COURT REJECTS LAZS BID TO JOIN SAMPA, ZCCM-IH CASE
The Constitutional Court has dismissed an application by the Law Association of Zambia (LAZ) to be joined to the Case in which Matero Member of Parliament, Miles Sampa filed a petition against the transaction involving Mopani Copper Mines and Delta Mining Limited.
Earlier this year, LAZ requested to join the case, adding that this would help the association in determining procedural and constitutional issues raised.
But when the matter came up for hearing today, Constitutional Court President Margaret Munalula dismissed the application, stating that details of the reason would be available later.
Meanwhile, the hearing could not proceed following a request by Mr Sampa’s lawyers for adjournment.
One of the Lawyers, Mutembo Nchinto who is representing ZCCM-IH cited miscommunication concerning the matter which was supposed be heard today.
He explained that the lawyers were of the view that the only matter being heard today was the request by LAZ to join the case.
Judge Munalula has since adjourned the hearing to November 25, 2025.
In 2021, ZCCM Investments Holdings acquired Glencore’s shares and later securing full ownership of Mopani Copper Mines.
However, due to financial challenges, ZCCM-IH issued 7,181,633 new shares, reducing its ownership stake from 100% to 49%.
These newly issued shares were allocated to Delta Mining Limited, bringing Mopani’s total share count to 14,081,633.
Member of Parliament Miles Sampa has raised concerns over the transaction, alleging it contravenes constitutional provisions related to the management of major state assets.
He has petitioned the Constitutional Court to nullify the deal, arguing that it bypassed the required parliamentary approval process.
Zanis
It’s a dead on arrival petition. A 100% ownership of a non-earning asset is a millstone. Mopani saw it fit to issue brand new shares in its own name and sold them to the new investor to raise fresh capital thereby diluting ZCCM-IH’s stake in the company. No shares belonging to ZCCM-IH were sold. Without this quick intervention, the asset was bound to deteriorate.
@Gunner, unfortunately, people like Mr. Sampa and organizations like LAZ, who should have been knowledgeable about matters like stock or share dilution principle, seem clueless. The government has explained this matter time and again that the NO shares belonging to ZCCM-IM were sold, and that new shares were created for the equity partner, but such things seem to go over some people’s heads. Doesn’t LAZ have lawyers who specialize in company/corporate law to help the institution with such matters? Because they will be embarrassing themselves if they are not careful.
LAZ has all the expertise to discern what happened and why it happened. I think LAZ itself is coming to the issue with its own baggage. The government, that is, elected officials headed by the President and providing political supervision and direction to the state, comes under all kinds of pressure from the electorate when economic times are hard. It’s clearly an interesting case whose conclusion should be interesting to read.