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Bench warrant issued against PF’s Nickson Chilangwa for failure to appear in court

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Bench warrant issued against PF’s Nickson Chilangwa for failure to appear in court

THE Kawambwa Magistrate Court has issued a bench warrant against Kawambwa Central Member of Parliament Nickson Chilangwa for failure to appear in court.

Magistrate Martin Namushi ordered that the bench warrant be retainable on Friday, May 26, 2023.

This follows the continuous absence of Mr. Chilangwa in court, where him and six others were scheduled to open the defence in the case they are charged for arson, threatening violence, malicious damage to property and four counts of assault in 2021.

However, before issuing the bench warrant, Magistrate Namushi ordered the surety to explain why the accused was not present despite being aware of the date of being in court.

Daniel Mulenga told the court that Mr. Chilangwa was not in court today as he was attending another High Court case in Lusaka and to that effect, the affidavit had been filed before the court.

However, Magistrate Namushi noted that the continuous absence of Mr. Chilangwa in court was causing unnecessary delays to dispose of the case which was scheduled for commencement of defence and finish within the agreed period of 10 days.

The Magistrate stated that he was left with no other option but to order for the arrest of Mr. Chilangwa, saying he can no longer entertain the application by the defence counsel to further adjourn the case to June 26, 2023.

In this matter, the other accused persons are Kawambwa Council Chairperson Kalumba Chifumbe, Kunda Chitotela, Chabu Chitotela, Davy Kaniki and Chibwe Musantu, all members of the Patriotic Front Party.

It is alleged that the seven accused persons, during the Presidential and General Election campaigns on August 12, 2021 while acting together assaulted four United Party For National Development (UPND) members, damaged the windscreen of the Mahindra motor vehicle before setting it ablaze and also threatened violence.

Defence Force gets health care boost from US

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Defence Force gets health care boost from US

By BENEDICT TEMBO

The United States government has donated 58 point-of-care ultrasound devices and over 1,500 birthing kits for non-military and Defence Force health care facilities.

Delivering the donation yesterday at Kenneth David Kaunda Barracks (formerly Mikango Barracks) in Chongwe District, US Ambassador to Zambia, Michael Gonzales, commended the Ministry of Defence for prioritising health care not only in the military but throughout the country and stated that the equipment would help front-line health providers promote healthy deliveries and prevent maternal mortality.

According to the Zambia Army media, Mr Gonzales also commended the girls under the DREAMS (Determined, Resilient, Empowered, AIDS-free, Mentored and Safe) project for creating the maternity care kits, popularly known as Mama Packs, to limit their HIV exposure in women and young mothers.
DREAMS is a partnership aimed at reducing rates of HIV among adolescent girls and young women in the highest HIV burden countries.

“In Zambia, nearly 40 infants die from preventable complications for every 1,000 births.” As the saying goes, “An ounce of prevention is worth a pound of cure.” The goal of this endeavour is to deliver that ounce of prevention,” Ambassador Gonzalez said.

He said with ultrasound machines, midwives and doctors can now provide life-saving assessments for mothers and detect problems before they become emergencies.
And Ministry of Defence Permanent Secretary Norman Chipakupaku commended the US Embassy for the donation and urged healthcare professionals to put the devices to good use and keep them safe, expressing hope that they will help prevent maternal and infant deaths.

Receiving the equipment, 64 Armoured Regiment Commander Lieutenant Colonel Billy Munshya said that the donations will go a long way in curbing the challenges that the clinic had previously faced, as well as lessening the burden on the staff and improving the facility’s efficiency.

Fred M’membe Exposes Government’s Failure to Address Critical Drug and Equipment Shortages

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Fred M’membe Exposes Government’s Failure to Address Critical Drug and Equipment Shortages

Dr. Fred M’membe, the President of Zambia’s Socialist Party, he highlighted the dire situation regarding the critical shortage of drugs and medical equipment in the country’s health centers, clinics, and hospitals. Dr. M’membe expressed deep concern over the government’s failure to provide a truthful and simple explanation for the ongoing shortage, pointing to vested business interests as the root cause.

According to Dr. M’membe, the Zambian government has contradicted itself by claiming that the health sector receives significant resource allocations while simultaneously acknowledging the existence of a crisis. This discrepancy raises questions about the transparency surrounding the reasons behind the shortage.

The Socialist Party President further argued that the shortage is a consequence of indecisiveness within the government regarding the selection of business contracts for drug supply. He highlighted the plight of a local drug supplier that is being forced to lay off workers due to the government’s reluctance to procure drugs from their company. Dr. M’membe claimed that the necessary drugs are available within the country, suggesting that the issue lies in the government’s unwillingness to purchase from certain suppliers.

Dr. M’membe criticized the government’s response to the crisis, labeling it as political posturing and a mere facade. He emphasized that the provision of healthcare services should not be subject to micromanagement, as drug and equipment shortages have severe economic, clinical, and humanistic consequences for patients. The lack of access to essential medications forces patients to bear higher out-of-pocket costs, resulting in increased rates of drug errors, adverse events, and mortality.

The Socialist Party President lamented the current state of Zambia’s health outcomes, noting that the country ranks among the worst globally. He expressed concern over the high maternal and infant mortality rates, emphasizing that every life is valuable and that a caring and compassionate nation should prioritize minimal healthcare for all its citizens.

Dr. M’membe called for the growth of Zambia’s pharmaceutical industry and the establishment of fast-track access to all drugs covered under the Essential Drugs List in order to address the drug shortages and achieve universal health coverage for the population.

