Friday, June 05, 2009

Mwale is abrogating the law, claims mining company

Mwale is abrogating the law, claims mining company
Written by Staff Reporters
Friday, June 05, 2009 11:08:21 PM

SW & GVA Mining Company Limited has accused mines and minerals development minister Maxwell Mwale of abrogating the law when he allegedly contributed to the rejection of its application for a prospecting permit in Mumbwa district in favour of another firm believed to belong to a senior government official.

But Mwale argued that SW & GVA Mining Company Limited has a right to seek recourse on the matter to any legally established institution in Zambia.

In a letter dated May 15, 2009 addressed to Mwale and copied to his director of mines and Anti Corruption Commission (ACC) director general, SW & GVA Company Limited director and company secretary Sahani Nkhoma stated that Mwale's action was tantamount to abuse of his office when he allegedly linked PATKAT, which belongs to a daughter and son-in-law of a senior government official, to take over a site which was supposed to be given to SW & GVA Mining Company Limited for mining activities.

"...Appeal against the rejection of our application for small scale prospecting permit and approval of the same in favour of PATKAT Mining and Construction over our area of application due to misrepresentation of facts by MAC secretariat to the 10th MAC sitting: Reference is made to your minute dated 24th February, 2009 in which you are trying to throw me in the air by pretending not to attend to issues raised in my appeal letter dated 30th December, 2008 despite your promises to call for a round table meeting between ourselves and Mr Hary Sibbenga the country manager for Luiri Gold Mines when I called on you on two occasions, unfortunately you have chosen not to do so but instead put your wrong acts on record," Nkhoma stated.

"With my layman's knowledge I have difficulties to accept that as Hon. minister of mines you have a legal right in accordance with the mines and minerals development Act No. 7 of 2008 to link a would be investor to an incumbent licence holder as per paragraph three of your letter dated 24th February, 2009 addressed to me. Section 10 of the same Act is very clear on the procedure of obtaining a consent letter by an applicant unless you are an applicant or you have expressed interests in the same application. Otherwise my humble understanding is that you play the role of an appeal body. And that should an investor call upon your office, your portfolio is that of acting through your technocrats for appropriate advice and necessary information. How come you happen to know this same investor by the name of his child?"

He stated that Mwale's action in the whole process on the matter had created a serious conflict of interest.

"I wonder how you would play the role of an appeal body on this matter without being impartial. I have now confirmed that what some members of the MAC secretariat told me that they acted under undue pressure from the 'higher authority' is true and your statement to me in our first meeting in your office on the 2nd of January, 2009 that the Cadastre office stinks, now I know who contributes this stinking to the Cadastre office," Nkhoma stated.

"Your action on this case Hon. minister is tantamount to abuse of office and I don't know why other relevant wings of government would not be informed about it especially that you are trying to throw me in the air."

He stated that the country manager of Sibbenga had contradicted himself in his correspondence with him [Nkhoma].

"Nevertheless may I also confirm that I received the letters from the country manager for Luiri Gold Mines addressed to the director of mines dated 27th January, 2009 via an e-mail dated 20th February, 2009 to which I responded via an e-mail too on the 25th February, 2009 with a copy to the acting director of mines where I informed him about his inconsistence. I also advised him to stop acting under external pressure as he was conflicting with himself because my investigation had revealed that the true promoter of PATKAT is a very senior and sensitive government official," stated Nkhoma.

"By copy of this minute the director general of Anti Corruption Commission is informed to follow up this case and I attach your letter dated 24th February, 2009 together with my appeal letter for their appropriate action."

But in response, Mwale in his letter dated June 1, 2009 stated that SW & GVA Mining Company Limited had a right to seek recourse to any legall- established institution in Zambia.

"... Appeal against the rejection of your application for small scale prospecting permit and approval of the same in favour of PATKAT Mining and Construction over your area of application due to misrepresentation of facts by MAC secretariat to the 10th MAC sitting: I write to acknowledge receipt of your letter dated 15th May, 2009 on the above said subject and have taken note of the contents therein," stated Mwale in his letter which was copied to his permanent secretary Dr Godwin Beene and ACC director general.

"May I underscore the fact that it is your right to seek recourse to any legally-established institution in the land. I pray that Mr Kaluba Musenda Simuyemba, executive director of Anti-Rigging (Z) Lt correctly reported my discussions with him to you."

In another letter dated February 24, 2009 to Nkhoma copied to Sibbenga and the director of mines in the Ministry of Mines and Minerals Development, Mwale advised Nkhoma, if he had any queries to direct them to Liuri Gold Mines Limited.

"... Appeal against the rejection of your application for small scale prospecting permit and approval of the same in favour of PATKAT Mining and Construction over your area of application due to misrepresentation of facts by MAC secretariat to the 10th MAC sitting: I write to acknowledge receipt of your letter dated 30th December, 2008 on the above said subject. This was followed up by your personal calls at the office at two different occasions," stated Mwale.

"Find attached hereto an e-mail correspondence between Luiri Gold and yourselves which should settle the matter. May I put it on record that the only role my office played just like on a number of occasions is to link up a could be prospective investor who desires a consent to an incumbent mining right area holder. With the foregoing, if you have any further queries, you follow them up with Luiri Gold Mines Ltd."

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