First Quantum directors accused of stealing $520 m

First Quantum directors accused of stealing $520 m

First Quantum Minerals (FQM) directors have been accused of misappropriating $520 million by fraudulently diverting it to a sister company.

Investigations are still at the initial stage but basic facts are that, on 26 August 2019, First Quantum directors acting together with their appointed directors in Kansanshi Mining Plc transferred $520 million USD belonging to Kansanshi Mine to a sister company known as First Quantum Minerals Finance Limited, without following laid down procedures and without the approval of the Kansanshi mining PLC Board.

The suspects have been named as Philip PASCALL, Arthur PASCALL, Clive NEWALL, Rudi BANDENHORST, Hannes MEYER, LAMASWALA, Chisanga CHEKWE and Dr Godwin BEENE.

Through its subsidiary Kansanshi Holdings Limited, First Quantum Minerals Ltd is the majority shareholder in Kansanshi Mining Plc.

One person close to the case told the Watchdog that;
‘The taking of the money to the sister company was UNAUTHORIZED. It has been reported that this is not the first time that the named directors are robbing the Zambian people through such arrangements with sister companies. They have been doing this for some time which led the Zambian Government owned entity ZCCM Investments Holdings Plc to sue them in the High Court in Zambia in 2016. The court case has not stopped the directors from stealing. The directors continue to steal with impunity.’

Another person explained that, ‘For years, ZCCM-IH has been demanding that the Kansanshi dividend payout ratio of 15 percent should be increased to at least 30 percent, but FQM-appointed directors systematically refuse.’

This is a developing story and ZWD will keep you posted…

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