HH, Kabuswe shall account over Mopani – Sichinga

By MUBITA KATETE

BOB Sichinga has accused President Hakainde Hichilema and his Minister of Mines and Minerals Development Paul Kabuswe of being untruthful about the Mopani deal, warning that it could eventually come back to haunt them, as there are no secrets in government.
Mr Sichinga, a former Minister of Commerce and Trade has expressed concern on how the Mopani deal had been shrouded in secrecy to the extent that Mr Kabuswe was failing to explain how the transaction was done. Mr. Sichinga, who is a former mining executive under ZCCM, also explained the Mopani ownership structure, which involved two major shareholders, one of which was ZCCM-IH, acting on behalf of the government.
“The government invested in ZCCM-IH through the Ministry of Finance, where the minister is a shareholder on behalf of the government. The minister takes the funds and invests them in ZCCM-IH, which in turn can invest in any mining company as directed by the government,” Mr Sichinga explained.
Mr. Sichinga pointed out that when Glencore decided to abandon the project due to concerns about its reputation, the majority of shares they held of approximately 80 percent reverted to ZCCM-IH, making the Zambian government the effective owner of Mopani.

He emphasised that ZCCM-IH was fully owned by the Zambian government, and as such, should be the sole owner of Mopani.
However, Mr Sichinga questioned the involvement of the Mines Minister in negotiating a new shareholder for Mopani, noting that the minister had issued statements on behalf of Mopani when the company itself should have been the one to do so.
Mr. Sichinga also cited President Hichilema’s earlier statement that “we made a good deal, with the government owning 49 percent of the shares and the other party, the International Holding Resources (IHR) holding 51 percent.
He expressed concern over Mr Kabuswe’s claim of non-involvement, asserting that the minister’s involvement in negotiations should be clear, as introducing a new shareholder would require the government to relinquish part of its shares.
He also criticised Mr Kabuswe for issuing incorrect statements in Parliament, saying that such actions were against parliamentary decorum.
“The Constitution is clear. If the government disposes of its shares, it must go back to Parliament to explain the deal. The amounts involved must be disclosed and the public must know where the money is coming from. If they fail to do so, they are not being transparent,” he explained.
He warned that Mr Hichilema and Mr Kabuswe shall one day be made to account on how Mopani was sold and that they should bear in mind that there were no secrets in government.