Konkola Copper Mines (KCM), under the charge of provisional liquidator Milingo Lungu, has appointed Messrs Makebi Zulu Advocates to represent the mining company’s interests in the liquidation case.
And Vedanta Resources Holdings Limited, the intended second respondent, has appointed Mulenga Mundashi Kasonde Legal Practitioners and Corpus Legal Practitioners, as its advocates.
“Take notice that the respondent has appointed Messrs Makebi Zulu Advocates as their advocate. Kindly note that all correspondence relating to this matter must be addressed and sent to the address below,” read the notice of appointment as advocates filed on Wednesday.
“Take notice that the intended second respondent (Vedanta Resources Holdings Limited) has appointed Mulenga Mundashi Kasonde Legal Practitioners and Corpus Legal Practitioners whose address of service is indicated below.”
On Tuesday, Lusaka High Court Judge Anessie Banda-Bobo granted ZCCM-IH an order to appoint Milingo Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of KCM.
In a Winding Up petition filed in the Lusaka High Court, Tuesday, ZCCM-IH told the Court that since KCM began operations, it had only paid US$58 million dividends to government and it had been involved in tax evasion schemes.
“Since the company commenced operations in 2004, it has only declared total dividends of US$58 million out of which it has refused, neglected or ignored to pay around US$10 million which was declared sometime in 2013 despite the sun having been accounted for in the financial statements. The company has failed to develop the mining areas in Chingola and Chililabombwe and carry out mining operations with due diligence in accordance with the program of mining operation in breach of Section 35(1)(b) of the Mines and Minerals Development A t 2015,” read the petition.
“The company is being managed in a manner detrimental to the interests of the Petitioner…the company is engaged in massive tax evasion through transfer mis-pricing and other unscrupulous means.”
And in an affidavit in support of application to appoint provisional liquidator, acting ZCCM CEO Mabvuto Chipata stated that KCM had not been declaring dividends and had neglected to clear its debts.
The inter-partes hearing of the application concerning the appointment of Milingo Lungu as provisional liquidator is scheduled to be heard today, May 24.