London Stock Exchange lister Jubilee Metals Group PLC has been defrauded of at least $ 5 million in an alleged project in Zambia.
This has been possible partly due to the fact that, the company Star Tanganika Limited deliberately defrauded Jubilee Metals Group via false information and misleading documents, but also due to astonishing incompetence and naivety on the part of Jubilee Metals Group.
It is also not excluded that Jubilee Metals Group has been aware of Star Tanganika Limited´s attempts to “steal” the tailings dams assets from the rightful beneficiary of the tender… this because the representative for Star Tanganika in Zambia is a person called Mr. Dimitrios Monokandilos, an notorius person that Jubilee Metals must have known about before going into partnership with Star Tanganika.
In mid-June 2020, Jubilee Metals Group published information to the media and to the market that the company had acquired the rights to a copper tailings resource in Zambia.
See attached press announcement as PDF (Jubilee Metals Group Plc_Large Copper Tailings Resources in Zambia Secured)…
The major problem with this, however, is that neither Jubilee Metals Group nor the company Star Tanganika Limited, with which Jubilee entered into a joint venture (and paid at least five million US- dollars to), had any right to the tailings dams asset in question.
The tailings dams are the property of the Government of Zambia and have been allocated to a third party, who won a tender for the assets in the beginning of 2017 and concluded an still existing and valid Sales and Purchase agreement signed on 17th of November 2017 with the rightful seller; Administrator General and Official Receiver of the Zambian State.
(The Administrator General and Official Receiver is a government Department under the Ministry of Justice and is the Receiver Manager for all the tailings dams assets and its land.)
In other words, Star Tanganika has deliberately sold a property belonged to a third party to Jubilee Metals Group, even though Star Tanganika was very much informed that the tailings dams is property of the Government of Zambia and have been allocated to another company.
And how does Star Tanganika know this?
Firstly, Star Tanganika participated in the tendering process, but lost.
Then, after that the tailings dams assets were allocated to the company with the winning bid in February 2017, Star Tanganika has been fully occupied with various “processes” in order to illegally get control of the assets.
• Star Tanganika did appeal and also sued the Administrator General in court over the tender bidding. Star Tanganika later lost that court case.
• Star Tanganika then found a loop hole in the system… and managed to get explorations rights, mining rights and surface rights for the land on which the tailings dams assets are situated on. The company was able to do this via “unofficial channels” at the Luanshya municipality and Ministry of Mines and Minerals.
Again, Star Tanganika did this even though they were fully aware that everything around the tailings dams assets are owned and handled by the Administrator General and Official Receiver under the Ministry of Justice.
• Star Tanganika was later sued by the Government of Zambia concerning the illegal attempts to capture the tailings dams assets.
A little more than a week ago, Star Tanganika lost the court case regarding the mining licence (but appealed again immediately).
• In an article, obviously “planted” by Star Tanganika, in Zambian Eye the 13 th of December 2019, Star Tanganika complained that the office of Administrator General had selected another company for the allocation of the dams.
All above, clearly proves that Star Tanganika is and always has been very much informed that they have no right to the tailings dams, and thus sold something that don´t belong to them.
That Jubilee Metals Group would have been unaware of all this… is to be found too incredible. Jubilee Metals Group could easily have checked everything regarding the tailings dams with the Ministry of Justice or another relevant authority before the company entered into an agreement/joint venture with Star Tanganika Limited.
But Jubilee Metals Group never did that.
A question is: How could a stock listed company like Jubilee Metals Group even enter into a cooperation with a notorious company such as Star Tanganika?
About Star Tanganika Limited then.
Star Tanganika Limited is a notorious company with the Zambian authorities. Not only because it has tried with various (illegal) methods to get control over the tailings dams assets, but also due to the company´s representatives.
Star Tanganyika Limited is represented by Mr. Dimitrios Monokandilos and his daughter Maria Monokandilos.
Who is then Mr. Dimitrio0s Monokandilos?
To read this says most of what is needed to be said:
Obviously, one of Mr Monokandilos´ business ideas is to sue states and corporations and then claim damages, but the story also contains…:
– “involved in illegal activities”,
– “declared illegal immigrants”,
– “a danger to good order and peace”.
In the article in Zambian Eye mentioned above, the Star Tanganika also threatens to sue the Zambian government for a compensation of 100 000 000 US-dollars if they are not granted authority to possess the tailings dams assets.
It is highly unlikely that the London Stock Exchange listed company Jubilee Metals Group not would have carried out a thorough due diligence and been unaware of all this around the person with whom the company went into partnership and joint venture.
All this is something that the Jubilee Metals Group easily could have checked and certainly should have checked, especially since the company has representation in Zambia.
What also is scary…
… Jubilee Metals Group and its CEO, Mr Leon Coetzer, have been informed on several occasions in the past month, and also seen written evidence from The Ministry of Justice, that the tailings dams assets has been allocated to a third party since 2017,
… that Jubilee Metals Group (and Star Tanganika) has no right to the tailings dams assets,
… that the company has been the victim of fraud.
Yet Jubilee has not responded and did not contact The Ministry of Justice or the company that holds the legal Sales and Purchase agreement in the matter.
Instead, Jubilee Metals Group and its CEO Mr Leon Coetzer have claimed that the company checked with, and also entered into an agreement, with The Ministry of Mines and Minerals Development regarding the tailings dams assets.
The only problem is that Jubilee not has been able to show any documentation regarding this alleged agreement with The Ministry of Mining and Minerals Development.
In essence, however, this alleged agreement / arrangement with the Ministry of Mines is irrelevant, as the tailings dams assets are under the control of the Ministry of Justice and its Administrator General and Official Receiver.
Jubilee Metals Group is fully aware of this fact. They have been informed by the Ministry of Mines regarding this facts.
F0ully aware, especially since the company in writing from the Ministry of Justice has been informed about…
• if there is any person claiming ownership of the same assets, that claim should be treated with the contempt it deserves and such people deserve to the criminally prosecuted for fraudulent misrepresentation.
• that the Administrator General and Official Receiver is mandated by law to dispose of all the assets of the tailings dams, this means that the Ministry of Mines has not and never had anything to do with said tailings dams assets,
• that there has been a fraudulent claim to the land on which the tailings sit by a company called Star Tanganyika Limited, and that the Ministry of Justice assure that the claim by Star Tanganyika Limited does not affect the ownership of the tailings or the ability to convey the assets to the third party as provided in the Sale and Purchase Agreement from the 17th of November 2017.
Of course, there are several aspects to all of this above. But the fact that Jubilee Metals Group generally collaborates with a company like Star Tanganika means that all this must come to the attention of the public, the stock market and Jubilee´s owners.