We will endeavor to highlight the whole process. Keep in mind that the process of Privatization was a very looooooong one and none of you would be interested in reading a 5 paged article. So we have tried to keep it to the point so as to highlight the important aspects that might be of interest to you. We are going to leave out many things…which are not important.
Zambia Consolidated Copper Mines (ZCCM) was sold in 1998 for a total price of US$627million, which was divided into 7 sections of which, Konkola Copper mine was $25million, Kansanshi Mine was $28million, Luanshya mine was $35million, Chibuluma mine was $20million and others.
At this time, the prices of our copper had dropped from $2,300/ton in 1997 to about $1,500/ton in 1998 and remained at that level till 2003. The Government of Zambia was subsidizing the mines by approximately $1million PER DAY!! That was way too expensive to run the mines.
“We were told by advisors, who included the IMF and the World Bank that, for the next 20years, Zambian Copper would not make a profit. But if we Privatized, we would be able to ACCESS debt relief, and this was a huge carrot in front of us…WE HAD NO OPTION BUT TO SELL,” Former Minister of Finance, Edith Nawakwi said.
Privatization of ZCCM commenced in 1996, after the government and the boards of ZCCM and the Zambia Privatization Agency (ZPA) approved the ZCCM Privatization Report and Plan presented by the UK based Financial and Legal advisors, NM Rothschild & Sons and Clifford Chance, respectively.
On 11th of March, 1997, Fredrick Chiluba appointed Francis Kaunda to be Chairman of ZCCM Privatization team. He was hired based on two reasons given by the then President, (1). His knowledge on mining assets, and (2). Credibility with Investors in the mining industry.
Francis Kaunda had close to 3 decades of experience working at the top of mine business in the country from 1974 to 1991 when he was retired without reason when there was a change in government, but his vast knowledge prompted Chiluba to call him back in 1997 to handle the Privatization Process.
ZCCM Privatization team hired local experts and formed 3 groups during its transformation plan of 1998;
– First group was to sell CORE assets, and this was headed by Norman Mbazima and John Patterson. ‘Core Assets’…an essential, important or valuable property of a business without which a company cannot carry on with its profit-making activities. A business would dissolve without its core assets, and companies that sell off core assets are usually liquidating and on the verge of bankruptcy.
– Second group was to sell SUBSIDIARY assets, and this was headed by Hakainde Hichilema. ‘Subsidiary’…a company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company or holding company. A subsidiary is a company that is partly or completely owned by another company that holds a controlling interest in the subsidiary company.
– Third group was to dispose of miscellaneous items and this was headed by Mwila Lumbwe.
For the legal Services, Elias Chipimo Jr., who graduated from Oxford University with a Bachelor’s Degree in Civil Law, was hired. His main area was Corporate Law, Advisory work on Merges and Acquisitions, Privatizations and Capital market related work.
In 2002, Levi Mwanawasa launched Zambia’s largest anti-corruption crackdown since independence. He also believed that there was a lot of corruption during the Privatization process.
In August, 2008, Francis Kaunda was jailed for 2 years, after he was convicted by the courts of law together with Faustin Kabwe, a prominent business man at the time. His case was that he took ownership of one of the most prestigious school run by ZCCM, Ndola Primary School, and offered it to Ndola trust School for sale. The problem was that the school was not sold to the right buyer as per privatization guidelines, Ndola Trust School was not yet registered as a company so he sold to a non-existent company which belonged to his friend, Faustin Kabwe, and did not declare interest. To make matters worse, Ndola Trust School tendered their bid after the closing date.
His arrest had more to do with his personal interests and trying to defraud the government.
Now, let’s look at Hakainde Hichilema…We have found no evidence from his team to attempt to defraud the government. He was investigated as much as everyone who was involved was. He still walks a free man and has never been arrested based on the Privatization process.
He was not at the core of the process, he was a small fish in the river. There was no way he could sell a mine. There was ZCCM, Zambia Privatization Agency (ZPA), Zambia Development Agency (ZDA), Zambian Government, IMF, World Bank, Francis Kaunda as Chairman, and finally Consultants where Hichilema belonged. For him to sell a mine, he had to bypass all these big fish in the river…How slick must he be to do this?
The mines were a dead business, we were selling businesses that were not profitable at all and because the IMF had advised that the low prices would continue for 20years, the buyers knew that they were going to make losses in their initial stages. How much did you expect them to be sold at?
