[By Oliver Chisenga and Ernest Chanda]
LUSAKA mayor Miles Sampa has asked ZCCH-IH board chairman Eric Silwamba to tell the nation who valued Mopani Copper Mines and determined its value to be US $1.5 billion.
And Lusaka Province PF secretary Kennedy Kamba says Zambians are capable of running the mines effectively because they have done it before.
On Tuesday, the government announced a complete takeover of Mopani Copper Mines Plc through ZCCM-IH, after ‘negotiations’ with shareholders.
But Sampa is asking who the advisors to the transaction were.
“That said however, I have ‘asks’ or funsos or kweshons [questions]. This specifically so to ZCCM-IH or indeed the Board Chairman Mr Eric Silwamba and the Mr CEO Mabvuto Chipata. As ZCCM-IH is a public company for all of us Zambians, tiuzyeniko (tell us); Who was the Valuer and determined $1.5BN as the true current market value of Mopani mine,” he asked. “Who was appointed the transaction broker and at what fee (X% of $1.5BN)? Which commercial bank is handling this big transaction and at what fee (X% of $1.5BN)?”
Sampa also asked if anyone needed to declare interest over the transaction, among other questions.
“Where is the deposit or first installment payment going to come from and how much is it (X% of $1.5BN)? Does anyone need to declare interest arising from funsos (questions) 1 to 5 above? I know not and that’s why I am asking,” Sampa said. “Even if not asked now however, abana besu still more bakesa ipusha (our children will still ask) even 25 years from today. So ba Eric Silwamba naba Mabvuto Chipata, twasukeniko or tiyankeniko tuma ‘asks’ above (So Mr Eric Silwamba and Mr Mabvuto Chipata, respond to these questions).”
He however said regaining ownership and control of the mines would stop the national treasury from being arm-twisted by anyone.
Sampa said the takeover was in fact long overdue.
“Apafwile Insofu, nelyashi ibapo lyansofu (the death of an elephant becomes the main topic in a society). Mopani mine is one of our Insofu,” he said.
Sampa recalled that he wrote a lot of articles in the last three years, that current mine owners were neo-imperialists that religiously refused even a meagre 0.1 per cent tax increase to benefit Zambians.
Sampa recalled that when he was deputy finance minister in 2012, a British consultant for one mine in Solwezi told him that if the government did not “play ball” the mines would withhold copper exports and stockpile instead.
He said, indeed, the mines withheld copper just as they had threatened.
“Reversals were made double, including the SIs 33 & 55 that I had designed to keep the Kwacha respected (K have Value) and also curb transfer pricing or evading of tax by the Mines,” said Sampa. “So, on my own behalf, I am very delighted with us Zambians via ZCC-IH owning and determining our own destiny towards our God-given mineral natural resources.”
Meanwhile, Kamba said Zambians can run KCM and Mopani Copper Mines without doubt.
“We have done this before and examples are there. These are our mines and we are tired as a country of being cheated on all the time. A decision has been made and we have competent people, mine experts who are Zambians under ZCCM-IH. This country has patriots who are willing to redeem our mines through investment and mining development to make them viable again,” Kamba said. “President [Edgar] Lungu is today enjoying massive support among miners, their unions, stakeholders and the general citizenry on the Copperbelt and beyond because he is fulfilling the wishes of the people.”
He said it was time to get back what belonged to the people.
“Zambia will be developed by Zambians and not anybody else. For how long is this country going to be arm-twisted, blackmailed over taxes? We have lived at the mercy of investors who were at KCM and Mopani for far too long,” said Kamba.
“It’s time to get back what belongs to Zambians so that we manage it ourselves with our own professionals in mining and its management. The country has more than enough professionals, and with the support of Zambians, this is a best decision President Lungu has made.”