(STICKY) (MRK) Corruption And Swindle At ZCCM-IH
MRK - Corruption And Swindle At ZCCM-IH (UPDATED)Even though ZCCM-IH has significant share holdings in foreign mining company's local mining operations, it is either not receiving, or worse receiving but not paying out dividends to it's shareholders.
We already know that in an industry that officially makes over $2.5 billion in profits, the entire take for the Zambian revenuers for 2010 is estimated at a laughable $50 million.
Not content with swindling the Zambian taxpayers, the foreign mining companies also swindle their shareholders out of their legally obligated dividend payments.
Now of course, how much dividend are they going to pay of they are already evading taxes on a massive scale? The one seems to follow the other. If they were honest in their dividend payments (usually around 50% of profits), they would have to own up to how much profit they actually made. Which would show how much taxes they have been evading.
Their financial records are less than transparant and open. The interim financial report from 2006, published in 2008 is the most recent, and it doesn't even open properly.
ZCCM-IH has not paid out any dividends, which is fraud. Either they are being defrauded by the mining companies and those companies are not paying ZCCM-IH dividends, or the directors and managers are keeping the dividends themselves.
Either way, the people of Zambia and in this case, the shareholders of ZCCM-IH are being defrauded out of their rightful money. And as ZCCM-IH is 86.6% owned by the government, the government is complicit in this fraud.
And this is interesting - the Finance Minister, Situmbeko Mosokotwane, is a director of ZCCM-IH. So he should know EXACTLY what is going on with this company and Zambia's money.
Also interesting - ZCCM-IH is listed Eurenext in Paris, the London Stock Exchange and the Lusaka Stock Exchange. I wonder if embezzling dividends is actually illegal for companies listed at any of those exchanges.
According to MBENDI.CO.ZA, ZCCM-IH has the following share holding:
Konkola Copper Mines Plc - Chingola, Zambia (20.6%)
Copperbelt Energy Corporation - Kitwe, Zambia (20%)
Kansanshi Mining Plc - Zambia (20%)
Chibuluma Mines Plc Zambia - Zambia (15%)
Luanshya Copper Mines Plc - Zambia (15%)
Chambishi Metals Plc - Zambia (10%)
Mopani Copper Mines Plc - Kitwe, Zambia (10%)
shareholder: Government of Zambia - Zambia (86.6%)
Directors and shareholders are:
Chairperson (Non-Exec.): Mr GK Chibuye
Director: Dr DH Kalyalya
Director: Mr GP Mukala
Director: Dr S Musokotwane (Situmbeko)
Director: Mr E Mutale
Director: Mrs LI Ng'andwe
Director: Mr LS Nkhata
Contact Information:
Tel: +260 1 221023
Fax: +260 1 221057/220449
E-mail: Yes - Send a message
Office Location: 5309 Dedan Kimathi Rd
Lusaka, Zambia
Postal Address: PO Box 30048
Updated on April 15th 02:00 GMT
The names of the current non-executive directors as indicated below:
Mr A. J. Lungu - Non-Executive Chairman
Mr L. Ndalamei (Secretary to the Treasury)
Dr D. H. Kalyalya (Bank of Zambia deputy governor for Operations)
Dr G. M. Beene (mines ministry permanent secretary)
Dr S. M. Bwalya
Mr P. Mumba
Mr O. B. Munyenyembe (Mineworkers Union of Zambia (MUZ) secretary general)
I never knew that Godfrey (or is it Godwin) Beene was not only MP for Itehzi Tehzi, and head of the Parliamentary Estimates Committee, but that he is also Mines Ministry Permanent Secretary.
So as head of the Parliamentary Estimates Committee, he sent Secretary to the Treasury James Mulungushi packing because there was something he did not like about the Windfall Tax - which would have cost the mines money.
Hmmm...