There was nothing, really, to blame Hakainde Hichilema for, apart from mare Propaganda.
[Ilyashi Team/Kopalatimes]
PRIVATIZATION: The Truth Behind The Misunderstood Subject, HH Did Not Defraud The Govt added by on
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UPND told workers not to attend today’s labour day celebration. surely why foes this party overt itself? Not even a national leader like sata did that. I hope this will be a lesson to them. so if we had voted for HH selling of companies would have continued? Forget my dear just a president in your dreams
Edgar Lungu is the one responsible for the economy sabotage of the country through corruption being championed by Rupiah Banda.
Why can’t you for a change start to comment intelligently. Yo rantings sucks. Rehearse with this chap @nez and try to sound like you been to. Zambians are not this dull really.
Kayula, Kayula, Kayula! You just had an itch to comment or what? Have we read the same article or you are just one of those harboring an intense urge to make comment on an unrelated issue as it flashes on your mind irrespective of subject matter at hand? See you! You are an example of failed hard work by teachers!
Well written and Believable
WHICH THIEF CAN SAY NALIBILE? Not even a pregnant woman can publicly say I had sex with a man! If HH was not envolved why his name becoz zambia has more than 13 million. Why are you wasting time to defend him if he didnt steal? compare HH in terms of richness befor privatisation and after. what conclusion can you make?
My friend even if you were given all the documents and evidence that HH didnt steal, you would still believe he did. Because you choose to do so, you can’t believe someone can work hard and make money. You are the kind of people who would if given a chance in government loot, severely even for generations unborn.
It is the duty of the accuser and not the accused to prove the crime committed by offering the required evidence and not hearsay. The likes of you Kayula who accuse HH of stealing do not have any evidence or an independent mind other than playing to the gallery! Just swallow your misplaced pride and learn to admire hard work of right thinking people! Your true interest is in the formula if one exists for giving away that HH used to get his wealth and it does not hurt anyone to swallow pride and going to HH for help on how one can turn (grow) the little they have into success but one should for sure be ready to work hard! You are free as any citizen to make a citizen arrest and take “the thief” to face the law with your evidence! Leave the hate and envy let the matter rest if you have nothing other than hearsay and malice. So you are poor because you have had no chance to steal is what you want to tell me? Good grief!
Ok, under the circumstances it was the right thing to do. Where does this leave PFccadres and their claim that HH is a thief. We didnt sell the mines for a song, we were in a desperate situation. I think we need to applaud HH he has worked hard reinvested some of money here, unlike those Zambians with 40 something million dollars in overseas accounts. Zambians we should work together this politicking for the sake of political allegiance won’t take us anywhere.
Which media Proper gander?HH himself admitted in one of the medias that he Mediated in the sale and privatization of Mines and parastatal companies,why Chicken out now?You the same media have records,can your replay your recordings!The Times of Zambia, Zambia Daily mail please Exercise professionalism in this matter. Tumfweko who published this Nonsense?This defeats the whole purpose of having Archives. So I challenge the media to stand on their two feet and Defend them selves against these allegations.@ media Proper gander.
HILDA MALAMA MY HOOKER! I ENJOYED YOUR ANAL LAST NITE AFTER A NICE PARTY AT TAJ PAMODZI HOTEL..U ROCK GIRL
The idiots trying @ damage control just went ahead & exposed hakainde further. They scratch at the Ndola Trust School sh!t & show that Kunda & Kabwe went to jail coz the sch had not been listed!! Dammn! So had it been, Kabwe & Kunda would not have seen the inside of jail! Just like their friends HH and FTJ.
“The perfect crime is one in which the perpetrator is NEVER caught.”
Hakainde is a perfect criminal. Zambia can never be safe in his hands.
I still consider HH to be wiser and knowledgeable than all. since people say he stole, and they failed uku musanga no mulandu I think he is still wise to deal with the problems Zambia is facing. Aba mano balemona fools still blind.
@Mujuku, most of you chaps blabber away foolishly & have had no intercourse with any of these politicians. These guys are stinking rich beyond comprehension from privatisation. Its only hakainde, the braggart, who opened up his ‘proceeds of theft” to think of himself as the richest. What the authors of this sh!tt have succeeded in doing is to place hakainde “at the scene of the crime”. Some are still in govt & further fattening their accounts quiefly. HH is not that wise. It only that exposing him will drag many down with him.
since when did kansanshi mine become more valuable than kcm in 1998 under ZCCM ???? your info is half baked and not true lol!
