By NATION REPORTER
Foreigners should not take 100 percent ownership of Zambia’s extractive industries including mines to facilitate beneficial ownership by Zambians who have not benefitted from minerals, mined by foreign companies and individuals, Parliament heard yesterday.
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And Imanga Wamunyima, the Nalolo Member of Parliament (MP) has warned that the return of Vedanta Resources to Konkola Copper Mine (KCM) on the Copperbelt would estrange the governing UPND from the region because the mining company had abrogated agreements to the detriment of the community before it exited the mine.
Meanwhile, Davison Mung’andu, the Chama South Patriotic Front (PF) Member of Parliament has disclosed that Zambia is losing billions of Kwacha through illicit financial transactions and that about 60 percent of the lost money is from the mining sector.
Mr Wamunyima told Parliament yesterday that most countries in the world including neighbouring Botswana have legislated against 100 percent ownership of mines because of cheating, under declaration and smuggling of minerals which has become rampant where companies were fully foreign owned.
Debating the motion on the Committee on Planning and Budgeting in Parliament yesterday, Mr Wamunyima said countries in the world including neighbouring Botswana had legislated against 100 percent ownership because cheating, under declaration and smuggling of minerals was the order of the day where companies were fully foreign owned.
According to Mr. Wamunyima, the absence of beneficial ownership in the mines was depriving the country of huge resources as only a paltry amount was being declared.
“Foreigners should partner with Zambians to ensure that all proceeds were accounted for and that such revenue should be used to invest in industry and other activities that would ensure holistic development taking account of the future when the resources would be depleted” Mr Wamunyima said.
And Shiwangandu MP, Stephen Kampyongo has called for stringent controls including of airfields to stop the smuggling of minerals, which have deprived Zambia of much needed revenue.
Meanwhile, Mr Mun’andu has warned that the return of Vedanta to take up the operations of the Konkola Copper Mine on the Copperbelt would spell doom for the giant mine because the mining company had exhibited high levels of dishonesty in the conduct of its business.
Mr Mung’andu warned that Vedanta Resources had bought the KCM at a meagre US$35 million but had found minerals worth more than $60 million even before they could commence their mining activities.
He said that Vedanta Resources paid off government after making in excess of US$60 million but refused to reinvest the money in mining which caused a rift with the PF, then in government.
Mr Mung’andu warned government not to allow Vedanta Resources to return in the country as that would be the end for the new dawn government.
He also said that there was need for government to ensure that borders were well managed because the country could be used as a center of illicit financial activities.
“Mokambo border alone had recorded over US$1 billion which could not be traced once it enters the country,” Mr Mung’andu said.
He said the country was producing gold in large quantities which was sent to South Africa for processing but there was no mechanization to trace the process.
The Committee on Planning and Budgeting is recommending that government should own mines in Zambia in order to reduce illicit financial flows currently going.
Fred Chaatila, the commissions chairperson presenting the motion to adopt the the report by the Committee on planning and budgeting said that government needed to ensure that it took up the running of mines because the country was losing millions due to illicit financial flows.
Mr Chaatila said that according to a report by the UN, between 2001 and 2010 abot US$86.6 billion left Africa through illicit financial flows.
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