FQM Country Manager ,Dr Beene must make the documents public -ZCCM IH Minority Shareholders

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FQM Country Manager ,Dr Beene must make the documents public -ZCCM IH Minority Shareholders

In recent developments surrounding the conversion of KMP dividends into royalty, concerns have been raised by minority shareholders of ZCCM-IH regarding hidden information and lack of transparency. The call for increased openness was echoed by the esteemed institution, Caritas, which issued a press release emphasizing the importance of transparency in this matter. However, Dr. Godwin Beene, the Country Manager of First Quantum Minerals (FQM) and former Ministry of Mines Permanent Secretary, dismissed these concerns, asserting that there was no secrecy and labeling the claims as uncorroborated hearsay and conjecture. It would be imperative to explore the validity of Dr. Beene’s statement and emphasize the necessity for public disclosure of the documents in question.

Confirmation of Hidden Information and Lack of Transparency:

To ascertain the veracity of the claims made by Dr. Beene, an examination of the circular to shareholders and the available documents is imperative. The 130-page circular contained a comprehensive list of documents that were supposedly accessible for scrutiny and verification. These documents included the Articles of Association, Certificate of Incorporation, and Certificate of Share Capital of the Company, as well as audited annual reports of ZCCM-IH and KMP for specific fiscal years. Additionally, various agreements, undertakings, and reports pertaining to the transaction were mentioned.

However, despite the supposed availability of these documents, the minority shareholders diligently sought access to the full versions but were met with silence from ZCCM-IH. This silence, in itself, raises suspicions and further contributes to the perception of hidden information and lack of transparency. The failure to provide the requested documents undermines the credibility of Dr. Beene’s assertion that there was no secrecy surrounding the deal.

Involvement of Regulatory Bodies:

Recognizing the significance of the allegations, the Securities and Exchange Commission (SEC) and the Lusaka Securities Exchange (LUSE) initiated investigations in response to the shareholders’ request for increased transparency. The involvement of these regulatory bodies underscores the seriousness of the matter and highlights the need for a thorough examination of the transaction. The findings of these investigations are eagerly awaited, as they will shed light on the extent of transparency and any potential irregularities associated with the deal.

Dr. Beene’s Obligation to Publicly Disclose Documents:

Given Dr. Beene’s claim that there was no secrecy surrounding the transaction, it is imperative that he acts in line with his assertion. To dispel any doubts and ensure transparency, the minority shareholders, call upon Dr. Beene to make the relevant documents public in their entirety. These documents include The Current KMP Articles, The New KMP Articles, The Royalty Agreement, The Termination Agreement, The Settlement Deed and Release, The VAT Agreement, The FQM Undertaking, The ZCCM-IH Undertaking, The KMP Shareholders Agreement, and the audited annual reports of KMP for the last three fiscal years.

Furthermore, the shareholders emphasize the need for the Competent Person’s Report on KMP to be released, as it is pivotal in assessing the mine’s value and ensuring an independent and thorough audit of the transaction. Dr. Beene’s role as the Competent Person makes the release of this report all the more crucial for transparency and confidence-building among shareholders.

Below a press release from ZCCM-IH Minority Shareholders

Dr Beene must make the documents public as he claims that there was no secrecy

1. Background
In their statement of 16 April 2023, the minority shareholders of ZCCM-IH referred to “hidden information and lack of transparency” in the conversion of KMP dividends into royalty.
The honourable and respectable institution Caritas was rightly concerned about this situation and called for more transparency on this matter in a press release dated 20 April 2023.

In a statement, former Ministry of Mines Permanent Secretary and now FQM’s Country Manager Dr Godwin Beene discredited this honourable institution. He stated that « A simple fact-check using the ZCCM-IH website reveals that anyone can download the 130- page circular to shareholders », « There was no secrecy surrounding the deal »,« uncorroborated hearsay and conjecture ». He added that this kind of report « risks undermining current efforts to attract additional investment into the country ».

2. Confirmation of hidden information and lack of transparency

The figures and information provided in the 130-page circular to shareholders were supposed to be available for consultation and verification through various documents. We wanted to check with great vigilance that these figures would subsequently be in line with reality.

On page 31 of the circular to shareholders, the list of documents “available for inspection” and the way they can be consulted were specified (Appendix):
• the Articles of Association of the Company, the Certificate of Incorporation, and the Certificate of Share Capital.
• the audited annual reports of ZCCM-IH for the fiscal years ended March 2019, and December 2020, and the unaudited financial statements for the fiscal year ended December 2021.
• The audited annual reports of KMP for the last 3 fiscal years ended 31 December 2019,2020, and 2021.
• Signed copy of the Report of the Independent Reporting Accountant.
• Signed copy of the Framework Agreement.
• The New KMP Articles
• The Royalty Agreement
• The Termination Agreement
• The Settlement Deed and Release
• The VAT Agreement
• The FQM Undertaking
• The ZCCM-IH Undertaking
• Competent Person’s Report on KMP.
• The KMP Shareholders Agreement
• The Current KMP Articles
• the written consents of the Competent Person, Transfer Secretary, Legal Advisors,Financial Advisor, Reporting Accountant and Transaction Sponsoring Broker on the Transaction named in this Circular to act in those capacities, none of whom have withdrawn their consent prior to registration.On page 125, the notice of Extraordinary General Meeting circular indeed informed that
« the Circular includes the salient terms of the transaction » and « extracts » of certain documents.

