Milingo Lungu has resigned from his position as Konkola Copper Mines Plc Provisional Liquidator with immediate effect.
According to his resignation letter dated March 17, 2022 and addressed to KCM official receiver Natasha Kalimukwa, Lungu did not give any reasons for his decision.
“This serves to inform you that I have with immediate effect resigned as Provisional Liquidator
of Konkola Copper Mines Ple pursuant to Section 67(7) of the Corporate Insolvency Act No. 9
of 2017,” wrote Lungu.
On March 10, Kalimukwa suspended Lungu after ZCCM Investments Holdings lodged a complaint relating to contract and financial mismanagement.
“The Official Receiver has suspended Konkola Copper Mines (KCM) provisional liquidator Milingo Lungu pending the outcome of an inquiry instituted pursuant to section 69(1) of the Corporate Insolvency Act No. 9 of 2017.
Mr. Lungu has been notified of the suspension, which has been made following receipt of a complaint lodged by ZCCM Investment Holdings PLC relating to contract mismanagement, financial mismanagement, and asset mismanagement,” stated Kalimukwa.
“It is important to note that Mr. Lungu’s suspension shall neither stop the liquidation process nor lead to a handover of the mining operations to Vendata Limited.”
However, after the suspension, Lungu’s lawyer, Makebi Zulu warned that anyone who would stop his client from working would be in contempt of court.
“He is still the liquidator. Mr Milingo was appointed by the court and no person can set aside a court order or vary the contents of the court order, unless the court itself. So, the administrative general and the official receiver cannot take the place of the court and say ‘you are suspended’. To suspend is to mean that, don’t carry out the functions that have been given to you by the court. Instead, what they ought to do if at all there is any allegation, is to conduct an inquiry, if at all there are any findings, she makes an application to court either to recommend the removal or whatsoever recommendation that they may make. But not by letter can she remove a liquidator because the person who appoints is the person who has the power to remove and in this case, he was not appointed by the administrative general,” said Zulu.
“We are not taking action; we have asserted our client’s rights. If they want to take action, they should go to court themselves. But he continues being the liquidator and he will continue working. And anyone who stops him from working will be in contempt of court.”
Lungu was appointed KCM provisional liquidator in May 2019 after ZCCM Investment Holdings PLC asked the Lusaka High Court to grant them an order to appoint him to that position.