Announcements

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Orphans at Misisi

Orphans at Misisi
Orphans at Misisi
The Annual General Meeting of the Zambia Society Trust will be held on Saturday 23rd November, at the Zambia High Commission, 2 Palace Gate, London W8 5NG.

The business meeting is at 12.30, followed by a buffet lunch. The afternoon session starts at 14.00, where Mathias Mbewe will describe his recent visits to some of the welfare projects that we support, followed by an illustrated talk by Dr Lawrence Dritsas on the Life and Legacy of David Livingstone.

Lawrence Dritsas is from the University of Edinburgh Centre of African Studies. He gained his PhD with a study of David Livingstone’s Zambezi Expedition, and he has researched and published widely on Livingstone’s legacy in Central Africa, and on his scientific achievements. He is a founding member of the Lembani Trust, a Zambia-based charity that supports educational publishing in Zambia. Recently he has contributed to two television documentaries, The Scots Who Found the Modern World (BBC Scotland) and The Lost Diaries of David Livingstone (National Geographic). He was an advisor for the recent Livingstone exhibition at the National Museum of Scotland, and contributed to the book which accompanied the exhibition “David Livingstone – Man, Myth and Legacy”.

If you would like to attend this meeting, please contact:
Jennifer Healy, Secretary of the Zambia Society Trust, 17 Sherwood Close, Kennington, Ashford, Kent TN24 9PT or jennifer.healy@zambiasocietytrust.org.uk.

If you require lunch, please send a cheque for £12 payable to the Zambia Society Trust.

WEBSITE: www.zambiasocietytrust.org.uk

Donated Ambulances to Kabwe General Hospital
 Central Province Permanent Secretary Edwidge Mutale receives the Keys

Central Province Permanent Secretary Edwidge Mutale receives the Keys
Dennis reading a Speech
BMR Manager for Africa Dennis Human reads a Speech on behalf of BMR Chairman Masoud Alikhani
http://ukzambians.co.uk/home/wp-content/uploads/2013/10/Kabwe-Central-Member-of-Parliament-Kapyanga-Giving-Vote-of-Thanks.jpg
Kabwe-Central-Member-of-Parliament-Kapyanga-Giving-Vote-of-Thanks
Donated Ambulances to Kabwe General Hospital
Donated Ambulances to Kabwe General Hospital
 BMR Chairman - Masoud Alikhani - photo

BMR Chairman – Masoud Alikhani – photo

Enviro Processing Limited (EPL) , a subsidiary of Berkeley Mineral Resources (BMR), officially donated two ambulances to Kabwe General Hospital at a handover ceremony on Monday, 7th October 2013.

Mr. Masoud Alikhani, the Chairman of Berkeley Mineral Resources Plc said:

” Enviro Processing Limited is fully aware that Zambia has been experiencing increasing number of road and other accidents resulting in injury and sometimes death. The donated ambulances are in response to the dire need for appropriate and reliable referral transport at Kabwe General Hospital”.

In receiving the donation, the Guest of Honour, Central Province Permanent Secretary Edwidge Mutale said:

“This is indeed a day of celebration. Not only are we receiving two ambulances but we are also forming a new alliance with Enviro Processing Limited, a subsidiary of Berkeley Mineral Resources Plc.

“From the onset, the re-opening of the mine and processing of tailings promise to be of great benefit to Kabwe and the surrounding districts as can be noted from the donation we are receiving today.  Apart from such community support programmes, EPL’s activities will lead to the creation of employment and the cleaning up of the environment.”

Berkeley Mineral Resources Plc is listed on the AIM Market of the London Stock Exchange. BMR has been acquiring the surface rights and licences over the Kabwe Mine site since 2008. From 2011, these assets have been vested in EPL. EPL will start processing the dump material, removing the contained metals in an environmentally sustainable manner and remediating the land. This will result in the elimination of a major environmental and health hazard.

BMR Chairman, Mr. Alikhani in his speech read on his behalf by BMR General Manager for Africa, Mr. Dennis Human, assured the Permanent Secretary that Enviro Processing Limited will always do its best to help and assist the people of Kabwe in its various programs of social responsibility.

“We very much enjoy working in Zambia and look forward to doing so for many more years to come”. He said.

Kabwe Central Member of Parliament Hon Kapyanga in his vote of thanks expressed gratitude to Mr. Alikhani at the donation of ambulances.

Hon Kapyanga said:

“During my tour of the hospital, it came to light that most of the activities were hampered due to lack of transport. In view of that, my office has been trying to find help to compliment government’s effort. Hence coming across EPL which has proved to be an investment company with a difference”.

He said that the donation has come at a time when Kabwe General Hospital has been at the core of handling most of the fatal road accidents that have been taking place between Kapiri Mposhi and Lusaka.