We are well aware that the devil is in the detail. That is why, as mentioned in our press release of 16 April 2023, we repeatedly asked ZCCM-IH for access to the full documents.
We confirm that the only response was a deafening silence.

3. Regulatory Bodies have tackled this issue

Following our request, the SEC and LUSE have recently replied that they have initiated investigations and come back to us once the investigations are completed.

4. Dr Beene must make the documents public as he claims that everything is transparent Since Dr Beene states that « There was no secrecy surrounding the deal », we request that he makes the following documents public in full : The Current KMP Articles, The New KMP Articles, The Royalty Agreement, The Termination Agreement, The Settlement Deed and Release, The VAT Agreement, The FQM Undertaking, The ZCCM-IH Undertaking,

The KMP Shareholders Agreement, The audited annual reports of KMP for the last 3 fiscal years ended 31 December 2019, 2020, and 2021 and above all The Competent Person’s Report on KMP as FQM, yet fully involved in the agreement, is the Competent Person,without an independant thorough audit of the mine.

5. Shareholder of First Quantum Minerals and transparency I am also a shareholder of First Quantum Minerals. The honourable and respectable Caritas institution is unanimously recognised for its support and defence of the interests of the poorest and the voiceless. Dr Beene’s posture towards this institution calling for more transparency appears therefore inappropriate. The frivolous reasons give the impression of being a counter-fire to the lack of transparency highlighted.

The majority of FQM’s owners are financial institutions, pension funds and small investors.They invest ethically and are respectable shareholders who are concerned that FQM’s
mining operations be shared fairly and transparently with local people. According to FQM,« First Quantum Minerals Ltd., and its subsidiaries (collectively, the “Company”) is
committed to conducting its business with high standards of ethics ». For a respectable shareholder, if transparency is an issue, this would suggest that deals and the
business are fishy.

For the avoidance of doubt, as a shareholder of First Quantum Minerals, I am therefore suggesting Dr Beene to make all the above documents public.

Issued by:
Thierry CHARLES
Spokesperson of Minority Shareholders of ZCCM-IH
23 May 2023, FRANCE.

Jerusalem Church National Chairperson Urges Unity and Preservation of Lumpa Church Principles

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Jerusalem Church National Chairperson Urges Unity and Preservation of Lumpa Church Principles

Jerusalem Church National Chairperson Alex Musanya has appealed to all Lumpa Church members to be united and defend the principles on which the church was founded.

Mr Musanya says there is a need for the country to know the truth about Lumpa church and Alice Mulenga Lenshina and her contribution to Christianity in Zambia and Chinsali in particular.

Mr Musanya says the Jerusalem Church members should create awareness on how the Lumpa Church came into being.

“Let the truth be told to the public so that people’s negative perception about Lumpa church is understood with the truth,” Mr Musanya said.

Speaking during the burial of the last daughter of Alice Mulenga Lenshina who was put to rest at Chinsali District Council Cemetery over the weekend, Mr Musanya said there is a need to document the truth about Lenshina and the then Lumpa church.

Mr Musanya, who is also Jerusalem Church lawyer and former MP for Chinsali in the Mwanawasa regime, explained that due to public interest and history, Jenipher Bubile Ng’andu, the late daughter to Lenshina, requested to be buried in Chinsali adding that the church is ready to support the heritage of the graves of both Lenshina and her daughter since both graves are in Chinsali.

Mr Musanya also made an earnest appeal to the government to consider Lenshina’s story in the history curriculum so that it helps future generations to understand the positive contributions that Lenshina made towards Zambia’s liberation struggle for Independence from 1962-1964.
He recalled that the Lumpa Church went through some revolutions which made it change the name from Lumpa to Jerusalem Church in 2005 when Late President Patrick Levy Mwanawasa recalled them from exile in Congo DRC in 2005.

He said that the Government then recognised the then Lumpa church members as Zambians and later repatriated them back to Chinsali District in Muchinga Province in Kasomo village as a duly registered church with executive members.

“Kasomo village is also a burial site for Alice Mulenga Lenshina whose tomb is protected by her church members,” he said.

And Lenshina family spokesperson, Emmanuel Kashimu Lubusha who gave the life history of Jenifer Bubile Ng’andu at the burial site, said the family tree of Alice Mulenga Lenshina needs to be documented and be kept for its contribution to Christianity in Chinsali.

Mr Kashimu explained that Jenifer Bubile Ng’andu chose to be buried back in Chinsali not because she was poor but because she saw the value of their history towards political dispensation.

He added that Jenifer was born in 1949 to Petros Chintakwa and Alice Mulenga Lenshina in a family of seven, who have all died, marking the end of Lenshina’s nuclear family.

Mr Kashimu disclosed that Jenipher’s original clan is Ng’andu of senior Chief Nkula of the Bemba people in Chinsali whose parents hailed from Chintakwa village in Nkula Chiefdom hence her wish to be buried in Chinsali.

And speaking on behalf of the Government, Chinsali District Commissioner Samson Muchemwa thanked Jerusalem Church members for their unity and obedience
Mr Muchemwa said the Government is ready to work with leaders of Jerusalem Church so that the burial sites for both Jenipher Bubile Ng’andu and her Mother Alice Mulenga Lenshina are well protected and be considered for recognition as heritage sites.

He said as the province prepares to host its Expo in October this year, Kasomo village is among the tourism sites that have been identified adding that soon the Road Development Agency will move into the Chinsali -Kasomo area.

Scores of Chinsali residents joined the funeral procession to send off the last biological daughter of Alice Mulenga Lenshina who was commonly known as “Mama” as this marks the end of Lenshina’s children.