This is what I remember that incident from, but I could not put it into context at the time:
(TIMES) Treasury officials sent packing
Treasury officials sent packing
By Times Reporter
THE parliamentary estimates committee yesterday sent back the team led by acting Secretary to the Treasury James Mulungushi because they did not present satisfactory explanations on the new mining tax regime. Dr Mulungushi was in the company of Zambia Revenue Authority (ZRA) Commissioner General and other senior members of staff from the Ministry of Finance and National Planning.
Dr Mulungushi and his team were asked to prepare a fresh report that would satisfy the committee chaired by Itezhi Tezhi MP Godfrey Beene, and present it by tomorrow. Mr Beene described the report by Dr Mulungushi as unsatisfactory and ordered him to prepare a fresh one, which should be presented before the committee by tomorrow.
Mr Beene told Dr Mulungushi that the committee members were not satisfied because the report left out key details of the proposed windfall tax on copper mines.
Dr Mulungushi had also said that Government plans to open a special account at the Bank of Zambia (BoZ) to keep the excess revenue from the mines.
Dr Mulungushi further said that Government has set up a committee to plan on how the projected revenue of US$415 million would be raised under the new tax regime.
This prompted the committee to question why the projected revenue of US$415 million was not included in the national budget. The committee argued that it is only parliament that has the authority to approve any expenditure and not the executive.
“As a committee, we are looking at the legal position on new mining tax and the position on the setting aside of the excess revenue and why is this money not included in the budget. We are disappointed because you have failed to give us the legal position on these important matters,” Mr Beene said.
I think things start to fall into place. The Mines have a reprentative among the board of directors at ZCCM-IH.
Labels: CORRUPTION, MINING, TAX EVASION, ZCCM-IH
posted by MrK @ 2:56 PM
11 Comments:
This situation is one of the big scandal in Zambia !
The GRZ doesn't want money from the mine but only from world aid...
- The Foreign companies doesn't pay taxe to Zambia, and doesn't give dividends to zccm-ih ( less 2 % total benefits)
- The world give money to zambia
Perhaps it will be better if foreign companies give taxe to Zambia and dividends to zccm-ih...
But the comportment of the GRZ seem tell us that this situation is a good situation for some people.
The Zambians have to wake up and do the necessary for stop this incredible situation !
Perhaps it will be better if foreign companies give taxe to Zambia and dividends to zccm-ih...
In 2004, Zambia only received $600 mn in 'donor aid'. It should have waved goodye to all donor aid, and taxed the mines for $1200 million - no debt, no strings attached, no inflation (in fact there would have been Kwacha deflation).
But the comportment of the GRZ seem tell us that this situation is a good situation for some people.
I was shocked to find the names of Situmbeko Musokotwane and Godfrey Beene among ZCCH-IH directors.
They are in a prime position to know what is going on inside the company. What a hypocrites.
To update the list of directors. From ZCCM-IH's website, the names of the current non-executive directors as indicated below:
Mr A. J. Lungu - Non-Executive Chairman
Mr L. Ndalamei
Dr D. H. Kalyalya
Dr G. M. Beene
Dr S. M. Bwalya
Mr P. Mumba
Mr O. B. Munyenyembe
"I was shocked to find the names of Situmbeko Musokotwane and Godfrey Beene among ZCCH-IH directors. "
I am also shocked and understand why there is so much silence from the government.
I understand now why the GRZ refuses to publish the annual accounts of ZCCM-IH to IFRS since 2006!
I understand to why the finance minister would not confirm the answers to parliamentary question from Mr simusa on ZCCM-IH (24 march 2010)
With these accounts standards IAS 39, this situation will be clear to all zambiens
ZCCM-IH has a lot of profits, but receives rediculous dividends from his assets.
With these benefits, the foreign groups can developp their business in other countries...
With these benefits, the foreign groups can develop their business in other countries...while in the same time, zambian family can't give eat to their childs.
The foreign groups are happy with this situation because without money Zambia will not grow and will remain dependent on them.
The Zambian is no longer an independent country, zambia is a subsidiary of the foreign groups.
