Disclose Vedanta/KCM Agreement
Cooking lies, KCM/Vedanta Deal Bad
By Amb. Emmanuel Mwamba
…choosing to write-off $1.5billion in the Vedanta/KCM deal…
Government has with excitement, announced that Vedanta Resources has been granted control of Konkola Copper Mine (KCM).
“We won’t mine in Courts”, President Hichilema said in Parliament.
Mining group Vedanta Resources has agreed to a billion-dollar settlement with state-owned ZCCM-IH entity to regain control of KCM and bring an end to court processes and the United Nations Commission on International Trade Law (UNCITRAL) arbitration process that was being held in Capetown South Africa.
Vedanta has pledged $1billion mine investment in the next five years, $250million to settle unpaid bills to suppliers and contractors, and $20million in Community Social Responsibility programmes.
But Government has failed to disclose the details of the agreement especially as regards to KCM’s total liabilities of $1.5billion, debt owed to; ZESCO, Copperbelt Energy Corporation (CEC), tax arrears to the Zambia Revenue Authority (ZRA), statutory liabilities to National Pension Scheme Authority
(NAPSA) and other outstanding bills.
Government won’t also disclose the names and details of the negotiating team. This is important and will be telling.
Government is obliged to disclose the Vedanta/KCM Agreement because it is bound to transparency and public accountability values.
Zambians need to know what concessions and write-offs have been forced on ZESCO, ZRA and NAPSA and other Government agencies and the subsequent loss of Government revenue that this deal has brought.
Government has been forced to write-off possible revenue which is probably money more than the bail-out that Government is seeking from the International Monetary Fund (IMF) Extended Credit Facility!