ZCCM-IH hires South African bank Rothschild & Co
…to review Mopani Copper Mines economic strategy
By a correspondent
ZCCM-IH has hired South African investment bank Rothschild & Co to help it “unlock” the potential of the state-owned Mopani Copper Mines (MCM) in a deal shrouded in mystery.
It is not known how much ZCCM-IH will pay the South African company that normally charges millions of dollars for such consultancy, nor is it known how Rothschild was ´handpicked´ for the job at the expense of local experts.
A statement from ZCCM states that the company, “engaged an international investment bank (Rothschild & Co) to assist ZCCM-IH with the strategic review of MCM plc to ensure its sustainability and continued development.” Details remain vague.
Zambia recently acquired a stake in MCM and KCM in order to help the country earn more money in foreign currency, as the price of copper and cobalt in London shoot near to the milestone US$10,000 mark per ton in the near future under the previous administration of the PF.
But the first order of business, against sound expert advice from the markets has been to try and sell of MCM and KCM to the chagrin of many right-thinking Zambians.
Of the most vocal critics of the UPND governments inclination to sell of the mines have been Ambassador Emmanuel Mwamba, Socialist Party President Fred Mmembe and Sean Tembo.
The trio, among many believe that government could re-invest in the mines and own them totally on behalf of Zambians without necessarily selling them off
But the major concern following the engagement of Rothchild &Co from many pundits is:
• How much the South African bank is being paid
• Why a Zambian banking firm or experts were not hired?
• Why was a tender not advertised in the local media?
• What are the terms and references under the engagement agreement?
This is one of the many business transactions President Hakainde Hichilema´s government has committed Zambians to without an “open and public” tender in less than ten months.
Others include the fertiliser scam deal given to Alpha Commodities belonging to the husband of Chushi Kasanda, Maurice Jangula a Minister of Information and the US$ 107 million ZESCO pole deal awarded to South Africa and Zimbabwe amidst protests and reports to the ACC.
Even though President Hichilema said he wanted to empower Zambians in business, it is increasingly appearing that his word does can’t march his actions.
Full ZCCM-IH statement below:
