PF AND LUNGU COMMITTED A CRIMINAL OFFENSE OVER KCM- A LEGAL PERSPECTIVE BY DR LARRY MWEETWA
Please read this till the end you will appreciate.
President Edgar Lungu and his brother fooled Zambians to believe KCM was making a loss and it needed to be liquidated yet they continued mining and export.
Issue:
Did the actions of the Provisional Liquidator, Milingo Lungu, appointed to oversee the liquidation of KONKOLA Copper Mines (KCM), constitute a violation of Zambian laws, and if so, what are the potential legal consequences?
Rule: According to Zambian law, the appointment of a Provisional Liquidator is governed by the Companies Act, Chapter 388 of the Laws of Zambia. The primary duty of a Provisional Liquidator is to manage the affairs of the company under liquidation in accordance with the provisions of the Companies Act.
Analysis: In this case, the actions of Milingo Lungu, the appointed Provisional Liquidator of KONKOLA Copper Mines, deviated from his prescribed duties. Instead of overseeing the liquidation process, Lungu engaged in mining and exporting copper, thereby exploiting the company’s assets for personal gain. This constitutes a serious breach of fiduciary duty and misuse of authority.
Furthermore, Lungu’s misrepresentation to the Zambian citizens about the financial status of KCM, leading to the false impression that liquidation was necessary, may also be considered fraudulent conduct under Zambian law. Such actions not only deceive the public but also undermine the integrity of the financial system.
Violation of Zambian laws:
* Breach of fiduciary duty as a Provisional Liquidator under the Companies Act.
* Misrepresentation and fraud in providing false information to the Zambian citizens regarding KCM’s financial status.
Potential Punishment:
* Criminal charges for fraud and misrepresentation under the Penal Code of Zambia, which may result in imprisonment upon conviction.
* Civil penalties, including restitution and fines, for breach of fiduciary duty under the Companies Act.
* Asset forfeiture and disgorgement of profits obtained through unlawful activities.
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Judgment: Based on the evidence presented, it is likely that Milingo Lungu will face criminal prosecution and civil liability for his actions as the Provisional Liquidator of KONKOLA Copper Mines. The court may order imprisonment, financial penalties, and restitution to the state for the ill-gotten gains. Additionally, Lungu’s appointment as Provisional Liquidator may be revoked, and he may be disqualified from holding similar positions in the future.
Dr. Larry Mweetwa
The opening paragraph is a give away,no authorities referenced. The whole article fails! Not worth reading.A copy and paste presentation!!
This case id not tolf comprehensively.There are only chunks or pieces from the whole saga.Were miners digging copper when Milingo was there as a liquidator ? For how long did that unauthorized mining go? How many tonnes were sold and for how much during tje time Milingo was there ? Was iligal mining and selling of the copper stopped when Milingo wad replaced ? If not why are we not talking about hus successor too ? Obviously Milingo could not do that busineds alone.Who else benefited ?Milingo issue is public but why was golf scam issue with Kasanda and Egyptians held in camera ??