THE National Democratic Congress has urged the government to immediately institute a committee of experts to conduct a financial audit at Konkola Copper Mines.
NDC secretary general Mwenya Musenge said a committee of financial experts should be appointed from qualified officers drawn from the Financial Intelligence Centre, the Central Bank, Ministry of Finance, Security Agencies and the Zambia Revenue Authority.
Musenge said the said probe team should also include mining experts.
“As a party, we feel KCM is evading the payment of taxes and may be involved in other sophisticated financial crimes. As NDC, we are disturbed that the mining conglomerate has been exporting cobalt illegally to China without the full knowledge of government,” he said. “In March this year, we raised alarm that KCM was illegally exporting cobalt to China and government brushed off our concerns. Revelations by Tianjin Maolian Science and Technology Company Limited that KCM has been exporting cobalt to the firm has thus exonerated the NDC. We are therefore not surprised that KCM has in the last few months exported cobalt to China worth over US$1. 5 billion.”
Musenge said there was need for an urgent explanation from the Zambia Revenue Authority on the illicit financial flows at KCM.
He said NDC was aware that ZRA constituted a mineral monitoring team which tracks and monitors the activities of mining firms.
“The terms of reference of this team are very clear, as the unit was established to ensure transparency and accountability in the export of metals. Further, ZRA has officers seconded to mining firms. Therefore, news that KCM has been exporting cobalt to China unnoticed is inconceivable and opens up room for speculation. Could it be that some officers within the ZRA might be involved in this scam? Or could it be that some officials in government are also beneficiaries of this dubious export of metals? As NDC, we demand for an express response from both the Minister of Finance [Margaret Mwanakatwe] and ZRA Commissioner General [Kingsley Chanda]. We demand that all those involved in this financial scandal at KCM be fired,” he stated.
He urged the government to ensure that KCM immediately pays all the taxes accrued from the illegal sale of cobalt.
“And why is government not ejecting KCM out of Zambia anyway? The truth of the matter is that KCM management cannot be trusted. KCM has taken the Zambian people for granted and this firm can do anything with impunity without being reprimanded by government. Like we said last week, government should eject KCM from Zambia. We cannot have a bunch of fraudsters stealing from our country in broad daylight,” said Musenge.