By Jane Chanda
Former Minister of Commerce Bob Sichinga has accused President Hakainde Hichilema and mines minister Paul Kabuswe of dishonesty regarding the Mopani deal, warning that their lack of transparency could ultimately have repercussions.
In an interview with Daily Revelation on Friday, Sichinga expressed concern over the secrecy surrounding the Mopani deal, citing his familiarity with the Mopani ownership structure as a former executive under ZCCM, which involved two major shareholders, including ZCCM-IH acting on behalf of the government.
“The Mopani deal has been shrouded in secrecy, and it’s unacceptable that Kabuswe failed to provide a clear explanation of how the transaction was done,” Sichinga said, emphasising that as a former minister, he understood the importance of transparency in government deals.
“The lack of transparency in the Mopani deal is a recipe for disaster, and it’s only a matter of time before the truth comes out.”
He urged the government to be more open and honest about the deal to avoid any potential consequences.
“President HH and minister Kabuswe must come clean on the Mopani deal, as their lack of transparency will ultimately undermine the public’s trust in their administration,” Sichinga said.
Opposition Economic Freedom Fighters (EFF) leader Kasonde Mwenda said the government’s allocation of 51% shares in Mopani Copper Mines to Investment Resources Holdings (IRH) was questionable and illegal, arguing that the transaction raised serious concern about its legitimacy and implications for Zambia’s mining sector.
Mwenda expressed concern over the secrecy surrounding the Mopani deal, which made it difficult for government to explain how the transaction was conducted.
“The government’s lack of transparency in the deal is chasing away investors, as they typically require assurance that there are no illegal challenges waiting to happen before investing, and in this case, the perceived fraudulent activities surrounding Mopani are a major deterrent,” he said.
Mwenda emphasised that mining required a substantial capital injection, citing the example of Mopani Copper Mines, which initially needed $2.5 billion to revamp and modernise its operations, a critical step in restoring the mine’s productivity and profitability.
Mwenda also questioned the government’s decision to allocate 51% shares to IRH, citing the need for parliamentary oversight.
“The UPND government is cheating and hiding information, and speaking in riddles,” Mwenda said. “This is not the way to run a country, and it’s not the way to attract investors,” he added.
Kabuswe, said the transaction involving Mopani Copper Mines (MCM) and International Resources Holdings (IRH) did not require parliamentary approval.
He said the government did not hold any shares in Mopani before or after the transaction, and therefore, was not capable of selling shares.
Speaking when he delivered a ministerial statement in Parliament, the minister said Mopani was neither a parastatal nor a government-held equity.
He cited the Attorney General’s guidance, which defined a major state asset as including parastatals and government-held equity, and noted that this transaction did not involve any of these assets, as there was no sale, transfer, or disposal of such assets.
Kabuswe said government negotiated with IRH and ZCCM-IH to reinstate a “golden share” in Mopani, giving the state a 49 percent stake. This arrangement, he said, did not involve the formalities of a sale, such as the execution of a share sale agreement, completion of share transfer forms, or payment of property transfer tax.
He further revealed that IRH, through its subsidiary Delta Mining Limited, subscribed to investor shares in Mopani in exchange for an investment of $1.1 billion, with the arrangement being structured as a subscription to shares rather than a transfer or sale. “The government did not hold any shares in Mopani and, therefore, was not capable of selling shares,” Kabuswe emphasised.
The minister’s explanation aimed to address concerns raised by members of Parliament over the transaction’s transparency and compliance with constitutional provisions.
His statement was issued following a directive by Speaker of the National Assembly Nelly Mutti to reissue an explanation after Kalabo Central member of Parliament Chinga Miyutu raised dissatisfaction with the initial submission.
