DONT DELAY KCM – VEDANTA TRANSITION PROCESS, SUBMIT THE SCHEME OF ARRANGEMENT IN COURT, KCM PROVISIONAL LIQUIDATOR CELINE NAIR URGED
A consortium of Civil Society Organisations advocating for the revamping of the mining sector in Zambia, has expressed sadness by reports indicating that contractors and suppliers are complaining that Vedanta is delaying to clear them off payments that Konkola Copper Mines plc (KCM) is owing them.
Consortium leader Samuel Banda says they sympathize with the suppliers and contractors as they know they play a very important role in promoting national economic development, create employment and contribute to to national treasury.
“However, we wish to advise that by law and corporate governance procedure, Vedanta Resources will only clear off payments to the suppliers and contractors after the transition process is finalized this month of December. The process will only progress after the provisional liquidator Celine Nair initiates the legal process by submitting the scheme of arrangement in the Zambian court,” he said.
“As it stands now, we are fully aware that the provisional liquidator Celine Nair has not yet initiated this process by submitting the scheme of arrangement to the Zambian court. This is a setback and a hindrance to the Vedanta KCM transition process that all stakeholders are looking to be finalized.”
Mr Banda, who is also Advocates for National Development and Democracy Executive Director, says key stakeholders, suppliers, contractors and employees at KCM are all waiting for the provisional liquidator Ms Nair to submit the scheme of arrangement and other legal frameworks in the Zambian court so as to finalize the KCM Vedanta transition legal process.
“President Hakainde Hichilema’s ambitious target of 3 million metric tonnes copper production per annum is highly dependent on the successful operations of KCM.
Therefore, we are calling upon the KCM provisional liquidator Celine Nair to stop delaying the transition process and do due diligence and submit the scheme of arrangement to the Zambian court so as to expedite the transition process so that Vedanta Resources can fully take over the operations of KCM and clear off the payments that KCM is owing to suppliers and contractors,” he added.
“Copperbelt economy is in intensive care unit, there are no economic activities due to the non functionality of KCM. The people of Copperbelt are suffering, they are economically disabled, they are painfully deep in poverty. People of Copperbelt are in a hurry to see KCM start operating optimally so that economic development can be restored.”
He stated that it is profoundly imperative that the provisional liquidator Ms Nair do the due diligence and submit the scheme of arrangement in the Zambian court promptly.
“As a country with passion to develop our country economically, we must avoid frustrating processes of development instead we should be hastening processes that leads to economic development.