Re-advertise contracts, govt directs Kansanshi

Re-advertise contracts, govt directs Kansanshi
By Mwila Chansa in Lusaka and Mulimbi Mulaliki in Solwezi
Friday January 11, 2008 [03:00]

LABOUR minister Ronald Mukuma has directed Kansanshi Mining PLC to re-advertise the contracts to provide catering and cleaning services it awarded to two foreign companies. Briefing the press at his office yesterday, Mukuma said the action taken by Kansanshi was not only inconsistent with the provisions of the Citizens Economic Empowerment Act but also with the spirit of the mining development agreement that the company signed with the government.

“My ministry therefore urges the Kansanshi Mining PLC to revisit their decision to award the contracts to foreign owned companies,” he said.

“The contracts should be re-advertised in Zambia and Zambian owned companies should be re-engaged.”

Mukuma added that the government’s policy of recruitment of foreign labour was restricted to those skills that were not available locally.

He said while the government appreciated Kansanshi’s role in improving the economic landscape in North Western Province, it was not happy that contract jobs that could be done by Zambian companies had been awarded to foreign contractors.

“I wish to inform both local and foreign investors that government’s policy is to promote and encourage effective participation of Zambian citizens in the economic sector. The provision of section 21 of the Citizens Economic Empowerment Act states that specific areas of commerce, trade and industry shall be reserved for Zambians,” Mukuma said.

He added that the government considered the development of large mines such as Kansanshi as an opportunity for Zambians to meaningfully participate in the economy through the mines contracting out their non core business activities to Zambian companies.

Mukuma said in the development agreement signed between Kansanshi and the government, the company undertook to award contracts to local contractors in an effort to promote the quality of goods and services supplied by locals.

He warned that if foreigners were engaged on contracts that could be performed by locals, they would find it hard to secure work permits for their workers because there was local capacity.

Kansanshi Mine contracts manager Franques Lee, in a letter to the Zambian companies that were providing cleaning services to the mine, said the mine would not renew their contracts and have been awarded to another company.

But most of the contractors to the mine whose contracts have been terminated questioned the criteria the mine used in selecting the foreign companies to provide services to the mine.

The contractors disclosed that Kansanshi mine management has given MR Clean, a South African Company, a contract to clean the offices, ablution blocks and the golf estate while another foreign company, Allterian Services Group ATS, had been contracted to run the mine canteen.