State risks legal action over mine deals if…
State risks legal action over mine deals if…JERRY MUNTHALI
Minister of Justice, George Kunda, on Thursday night warned that Government risked being taken for arbitration in the United Kingdom (UK) and lose huge sums of money in legal fees if it breached provisions of the mine development agreements. Debating the Income Tax Amendment Bill, which passed the second reading, Mr Kunda said although Zambia made its own laws as a sovereign state, it could be taken for arbitration in London if it breached provisions of the agreements.
He explained that the mines were losing a million dollars………….. at the time Government entered into the development agreements. Mr Kunda explained that at that time, Government was desperate to sell the mines to avoid their collapse and investors dictated certain terms since they were bringing in the money. Winding up the debate, Minister of Finance and National Planning, Ng’andu Magande, said there was an agreement for tax to remain at 25 per cent for 25 years.
He, however, said Government would negotiate the development agreements where there were provisions to do so. And Minister of Science, Technology and Vocational Training, Brian Chituwo, told Parliament on Thursday that Government has allocated K11.2 billion to double the number of beneficiaries to the bursaries scheme this year. In a policy statement on the vote for the estimates of expenditure for his Ministry, Dr Chituwo said this was aimed at enabling more vulnerable students acquire life-long skills.
Dr Chituwo was also happy that the Gemstone Processing Centre under his ministry had started operating from its own campus to train small-scale miners. He said this would help to scale up small-scale mining in the country and that 60 people had since been trained in gemstone identification, processing and polishing. Dr Chituwo also said following the release of the grade seven, nine and 12 results by Minister of Education, Geoffrey Lungwangwa, the institutions under his ministry which trained youths in various skills were well positioned to absorb those who dropped out.
But he was also concerned that institutions under his ministry had incurred a K30.9 billion debt for statutory and personal emoluments and he urged them to set side funds from the monthly grants to pay off the debt.
Labels: MINING, MINISTERS, PARLIAMENT
posted by MrK @ 12:18 AM
1 Comments:
Is George Kunda using the Vulture Fund affaire to scare the government into not changing these outrageous 'mine deals'? I never liked him, but I think he may have been paid off.
"He explained that the mines were losing a million dollars………….. at the time Government entered into the development agreements."
At the same time, copper was well under $1000 per tonne too. The state can still institute a windfall tax for all profits over $2000. So what is the minister scared of?
" investors dictated certain terms since they were bringing in the money. "
'Investors' dicated certain terms, because the government was weak and looking to take bribes. Of which I'm sure George Kunda received his share.
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