Lungu helps first Quantum to defraud ZCCM

Lungu helps first Quantum to defraud ZCCM

Edgar Lungu has finally succeeded in aiding First Quantum Minerals to defraud the Zambian government.

This is in a matter in which the ZCCM IH a parastatal that holds shares in mining companies on behalf of the Zambians dragged First Quantum Minerals Limited the owners of Kansanshi Mining to court for fraud.

ZCCM IH claimed that First Quantum obtained a loan for Kansanshi Mine and gained profit without the knowledge of ZCCM IH which is a shareholder. ZCCM IH through its Chief Executive Officer Dr. Pius Kasolo opened a docket for the directors of FQM with the Zambia Police. For fear of being arrested if they came to Zambia, FQM sent a Mr. John Gladstone the Director of Government Relations to pursuade the ZCCM IH to drop the case.

Mr. Gladstone stayed with former President Rupiah Banda at his New Kasama residence before being introduced to Chief thief Edgar Lungu. Edgar instructed ZCCM IH to withdraw the matter but Dr. Kasolo was adamant a situation that almost cost him his job as Patriotic Front through Kaizer Zulu started circulating rumours of his presidential ambitions.

Richard Sakala’ Daily Nation was sued by Kasolo and asked to apologise to Dr. Kasolo. All this information was reported last year by both this site and Bloomberg.

Now it has been learnt that Lungu who is Industrial Development Corporation (IDC) Board Chairperson where ZCCM IH falls prevailed and had ZCCM IH withdraw the court case and opt for arbitration. Last month ZCCM IH lost the arbitration with costs. Meanwhile, Edgar Lungu has appointed his personal lawyer who was also a party to the arbitration process Erick Silwamba as ZCCM IH Board Chairperson. Silwamba was appointed two weeks ago taking over from late Willa Mungomba who died two years ago. EDITOR’S NOTE. If this is not an impeachable offence then what is it?

BACKGROUND

LUSAKA (Reuters 11 May 2017) – Zambia’s president Edgar Lungu has called for an out of court settlement with First Quantum Minerals, which is being sued for $1.4 billion by a state-owned firm, the presidency said on Thursday.

First Quantum asked a Zambian court in February to dismiss the suit from Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), which is 77 percent state-owned and holds minority stakes in most of the country’s copper mines.

“The president decided that the finance minister leads a government team to engage First Quantum for a speedy and amicable conclusion of this matter,” presidential spokesman Amos Chanda said.

“The government team includes the minister of mines and should start work by next week so that we can quickly have an amicable settlement as directed by the president,” he said.

Zambia is Africa’s second-largest copper producer and differences with mining companies over taxes, electricity prices, environmental concerns and labour matters often arise.

The $1.4 billion claim by ZCCM-IH includes $228 million in interest on $2.3 billion of loans that it said First Quantum wrongly borrowed from the Kansanshi Copper Mine, as well as 20 percent of the principal amount, or $570 million.

ZCCM-IH said in papers filed in the Lusaka High Court on Oct. 28, 2016 that First Quantum used the money as cheap financing for its other operations.

First Quantum says the loans were at a fair market rate.

Chanda said another team headed by the minister of energy would engage mining companies, including First Quantum Minerals, regarding a proposed increase in electricity prices.

Zambia said in April it plans to introduce a flat tariff of 9.30 U.S. cents/kilowatt hour (kWh) backdated to January for mining companies, rather than individually negotiated rates that have averaged 6 U.S. cents/kWh.

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