Q FM Africa's Modern Radio
Vedanta Resources has disclosed that it has set aside US$220 million to dismantle outstanding debt to small and medium contractors in a bid to reduce liabilities and aid the growth of businesses.
In a statement obtained by Q-NEWS, Vedanta Resources Zambia Director Corporate Communications Masuzyo Ndhlovu says KCM through its Provisional Administrator has not paid the majority of creditors during the last three years resulting in a multi-fold increase in outstanding supplier and contractor liabilities.
Mr Ndhlovu says Vedanta is desirous that once it takes full contol of KCM, it will ensure that Zambian small businesses are prioritized in its supply chain.
He says a procurement programme will be put in place working hand in hand with all key stakeholders including the Association of Mine Suppliers and Contractors, in identifying Zambian small businesses and avail them with support and medium-term contracts so that they can grow with KCM.
Mr Ndhlovu states that this will be included in a framework agreement that will be entered into between KCM, Vedanta,ZCCM-IH,and the government.
He says this agreement will be auditable on a bi-annual basis by an independent firm to verify all parties complying with their commitments under the framework agreement.