CEC to counter sue over $144million Zesco debt

COPPERBELT Energy Corporation ( CEC ) has applied for leave to commence proceedings against Konkola Copper Mines (KCM) provisional liquidator, Milingo Lungu and Zesco for purposes of counterclaiming $144million owed to it.

This is in a matter in which Zesco Limited and KCM have sued the Copperbelt Energy Corporation (CEC) in the Lusaka High Court, seeking a declaration that CEC’s action to restrict power supply to KCM contravenes the law.

Zesco and KCM are seeking an order of injunction restraining CEC by itself, its directors, officers or agents from interfering in the Time Sheet Agreement between the Plaintiffs through restricting KCM from receiving supply from ZESCO pending determination of the matter.

They also want among others, an order restraining CEC from effecting or taking steps to take out any supply units, lines or delivery points to KCM as they are Common Carriers as declared under S.l. No 57 of 2020.

But in an affidavit in support of ex parte summons for leave to counter claim against KCM, Christopher Nthala , a chief operations officer at CEC ( intended plaintiff ) stated that following the expiration of the power supply agreement on March 31 2020 between CEC and KCM, the intended plaintiff continued to supply power under the Power Supply Agreement (PSA) to KCM at a request and instance of Mr Lungu.

He stated that this was for purposes of continued operations of the mine and the position was confirmed by the terms of the Supplemental Agreement to the PSA dated July 18 2019 and consequently, CEC issued invoices which as of May 15 2020 stood at USD131, 81 1, 794 which is equivalent to 11 months supply to KCM.

He stated that the outstanding amount have continued to accrue and the said amount have accumulated to well over USD 144 million as at June 1, 2020.

“The sum of USD 144 million represent the cost of power supplied to KCM by CEC for purposes of running or operating a mine and therefore an expense of winding up,” Mr Nthala stated.

Mr Nthala stated that despite several requests and demands KCM has refused or neglected to settle the summon USD144 million owed to CEC.

He stated that the intended plaintiff has various claims against KCM which it wishes to pursue in this action.

“It is appropriate for this court to grant leave to the intended plaintiff of the intended counterclaim to commence proceedings against the second intended defendant being a company in liquidation and against the other defendants,” the application reads.

CEC has in its application for leave to counter claim, cited KCM and Mr Lungu as the intended respondents.