Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) has recently faced a spate of challenges, including the resignation of its board chairperson, Dolika Banda, and the suspension of its share listing from the London Stock Exchange. The Green Party Leader, Peter Sinkamba, has called for a thorough investigation into the happenings at ZCCM-IH and for those responsible for the corruption to be dealt with accordingly.
Sinkamba has expressed his concerns that the corruption allegations and the suspension of the share listing are likely to lead to the departure of minority investors from ZCCM-IH, which will have a negative impact on the institution’s viability. He has also noted that ZCCM-IH has lost credibility at an international level due to the recent corruption allegations, which will make it difficult for the institution to conduct serious business abroad.
The Financial Conduct Authority of the London Stock Exchange suspended the trading of ZCCM-IH shares due to the non-publication of audited financial results for the years 2021 and 2022. In addition, Dolika Banda’s abrupt resignation allegedly resulted from excessive and irregular interference from State House. Banda is a renowned business executive who has held several non-executive director positions and has over 25 years of experience in international finance.
ZCCM-IH’s board recently approved a proposal from First Quantum Minerals (FQM) to convert Kansanshi Copper and Gold Mine’s 20% shares to a royalty payment. Additionally, negotiations are ongoing regarding the potential involvement of investors such as Vedanta Resources and FQM in Konkola Copper Mines and Mopani Copper Mines, respectively.
Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, has announced the appointment of Kakenenwa Muyanga as Dolika Banda’s replacement. The Green Party Leader has challenged the UPND administration to interrogate the matter, particularly given the administration’s focus on addressing corruption.
Sinkamba has called for a thorough investigation into the happenings at ZCCM-IH, and for those responsible for the corruption to be dealt with accordingly. The recent suspension of the share listing and resignation of the board chairperson are likely to have negative effects on the institution’s viability and credibility, as well as its ability to conduct business abroad.