Emmanuel Mwamba writes…
It was mistake, criminal to allow Vedanta Back
An audit revealed that Vedanta Group, owned by Indian billionaire Anil Agarwal, were not paying taxes, illicit financial flow, tax doging mechanisms and were engaged in bad mining practices.
Vedanta also owed state-owned institutions such as the Zambia Revenue Authority (ZRA), National Pension Scheme Authority, ZESCO ,contractors and suppliers about $1.5billion.
This is before you add other commercial loans obtained abroad against the assets of the mine.
This was the basis for the liquidation in 2019 of the sick mine.
Recently, UK-based Vedanta Resources, parent company of India’s Vedanta, announced that it had settled dues worth $245.75 million to help revive operations in Konkola copper mines (KCM) in Zambia as part of a deal to take back the mines.
This money has never come. Instead Vedanta has been obtaining more loans locally.
The $250million payment was intended to clear KCM’s debts to contractors and suppliers, and is part of Vedanta’s efforts to regain control of the mine.
Vedanta also pledged to invest $1 billion over the next five years to expand the mine.
This was after similar false assurances in the past.
Vedanta is currently considered to be on the verge of bankruptcy. The company has been facing significant debt concerns and has been actively working to deleverage its balance sheet through various measures like selling shares and restructuring debt, aiming to reduce its debt burden significantly over the next few years; however, it is easier concerns regarding its liquidity and potential default risks due to its high debt levels.
Vedanta says it is actively exploring options to refinance its existing debt to improve its financial position.
But what is clear is that the people of Zambia were, once again, lied to.
It’s better to have Vendetta back at KCM being the real owners of the mine and withdraw the cases in courts and also this friend and associate of Edgar agwa chagwa lungu , this one Milingo Lungu who was stealing even more than US$24 million in one man account plus other monies he was buying government bonds and share the national funds with his crooked friends. This was very very bad
Now the crooks have again started making noise but we know you and nothing you are saying is important it is totally irrational and rubbish. Let Masusyo Ndobvu rubbish this crooks please. It is too much of them.
The mistake and criminality was PF ILLEGALLY taking over Vedanta. Yes, Vedanta is a rogue company and the PF government had all the good reason to repossess KCM but instead of using their brains they used their brawn (Amaka) and thus legally lost the chance to get KCM back without much fuss.
What Mr. Mwamba is not saying is that we lost two arbitration cases and continuing with the illegal takeover would have cost us (Zambians) US$3billion in compensation. A similar illegal takeover of Zamtel by PF from the Libyan company, LapGreen, during the time of Mr. Sata, resulted in Zambia compensating LapGreen US$380million as ordered by a London court in 2017. PF never talk about the LapGreen debacle.
The other issue is that KCM was supposed to be liquidated, that is, its assets sold and the proceeds used to pay creditors. Instead PF continued running it as a business and using it as a cash cow. This is why the so called Liquidator eventually surrendered US$24million to the UPND government after PF lost power. I am not privy to the deal that prompted the “Liquidator” to surrender this staggering amount of money. It also raises the question, How much did he fleece KCM?
The bottom line is KCM never legally belonged to Zambia inspite of the antics of PF.
I have always said Mwamba like to act smart and intelligent, when all he does in take non sense and want to suggest its fact.
How many months have the owners of KCM been running this mine since it was handed over to them? Barely a year.
To simplify my point of view. Would you be telling a married couple that has just reconciled after separation to divorce firstly, as the marriage is yours to divorce?
Secondly is it even you right to get involved. We dont own KCM, our interest is, is it productive and are we able to generate taxes from it. Workers are represented by Unions. Creditors have an agreement if KCM has not abided by it, they can sue as we read a few weeks ago that CEC sued. Various government agencies exist and can hold KCM accountable.
Now you Mr. Mwamba one financial has not even passed for us to gauge how KCM is settling in. And they have failed. What does what is happening in India or the UK have to do with the viability and operations of KCM in Zambia? All the points that you have tried to further have no bearing on how the operations of KCM is working in the country.
Please stick to writing on topics you understand Mr. Mwamba. Leave people to do what they came here to do. If you are a failure in life who trades in lies. Keep those lies to yourself.