Zambians should change all that.
What’s going on with ZCCM-IH? What does the government hide us?
The lack of answer to questions posed by a member of the parliament is totally unacceptable. Unheard of in a republic, unless it was a banana republic!
What's under the lid placed on ZCCM-IH that Rupiah Banda and his ministers want to hide? These opaque practices are absolutely abnormal and leave room for every suspicion.
R Banda is a great conjurer...
corruption, swindle, spoliation of Zambian assets by foreign companies appear as jobs for Zambian slaves...
and fine words as divine truth
Zccm-ih is an example among many others, but as zccm is THE national company, it is the symbol of dishonesty...
WATU... open your eyes !
MrK
Do you have more "interesting" informations about Situmbeko Musokotwane and Godfrey Beene ?
Thx
MrK
Do you have more "interesting" informations about Situmbeko Musokotwane and Godfrey Beene ?
Thx
Today :
Zambia Miner Unions Urge Government To Stem Influx Of Expat
Zambia Miner Unions Urge Government To Stem Influx Of Expatriates
DOW JONES NEWSWIRES
Zambia's miner unions have asked the government to restrict the increasing influx of expatriates in the country's copper mining sector in order to guarantee jobs for local miners, Miners Union of Zambia said Wednesday.
Oswell Munyenyembe, the MUZ general secretary, said in a statement that the government should prevail upon copper mining companies and restrict the influx of expatriates who are threatening the jobs of locals.
"We do not know the special skills that these expatriates hold that are superior to the skills held by Zambian artisans and operators."
He also said over the 80 years that Zambia has run its mines, many mining skills have been built and there was no need to import expatriates.
Munyenyembe singled out Konkola Copper Mines and Mopani Copper Mines, the country's leading copper mining companies for continuing to employ a large number of expatriates. He added over 10 years too many Zambians had lost their jobs and "more cannot be allowed to be replaced by imported, often inferior expatriate labor."
Company officials couldn't comment immediately.
KCM is a unit of London-listed Vedanta Resources PLC (VED.LN), while Mopani is a joint venture of Swiss company Glencore International AG and Toronto-listed First Quantum Minerals Ltd. (FM.T).
According to Munyenyembe, although the unions have held talks with government over the issue, no progress has been made towards protecting local jobs.
He added that the unions had got information that First Quantum Minerals was in the process of bringing in more artisans and operators from Indonesia.
First Quantum operates Kansanshi Copper Mines, the country's largest single copper mine by output. A company spokesman couldn't comment immediately.
The copper mining sector is the single largest employer in Zambia, Africa's top copper producer.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615
For the foreign groups Zambia is eldorado
Little taxes
no dividends for ZCCM-IH
expatriates for the best job
Zambia is eldorado for these comapnies, like a dream !
Enkormoi,
And Oswell Munyenyembe is a director on ZCCM-IH, so we can be pretty sure that the non-payment of either taxes or dividends by the mines is not coming from him. Gofrey Beene on the other hand...
MikeTe,
" Do you have more "interesting" informations about Situmbeko Musokotwane and Godfrey Beene ? "
Ex-miners accuse govt of compromising MUZ
Written by Zumani Katasefa in Kitwe
Tuesday, April 21, 2009
... And Mwimbe explained that the K1 million paid to the 13 union officials was a substance allowance for safeguarding property at the mine.
He said the money was given to them last week by permanent secretary in the Ministry of Mines Dr Godwin Beene after a meeting with Mwale.
“Six meetings were held with miners in both Roan and Mpatamato, at all the two meetings, the workers accepted that a team of 24 mine officials be part of the team that was safeguarding the property at the mine,” he said.
Mwimbe said a contract was then signed with LCM that the company would be meeting allowances for eight workers while 13 others would have their allowances covered by ZCCM-IH.
Make of that what you wish. A million kwacha is not a lot of money, but why is the PS of the Ministry of the Mines making any payment to MUZ members?
Thx MrK for these informations
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