She has left behind a husband Justin Bwalya 82, two grandchildren and 16 great grandchildren.

ZESCO Explains Tariff Adjustments to Enhance Service Reliability

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ZESCO Explains Tariff Adjustments to Enhance Service Reliability

ZESCO, the power utility company in Zambia, has provided an explanation for the recently approved upward tariff adjustment, emphasizing its positive impact on reliable service delivery. Fitzpatrick Kapepe, ZESCO’s Head of Business Development, delivered a presentation to shed light on the matter.

During the presentation, Mr. Kapepe highlighted that the implementation of cost reflective tariffs would contribute to the financial stability of the institution. He further elaborated on the challenges faced by ZESCO in 2019 and 2020, where significant losses were incurred due to the inability to meet electricity generation and distribution targets, primarily attributed to high operational costs.

The prevailing economic conditions, including factors such as economic growth, inflation, and exchange rates, have hindered ZESCO’s service delivery capabilities. Mr. Kapepe asserted that the newly adjusted tariffs would serve as a means to cushion the impact of these factors, allowing ZESCO to enhance its service quality.

The Energy Regulations Board (ERB) approved ZESCO’s application to adjust its tariffs upward to be more reflective of costs back in April of this year. Since then, ZESCO has taken the necessary steps to implement the new tariffs for its diverse range of clientele. This includes metered clients, maximum demand clients, and social service clients, with the adjustments set to span over a five-year period from 2023 to 2027.

The tariff adjustments have been carefully designed to align ZESCO’s revenue streams with the operational costs incurred in generating and distributing electricity. By attaining cost reflective tariffs, ZESCO aims to address its financial challenges and pave the way for a more reliable and sustainable power supply to the people of Zambia.

ZESCO remains committed to fulfilling its mandate of providing efficient and affordable electricity services to the nation. The company is confident that the tariff adjustments will contribute significantly to its financial stability, enabling continued investment in infrastructure, maintenance, and capacity expansion, ultimately leading to improved service delivery for all its customers.

As ZESCO moves forward with the implementation of the adjusted tariffs, it remains dedicated to engaging with stakeholders, including customers, to ensure transparency and address any concerns related to the tariff adjustments.

Government Calls for Closer Collaboration to End Illegal Mining in Luena Farm Block

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Government Calls for Closer Collaboration to End Illegal Mining in Luena Farm Block

The UPND government has emphasized the need for closer collaboration between the Ministry of Agriculture and the Ministry of Mines and Minerals Development to address the issue of illegal mining in the Luena Farm Block. This 100,000-hectare area was designated as a farm block with significant investments made by the government. However, illegal mining activities have posed a major challenge to its development. In a meeting with the Kawambwa District Joint Operations Committee (DJOC), Luapula Provincial Permanent Secretary Mighty Mumba reiterated the government’s commitment to the success of the Luena Farm Block development project.

Concerns over Illegal Mining and Environmental Impact:

Permanent Secretary Mighty Mumba expressed concern about the environmental consequences of illegal mining within the Luena Farm Block. It was revealed that some illegal miners had obtained prospecting licenses within the farm block, leading to actual mining activities that caused land degradation. This raised concerns about the long-term sustainability of the land and its impact on future generations. The negative effects of these mining activities on the climate and weather patterns were also highlighted, indicating the need for urgent action.

The Call for Collaboration and Corrective Measures:

Recognizing the gravity of the situation, Permanent Secretary Mighty Mumba emphasized the importance of collaboration between the Ministry of Agriculture and the Ministry of Mines and Mineral Development. He called for greater coordination among the provincial administration, the Ministry of Agriculture, and the licensing authorities to effectively tackle illegal mining activities. Discussions were initiated with relevant stakeholders to ensure appropriate measures are implemented.

Environmental and Agricultural Perspectives:

During the meeting, Kawambwa District Commissioner Godfrey Chilambwe echoed the concerns about the environmental impact of illegal mining in the Luena Farm Block. He emphasized the significant role that agriculture plays in managing the climate and weather patterns, compared to mining activities. The degradation caused by mining activities not only renders the land unusable for future generations but also has irreversible consequences on the climate. This, in turn, poses a threat to Kawambwa’s potential to become a leading agricultural district, impacting its ability to contribute to the province’s and the nation’s food production.

Steven Musonda, the Kawambwa District Agricultural Coordinator, reiterated the Ministry of Agriculture’s deep concern about the ongoing illegal mining activities in the farm block. Open pit mining, in particular, damages the top layer of fertile land crucial for agricultural purposes. Mr. Musonda emphasized that if unchecked, these activities would undermine the entire objective of the Luena Farm Block. The Ministry of Agriculture is actively collaborating with relevant stakeholders to curb illegal mining and protect the agricultural potential of the area.

Mr. Musonda further highlighted the pivotal role of agriculture in driving economic development. He emphasized that no country has achieved development without a strong agricultural sector, as advancements in technology often stem from agricultural activities. The government recognizes the need to support the agricultural sector, increase production and productivity, and foster value addition through food processing, recognizing its importance to the overall economy.

PART I ZCCM-IH Crisis: Is the ‘Dodgy’ FQM deal and Banda exit Linked?