Notes to Editors:

Berkeley Mineral Resources Plc (“BMR”), a company listed on the London Stock Exchange Alternative Investment Market (AIM), has been acquiring surface rights and licenses over the Kabwe Mine site and Zinc and lead tailings since 2008. Since 2011 these assets have been vested in Enviro Processing Limited (“EPL”), its 100% -owned Zambian subsidiary, which is responsible for carrying out all field operations on the site. EPL is currently waiting for environmental approval from Zambian Environmental Management Agency to start its tailings processing activities.

For press contact Dennis Human – BMR General Manager for Africa on +260 2249935

 

The Jesuit Centre for Theological Reflection (JCTR) welcomes Government’s recent announcement from the Ministry of Information that a consultant has been engaged to harmonise the Draft ATI Bill with “13 other existing pieces of legislation. This is, indeed a very necessary exercise if this important piece of legislation is to realise its intended purpose. As JCTR, we remain committed to championing the enactment of the law and to work collaboratively with the government to ensure that the law is passed without any further delays. We appreciate the government’s effort in updating the public on the status of the bill this far and we want to believe that every explanation we have received so far is valid. “The only challenge we have is that these explanations seem to be isolated and somehow not foreseen”, says Sr. Kayula Lesa.
We wish to seize this opportunity to recap the explanations advanced by government since 2011. After the legal experts engaged by government drafted the 2012 ATI Bill, the Bill was scheduled to be launched on 21st of June 2012. However, the launch didn’t take place, as we were informed that then Minister of Information had travelled to the Copper belt for a funeral. The launch was rescheduled to 26th June, 2012 but yet again cancelled this time because the government needed further consultation from the office of the Attorney General. After the second cancellation there was a long silence on the status of the bill after which Vice President, Hon. Guy Scot, announced at the 2012 Press Freedom Committee of the Post‘s Lucy Sichone and Bright Mwape Award presentation that the bill would be tabled before Parliament in February, 2013. And just about a month ago when the Civil Society Coalition on ATI engaged government on the status of the bill, the explanation was that the ATI bill was not tabled before Cabinet because the then Minister of Information and Broadcasting, the Late Kennedy Sakeni (May God Rest his Soul) was ill. With all these explanations that we have received from the government, suddenly the issue is now that of harmonization.
Surely, we would like to believe in the good will of the PF government but being human beings, we are also bound to be sceptical because, we have been subjected to endless explanations in regard to the ATI bill. Is government implying that the drafters they engaged in 2012 were so blind to the existence of other Laws that stand in conflict or in tandem with the ATI bill? We were at one point informed that the draft bill was with the Ministry of Justice. One would like to think that one of the things the Justice Ministry looked at was whether the draft was in harmony with other laws. The issue of harmonization comes at a stage when we would have expected the bill to be before parliament having been reviewed by a number of experts including government Ministries.
There has been too much rhetoric surrounding the ATI bill and the Speaker of the national Assembly is in order to demand a ministerial position. Should the public take to the streets like we have seen in the recent past from the PF cadres, to show how much Zambia needs the ATI Law?
Government needs to take stock of their real position and communicate that position to the Zambians because it is our right to know whatever that position is. In fact it’s in government’s own interest to show real commitment towards the completion of this important process and endeavor to present the bill to parliament within the current parliament sitting as promised in their election campaign.
This far, there have been too many positions and it is hard to keep track of what the real issue is about the Access to Information bill. ‘We need to know the truth and the time is now ‘, says Sr Lesa.

Dear Brothers and Sisters in Christ

It is with sadness that I announce the passing on of Mr Christopher Kawimbe on 13th September 2013, in Peterborough. MHSRIP.

The deceased is the husband of our sister in Christ Mrs Kawimbe and a nephew to Fr Mukuka. Please remember the deceased and his family in your prayers.

Mrs Kawimbe can be contacted on: 0766 850565.

