On 6th May 2021, the Government agreed to lend Konkola Copper Mines a total of 45 million US dollars of which the government remitted 1 billion Kwacha.
According to the Auditor General’s’ Report for the financial year 2021, government through the Ministry of Finance loaned Konkola Copper Mines 45 million US dollars with interest payment of 23 billion kwacha.
As of 31st December 2021, interest payment and principal of 1 billion kwacha relating to the loan had not been collected from KCM.
Public Accounts Committee Chairperson Warren Mwambazi quizzed Ministry of Finance Permanent Secretary Mukuli Chikuba to explain why government decided to loan an entity undergoing liquidation without adequate risk assessment.
Mr. Mukuba explained that the loan was a bridging facility that was given on after KCM offered one of its subsidiaries, Smelter Co, as security which was to be sold at 500 million dollars to enable the mine to pay back the loan.
By Wedson Mavoro