Ndola Lime Company owned by ZCCM-IH has lost over $100m when it paid upfront funds for a defective kiln that has never worked.
This came to light when the Parliamentary Committee on Parastatals sat to question the huge loss of a whopping K130million($100m) by Ndola Lime Company and ZCCM-IH.
Committee Chairperson Peter Daka took to task Ndola Lime Management to explain how the parastatal company could procure a defective equipment and release the money upfront to a contractor/supplier, before installation, testing and commissioning was done and completed.
Meanwhile Ndola Lime Company Manager Engineering, Sydney Matamwandi disclosed that the Italian company, Terruzi, went into liquidation in 2014 shortly after receiving the $100m.
He said the kiln was defective and required more millions of dollars if it has to be corrected and commissioned.
And ZCCM-IH Acting CEO, Mabvuto Chipata said he could not explain how the $100million was released in full to a supplier before procurement, delivery, installation and commissioning was completed.
He said ZCCM-IH was now reviewing its procurement systems to avoid repeat of such loss of money.
And Ndola Lime Company General Manager, Stephen Bwalya said it was regrettable that the $100m had been lost and can not be recovered as Terruzi company, supplier of the kiln was liquidated in Italy.
At the time of the purchase of the kiln, ZCCM-IH was headed by Dr. Pius Kasolo.
In this transaction, no one has been investigated, charged or