God bless,

Christabel Kunda

Republican Vice-President Dr Guy Scott

Dr Guy SCOTT
Vice President of Republic of ZAMBIA
LUSAKA, ZAMBIA
April, 6th 2013

Open letter to your Honour, the Vice President of Zambia, Dr Guy Scott,

Dear your Honour,

We are writing to you as long-term minority shareholders of Zambia Consolidated Copper Mines –
Investment Holding (ZCCM-IH), the investment holding company of the Zambian Government. Along
with a large number of shareholders of the company, we very much welcomed the victory of the
Patriotic Front after years of opacity and doubtful governance of the company with the hope and
expectation of more transparent and dynamic governance and management for the benefit of all
stakeholders : shareholders, the Government of the Republic of Zambia (GRZ) and the Zambian
people. We apologise for the length of this letter, but there is a great deal to be said.
Early last year our expectations were raised further when ZCCM-IH launched a call for nominations to
elect a representative of minority shareholders to the Board of ZCCM-IH (see Appendix 1). The GRZ
holds 7 seats on the board and the nomination of an eighth member to represent minority shareholders
was seen as a significant effort improve the corporate governance of the company by letting minority
shareholders have their say in company matters in proportion to their holding (12.3% of ZCCM-IH
shares traded on Paris Euronext, the London and the Lusaka Stock Exchanges).
The first part of this letter concerns the continued and persistent bad governance of
ZCCM-IH with respect to minority shareholders as demonstrated by the way this
election of the eighth board member has been handled.
The minority shareholders made a very strong and co-ordinated response to this call despite starting
from the considerable disadvantage of not being recognised as registered owners of ZCCM-IH shares.
Indeed, the Company Secretary, Mr Chabala uses an obsolete Register of Shareholders which does not
list the owners of any ZCCM-IH shares bought through the Paris Euronext Stock Exchange (the most
active of ZCCM-IH’s markets). Strangely, shares of the old ZCCM bought decades past in the UK and
whose owners died many years ago are listed as registered shareholders. To compound this failing, Mr Chabala refuses to recognise official bank or broker’s certificates attesting to the ownership of ZCCMIH
shares. We have repeatedly asked the Company Secretary to correct this failure and have explained
the procedure to be followed to update the register, without success. As a consequence of this
unacceptable attitude, most minority shareholders are denied their legal right to attend company
meetings or to vote directly on company matters.
In order to respond to this “Call for nominations” minority shareholders had no choice but to adopt a
very laborious and indirect voting procedure (via their stockbrokers, banks and Euroclear, the
International Share Depository that records all share ownership and transfers) to ensure that their votes
were registered.
Unfortunately, but not surprisingly to us, the company has refused to make public the result of this
vote (even though we know very well that the minority shareholders gave a clear mandate to their
chosen representative by a very large majority of the votes submitted). Since than the Executive
Chairman Mr Wila Mung’Omba, in a totally unacceptable act of bad governance, has postponed
indefinitely the nomination of the eighth board member to represent the minority shareholders.
We do not know the reasons why the Executive Chairman wants to keep minority shareholders
excluded from exercising their democratic rights in matters of governance of the company of which
they, alongside the GRZ, are the owners and who have the same reasons to make sure that this
company is properly run for all the stakeholders. We fear that the Executive Chairman may be
planning a biased and unethical conversion of government debt into ZCCM-IH shares (see appendix 2)
leading to severe dilution of the minority shareholding thus making the nomination of the eighth board
member no longer an issue and giving him the freedom to run the company single-handedly. The
opacity of the companies intentions and the past years of poor (or corrupt) governance give credence
to even the worst scenarios.
Having exhausted all other avenues of intervention (letters to successive Chairmen, the Zambian
Securities and Exchange Commission (SEC), the Lusaka Stock Exchange etc.), we humbly ask for
your help to ensure that the legal rights of the Minority Shareholders of ZCCM-IH are upheld and that
the company finally applies the rules of good corporate governance. The credibility of foreign
investment in Zambian securities is surely weakened by the failure to ensure high standards of
governance of this most emblematic government-controlled Zambian company and can only bring
dishonour to the Zambian Government.
The second point of this letter concerns the ineffective management of the company
that has led to ZCCM-IH and through it the GRZ and the Zambian people being
cheated and short-changed by the foreign mining companies in which it is invested.
We would like bring to your attention just a few of these issues.
−  According to the international auditors Grant Thornton, Mopani Copper Mines fraudulently
avoided $175 million in corporation tax to the ZRA in the 5 years from 2003 to 2008, by
various fraudulent procedures including transfer pricing to the Swiss parent company Glencore
and misrepresentation of production figures and production costs. In this same period ZCCMIH
also lost $50 million per year in profits from Mopani (see appendix 3). Why has ZCCM-IH
together with the Government and the Zambian Revenue Authority failed to take any action
whatsoever to recover these fraudulent losses? Why has no pressure been put on Mopani to
come clean or otherwise lose its mining licence? Recovering these fraudulent gains from
Glencore along with due penalties would make a big difference to the well-being of the
Zambian people as well as dissuading other companies from doing the same.
As Vice President you said “We don’t want to destroy the cow that produces the milk but we
want to make sure that you get your share of the milk” (see appendix 4). In this case why do
you let Glencore take your share of the milk?
Why has the new audit of mines initiated by the former Mines Minister Wilbur Simuusa not
been finalised and made public (see appendix 5)? And why has the current Minister of Mines
Yamfwa Mukanga failed to take action on this scandalous situation, whereas in 2011, he stated
“no government official must protect Mopani Copper Mines for violating the law” and
“Mopani should be punished” (see appendix 6).
−  In 2007, the Zambian Task Force on Corruption investigated in a fraudulent loss of $ 100
million at the expense of ZCCM-IH. These investigations helped to identify those responsible
as well as the banks that received the stolen funds (see appendix 7), but as surprising as it
sounds, no action was taken! All the investigations that were started during the presidency of
the previous President Levy Mwanawasa have been stopped. Why were they not taken up since
the election of the new President 18 months ago?
−  ZCCM-IH hold a 20% stake in Kansanshi Mining, the most profitable Mining Company in
Zambia. The ZCCM-IH stake in Kansanshi currently represents $550,4 million in undistributed
profits attributable to the Zambian holding (see appendix 8), a sum that increases by more than
$100 million per year. However the majority owner First Quantum Minerals (FQM) insists on conserving this money as a legal reserve and only distributes derisory dividends to ZCCM-IH
in spite of having made more than $2,5 billion in net profits in recent years and having totally
recovered its investment in the mine. Why does the ZCCM-IH management and the GRZ fail
to put pressure on FQM to distribute fair dividends to ZCCM-IH and so get its proper yield
from the most important investment held by ZCCM-IH on behalf of the GRZ? As this scandal
continues, FQM is using Zambia’s money to build the world’s largest mining corporation by
buying other mining companies outside Zambia. When will the GRZ take action to get its fair
share from its vast mineral wealth and put a stop to foreign companies plundering its
resources? What will the Zambian people have to live on once these resources are depleted?
Without all these management failures, ZCCM-IH would have been able to register income of more
than $1 billion and so refund the long-standing debt of $425 million to the GRZ as well as paying
dividends to shareholders (including the GRZ) and investing in the Zambian economy. Had ZCCM-IH
benefited from good governance, good management and strong support from its majority shareholder
the GRZ, to make sure that it got its fair share from its mining investments, it would now be a
flourishing company providing wealth, employment and pride for the Zambian People.
President Sata once said “Zambia was tired of moving with a “begging bowl” from one developed
country to another as the country had the capacity to become self-reliant and lift its millions of
unemployed youths out of poverty if its vast natural resources were exploited to the benefit of
Zambians”. He added “Time has come for us to develop ourselves and let others come to beg from us
because we have more resources than the people we are begging from” (see appendix 9).
It is a therefore extremely disappointing that the Executive Chairman Willa Mung’Omba has not put
all his efforts into ensuring that ZCCM-IH lives up to the expectations of President SATA.
This lack of action, hesitations, incomprehensible decisions and lack of transparency only serve to
create suspicion about the intentions of the company and the government-appointed officials that run
it.
We acknowledge however, that since the nomination of the CEO Mukela Muyunda in June 2010, the
management has made unprecedented efforts to catch up on no less than 5 years arrears in the
publication of the company’s accounts. We encourage him to finally get the the accounts up to date in
2013 and to make sure, as promised, that the company’s assets are listed in the balance sheet at fair
value. Until now these have been incomprehensibly listed in the company balance sheet at minimal
cost valuations (approx. year 2000), which massively undervalues the company and disastrously
distorts its balance sheet.

