By NATION REPORTER
CARITAS Zambia has challenged government to disclose the full details of the deal signed with Kansanshi Copper Mines if there is indeed nothing fishy about the conversion of the shares Zambians hold in the mining giant via ZCCM-IH.
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Caritas Zambia Head of Programmes
Edmond Kangamungazi said the organisation had taken note of the press release
by ZCCM-IH minority stakeholders in which they revealed that certain elements
of the KMP Royalty deal had been concealed.
He said the minority shareholders
have shared their frustrations with regulators and watchdog institutions like
the Anti-Corruption Commission (ACC) who they turned to in the hope of getting
answers but to no avail.
“Caritas Zambia is concerned with
non-disclosure of this agreement by the parties involved in the transaction.
We call upon the government through
ZCCM-IH and Kansanshi Copper Mines PLC to disclose the terms of the agreement
in the spirit of upholding transparency and accountability in the mining
sector,” Mr Kangamungazi said.
Mr Kangamungazi said poor levels of
transparency and accountability in the management of the natural resources is
responsible for widespread under-development in mining-affected communities.
He said mining operations
characterised by opaque, exclusive, and lack of accountability and
transparency, deprived mine-hosting communities the true benefits that are due
to them.
He said the main source of
corruption in the mining industry over the years has been the lack of openness
in the sector’s management and administration, which has deprived Zambians of
the benefits.
“Communities are unaware of whose
benefits are established on their behalf due to the near impossibility of
having access to compensation documentation and contracts, as was the case with
the ZCCM-IH agreement.
As a result of this systemic form of
information exclusion and document hiding, there is a serious risk of
corruption and improper reward administration in the mining sector.”
“Numerous investigations, court
judgements, and research studies reveal that opacity increases the likelihood
of elite capture. As a result, both the management of community benefits and
the long-term profitability of the entire mining value chain suffer,” Mr
Kangamungazi said.
He said if the ZCCH-IH deal was
going to be to the Zambian people’s benefit, then why were they being kept in
the dark about it?
Mr Kangamungazi said Caritas
contended that the only reason the ZCCH-IH agreement with FQM was being kept a
secret from the people of Zambia was because it most likely benefited a select
group or individuals.
He said Caritas demanded that the
government follow the law and make available to the people of Zambia all
documents related to the ZCCM-IH agreement.
Mr Kangamungazi said Caritas was
weary of witnessing the extreme levels of corruption and lack of transparency
that had left many mine-affected communities mired in abject poverty, barred
from growth, and with no possibilities for the future.
He said despite holding the most
expensive commodities in the world, mining regions across the nation remain
destitute and have questionable prospects for prosperity and opportunity.
Mr Kangamungazi said the most
horrifying illustration of this reality was the widespread theft of mining
earnings by public servants, traditional leaders, and business representatives.
Corruption is a major enabler of the resource curse.
“If policymakers, oversight
agencies, and industry leaders don’t set the example by prioritizing
transparency and accountability in the management and administration of
contracts and arrangements, systemic looting of mining proceeds will continue.
We are expectant that the government will act honorably and divulge all of the
pertinent details regarding the ZCCM-IH deal,” he said.
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