Hmm HH headed group which sold subsidiary assets- Zal holdings, Zamcargo, mulungushi invest, ndola lime, mpelembe drilling, kasaba bay, machinchi , maamba coll……list is endless and u say he was a small fish???
@ kakolwe listen my man u can not call a person a thief if u have no evidence. Privatisation was a game the wise won idiots lost. Blaming HH won’t do us any good kakolwe economy is part of every successful country and only economist can deal with that. Who else if not HH? Let’s try him!
True to your word! The idiot that lost most is ZAMBIA! Now, the rapist is coming back to take it all away? Zambia, you felt the pains of such abuse by the wise boy (mujuku calls him). Sort him out at the ballot next year. Let us deal him a real blow this time.
Lets not defend what cant be defended. Some one to tell me HH before privatization and after in terms of money.
plz lets be civil in our comments be matured
Why are you so quick to exonerate him from the plunder, are you part of the same , to me you sound to be the shadow to hid HH out of the scum. You have not named people like Valentine Chitalu your interest was just to remove HH from misdearmor so people would think he is clean . What you must know is that their is no smoke without fire. If you can explain to us where HH got all that wealth he brags about at his age , when he hasn’t inherited anything from his unknown father. All reasoning points to privatisation where money was .ofcourse he wasn’t alone in the fiasco . In bemba they say ubushiku bwaluba. U mukote ne chimbwi chinye mfwi. you were questioning Mulenga Sata and his wealth with Mulenga his father was president and a business man. Not HH
any comment on the subsidiaries sold???
@Nshilmubemba,we have to Dig deeper into this,they are saying HH is a free man,then so is the late chiluba!why was he Dragged to Courts over the matter? was he by himself in this?This Intel’s it that after the Demise of late Chiluba,his accomplices should have continued attending court cases, now it even gives Me glimpse through a Tiny Hole, how Chiluba Died,was it to Bury evidence of some sought or it was a Natural Death?Another Cartel group in resurrection. Watch this spec.A lot of issues has been raised here,we shall Dismantle it all inch by inch.
With this story then am scared maybe under HH the World Tourism Organisation will advise him 2 sell State House because it can make money through tourism,i hear there are alot of rats and he is going 2 do that because he will be desperate 4 money 2 improve peoples standard of living
People just work hard and earn your own wealth but HH, my comment is that he is clean and fit president of Zambia period.You haters from all corners of Zambia open your eyes and the best at your disposal.
kkkkkkkkkk. The government makes a big ass mistake and the blame is on HH. People people people……some trying to protect the smallest fish HH in the privatization team and some defending the failure ECL.
Hahaha. Am for HH thief or not. I love my country and HH. I will vote for him because I believe he is wiser hence capable than Chagwa. Viva HH viva UPND.
I too love my country and pity the people that are made to continue suffering when their hope can be renewed just because of the misleading few who love to hate HH while in essence envying him!
Laughable as you may I too am for HH thief or not though I am more of @ Abraham Kapembe. The Zambian economy needs to be fixed, the lawyer in LPM set the motion in up rightness thus the organs enforcing laws need do the cleaning up to pave way for economy rebuilding. If HH the so labelled “thief” is the candidate among contestants who better understands economy, then he deserves to be tried! We all at one point or another have heard or experienced when the police (law enforcers) have sought the services of convicts to help solve crimes when a dead end looms.
Zambia is worse under this thief and dull president. Chagwa is the worst Zambia has ever seen and yet the so called PF cadres are just following and supporting blindly and foolishly. Someone says I have no vision of my own am just continuing from where Sata left and you vote for him. What is worse is he comes and changes things from worse to the worst, he wrecks our economy and people are still saying “ifintu ni lungu”. People are so dull and backwards. Why would you embrace failure (Chagwa)? Shame.
Zambia is worse under this thief and dull president. Chagwa is the worst Zambia has ever seen and yet the so called PF cadres are just following and supporting blindly and foolishly. Someone says I have no vision of my own am just continuing from where Sata left and you vote for him. What is worse is he comes and changes things from worse to the worst, he wrecks our economy and people are still saying “ifintu ni lungu”. PF cadres are so dull and backwards. Why would you embrace failure (Chagwa)? Shame.