Changes have also been promised since more than 40 shareholders sent emails in November 2012 to
the executive Chairman W. Mung’Omba expressing their dissatisfaction about the management of the
company. We now fear that these may be hollow promises to calm the reactions of the shareholders.
Only time will tell. In any case these hypothetical promises cannot to hide the woeful performance of
ZCCM-IH.
At a time when the GRZ is considering quoting other para-public companies (see appendix 10) and
inviting Zambian citizens to invest their hard-earned money in such companies, should it not first take
a close look at its most emblematic para-public company and ensure that ZCCM-IH sets an example
that others can follow? There is still so much to be done here.
The minority shareholders have exactly the same interests as the majority shareholder, the GRZ: that
ZCCM-IH becomes one of the leading companies in Africa. It has the means to achieve this, but so far,
as a result of weak direction, it has lacked the will to make significant progress.
Your honour Mr Vice President, on several occasions you have stated your intention to fight
corruption, underhand deals and bad practices. We therefore humbly ask you to consider taking an
active part to ensure that the corporate governance and management of ZCCM-IH are of the highest
order and above suspicion so that the Zambian people can once again be proud of this flagship
company and reap the benefits that should be theirs. You can be sure to count on the minority
shareholders and their future representative to do all they can to assist you in this endeavour.
We thank you for your consideration.
Minority Shareholders of ZCCM investments Holdings
Copy to : – French Minister of Foreign Affairs
– Deputy Finance Minister Miles SAMPA