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PART I ZCCM-IH Crisis: Is the ‘Dodgy’ FQM deal and Banda exit Linked?
  • Minority Shareholders complain of concealment of the KMP Royalty deal documents and the Mopani Copper Mines $1.5 Billion purchase agreement
  • Board Chair Dolika Banda resigns due to alleged political interferences
  • Shares suspended on the London Stock Exchange due to non-compliance to Disclosure and Transparency rules

By Mwansa Chalwe Snr

The recent events at ZCCM-IH, the anchor company for managing Zambia’s mining interests, should be of serious concern to all Zambians. This is so, because mining is the mainstay of Zambia’s economy. In most countries, this would have attracted vigorous and open debate. The resolution of issues concerning the three biggest mining houses – Kansanshi Mining Plc (KMP), Konkola Copper Mines (KCM) and Mopani Copper Mines (MCM) – are all housed at ZCCM-IH, is very urgent.

You cannot have a Board Chair resigning, Minority shareholders complaining about suspected opaque deals and the lack of transparency, and the company shares being suspended at the reputable London stock exchange; and the country continues with business as usual! This piece wants to elicit debate, with the view to persuade the authorities to prioritise the resolution of issues at ZCCM-IH and mining the sector in general, by taking immediate action to give hope to the people on the Copperbelt hope.

THE CONTROVERSIAL FQM/ KMP ROYALTY DEAL

In order to understand what has happened at ZCCM-IH in recent weeks, the starting point should be the initiation of the controversial deal by ZCCM-IH and First Quantum Minerals (FQM) of Canada, to convert of 20% ZCCM –IH ordinary shares into a Royalty financial asset last year. The company’s Board of Directors are understood to have since approved the deal, after the government, as majority shareholder, voted for it in the Annual General meeting of 31st March, 2023.

 

In 2022, the Zambian government and First Quantum Minerals (FQM) of Canada, agreed to covert the dividend rights and economic value of Zambia’s 20 percent equity in Kansanshi Mining Plc into a life of mine royalty of 3.1 per cent of the gross value of Royalty products to be extracted from Kansanshi Mining PLC (KMP).

The majority of enlightened Zambians were against this deal. The deal raised many suspicions from the beginning, on a number of fronts. There were two key issues that people wanted clarity on. The first, was the status of the ordinary shares that Zambia held. The second was to ascertain the guarantee, stability and predictability of Royalty income in the agreement.

Whereas the government and ZCCM-IH presented a rosy picture about the transaction, arguing that there will be no change in the classification of shares, and that there was no risk in royalty income streams, this was debunked by First Quantum Minerals (FQM) public statements in Canada. The cautionary statement that FQM issued to the Toronto stock exchange on 1st December 2022, in announcing the transaction, and the other statements they made to the press, were more detailed and transparent, than what Zambians were made to believe by both ZCCM-IH and the Ministry of Finance through their press conference.

“At closing ZCCM-IH will de-recognise its equity stake in KMP as an investment in associate and recognise the acquired Royalty as a financial asset. The forward-looking statements in this news release include statements as to the anticipated conversion of ZCCM-IH’s ordinary shares into preference shares. The varied rights attached to the ZCCM-IH Class A shares in KMP will be amended and prescribed in the amended KMP Articles of Association (“New KMP Articles”) to be adopted at Closing. Pursuant to the New KMP Articles and the Termination Agreement between KHL, KMP and ZCCM-IH relating to the termination of rights and obligations under the KMP Shareholders Agreement.

“Certain statements and information herein contain forward-looking statements and forward looking information within the meaning of applicable securities laws. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. The Company undertakes no obligation to reissue or update forward looking statements or information,” Statement issued by FQM in Canada on 1st December, 2022 stated.

The above statements were crystal clear to any technical person, as to what the nature of the transaction was, despite the statements being couched in some financial engineering language and legal jargon. It clearly indicates that the 20% ZCCM-IH ordinary shares will subsequently be converted to preference shares, which are almost equivalent to being a creditor with no voting rights. In addition, the existing shareholders agreement will be terminated with fresh articles of association drawn up.

The likely result of the entire deal was that FQM will be become a 100% owner of Kansanshi Mining PLC. Consequently, ZCCM-IH would cease to be a partial owner of Kansanshi Mining Plc. This transaction has been classified by critics as a de facto PRIVATISATION, through the back door. In addition, with regard to the guarantee of Royalty income, the cautionary statements seems to suggest that FQM has cleverly put in a disclaimer or caveat. There seems to be no guarantee that the purported income from the Royalties, based on projections, were going to necessarily materialize.

It must be understood that First Quantum Minerals’ desire to buy off the 20% Shareholding from government did not start last year (2022). The law suit by ZCCM-IH of FQM and its Directors, in the Lusaka High Court on October 28, 2016, where the company was claiming up to $ 1.4 billion from FQM Ltd for fraud, did not go down well with the owners and directors of FQM group. In February 2019, Mining Technology and Lusaka Times, quoting Bloomberg, reported that FQM had offered the Zambian government to acquire the remaining 20% stake in Kansanshi Mining Plc for as much as $700 Million. However, the PF administration then, seemed to have rejected the offer. It is in this context that the re-engineered Royalty deal should be looked at.

WHY ZAMBIANS WERE AGAINST THE FQM ROYALTY DEAL

The argument by Zambians with regard to the Royalty deal is that the original objective of Zambia’s acquisition of minority interests in mining houses like KMP, was strategic and not just financial. The level of animosity against the transaction was reflected in the number of people who registered their opposition, including the News diggers Newspaper, who wrote several editorial Opinions criticising the transaction in the month of December, 2022.


“As we have said in our earlier editorial comments, this trouble that the UPND government has plunged itself in, is a result of failure to consult. The shares that ZCCM-IH holds in the mining companies are held in trust for the people of Zambia. The President and those around him need to distinguish personal property and government assets. When dealing with state assets, you ask the people first before acting,” the News Digger advised in one of its editorial opinions on the transaction.