Some people were naturally born with characteristics ya buloshi. You know them by what they say and their negative approach to life and jealous.
It’s interesting how we love to attack other people as ignorant, while exposing our own.
Why do we refer to KCM as “a mine” when it is in fact a company? KCM owns and operates 3 mines, namely Nchanga, Konkola and Nampundwe, so which “mine” are we concerned about?
Vedanta Resources is not the parent of Vedanta Limited; it’s the other way round. Vedanta Limited in India, established Vedanta Resources in the UK for purposes of ownership of mining assets in Africa. Mr. Agarwal is trying to use the resources of Vedanta Limited in India to revive the operations of Vedanta Resources in the UK which owns KCM in Zambia. Please try and follow the struggles of Mr. Anil Agarwal as he desperately tries to re-organise his finances both in India and overseas. Developments in India (Vedanta Limited) will have a major impact in Zambia (KCM) through Vedanta Resources.
Meanwhile, please spare us the ignorant and petty drivel where you attack individuals without addressing the very serious issue of KCM and its impact on our national economy. Read the Economic Times of India, Times of India and Mint, to understand the greater issues affecting Vedanta Limited (India), Vedanta Resources and KCM.
Does the US government own US Steel? They don’t own even a single share, so how it that it is the President of the US who has refused to allow the sale of US Steel, a 100% private company, to Nippon Steel of Japan? In that vein, our Zambian government has a right to take interest and action when even a private company which is vital to our national economy, is under threat of collapse.
My second comment is this:
First of all, I am not a financial expert or an Economist, and I do not claim any kind of expertise or special knowledge on this particular issue. I am commenting as an ordinary Zambian with deep interest and concern for our national economy.
If you follow Mr. Agarwal’s efforts to resolve the financial issues with regard to his business empire, namely Vedanta Resources, Vedanta Limited (India) and its associated companies, the emerging picture is not encouraging; it is highly unlikely that Vedanta Resources will be able to mobilise the resources needed to get KCM to operate on a sound footing. By following developments in the financial media especially in India and the UK, it is easy to see why Vedanta Resources has not been able to attract even an equity partner into KCM (there has been talk of Vedanta selling up to 30% of KCM, of which Vedanta owns 79%), to raise the capital needed to return KCM to full operation. So far, nothing that I have read, would suggest that Vedanta Resources will be able to raise the $1.3bn pledged in negotiations with our government.
My suggestion would be that the government either complex Vedanta to sell its stake in KCM, or else the state should effect a compulsory acquisition or takeover of KCM with a view to selling the majority stake to new players. The government should then pay Vedanta the value of it’s 79% less its obligations to contractors and supplier who can then be paid from the proceeds. ZCCM IH can retain its 20% or increase it, but remain a minority shareholder as at present.
My second comment is this:
First of all, I am not a financial expert or an Economist, and I do not claim any kind of expertise or special knowledge on this particular issue. I am commenting as an ordinary Zambian with deep interest in our country’s well-being, and concern for our national economy.
If you follow Mr. Agarwal’s efforts to resolve the financial issues with regard to his business empire, namely Vedanta Resources, Vedanta Limited (India) and its associated companies, the emerging picture is not encouraging; it is highly unlikely that Vedanta Resources will be able to mobilise the resources needed to get KCM to operate on a sound footing. By following developments in the financial media especially in India and in the UK, it is easy to see why Vedanta Resources has not been able to attract even an equity partner into KCM (there has been talk of Vedanta Resources selling up to 30% of KCM, of which it owns 79%), to raise the capital needed to return KCM to full operation. So far, nothing that I have read, would suggest that Vedanta Resources will be able to raise the $1.3bn pledged in negotiations with our government and the attendant Scheme of Arrangements.
My suggestion would be that the government should either compel or force Vedanta to sell all of its stake in KCM, not just a portion of it, or else the state should effect a compulsory acquisition or takeover of KCM with a view to selling the majority stake to new players later. From the proceeds of the sale of KCM to a new player, the government should then pay Vedanta Resources, the value of its 79%, less its outstanding obligations to contractors and suppliers who can then be paid by the government. ZCCM IH can retain its 20% shareholding, or increase it, but should remain a minority shareholder in KCM, as at present.