IT'S ECONOMIC SABOTAGE

Fri, 25 Aug 2017 10:39:31 +0000

By Bennie Mundando

IT is an act of economic sabotage for the Copperbelt Energy Corporation (CEC) to unilaterally reduce power to the mining industry and Mopani Copper Mines (MCM) in particular thereby abrogating the Power Purchase Agreement (PPA) which calls for arbitration in the event of a dispute.

The loss of copper production and impending loss of jobs, caused by an artificial restriction of power, when arbitration had not been exhausted was an act of blackmail which Zambians should condemn in the strongest terms, industry sources have said.

Mopani had applied for a mandatory court order to compel CEC to supply electricity at full capacity.

“There is a legally binding agreement that compels CEC and Mopani to seek arbitration in the event of a dispute. Acting outside this agreement, to create political pressure against the mines is illegal,” said the sources.

Former UPND presidential assistant for special duties Edward Mumbi says the predicament that has befallen Mopani mine was long overdue as some of CEC’s shareholders belonged to an institution that had defrauded Zambia before by opening offshore accounts without permission from Government.

Gallant Youth of Zambia executive director Henry Mulenga yesterday said that it was shocking that CEC was forcing mining firms to pay new tariffs while overlooking the contents of the PSA which it had signed with them and provides that any adjustment of electricity tariffs was subject to consultation with stakeholders.

“If people think the cartel does not have any influence anymore, what is happening at CEC should give them a fresh reminder because this is a clear case of economic sabotage perpetuated by the cartel that has brought a lot of misery on the Zambians.”

And Mr. Mumbi said Government’s threats on Mopani mine was testimony that there were people within the corridors of power who were blank on what was happening as they were “victimising the victim while soothing the ego of the abuser.”

He said while it was the duty of Government to save jobs in the mines, the antagonistic approach the ministries of Energy and Mines were taking on Mopani was unnecessary and premised on ignorance on the two ministers.

“Unfortunately, we have two ministers who are acting blindly. We all want to save jobs on the mines but let us look at the root-cause of the problem we are faced with. Let us have a look at the shareholding of CEC and then we will understand what politics are involved in this whole saga.

“We allowed the shareholding of CEC to be in the hands of some people who have sabotaged the economy before through fraudulent activities by opening up offshore accounts without permission from Government and now we have a situation where retirees are crying. Why should ministers side with CEC? Don’t they have eyes to see? I challenge them to go to PACRA and find out who is calling the shots,” Mr. Mumbi said.

He said the problem between Mopani and CEC needed critical thinkers to address and not individuals driven by emotions.

“There are people who are saying mines are to blame for the stand-off. Others are saying Mopani can operate even with restricted power supply. Do they know that Mopani has the wettest grounds among mining companies throughout the world?”