There were many other commentators who opposed the transaction. And among them, was economist Dr. Lubinda Haabazoka, who felt that the deal needed to be debated by Parliament as ZCCM-IH belongs to Zambians, and as such, a fundamental decisions like that, needed their concurrence.

“Surely in whose best interest in this deal? Why can’t the other owners of the same mine also go into such type of arrangement with government to say ‘for our 80 per cent shareholding we are going to be getting this much. Why should they push it to us? For me I think this should have been taken to Parliament for debate. A lot of economic jargon is being used to confuse the population and posterity will judge us harshly. The generation of Dr. Kenneth Kaunda are turning in their graves because we have been unable to harness anything from the Mining Industry,” Dr. Lubinda Haabazoka lamented in an interview with the Mast Newspaper on the transaction.

The public argued that dividends are not the only reason that drive prudent investors. Asset growth can even be more important. It is also a known fact that KMP’s future growth prospects are currently very bright, given the electric car revolution and the growth in the green economy. And with its recent investment of $1.25billion to expand the Nickle Mine, it should be all the more reason to keep the ordinary shares. The expectation is that both dividend payments and the value of shares will exponentially increase in future. And so, ZCCM-IH stands to lose out from this expected success.


The other downside of the transaction is that the deal will give FQM 100% ownership of KMP and a carte blanche to make decisions which may not necessarily in the best interests of the country. There are so many intangible benefits attached to holding 20% ordinary shares. Zambia’s interests in the mining companies go beyond dividends or royalties. The current royalty deal has implications on the following: loss of value in capital gains on ordinary shares, possible loss tax revenue to government, illicit financial flows, transfer pricing risks, foreign exchange, corporate governance, national security and other intangibles. These should have been taken into account when the decision was being made, rather than to just the seemingly simplistic focus on the short term of royalty revenue only.

This first part of the article has given readers the background to one of the causes of the current problems at ZCCM-IH. In the next part, I will delve into the apparent deterioration of corporate governance at ZCCM-IH based on recent events. I will also analyse what could have led Ms. Dolika Banda to resign and highlight why ZCCM-IH shares were suspended from the London Stock exchange.

 

To conclude, I wish to remind the people who have counter views to this article, that we live in a democracy. And as Zambians we have freedom of expression. The criticism of the deal should not make people – especially those in public service – get hot under the collar. As public servants, if they can’t stand the heat, they better get out the kitchen. It should be known that ZCCM-IH does not belong to the government of the day, but to all Zambians. And so, they are all entitled to comment on the happenings at the company. And for those with contrary views, the best they can do is to write their own Opinion, and support it with facts, and not insult. The public will judge who is making more sense. Zambians have simply given any government, at a particular time, the stewardship function, and therefore those with delegated responsibility ought to be accountable. This article is all about accountability, period.

.

The writer is a Chartered Accountant and Author. He is a semi-retired international MSMEs Consultant. He is also an Op-Ed Contributor to the Hong Kong based, Alibaba owned South China Morning Post (SCMP).Contact:[email protected]

Former Permanent Secretary Arrested and Charged for Abuse of Authority and Non-compliance in Contract Execution

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Former Permanent Secretary Arrested and Charged for Abuse of Authority and Non-compliance in Contract Execution

The former Permanent Secretary for Northern Province, Mr. Charles Sipanje has been charged and arrested by the Police Investigations Team. He faces three counts of Abuse of Authority of Office and four counts of Willful Failure to Comply with Applicable Guidelines. These charges are in violation of Section 21(1)(a) and Section 34(2)(b) as read with Section 41 of the Anti-Corruption Act No. 3 of 2012, respectively.

The charges stem from Mr. Sipanje’s alleged misconduct in awarding a contract worth K 6,315,507.00 to Mumashi Construction & Suppliers. The contract was for the construction of a 52-bed space hostel in Chilubi District. However, despite the government having fully paid the contract sum, the construction works have not been completed as per the terms of the agreement.

The Police Spokesperson, Rae Hamoonga, has announced that the suspect will soon appear in court to face the charges brought against him.

Unfulfilled Promises and Careless Statements: Challenges in Resolving Zambia’s Mining Issues

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Unfulfilled Promises and Careless Statements: Challenges in Resolving Zambia’s Mining Issues

Chairman of the Parliamentary Committee on National Economy, Trade and Labour Matters, Mutotwe Kafwaya, has expressed his lack of surprise regarding President Hakainde Hichilema’s unfulfilled pledge to resolve the issue of Konkola Copper Mines (KCM) within the first quarter of 2023. President Hichilema had made this statement during a radio program on Sun FM in Ndola in mid-February of this year. He also claimed that the government’s negotiations with KCM owners, Vedanta, would be concluded during that period. Additionally, President Hichilema had mentioned during the same radio program that the government had secured funds to recapitalize Mopani Copper Mines.

In an interview, Mr. Kafwaya, who is both the Member of Parliament for Lunte and a presidential candidate for the Patriotic Front, criticized President Hichilema’s track record of unfulfilled promises. According to Mr. Kafwaya, the president’s current promises made in government can only be evaluated after he fulfills the ones he made while in opposition. He pointed out that it is currently the second quarter of 2023, yet there are no investors in either Mopani Copper Mines or KCM. Mr. Kafwaya also drew attention to other unfulfilled promises, such as the price of fuel, a 25 kg bag of mealie meal, and a 50 kg bag of fertilizer, which were supposed to be lower according to President Hichilema’s pledges.

