PF propaganda: sour and spiteful mouthings with boomerang effect
By Gunston Chola
IF truly people of the Copperbelt have shut out the UPND and President Hakainde Hichilema because of the mines saga, this could be “a clear violation” of the proverb kapoli bakonka uwalya tute.
And the “pig” that must be locked out of the province, for “decimating the field of cassava” is no other than the Patriotic Front (PF) and former President Edgar Chagwa Lungu’s protégés led by one Brian Mundubile and his cohorts.
For centuries people of the Copperbelt, and Zambia as a whole, will continue to remember how in a twinkling of an eye, PF and Mr Lungu’s populist decisions for political expedience on Konkola Copper Mine (KCM) and Mopani, defied the party’s own motto – more money in the pocket – and took money out of people’s pockets that ignited the current economic depression. If any one must be crucified for the turn of fortunes in the province PF must bear the burden. One economic blunder led to another and the party will not swoosh off the current economic glut being experienced. It was Mr Lungu who defied expert opinions and put KCM on liquidation with the appointment of Milingo Lungu as provisional liquidator for KCM in May 2021.
Mr Mundubile, one of PF presidential aspirants and the party’s leader in Parliament, recently addressing weekly Press conference in Lusaka, announced that the people of the Copperbelt had regretted voting for United Party for National Development in the last elections and wished no more to be associated with the UPND or President Hichilema. The reason given was because of the failure to address the suffering of the people as a result of the impasse in solving the issue of the mines which has exacerbated poverty in the province.
The PF’s handling of the KCM and Mopani mines seemingly are the greatest snares ever set for the UPND or any other that might have won the August 12 elections. Local and international mining experts warned president Lungu from taking a path that might destroy Zambia’s economy for good and he never listened because he set his eyes on the votes that would come as a result of the placatory decision. Among those whose advice was spurned were the Socialist Party (SP) leader Fred M’membe, then National Democratic Congress (NDC) interim president Chishimba Kambwili and Mr Hichilema of UPND. Mr Hichilema and NDC issued comprehensive statements to oppose the PF decision, outlined the devastating effects on the economy and people’s spending, should liquidation proceed. Noting the scathing negative reactions, the PF media in trying to bring credibility to the move, framed Mr Hichilema that he was in support of the government decision, a statement that was immediately denied by the UPND media.
In a story which appeared in the social media on 22 May, 2019, Ruth Dante denied president Hichilema had issued any such statement in support of government action on KCM.
“Furthermore, UPND wishes to make it clear, that it will not support any action taken without consideration of the impact the move would have on the lives of the people of Zambia and the investment as a whole. We, therefore, urge all our members across the country as well as KCM management to treat that statement with the contempt and disdain it deserves,” Ms Dante said.
President Hichilema’s own statement came a day later on May 23.
“We agree there’s a problem that needs to be resolved at KCM. But we DONOT AGREE with the method, liquidation, chosen by PF not even a single bit. We would favour to put the mine in administration as an interim measure,” he said as a matter of fact.
On 28 May, 2019 NDC released their comprehensive statement on KCM.
“Following the PF government’s decision to place KCM in liquidation, we as the NDC have strongly and unequivocally rejected and condemned the approach taken by the PF government to employ this extreme measure to resolve the issues surrounding KCM.”
Evidently, the PF was on its own, disowned by major parties they thought, and even tried to implicate, on the issue of the liquidation of KCM.
Mr Hichilema said while the company had been mismanaged by its owners to the extent where government intervention became necessary, liquidation was a wrong option. It will not protect the interest of the workers and suppliers. The government, he said, should have instead placed KCM under curatorship.
“We do not agree with the liquidation of KCM,” Mr Hichilema said during a live Radio Christian Voice interview. “PF should have opted to place KCM under administration in order to protect the interests of workers and suppliers. Liquidation means that the company’s assets will have to be sold and monies paid to ‘ranking creditors’ in order of priority while workers and suppliers will be considered last. In liquidation banks and big creditors with debentures take the lion’s share.”
It was his view that placing KCM under curatorship would have allowed the company to continue operating as new buyers were being sought while liquidation entailed that the company is wound up and assets are sold. The UPND president accused the PF of behaving like the vultures waiting to feed on a carcass of a dying animal.
“ZCCM-IH which represents government are part owners of KCM and sat on their board. They know the extent of the problems at KCM and did nothing about it until it was on its knees. Why didn’t the government through ZCCM-IH deal with these issues and not wait until the animal is about to die. It’s because they are vultures,” he charged.
He equally hit at lack of skills transfer in KCM. Instead of jobs being done by Zambians, they are done by foreigners.
“Where was the government of Lungu through ZCCM-IH? They were sitting on the board. How were they allowing these things to happen,” the President asked.
President Hichilema believed his visit to the Copperbelt forced president Lungu into the knee-jerk reaction on KCM.
