SINKAMBA ADVISES GOVT TO BE CAUTIOUS ON HANDLING GLENCORE-MOPANI DEAL
By Balewa Zyuulu
Opposition Green Party Leader Peter Sinkamba has advised government to be cautious on how it handles the Glencore-Mopani deal to avoid legal penalties.
Last week Mines Minister Paul Kabuswe announced that the government has declared a dispute and rejected the deal that was signed between Glencore and Zambia Consolidated Copper Mines Investment Holdings-ZCCM-IH-under the pf regime which saw the buying of Mopani Copper Mines at an indicative amount of $1 as it was a bad deal that does not favour the interest of Zambians.
Under the deal, Glencore said ZCCM-IH would borrow the $1.5 billion from Carlisa Investments Corp, a British Virgin Islands-based company through which Glencore holds its stake, and other unspecified members of the Glencore group while ZCCM-IH acquired the remaining 90% of Mopani from carlisa, giving it full control of the company for an indicative $1.
Commenting on this development, Mr Sinkamba says although the government has the right to reject the deal, doing so without following all the legal procedures needed to reverse such a transaction will amount to legal penalties like the case of the PF government vs the Lapgreen of Libya over Zamtel.
PHOENIX NEWS
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