You are Tonga? Mwachulenipo mukwai!
uli chipuba sana
This report is half baked. Grant Thorton is the consultant company not hh and one other Joseph Mulenga. The problem is inside trading happened. Consultant not declaring interest life the sun hotel deal. So when you people try to do damage control just be aware that there is more to privatisation than the little you have talked about. In short your report is useless and flawed. Go back and check your facts because you have only put the guys on the spot light. Shame on you.
Zambians are immuned to suffering and are haters of progress worse of apprietiating or emmulating those who have made it in life.pipo hh has shown consistency lets appluad him and vote for him we did it for sata why cant we do it for hh. Lets put tribalism aside plse pipo we all want a stable life
We voted 4 Sata because he first became popular in lusaka and copperber and other provinces except southern and not where he came from and he had a very convinsing manifesto.let UPND start with the copperbelt and lusaka and other provinces and not southern voting its tribes man,cant u call it tribalism?
Imwe bafisushi stop the nonsense. You are all political cadres. Each one just support his party blindly. Thieves are those people with overal access to state resources.
News media report and publish auditor general’s reports.
Why are the media talking about lifting one’s immunity before he completes his term? Come back to your senses.
Here everybody is anything. Coz bloggers choose to just to entertain fellow bastards.
However, it is the way you spend your time daydreaming.
@ NEZ must repent from his demonic convulsions against God and Jesus.
May this pierce his heart and bring about repentance to him. May Jesus forgive him.
@ nez, bwana evil, Jesus lives forever. Proof is there. Read my next comment. It is for you and other godless/pagan people like you.
@NEZ This is for you. And it is an effort to save you from hell. Whether you like it or not Jesus loves you and transformation will start from today. Remember me.
Proof is there that Jesus lives.
Prove me wrong by:
– praying every morning, afternoon and before sleeping to thank God in the name of Jesus. Pray to ask God to forgive you of your sins, pray to ask God to deliver you from evil forces, pray for guidance from God and pray for success of things you want. Also pray that you want proof of existence of God and Jesus.
– Stop sinning during this.
I have given you two weeks to do so. God will prove it Himself. Signs: peace and happens in your heart will overwhelm you. Success will be added and jesus will appear before you. Always pray in the name of Jesus. Jesus is alive.
The corruption continues.We are waiting for ZWD to unroll the recent happenings at lands.With clever commissioner Mulenga involved, not only he is involved in land manupiliation, but also other vices.Sata failed to deal with him after giving land to Christine, he used the same formular with Ester Lungu.Mwebantu,Sata enriched pipo quickly,talk of his son in law chimwemwe,Charlie sex built mansion using kick backs from society house contractor, Kampijimpanga boy kick from the road contracts,the list goes on.
Mamamama koma this tonga president is very ugly, kwati nipa matakopakwe
Why invite more insults to yourself? Yours does not help anyone on social media that has given us the privilege to be exchanging healthy interaction on information and fruitful debate.
hh played double standards, his team under valued our assets to get cuts from the buyers, he misled the government…..
now what did the big fish do with the money nothing apart from buying shoes, suits and die in poverty. i salute HH the little, he was given utilised it well and now they are is jealousy of him because of the progress he has made in his life. HH continue employing them as labourers to make your malls and let your children enjoy. they used their money for ladies and beer now even failing to pay for nomination fees until someone who is like you rescued them. let them talk while you progress in life. am also following your foot steps.
As usual, HH ni ng’ombe zoona, he is a kak for sure.
Well said sons of the soil
Lets Give Hh A Clear Beating That Will Send Him Into Political Retirment. We Should Vote On One Side See How They Did It On 20 Jan,2015 Purely On Oneside Why Should We Give Him A Vote?
VIVA HH – A good Mind Posses a Kindom and a Good Conscience is a soft Pillow.Hopefully people with baseless arguments will keep quiet and concetrate on how best the country can be developed using the available think tanks like HH.Remember to register to vote and please vote wisely for the benefit of current and future generations.It hurts so much to see how behind we are as a country beacause of wrong Leadership Driving the Country.
Vote for the PARTY(UPND) for development in the next General elections.