,558 workers redundant.

The letter of claim further indicates that the provisional liquidator without authority and in total disregard for the order of preference provided in the corporate Insolvency Act paid redundancy benefits in full to all the 5,558 employees in the total sum of $ 103,766,949 instead of $ 6,588,119 as preferential claim leading to financial stress on the plaintif.

“Kindly be advised that if you fail to comply with our legal demands,we have instructions to seek recourse available under law without further notice to your client”, read the letter of demand.

18 COMMENTS

  1. The way this article is written is pretty bad.
    The lack of consistency of how monetary values are written are shocking.
    Come on people learn to write properly

  2. Everywhere you look , there was looting, plunder and outright stealing under ECL………….

    These cases will take years to get to the bottom of…………such was the extent of the looting…………

    That is why zambia under lungu survived without producing any noticable manufacturing………..

    The consumption of the country and the theives in PF was funded by looting and borrowing…………

    9
    2
  3. While the government is requesting ZCCM_IH to address their impasse with KCM on liquidatiin out side court, KCM is busy suing past liquidator. Amazing.

    3
    2
  4. This witch-hunt by upnd is just getting petty. Who can steal such a huge amount without anyone raising alarm bells? Let us be realistic for once. Upnd has very naive and childish mother farkaz

    3
    18
  5. I wonder how much Amos Chanda and the real KZ (Not our resident Impostor here in UK) charged for their consultation services.

    6
    1
  6. Imagine how this guy was stealing with impunity. Obviously some of these funds were channeled to PF officials who appointed him in the first place and who kept him there. Now they have left him in limbo.

    7
    1
    • The same way hh undervalued our parastatals and then pocketed millions of kickbacks. Now he is even proud to say he is rich. The f00I

      3
      7
  7. This guy must have been going to the bank to withdraw the cash in suitcases , no wonder its hard to trace? I still believe there are some chaps out there sitting on hard cash its no surprise Faith had that kind of money in her house.
    This govt has been sleeping they should have offered reward for information leading to the arrest and discovery of the cash….Garden boys and maids would have come forward.

  8. He did exactly what that lawyer did who stole benefits of a widow… appointed by a thief to steal without shame

    1
    2
  9. I recall reading that by 2019 Zambia was down graded to a low income state translating into the poorest people in the country leaving below 1 dollar a country whose gdp when MMD lost sat at close 1190$ per capita income….then by 2020 it was at negative….

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading