Milingo Lungu defends KCM split in court
- He has also asked the Lusaka High Court to discharge the interim injunction granted to Vedanta Resources Holdings Limited and two others, restraining him from reorganising KCM.
By GRACE CHAILE-LESOETSA
MILINGO Lungu has argued that the reorganisation and restructuring of Konkola Copper Mines (KCM) is within the mandatory power as provisional liquidator of the Mine.
Mr Lungu stated that no order of Court is required for him to carry out functions that are incidental to the powers given to him by the Court.
He has also asked the Lusaka High Court to discharge the interim injunction granted to Vedanta Resources Holdings Limited and two others, restraining him from reorganising KCM.
In this matter, Vedanta Resources Holdings Limited, Vedanta Resources ( Jersey II) Limited and Vedanta Resources Limited have sued Mr Lungu challenging the splitting of KCM.
The three want the Lusaka High Court to order Mr Lungu to immediately reverse any process of KCM reorganisation.
But in his defence, Mr Lungu stated that KCM Smelter Company limited and Konkola Mineral Resources are subsidiary companies owned by the State therefore it is not true that the reorganisation is intended to remove the assets of the Mine (KCM) from the supervision of the Court.
He stated that the reorganisation of KCM is in order to streamline its operations and increase efficiency and that all the steps taken in respect of KCM were within his powers.
“The issues raised by the plaintiffs are, if at all, matters for determination under Cause No.2019/HP/761, they cannot be subject of determination in a separate action,” he contended.
Mr Lungu stated that the matter is not properly or competently before Court and that in the alternative all the issues in this case are matters for determination under cause 2019/HP/761 (winding up).
He also filed an affidavit in support of exparte summons for an order to discharge the injunction granted to Vedanta Resources Holdings Limited and two others by Judge Dr. Winnie Mwenda, restraining Mr Lungu form undertaking any reorganisation of KCM or transferring, disposing off, selling or dissipating the assets of KCM until the determination of the proceedings.
The matter for the hearing of the order for injunction inter-parte came up last Friday as both parties argued their case and justice Dr Mwenda reserved ruling to Thursday.