By Ernest Chanda
SOLICITOR General Marshal Muchende called off negotiations with then Konkola Copper Mines (KCM) provisional liquidator Milingo Lungu, according to details obtained by The Mast.
This was a follow-up to the initial negotiations between Muchende and Lungu, which according to correspondence did not include granting the latter immunity from prosecution.
According to Attorney General Mulilo Kabesha’s legal opinion in response to a request by then ZCCM-IH chief executive officer Mabvuto Chipata on the removal and replacement of Lungu, the negotiations were called off with immediate effect within the month of January 2022.
“I have also read correspondence initiated by the Solicitor General whose main theme was the exploration of an amicable way of settling this matter in the shortest time possible and for the benefit of the Zambian people. One way envisaged, was the voluntary resignation of the Provisional Liquidator Mr Milingo Lungu,” read Kabesha’s letter dated January 13, 2022 copied to Muchende and chief legal officer Yadika Mkandawire. “I wish to bring it to your attention that the legal advice of the Solicitor General as contained in the aforesaid correspondence is the official position of the Office of the Attorney General pursuant to Article 179 of the Constitution of Zambia Act No. 2 of 2016 which, inter alia, reads: 179 (5) The Solicitor-General shall assist the Attorney-General in the performance of the Attorney-General’s functions. Kindly, be further informed that the Solicitor General has since called off the negotiations that he initiated over the matter with immediate effect, which decision is duly endorsed by the undersigned.”
And in the initial negotiations, Muchende had advised for voluntary resignation of Lungu from his position as provisional liquidator of KCM.
In a letter dated January 10, 2022 addressed to the Official Receiver in the Administrator General’s Office, Muchende did not propose the granting of immunity to Lungu.
“With regard to the criminal charges against him I advise that you engage the Office of the Director of Public Prosecutions (DPP) and the Director General of the Drug Enforcement Commission for a possible plea bargain anchored on the Policy directive on Asset Recovery as opposed to his proposal for grant of immunity,” Muchende advised. “I further advise that you appoint an Agent from among the reputable audit consultancy advisory firms in Zambia pursuant to section 74(3)(j) of the Act no sooner than you take over as official Receiver- cum-Liquidator under section 67(5) of the Act. This is the way to achieve a seamless release of Mr Lungu without prejudice to the adversarial approach which will be tardy and onerous. As I close, I advise that it will be in the interest of the State if a deal could be struck by Friday 14th January 2022, because I have sought the indulgence of the Director of Public Prosecution to postpone the taking of plea by the said Provisional Liquidator on the Subordinate Court from the 10th to the 17th January, 2022.”
Muchende viewed that keeping Lungu as KCM liquidator was not in the interest of the public, hence an amicable solution was to be found quickly.
“I make reference to your letter dated 2nd December, 2021 over the aforesaid Provisional Liquidator. I attach a self-explanatory letter from the advocates of Mr Milingo Lungu arising from a meeting I held with them to buttress a decision for him to resign from that position so that the New Dawn Government and the new ZCCM-IH PLC Board can manage this property with a pair of hands that it is comfortable to work with. This is more so that Mr Milingo Lungu is not fit to serve owing to the many civil and criminal allegations being made against him,” advised Muchende. “In that regard, I advise that you negotiate his voluntary resignation pursuant to Section 67(7) as read with Section 78 and 79 of the corporate insolvency Act No. 9 of 2017 on the understanding that his invoices shall be subjected to a forensic audit and reconciliation process which shall culminate in a confirmation of the amounts claimed, counter-claims or a set-off; depending on the findings of the audit and reconciliation process.”
And a source said the leaked letter was meant to present “a false narrative against the government”.
“We can only conclude that the leaked letter from the Solicitor General was largely meant to present a false narrative that there was a grant of immunity from prosecution to Mr Milingo Lungu. But if people can carefully read the same letter, the Solicitor General had advised against the granting of immunity. This is why the State called off those negotiations because Mr Lungu could also not be trusted,” said the government source.
