Q FM Africa's Modern Radio
Peter Sinkamba
The Opposition Green Party is skeptical Mopani Copper Mines (MCM) will pay the outstanding US$15 million electricity bill which the company owes Copperbelt Energy Corporation (CEC) within the agreed timeframe of six weeks.
Party Leader Peter Sinkamba also doubts that Mopani will be able to provide the Zambia Revenue Authority (ZRA), and other relevant stakeholders, with all the relevant documentation to resolve the Value Added Tax impasse, and also facilitate a credible forensic audit to disprove strong allegations suggesting that the mining company has defrauded the Zambian government in excess of $10 billion through transfer pricing and in-house hedging.
He says Mopani is believed to have hedged copper sales at $3,000 using its parent company Glencore.
Mr. Sinkamba states that through this scheme, the Zambian government loses on all revenue when the copper price on the world market exceeds the hedged amount.
He explains that now that the price of copper is approximately $7,000, this means the Zambian Government gets zero from the $4,000 revenue which is in excess of the hedged amount.
Mr. Sinkamba is also doubtful that Mopani will pay dividends which the company has failed to pay in the last 17 years of operations at Nkana and Mufulira mines.
He further doubts that Mopani will restore the all the 300 contracts for Zambian suppliers and contractors which were cancelled last week, as well as retaining all the 4,700 miners the mining company planned to retrench.
Meanwhile Mr. Sinkamba has urged the PF Government to refrain from the tendency of going to the mines each time there is an issue to be sorted out.
He states that this culture belittles the status of government and promotes state capture corruption.