APPENDIX
Appendix 1
ZCCM INVESTMENTS HOLDINGS PLC
CIRCULAR TO SHAREHOLDERS
16th March 2012
1. Introduction
Article 72 of the Articles of Association of ZCCM Investments Holdings Plc (ZCCM-IH) provides that
Directors shall be not less than seven and no more than eight. Following consultations with the
majority shareholder, it has been agreed that the eighth director on the ZCCM-IH board should be a
representative of the minority shareholders who together hold 12.4% of the issued capital of ZCCMIH.
The mandate to allow the minority shareholders nominate a person to represent them on the ZCCM-IH
Board has been given in an effort to promote good corporate governance in the Company
2. Purpose of Circular
The purpose of this Circular is to provide an equal opportunity to all minority shareholders to make a
nomination for the person/institution they wish to represent them as director on the ZCCM-IH Board.
The appointment of such a director is anticipated to be made at the next Annual General Meeting of
the Company at a date to be advised or failing that the one that follows the next.
3. General criteria for nominees
Any person/institutions nominated as candidate to be appointed as director representing minority
shareholders on the ZCCM-IH Board shall be one that satisfies the following;
• Not be prohibited by Zambian Statute from acting as Director,
• Not have a receiving order made against him or her,
• Not have any order made by any court claiming jurisdiction in that behalf on the ground of mental
disorder for his/her detention or for appointment of a guardian or for appointment of a receiver or other
person to exercise powers with respect with his property of affairs,
• Not prohibited by the Articles of Association of the Company.
4. Nomination
Shareholders are invited to send in nominations using the attached Nomination Form to the named
office at the address below on or before 18th May 2012. Any nominations received after 18th May
2012 will not be accepted. Nominations can be submitted by physical mail, fax or email;
The Company Secretary
ZCCM Investments Holdings plc
lst Floor Mukuba Pension House
5309 Dedan Kimathi Road PO Box 30048 Lusaka, 10101, Zambia
Fax: +260211220727
+260211221057
Email: corporate@zccm-ih.com.zm cchabala@zccm-ih.com.zm
5. Contact for clarifications
For any clarification please contact the following on the contact details listed :
Chabby Chabala Company Secretary
Phone: +260 211 220540
+260 211 228833
Email: cchabala@zccm-ih.com.zm
C CHABALA COMPANY SECRETARY
7

Appendix 2

http://www.zccmih.

com.zm/index.php?option=com_content&view=article&id=133&Itemid=122
CAUTIONARY ANNOUNCEMENT
Lusaka – Zambia
Sponsoring Broker
STOCKBROKERS ZAMBIA LIMITED
[MEMBER OF THE LuSE and REGULATED BY THE SECURITIES AND EXCHANGE
COMMISSION OF ZAMBIA]
The market and shareholders are advised of the following new developments relating to the
company.
Restructuring of the ZCCM-IH Balance Sheet
ZCCM-IH currently has significant loans mainly arising from the restructuring programs
undertaken prior to and during the company’s privatisation in 2000. The majority of these
loans are owed to the Government of the Republic of Zambia (“GRZ”) and continue to be
carried on the books of the company. As at 31 March 2011, the ZCCM-IH Financial
Statements reflected loans amounting to K2, 139 billion (approximately US$425 million) owed
to the GRZ.
These loans have placed a significant burden on the company with the result that ZCCM-IH
has had a weak balance sheet from 2000.
The company has been in discussions with the GRZ over these loans and recently the GRZ
accepted proposals to convert all or part of the loans to equity through a rights issue
transaction. The main objective, amongst others, of the proposed debt-equity conversion is to
clean the ZCCM-IH balance sheet.
ZCCM-IH is currently liaising with the GRZ to agree the terms of the transaction.
ZCCM –IH shares are listed on the Lusaka Stock Exchange (LuSE) and also traded on the
Paris Bourse in France.
In compliance with the Securities Act, Cap 354 of the Laws of Zambia and the Listing Rules
of the LuSE, further announcements will be made to inform the shareholders and the
investing public as the transaction progresses.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s
securities until a full announcement is made.
12 December 2012
Appendix 3
Mopani Pilot Audit Report

http://www.steelguru.com/metals_news/Zambia_lost_an_estimated_income_of_USD_175_mi

llion_in_tax_revenue_between_2003_and_2008/202695.html
Zambia, Africa’s largest copper producer lost an estimated income of USD 175 million
in tax revenue between 2003 and 2008 from tax avoidance practices’ by Glencore AG
International owned Mopani Copper Mines.
United Kingdom based Non Governmental Organisation, Action Aid said in its pilot audit by
Grant Thornton, Zambia and Econ Poyry, a Nordic based global consulting and engineering
company which revealed glaring irregularities in production and revenue figures that Mopani
Copper Mines submit to Zambia Revenue Authority for tax administration, most which hinge
on its links to Glencore AG international.
(…)
Zambia continues to lose on dividends from Mopani Copper Mines as the Glencore
owned mine never declare any dividends to Zambia Consolidated Copper Mines
Investment Holdings. During the period under review, Action Aid estimates that the
Zambians government lost an estimated USD 50 million per year in undeclared
dividends to ZCCM IH by Mopani. Mopani Copper Mines, according to Action Aid was
avoiding declaring any dividends by ZCCM IH through transfer pricing and over
statement of the costs.
——
Mopani is dodging taxes – CSOs

