PRESS STATEMENT FOR IMMEDIATE RELEASE
Title: Government’s Deceptive Financing of Vedanta Resources is a Betrayal of Zambian Taxpayers-Kasonde Mwenda C-EFF President
Date: July 28, 2024
During the launch of the First Capital Bank Head Office in Lusaka on July 25, 2024, President Hakainde Hichilema made a troubling admission. He refused to confirm the earlier announced $245 million payment, which is part of the $1.5 billion debt Vedanta Resources Limited owes Konkola Copper Mines (KCM). Instead, President Hichilema claimed he had only heard of this from others, including the investor, and had no personal confirmation of the deposit.
This evasion is deeply concerning, as it is believed that the $245 million is being sourced from the Zambian government itself, to be handed to Vedanta as part of a $500 million loan. Vedanta, in turn, would use this loan to settle its debt to the Zambian government. This maneuver is nothing short of irresponsible and deceptive. It gives the illusion that Vedanta is repaying its debts when, in reality, it is the Zambian taxpayer footing the bill.
This is not an isolated incident. We have witnessed similar schemes under the Lusaka-Ndola dual carriageway project. The government claims to have secured investors, yet these so-called investors rely on funds from the Zambian government through the National Pension Scheme (NAPSA). Despite this, they will be collecting road tolls for the next 25 years, profiting immensely while the Zambian people bear the cost.
As the Economic Freedom Fighters-EFF, we condemn these schemes as criminal. They defraud the government treasury, benefitting only a privileged few connected to these corrupt arrangements. We challenge the government to transparently address and dispel the accusations that it is funding Vedanta Resources Limited at KCM. The Zambian people are enduring severe economic hardships and cannot afford a government engaged in money-laundering schemes that perpetuate poverty for the many while enriching a select few.
We demand accountability. We demand transparency. We demand an end to the exploitation of Zambian resources and taxpayer money for the benefit of a corrupt elite. The government must prioritize the welfare of its citizens over the interests of foreign investors and connected insiders.
It is time for President Hichilema and his administration to come clean. The people of Zambia deserve better.
Wherever we want to go our feet will take us there.
Kasonde Mwenda C
President, Economic Freedom Fighters-EFF
Zambia