Mr. Kafwaya emphasized that he is still waiting for President Hichilema to fulfill his earlier promises before considering his current statements in power. He concluded that the president’s promises lack credibility and that discussing them is a waste of time. Moreover, Mr. Kafwaya highlighted the negative consequences of the delay in recapitalizing KCM and Mopani, as it has caused hardship for the people of the Copperbelt Province, especially miners, suppliers, contractors, and businesses connected to the mining sector.

Meanwhile, Percy Chanda, the UPND Chairman for Mines, expressed concern over the frequent statements issued by politicians regarding Mopani and KCM. He believed that these statements were making it difficult for the government to achieve a win-win situation. Mr. Chanda warned that careless statements from politicians could weaken the government’s bargaining position, potentially resulting in the mines being sold at unfavorable terms for miners and ordinary Zambians. He urged politicians to refrain from issuing careless statements that undermine the negotiation process and its outcome, emphasizing the importance of negotiating in good faith, maintaining confidentiality, and avoiding signs of desperation.

Mr. Chanda also criticized those who did not question the conditions attached to the mines when they were acquired by the Patriotic Front (PF) government. He highlighted how some individuals were now actively issuing statements despite their previous silence on the matter. Mr. Chanda concluded by advising individuals who do not understand the impact of their words to remain silent, reminding them of the consequences of their actions and the importance of responsible negotiation processes.

Given Lubinda Condemns President Hichilema’s Expenditure: Calls for Responsible Allocation of Resources

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Given Lubinda Condemns President Hichilema’s Expenditure: Calls for Responsible Allocation of Resources

Hon Given Lubinda, Vice President of the Patriotic Front (PF), strongly criticized President Hakainde Hichilema and his government for what he termed as “reckless expenditure.” The statement comes in response to an invitation by the Ministry of Local Government and Rural Development for a ceremony where President Hichilema is scheduled to hand over Constituency Development Fund (CDF) Project Monitoring Motor Vehicles to various councils.

The event, slated for Wednesday, 24th May, 2023 at the Zambia Agricultural Showgrounds in Lusaka, has drawn sharp criticism from Lubinda, who claims that the government’s decision to spend a significant amount of money on a motor vehicle handover ceremony is irresponsible given the country’s current economic challenges.

Lubinda pointed out that Zambia is grappling with severe economic stress, including a lack of liquidity, rising youth unemployment, critical shortages of medicines and medical supplies in healthcare facilities, rising inflation, and an escalating cost of living. Against this backdrop, he argues that the government should prioritize allocating resources to address these pressing issues rather than indulging in unnecessary expenditures.

The Vice President of the Patriotic Front also expressed concern over what he sees as an unbalanced distribution of the motor vehicles, claiming that the majority have been allocated to United Party for National Development (UPND)-controlled councils in Southern and Western Provinces. According to Lubinda, out of a total of 70 vehicles, 56 have been given to UPND-controlled councils, with only nine allocated to PF-controlled councils and eight to independent-controlled councils in the other provinces.

Lubinda argued that such distribution violates Article 147 of the Constitution of Zambia, which demands equitable distribution and application of national resources to all regions and citizens without favoritism or preference. Accusing President Hichilema and his government of discrimination and regional bias, Lubinda described their actions as divisive, ethnic, unpatriotic, and highly polarizing.

He further claimed that Hichilema’s alleged divisive behavior extends beyond the distribution of vehicles, permeating all aspects of government business, including job appointments and contract allocations. Lubinda cited the recent recruitment of Eagle Holdings Limited, owned by the Zambia National Service (ZNS), where he alleges that individuals from a specific region were favored. Lubinda warned that such actions based on ethnicity and regionalism could sow disunity and division, posing a threat to the unity of Zambia as One Zambia One Nation.

Buy Maize Directly From Farmers, Copperbelt Minister urges Millers

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Buy Maize Directly From Farmers, Copperbelt Minister urges Millers

Copperbelt Province Minister Elisha Matambo has called on millers in the province to start buying maize directly from farmers at a reasonable price to prevent future shortages of the commodity.

Mr Matambo said Millers should take advantage of the crop marketing season that has just started to ensure that they store enough maize for their production.
He said the maize that the Food Reserve Agency (FRA) is buying from farmers is not meant for the millers, but it will be stored for future use.

Mr Matambo urged farmers to be wary of some foreigners who want to buy the maize far below the government set standard of k280 by 50 kg bag of maize.

Mr. Matambo has also warned members of the public to desist from smuggling of commodity, as the Provincial task force will continue to impound and arrest would be offenders.

“We have so far impounded over 40,000 bags of mealie from the time the task force was formed, and 82 vessels are being kept at the Zambia Revenue Authority (ZRA) offices while 52 vessels are under the care of the Zambia police.

He said so far six people have been convicted for smuggling mealie meal while others are still undergoing trial.

The Minister has also warned retailers to avoid exploiting consumers by selling a bag of mealie meal beyond the reasonable price.

He said that anyone found selling a 25kg bag of mealie meal above K200 the local authority will not renew their licenses.

And Copperbelt Province Permanent Secretary Augustine Kasongo said about 7000 25kg bags of mealie meal that were impounded by the Zambia Revenue Authority ZRA have been distributed to various needy government departments and non-governmental organisations.

Mr Kasongo said 2000 bags of mealie meal has been donated to the Ministry of Health, another 2050 bags donated to the Ministry of Education,1050 bags to the social welfare department and 600 bags to the Disaster Management and Mitigation Unit (DMMU).