http://www.postzambia.com/post-read_article.php?articleId=18096

The irregularities at Mopani hinge on its relationship with its parent company, Glecore AG, of
Switzerland and cover practices such as alleged transfer pricing, inflated operation costs,
outright under-pricing of copper for exports and irregular hedging practices.
Commenting on the revelations which also observed that the government lacked capacity to
verify figures submitted by mining firms to ZRA, the civil society organisations called for
immediate recovery of all lost tax revenue, with interest, from Mopani and other mining
companies who might be found wanting by the ongoing audits.
The organisation which comprised Oxfam, Counter Balance, Eurodad, Tax Justice Network
and Centre for Trade Policy and Development (CTPD) stated that additional fines should be
imposed on mines not cooperating with government’s audit efforts.
“Mopani Copper Mines, a Swiss-owned mining company, funded with EU development
monies, is siphoning its profits out of Zambia without paying taxes. Instead, it is putting the
money into a tax haven, Switzerland. Mopani Copper Mines is dodging taxes in Zambia,” the organisations stated.
The organizations also questioned Dr Musokotwane’s inertia to act despite being given the
report last year in which auditors expressed frustrations in carrying out the exercise which
was within provisions of Zambia laws.
“The auditors found that MCM resisted the pilot audit at every stage. The company’s
book-keeping was incomplete, several legally required documents were lacking and
the general ledger analysis showed several loopholes and couldn’t be matched with
the trial balance,” the organisations stated. “The auditors also found an inexplicable
doubling in the costs of the company between 2005 to 2007, which shows that the
company has been artificially inflating its costs to minimise the profits shown in their
books so that they could pay less taxes. Despite the fact that the audit was finished in
the fall of 2009, it was kept secret.”
————-
Mopani pilot audit reveals tax payment irregularities

http://www.postzambia.com/post-read_article.php?articleId=18078

“…we believe that the related party sales and pricing mechanisms are not in
accordance with the agreement disclosed, or arms length principle,” the audit report
stated. “This should have impact on the tax assessment for the period under review.”
The audit revealed that Glencore AG, the purchaser, determines prices and that some
copper from Mopani is sold under an “old” contract with copper in one instance being
sold at 25 per cent of official prices at LME.
“The agreement is entered into with Glencore UK Limited, but the actual sale transactions
disclosed are, as far as we have been able to verify with Glencore International AG,” the
audit revealed. “The agreement mentioned is in fact an agent agreement, stating that
Glencore is to operate as sole sales and marketing agent for Mopani. The sales are to be
made at official LME London Metal Exchange copper grade settlement quotation averaged
over the relevant quotation period plus premium or less a discount realisation charge for
freight.”
The audit revealed that despite Mopani selling copper grade +1 in consistency with LME
prices, Glencore has consistently bought copper at prices below the market value
—–

http://www.amisdelaterre.org/IMG/pdf/pilot_audit_summary_eng-2.pdf

The costs and losses of the company are abnormally high
(…)The auditors concluded that “ the Mopani cost structure cannot be trusted to
represent the true nature of the costs of the Mopani mining operation.”
(…)
Transfer pricing : Mopani is selling its production to its mother company Glencore at a
low price allegedly to move taxable revenues out of Zambia.

(…)
The auditors conclude :« There is . . . reason to recognize the ‘hedging’ of Mopani (done
with an internal party or on volumes that is sold internally) as moving taxable revenue
out of Zambia, and thus there is reason to disallow the « hedging » / use of derivatives
as not being arm’s length under the OECD transfer pricing guidelines. »
NGOs report mining giants Glencore and Quantum alleging fiscal crime in Zambia

http://owni.eu/2011/04/12/exclusive-ngos-report-mining-giants-glencore-and-quantumalleging-

fiscal-crime-in-zambia/

http://fr.scribd.com/doc/48560423/CTPD-Fools-Paradise-Zambia-Mining-Tax-Regime-

Briefing-Paper-final
——-
Appendix 4
PF still has teething problems – Kabimba

http://www.postzambia.com/post-read_article.php?articleId=25772

And Dr Scott told the cadres that the government would treat Mopani management fairly
because they were not unfair or mad people.
“We don’t want to destroy the cow that produces the milk but we want to make sure
that you get your share of the milk,” said Dr Scott.
He said the PF wanted to run Zambia properly.
—-
Appendix 5
Zambia to audit miners, believes up to $1 bln owed

http://www.reuters.com/article/2012/02/07/ozabs-zambia-mining-taxesidAFJOE8160AL20120207

(Reuters) – Top African copper producer Zambia plans to audit all its mining houses in a bid
to dig for back taxes of up to $1 billion it estimates it is owed, its mines minister said on
Tuesday.
Such a policy by the government of populist president Michael Sata would widen an initiative
launched by the previous administration and comes against the backdrop of a surge of
resource nationalism across Africa and Zambia’s own doubling of copper royalties to six
percent.

