OPPOSITION DOUBT MOPANI’S ABILITY TO SETTLE DEBTS
By ANNIE ZULU
WE are skeptical that Mopani Copper Mines (MCM) will pay the outstanding US$15 million which the company owes Copperbelt Energy Corporation (CEC) within the agreed timeframe of six weeks, including payments at new ZESCO cost-reflective tariffs which all other mining companies are paying, Green Party president Peter Sinkamba has said.
And Mr Sinkamba has urged Government to refrain from the tendency of going to the mines each time there was an issue to be sorted out.
He charged that the culture belittles the status of government and promotes state capture corruption.
He also indicated that his party was doubtful that Mopani would honour all its obligations within the agreed six-week’ time-frame.
Mr Sinkamba further said he was unconvinced that Mopani would provide to Zambia Revenue Authority (ZRA), and other relevant stakeholders, all the relevant documentation to resolve the VAT impasse and also facilitate a credible forensic audit to disprove strong allegations that suggest the mining company had defrauded the Zambian government in excess of $10 billion through transfer pricing and in-house hedging.
Mopani is believed to have hedged copper sales at $3,000 dollars using its parent company Glencore.
According to Mr Sinkamba, through this scheme, the Zambian government loses on all revenue when copper price on the world market exceeds the hedged amount.
“For example, now that the copper price is approximately $7,000, this means the Zambian Government gets zero from the $4,000 revenue which is in excess of the hedged amount.
“We are also doubtful that Mopani will pay dividends which the company has failed to pay in the last 17 years of operations at Nkana and Mufulira mines.
“Should Mopani provide all the documentation, we believe the forensic audit will establish that Mopani owes ZCCM-IH and Government dividends running in millions of dollars from 2000 up to date,” Mr Sinkamba said.
He has since assured that his party would monitor the situation closely.