M’kushi Mine and High-level Corruption
By Amb. Emmanuel Mwamba
On Hot FM ‘Red Hot Breakfast Show’, UPND National Youth Chairperson, Gilbert Liswaniso confessed that he has shares in Ndalumba Minerals Limited which is at the centre of intra-party scramble for the copper and manganese mine in M’kushi District.
He said, without solicitation, the shares were given to him and to Lusaka UPND Province Chairperson, Obvious Mwaliteta, by the owner of the mine, a chinese national.
He didn’t explain the circumstances under which Mr. Nixon Chibawe, the nephew to First Lady, Mrs. Mutinta Hichilema, became one of the majority shareholders.
Liswaniso and Mwaliteta have 1,800 shares each while Nixon Chibawe has 16,800 shares.
HIGH-LEVEL CORRUPTION
Thi confession and details so far provided by documents and Liswaniso, sets serious stage for an urgent corruption investigation as this matter has raised serious questions of bribery and corruption and has far reaching consequences to regulatory authorities.
Liswaniso’s naivety has laid bare serious allegations of corruption.
It is clear that these shares were given to officials of the ruling party and State House for the investor to have bottle-necks of exploration and mining licences removed and to have his stay in the country through work or residence permits guaranteed.
The investor will likely use public authorities as a lashing whip to challenges facing the mine such as location, size, encroachment and any other existing disputes with authorities and the Community.
The Organisation for Economic Co-operation and Development (OECD) states that foreign companies in Africa are heavily pressured to secure their businesses and usually seek to survive through offering bribes, corrupting both public service and politcal party officials.
The M’kushi Mine scandal fits perfectly in this secnario and raises serious corruption elements.
It is perceived that foreign companies need to pay or offering bribes as the “only way to survive” whether as a company or an individual.
The African Development Bank estimates that USD 148 billion is lost to corruption in Africa
every year.
Corruption is detrimental to economic, political and social development. It distorts market competition, undermines productivity and ultimately impedes sustainable economic growth.
While sub-Saharan Africa has become a commercially significant market, bribery and corruption risks are deterring higher rates of investment and the ability of companies to conduct business fairly on a level playing field.
The bribery risks confronting both African and foreign companies include:
■ the prevalence of business sectors prone to corruption;
■ predominantly cash-based economies;
■ the requirement to use local agents to carry out projects;
■systemic public sector corruption; and
■weak law enforcement capacity often topped with lack of political will.
Further the Anti-Corruption Commission Act No.3 of 2012 also prohibits this kind of corrupt behaviour as discussed in the M’kushi Mine and the Act covers it under corruption tendencies and corrupt transactions among public officials, private bodies and persons.
Liswaniso was quick to dare anyone concerned about this corrupt relation with the investor to report such concerns to the Anti-Corruption Commission.
Liswaniso may not be aware of the far ramifications of his confessions but both President Hichilema and the ACC know what the OECD Anti-Bribery Policy and Compliance Guidance for African Companies and the provuions of the Anti-Corruption Act of 2012.
Probably Liswaniso hopes that the ACC will simply white-wash this transaction with no consequences to both the investor and the party officials and other persons involved.
Since President Hakainde Hichilema moved the reporting structure of the ACC under gazette No. 1173, its autonomy and independence is perceived to be eroded and like many law enforcement agencies, is being used as a tool to oppress, harrass and crash political opponents instead of fighting real corruption.
This case is another test case to President Hichilema’s resolve to fight corruption…. or it’s a matter Zambians may chronicle for future reference.