“We need to look at what the mining industry has been giving. What we have been told by the
World Bank and others is that we did not collect adequate tax,” Wylbur Simuusa told Reuters
on the sidelines of an industry conference in Cape Town.
Asked what he believed was owed, he said: “By our calculations it might be between $500
million and $1 billion.”
Simuusa said the government planned to start with the big mining houses and said one audit
was imminent but he declined to name the company.
“So we are now actively pursuing this. We intend to audit all the mining houses but we’ll audit
the big ones first,” Simuusa said.
According to UK charity Christian Aid, more than half of the copper Zambia exported in 2008
was destined for Switzerland, but according to Swiss import data almost none of this arrived
and Simuusa said this trend continued.
This raises a number of transparency issues and activists say copper exported to Switzerland
on paper often fetches a lower price than it would if it was exported elsewhere.
“Once it leaves, where does it go? We don’t have a clue,” he said.
Copper producers operating in the country include Canada’s First Quantum Minerals,
London-listed Vedanta Resources and Glencore International AG.
Miners in Zambia have themselves said they want independent international auditors to verify
they are paying all the taxes that they should.
—–

Appendix 6
Mopani should be punished for tax evasion – Mukanga

http://www.postzambia.com/Joomla/post-read_article.php?articleId=18306

MOPANI Copper Mines must be punished for evading tax, says a member of
parliament in whose constituency the mining firm operates.
But finance minister Situmbeko Musokotwane says the government will wait for the complete
mining audit report for the mines before taking action.
And Musokotwane says former finance minister Ng’andu Magande should outgrow his
sadness and stop issuing statements against his ministry.
Yamfwa Mukanga, who is member of parliament for Kantanshi Constituency in
Mufulira district, was commenting on the pilot audit on Mopani Copper Mines, which
revealed glaring inconsistencies in production and revenue figures the mine submits
to the Zambia Revenue Authority for tax administration, figures which the report
indicated might not be trustworthy.
Mukanga said no government official must protect Mopani Copper Mines for violating
the law by evading tax.
“I want to see the law taking its course. Let the law visit Mopani and we see what is
going to happen. I believe they are not just evading tax, I believe that there are people
in government benefiting from this,” Mukanga said. “I am disappointed that the
government has been crying every day and yet it is letting Mopani go scot-free. I want
to go to Mopani and talk to management.”
Mukanga said the decision by the government, through ZRA, to protect Mopani and
underpaying the mining firm’s evasion of taxes raised suspicion.
“I know there is something fishy. I am sure they government officials are not underplaying it
for nothing. They are underplaying it at a cost and the cost is in their pockets. There is
someone getting money from this evasion of tax,” Mukanga said.
He said Mopani was not undertaking any corporate social responsibility.
“For Mopani to be evading tax, I am very disappointed because Mufulira, where the mine is,
is in a deplorable state; the roads are so bad,” he said. “If they Mopani were evading tax but
were ploughing into the community they operate from, maybe people could be saying it
channels money into the community but look at how bad Mufulira is. It’s terrible. Mopani is
not ploughing back into the community.”
——-

Justina Mutale

Justina Mutale
Justina Mutale
Justina Mutale, African Woman of the Year 2012 and Founder of POSITIVE RUNWAY: Global Catwalk to Stop the Spread will address the National Congress of Black Women, Los Angeles Chapter (NCBW-LAC) on Saturday 3rd August 2013 in Los Angeles, California, USA.

Ms. Mutale, who has been invited to bring greetings from the Motherland, will be speaking during the NCBW-LAC Annual Awards Luncheon, which will be held at the Millennium Biltmore Hotel in Los Angeles.

Under the theme: “Reaching Out, Embracing our Communities”, the NCBW-LAC Annual Awards Luncheon will be held for the purpose of honoring community leaders and members who are outstanding due to their work and commitment in serving the community. Community Leaders to be honored include Ms. Lena L. Kennedy of LL Kennedy and Associates and Dr. Carla Thomas, D.D.S.

“It is a great honour and privilege for me to bring Greetings from the Motherland to my African-American sisters in the USA,” said Ms. Mutale

Both the President of the United States of America, Barack Obama and his wife Michelle have previously had the privilege of addressing the National Congress of Black Women on separate occasions.

“The event is the primary funding source for sustaining program initiatives and draws a guest list of our most esteemed community leaders and business associates while raising awareness in support of NCBW-LAC community service programs,” said Judy Matthews, Chairperson of the Los Angeles Chapter of the NCBW.

Ms. Mutale will join a number of distinguished guests and speakers who will attend the 2013 NCBW-LAC Annual Awards Luncheon. Dr E. Faye Williams, ESQ, National Chairperson of the National Congress of Black Women from the US Department of Education, will be the Keynote Speaker.

Other guests and speakers include the Rev. Brenda Girton-Mitchell, Director, White House Center for Faith-based and Neighborhood Partnerships; Comedian Kathy Westfield; Def Jam Recording Artist, Abraham McDonald; Lena L Kennedy-President/CEO LL Kennedy and Associates; Carl Thomas DDS, of The Smile Studio Dental Clinic; and Janita Palacios-Sims-Founder/President International Society of Black Latinos who will be the Mistress of Ceremonies.

The National Congress of Black Women, Inc. Los Angeles (NCBW) is a 501(c) (3) non-profit non-partisan organization dedicated to the educational, political, economic and cultural development of African-American Women and their families which is comprised of individuals in local and national Chapters across the USA.

