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Wednesday, 25 August 2010

The Auditor General's Report for 2008 (On Parastatals)

We continue to ensure you have the most important information to hand - not to sit on it but to ensure you do all you can to hold your government to account. The mother of all reports which has been heavily trailed in the media. The report covers all the big players - TASKFORCE, ZCCM-IH, ZAMTEL, ZNBC and many more. Well worth the read. I hope to extract some interesting conclusions in separate posts over the next few days.
REPORT of the AUDITOR GENERAL for 2008 on PARASTATAL BODIES
The Auditor General's Report for 2008 (Public Accounts)
The Auditor General's Report for 2007 (Public Accounts)
The Auditor General's Report for 2005 (On Parastatals)

9 comments:

  1. for total information you can see below the total benefits for the mines after amortization and taxes.

    When you see these benefits you can understand that the dividends for zccm-ih are ridiculous.

    Why the mines no give correct dividends to zccm ?

    why the board of zccm and the grz never talk about this scandalous situation ?

    The worst partner for zccm-ih is GLENCORE with Mopani
    the Best partner for zccm-ih is METOREX with Chibuluma

    all these partners are not partners but enemy of zambia.. they prefer no give money to zccm and use this money for their other projects in other country...that is the choice of some people in the board...who never talk about it...


    2006 2007 2008 M US$

    kcm 113 937 000 301 329 000 134 054 000
    kansanshi 275 781 000 425 200 000 346 900 000
    luanshya 11 689 000 4 010 000 -33 784 000
    nfc 17 510 000 38 623 000 32 402 000
    chibuluma 16 045 000 36 353 000 43 268 000
    mopani 116 088 000 109 207 000 -171 311 000
    chambi metals 2 574 000 45 735 000 -31 137 000

    ReplyDelete
  2. For your information mopani lose money selling the copper at very low price to Other Companies group Glencore!

    ReplyDelete
  3. unfortunately you are right Philip...

    Why the directors and the govt are so lenient with foreign companies ?

    Kansanshi mining gives only crumbs to the govt and zccm-ih (only $24, 1 million : $6m in 2009 and $18,1 m in 2010!)

    The amount of Minority interests due to ZCCM-ih is now $ 350 million while at the same time the benefit of kansanshi overtook $ 664.2 m in 2008 and $610.4 m in 2009 !

    Kansanshi Mining owes ZCCM-ih $350 million

    ZCCM-ih owes the govt $300 million

    WHO benefits from this situation??

    Certainly not Zambian people...

    And the govt owes IMF $ 330 million and was only able to pay back $ 1,9 million...

    What a shame !

    Moreover why the govt and the directors let foreign companies use transfer pricing whereas they know that ?? less tax and no dividend to zccm-ih.. WHY????

    eg mopani mine already uses subsidiaries of fqm and glencore based in tax heavens...

    Website zccm-ih

    http://www.zccm-ih.com.zm/index.php?option=com_content&task=view&id=17&Itemid=47

    Mopani Copper Mines plc is majority owned by Carlisa Investments Corporation, which is incorporated in the British Virgin Islands. Carlisa Investments Corporation is jointly owned by Glencore Finance (Bermuda) Limited (81.2%), a wholly owned subsidiary of Glencore International AG; and Skyblue Enterprise Incorporated (18.8%), a wholly owned subsidiary of First Quantum Minerals Limited. The assets owned by the company which is the second largest operating investment under ZCCM-IH’s present portfolio (after KCM), include the Mufulira Mine, Smelter and Refinery, and the Nkana Mines, Concentrator and Cobalt Plant all located on the Copperbelt Province of Zambia. MCM initated a programme in 2005 that was aimed at rebuilding and installing new technology to increase the capacity of processing copper concentrate.

    ---
    skyblue Entreprise Incorporated also based in British Virgin Islands

    www.first-quantum.com/i/pdf/AIF.pdf

    page 3


    ----

    FQM ANNUAL INFORMATION FORM AS AT DECEMBER 31, 2008

    www.first-quantum.com/i/pdf/AIF.pdf

    page 4



    Investments

    Carlisa Investments Corp.


    The Company holds an 18.8% interest in Carlisa Investments Corp., which holds a 90% interest in Mopani Copper Mines Plc (“Mopani”). Mopani is a privately-held Zambian registered company which operates both the Nkana underground copper mine and cobalt refinery and the Mufulira underground copper mine, smelter and copper refinery in Zambia, which was commissioned in December of 2006. The smelter provides treatment capacity for copper concentrate produced at Kansanshi and copper concentrate produced at Frontier. The carrying value of this investment as at December 31, 2008 was $9.5 million. As Carlisa Investments Corp. and Mopani are private companies, only limited public information about them is or may be made available for dissemination. In 2008, Mopani produced approximately 160,000 tonnes of finished copper and 1,400 tonnes of cobalt and had assets as at December 31, 2008 in excess of $1 billion.

    ReplyDelete
  4. Moreover why the govt and the directors let foreign companies use transfer pricing whereas they know that ?? less tax and no dividend to zccm-ih.. WHY????

    eg mopani mine already uses subsidiaries of fqm and glencore based in tax heavens...