“21 secondary schools in the province have benefited from the 2050bags mealie meal and 12 non-governmental institutions have also benefited with 1050 bags while 24 health institutions have received 2000 bags of mealie meal,” he said.

He further added that the province has also received 4800 bags of mealie meal from ZRA stating that the administration is yet to identify institutions that can benefit.

Luwingu council distributes over 11,500 condoms in hot spot areas

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Luwingu council distributes over 11,500 condoms in hot spot areas

The Luwingu Town Council has distributed over 11, 000 condoms in hot spot areas in the district.

Luwingu Town Council Public Relations Officer Tasila Banda said a total of 11, 520 condoms have been distributed by the District Aids Coordinating Advisor (DACA)’s office.

Ms Banda said the condoms have been distributed in hotspot areas in order to help prevent the transmission of HIV/AIDS and other sexually transmitted diseases.
She said this in an interview with ZANIS in Luwingu District.

She said the condoms were distributed in the first quarter of 2023, in places such as truck parking places, lodges, bars and nightclubs as a preventive measure against the spread of HIV/AIDS, Sexually Transmitted Infections (STIs) and teenage pregnancies.

Ms Banda however, said the local authority will continue with the distribution of condoms in highly risky areas in order to curtail the spread of Sexually Transmitted Infections, Teenage Pregnancies and HIV/AIDS.

She has since urged the general public who are in dire need of condoms to access them from the council, through the office of the DACA from Mondays to Sundays between 08:00 hours to 17:00hours.

And a check by ZANIS in the area found scores of stakeholders accessing the condoms freely and thanked the government for the gesture of goodwill.

Those who talked appealed to the government to extend the gesture to the bus station and other places where people are selling their agricultural produce to briefcase buyers in the outskirts of the district.

“These are some of the hotspots found in the villages where sexual-related activity is rife, ” they said.

James Mulenga, a resident of Coop village, suggested that village headmen should also be given boxes of condoms to distribute on behalf of the council.
Mulenga said village headmen know boys and girls and other elderly people who are sexually active in their own villages.

“By doing so, it will help reduce teenage pregnancy in the villages,” he added.

Zambia, South Korea keen to enhance business ties

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Zambia, South Korea keen to enhance business ties

Minister of Commerce Trade and Industry Chipoka Mulenga, says Zambia is poised to become a good investment destination and attraction centre given its geographical position.

Speaking when South Korea special Envoy to Zambia, Kim Byongjoon and his delegation, paid a courtesy call on him in Lusaka, Mr Mulenga said Zambia and South Korea share strong bilateral relations.

Mr Mulenga explained that the South Korean delegation is in the country following President Hakainde Hichilema‘s visit to England where he met with Korea’s Prime Minister, Han Duck-soo.

He said time has come now for the two countries to translate the political ties into investment and economic relations in order to foster economic development.
The Minister added that Zambia has a youthful population that needs jobs, and that South Korea is a suitable partner in that area.

“The Presidential visit to England and the meeting that President Hichilema had with South Korea Prime Minister, Han Duck-Soo has started bearing fruits as already meetings about investments have started,” said Mr Mulenga.

He also called on Korea to partner with Zambia in its crusade to make electric batteries, by adding value to minerals the country is endowed with.
Mr Mulenga noted that as the country is transitioning from fossil fuels to green energy sources, Zambia needs to partner with Korea which has technological advancement.

He further asked the Korean envoy to help Zambia as it prepares to host the Africa technology summit sometime this year.

“Zambia indeed looks forward to Korea for huge investment in many sectors of the economy because of its technological innovation,” said Mulenga.

And South Korea special Envoy to Zambia, Kim Byongjoon said Korea is keen to invest in Zambia due to its favourable climatic conditions among others.

Mr Byongjoon explained that he is in the country for a series of meetings aimed at exploring investment opportunities.

Following President Hichilema‘s meeting with the Korean prime Minister on the sidelines of Prince Charles’s coronation recently, a huge delegation is in the country to start investment explorations in many areas of the economy.

Zambia, Japan to strengthen ties

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Zambia, Japan to strengthen ties

Minister of Infrastructure and Urban Development, Charles Milupi has reiterated government’s commitment to further strengthen the bilateral relations between Zambia and Japan to spur economic development.

Mr Milupi says Zambia has benefited immensely from Japan in the area of Infrastructure development among others.

ZANIS reports that Mr Milupi was speaking when Japanise Ambassador to Zambia Kazuyuki Takeuchi paid a courtesy call on him at his office today.

Mr Milupi commended Japan for the technical support and capacity building programme during the construction of Kazungula bridge.

He further said Zambia appreciates Japan’s support in the upgrading of clinics to level one hospitals in Chawama, Chilenje, and Matero in Lusaka and that the project will be rolled out to Copperbelt.

“Indeed, Japan has been an all-weather friend to Zambia and we need to further strengthen collaboration between the two countries in order to foster development,” he said.

Mr Milupi said government is keen to leverage on Japan‘s technical expertise and know-how as well as its cooperation to improve infrastructure in the country.
And Japanese Ambassador to Zambia, Kazuyuki Takeuchi said Japan is committed to continue working with Zambia in improving infrastructure to better the lives of the people.

Mr Takeuchi said his country is committed to further diplomatic relations with Zambia and Japan to ensure speedy completion of Luangwa Bridge despite economic challenges.

He added that despite global economic challenges, Japan will continue to provide support to Zambia in many areas of the economy.

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