Hearing date for ‘undervalued’ KCM set

THE Lusaka High Court has set November 19, this year for hearing an application by ZCCM-IH to dismiss the matter in which a minority shareholder wants to challenge the alleged fraudulent sale of KCM to Vedanta Resources Plc.

In its application, ZCCM-IH want the court to dismiss the matter on grounds that the minority shareholder, Dennis Mumba, was not eligible to commence such an action.

The holding firm contended that Mr Mumba’s notice of motion was irregularity on the grounds that it does not properly describe the respondent (ZCCM-IH).

Further that the affidavit in support of the summons did not fulfil the requirements of the authentication of documents Act chapter 75 of the laws of Zambia

ZCCM-IH stated that Mr Mumba’s application did not satisfy Order 53 of the High court rules as it was filed without the requisite skeleton arguments and thus offended the courts' rules.

Mr Mumba launched a derivative action stating that Vedanta Resources Plc should have paid US $2.909 billion instead of US$25 million which led to financial problems at KCM.

Mr Mumba stated that ZCCM-IH was a shareholder in KCM and as such he is authorised to bring the derivative action on behalf of the respondent (ZCCM-IH) against Vedanta and others.

He cited Zambia Copper Investments Limited (ZCL), Vedanta Resources plc, Milingo Lungu as provisional liquidator of KCM and KCM ( in liquidation) as defendants in the matter.

He stated that KCM loss of US$2.884 billion marked the genesis of the mine’s financial problems.