“We know Mr Lungu panicked after our visit to the Copperbelt; that’s why he decided to act without thinking. Now they have put a friend with limited experience as a liquidator. Do they understand what a liquidator … his capabilities and skills are? And I hear Lungu’s advisors are now advising the liquidator. What advice are they rendering to the liquidator? This is a technical field,” he pointed out.
NDC put out a length statement presented by then vice-president Josephs Akafumba, now home affairs permanent secretary. The party outlined thze terms liquidation, receivership and insolvency and came out fiercely that KCM did not need liquidation but receivership.
‘’As NDC we strongly wanted to see Vedanta Resources leave. We want them to go for good and they should never be allowed back to Zambia. This has been our position from inception, even when PF was still in bed with Vedanta as things were deteriorating at KCM; we as NDC were calling for Vedanta’s mining licence to be revoked.”
Vedanta, they charged, had failed to run the mines. They evade taxes. They externalise all profits, they mistreat Zambian contractors and suppliers and they have not invested anything to enhance mining operations and employment on the Copperbelt. “Therefore, their departure is welcome by well-meaning Zambians and we want them to leave as soon as is practically possible,” the statement said.
As NDC our difference with PF is with the approach that they have taken, to place KCM in liquidation. “We believe that the negative social and economic consequences of placing KCM in liquidation will be severe and will affect hundreds of thousands of people in Chingola, Chililabombwe, Kitwe and Nampundwe where KCM has operations.’’
The party appealed to Zambians to understand that Vedanta was not KCM and KCM was not Vedanta. They were distinct companies and institutions separate from each other.
“They’re separate legal entities so they can be legally separated without going through a process of liquidation just like Anglo-American was separated from KCM. KCM existed before Vedanta came to Zambia,” Mr Akafumba read out.
The NDC policy team thoroughly analysed the ills that befell KCM since the advent of Vedanta, rejected the company was insolvent and recommended receivership as they were convinced the PF action was to loot the assets and then deregister the company. It was equally their view that PF wanted to hand over the key assets of the company to the Chinese as part payment of debts.
The second reason was corruption and commissions. They reasoned, if KCM was sold to a genuine investor as one single unit, it will be most almost impossible for PF officials to benefit from the sale, unless they get kickback bribes behind scenes, presumably outside the country out of the reach of the ACC, DEC and FIC.
“But if they liquidate KCM, several PF officials stand to benefit from the sale of those assets. They will be able to sell KCM property to their friends and business partners at cheap prices,” said the statement, adding: “They’ll be able to obtain bribes and commissions locally and many KCM properties will become theirs. They are targeting the prime land, buildings, lodges, houses and sporting facilities owned by KCM.”
They gave as an example what happened with ZCCM assets which ended up being owned by government officials and those connected within the corridors of power. They took the farms, houses, and buildings at literally no cost at all. To enforce their point of view, they questioned the calibre of people who were sent by President Lungu to commence liquidation proceedings at KCM. It tells it all.
“The liquidator, Milingo Lungu, is a PF official and closely connected to the president. His name had also come up in the Ronald Chitotela corruption trial as one of the lawyers that aided Chitotela in acquiring and concealing property suspected to be proceeds of crime,” read the statement. Other notables mentioned included Kaizar Zulu, Amos Chanda and other State House crew that were on the high table.
“What were they doing there? What’s their role in this process? What are they looking to benefit from the process?” the NDC asked.
Mr Akafumba said NDC president Chishimba Kambwili had proposed that KCM be placed as a going concern while a more responsible equity partner or investor was being sourced. Thirdly, all jobs be preserved and employees received their benefits; fourthly, local contractors and suppliers would have been paid and fifthly, all social aspects such as schools, hospitals and sports facilities continued to function under the new investor.
They believed the five objectives would be used in dealing with Vedanta. They would be at the centre of every decision and in order to achieve the five objectives, they proposed that KCM be placed under receivership or a rescue transitional plan be developed on an interim basis while a new investor was being sourced.
They were convinced that with the receiver managing the company, the government can then commence separate legal proceedings against Vedanta Resources to disengage them from KCM. Vedanta had breached several key aspects it signed with government. Its practicality was compared to the time Jordan Soko acted when Anglo-American pulled out.
It is evident from the foregoing that PF are carrying out campaigns of calumny and distortion to deliberately try to extract themselves from the guilt. If the situation is properly explained to the people on the Copperbelt and Zambia, would there be anyone who can raise a stone against UPND or President Hichilema, given their proven opposition to the deal and their concern for the people?
Clearly, PF planned to plunder KCM assets at grand scale without any due regard to the workers, their families, the contractors and suppliers. Their eyes were set at their own benefits and not what happened, knowing mining is the mainstay of Zambia’s economy. It’s befitting, therefore, that people of the Copperbelt direct their arsenals on PF and show the exit door to those peddling lies in the guise of speaking on their behalf. They created poverty in the homes by failing to heed warnings from people who knew better and tried to end wholesome looting of the KCM assets. It had already begun.
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