The National Restoration Party expresses its concerns in the manner that some members of the public have chosen to claim falsely that they are top officials of the Party. In the media yesterday 29th July 2013, a Mr. Chikwanda who is a former member of the party was quoted in the media claiming that he was the party youth chairperson and Presidential Advisor.

We wish to advise Mr. Chikwanda and other members of the public who have a tendency of impersonating that it is a crime under the laws of this country for anyone to conduct him or herself in this manner. Mr. Chikwanda is not very new to our party and he is better placed to know that we are party of values. We encourage him to play his politics silently and not drag us into his personal problems.

We appreciate the democracy this country has enjoyed since the MMD came into power in 1991. In a democratic state like ours anyone has the right to belong to a party of their choice. It is however wrong for anyone wanting to join a certain party to claim that they hold a senior position in another. What Mr. Chikwanda should worry about is his character and not just his reputation. Mr. Chikwanda was not the first and will not be the last person to have the opportunity to be in the company of our Party President. The opportunity he had therefore did not qualify him to be our Presidential advisor. NAREP is not a party for disgruntled individuals who cannot subscribe to our values.

Every person who has left our party must realize that they have created space for principled and mature politicians who believe in quality and value based leadership which NAREP stand for. We therefore do not regret the defection of our member to join another opposition political party as he was only exercising his democratic right. NAREP remain committed to offering value based leadership as this is the only way we can develop this country and make it favorable for every Zambian.

We call upon the youths across the country to be principled and stand for the truth and not be used and turn themselves into political parasites.

David Kapoma
Presidential Advisor
30th July 2013

President Sata

A Gemfields emerald, mined in Zambia
A Gemfields emerald, mined in Zambia
President Michael Sata has expressed satisfaction at the successful auction of emeralds held in Lusaka recently.

President Sata said following the outcome of the successful auctions there is no doubt about the country’s ability to hold these auctions locally and maximize revenue which might have been understated through various manipulations.

“On the insistence of Government, Kagem Mines Plc held a low grade rough emeralds auction from 15th – 19th April, 2013 which realized US$15.2 million which was the highest value ever realized,” the President said.

“Similarly, from 15th – 19th July another auction of high grade emeralds was held at which US$31.5 million was realized. This is the second highest auction revenue achieved to date and the best in terms of value per carat sold.”

The average per carat price of US$54 has set a new record. Furthermore, all the 583,448 carats placed on offer were sold.

The Head of State said it is obvious that selling and auctioning of gemstones locally will create employment, enhance value addition through cutting, polishing and jewelry making activities as well as enhance revenue collection as a result of proper monitoring mechanisms.

“Additional spillover effects to other sectors of the economy will also be enhanced as international buyers who come and stay in the hotels will end up visiting other tourist attractions as well as having an interest in investment opportunities in various sectors of the economy,” President Sata said.

President Sata reiterated government’s commitment to diversifying the economy away from copper and promoting value addition industries in the mining sector in line with the PF Manifesto.

The President commended the Ministry of Mines, Energy and Water Development for implementing his directive on gemstone auctions without delay.

Issued by:GEORGE CHELLAH
SPECIAL ASSISTANT TO THE PRESIDENT
PRESS AND PUBLIC RELATIONS

PRESS STATEMENT FOR IMMEDIATE RELEASE

CONGRATULATIONS TO THOSE THAT HAVE EMERGED VICTORIOUS IN THE BY ELECTION HELD YESTERDAY (25th JULY, 2013)

Operation Young Vote would like to congratulate the political parties and candidates that participated in the by elections that were held yesterday, 25th July, 2013 in the four constituencies. Accolades also go to the Electoral Commission of Zambia (ECZ) for their unmatched resolve to conduct not only peaceful by credible elections even in unfriendly circumstances. Specific tribute goes to the United Party for National Development (UPND) and its two (2) candidates for Kafulafuta and Solwezi East for scooping the two parliamentary seats. Further congratulations go to the Movement for Multi-Party Democracy (MMD) and its candidate and the Patriotic Front (PF) and its candidate for emerging victorious in the Chipata Central and Mkushi North respectively.
The results of these elections are a resounding endorsement of the victors by the people of Zambia particularly the electorates of the respective constituencies.
Our appeal as OYV is that those that have won should ensure that the electorate that has chosen them and their constituencies should come first and not their personal endeavors.
To the PF Government, our message is that they should spread development to all parts of our country including the constituencies which have been scooped by the opposition candidates/political parties. If the PF is to be taken seriously by the citizens as being a Government for the people they have to change their approach to development and not concentrate in areas occupied by representatives from the PF itself.
The PF defeat by the opposition UPND and MMD in Kafulafuta, Solwezi East and Chipata Central respectively is not only a wake-up call but also an indicator that Zambians cannot accept to be taken for a ride by those given the privilege to be in authority to administer resources on their behalf.

Guess Nyirenda (Mr.)
Executive Director