    Website zccm-ih

    http://www.zccm-ih.com.zm/index.php?option=com_content&task=view&id=17&Itemid=47

    Mopani Copper Mines plc is majority owned by Carlisa Investments Corporation, which is incorporated in the British Virgin Islands. Carlisa Investments Corporation is jointly owned by Glencore Finance (Bermuda) Limited (81.2%), a wholly owned subsidiary of Glencore International AG; and Skyblue Enterprise Incorporated (18.8%), a wholly owned subsidiary of First Quantum Minerals Limited. The assets owned by the company which is the second largest operating investment under ZCCM-IH’s present portfolio (after KCM), include the Mufulira Mine, Smelter and Refinery, and the Nkana Mines, Concentrator and Cobalt Plant all located on the Copperbelt Province of Zambia. MCM initated a programme in 2005 that was aimed at rebuilding and installing new technology to increase the capacity of processing copper concentrate.

    ---
    skyblue Entreprise Incorporated also based in British Virgin Islands

    www.first-quantum.com/i/pdf/AIF.pdf

    page 3


    ----

    FQM ANNUAL INFORMATION FORM AS AT DECEMBER 31, 2008

    www.first-quantum.com/i/pdf/AIF.pdf

    page 4



    Investments

    Carlisa Investments Corp.


    The Company holds an 18.8% interest in Carlisa Investments Corp., which holds a 90% interest in Mopani Copper Mines Plc (“Mopani”). Mopani is a privately-held Zambian registered company which operates both the Nkana underground copper mine and cobalt refinery and the Mufulira underground copper mine, smelter and copper refinery in Zambia, which was commissioned in December of 2006. The smelter provides treatment capacity for copper concentrate produced at Kansanshi and copper concentrate produced at Frontier. The carrying value of this investment as at December 31, 2008 was $9.5 million. As Carlisa Investments Corp. and Mopani are private companies, only limited public information about them is or may be made available for dissemination. In 2008, Mopani produced approximately 160,000 tonnes of finished copper and 1,400 tonnes of cobalt and had assets as at December 31, 2008 in excess of $1 billion.

    ReplyDelete
  5. Moreover why the govt and the directors let foreign companies use transfer pricing whereas they know that ?? less tax and no dividend to zccm-ih.. WHY????

    eg mopani mine already uses subsidiaries of fqm and glencore based in tax heavens...

    Website zccm-ih

    http://www.zccm-ih.com.zm/index.php?option=com_content&task=view&id=17&Itemid=47

    Mopani Copper Mines plc is majority owned by Carlisa Investments Corporation, which is incorporated in the British Virgin Islands. Carlisa Investments Corporation is jointly owned by Glencore Finance (Bermuda) Limited (81.2%), a wholly owned subsidiary of Glencore International AG; and Skyblue Enterprise Incorporated (18.8%), a wholly owned subsidiary of First Quantum Minerals Limited. The assets owned by the company which is the second largest operating investment under ZCCM-IH’s present portfolio (after KCM), include the Mufulira Mine, Smelter and Refinery, and the Nkana Mines, Concentrator and Cobalt Plant all located on the Copperbelt Province of Zambia. MCM initated a programme in 2005 that was aimed at rebuilding and installing new technology to increase the capacity of processing copper concentrate.

    ReplyDelete
  6. skyblue Entreprise Incorporated also based in British Virgin Islands

    www.first-quantum.com/i/pdf/AIF.pdf

    page 3


    ----

    FQM ANNUAL INFORMATION FORM AS AT DECEMBER 31, 2008

    www.first-quantum.com/i/pdf/AIF.pdf

    page 4



    Investments

    Carlisa Investments Corp.


    The Company holds an 18.8% interest in Carlisa Investments Corp., which holds a 90% interest in Mopani Copper Mines Plc (“Mopani”). Mopani is a privately-held Zambian registered company which operates both the Nkana underground copper mine and cobalt refinery and the Mufulira underground copper mine, smelter and copper refinery in Zambia, which was commissioned in December of 2006. The smelter provides treatment capacity for copper concentrate produced at Kansanshi and copper concentrate produced at Frontier. The carrying value of this investment as at December 31, 2008 was $9.5 million. As Carlisa Investments Corp. and Mopani are private companies, only limited public information about them is or may be made available for dissemination. In 2008, Mopani produced approximately 160,000 tonnes of finished copper and 1,400 tonnes of cobalt and had assets as at December 31, 2008 in excess of $1 billion.

    ReplyDelete
  7. the problem is that in zambia, no one known this scandalous situation !

    The GRZ never talk about zccm and its dividends because they know that this situation is suspicious, because the foreign groups are not realy partner but only opportunistic and profiteer.

    The actual GRZ and the board of ZCCM are the best friends of these foreign groups but not friends for all zambians, not friends of the people of zambia :-((

    ReplyDelete
  8. Guys, can one of you learned fellows tell me why KK's plan for a copper cartel failed? Would there be scope to revive this idea?

    ReplyDelete
  9. Chilean president Frei was willing to create a copper cartel with KK and the next Chilean president Salvador Allende nationalized copper and pursued this objective, unfortunately you know what it happened...
    Americans and mostly chineses now never allow this...

    At least, zambian people must benefit from copper

    Here advices from minerals expert

    -----

    Zambia can still benefit from mining sector – minerals specialist
    By Kabanda Chulu

    THERE are still strategies which countries like Zambia can apply to reap benefits from the minerals sector owned by foreign companies following the unfair privatization of the mining industry, WITS University lecturer Nicolas Pons-Vignon has said.

    And Third World Network (TWN) Africa programme officer on Political Economy
    Gyekye Tanor said neo liberalism with its free market policies will not bring
    development to African countries.

    Commenting on the Zambian privatisation of the mines where multinational
    companies were given massive incentives and tax concessions, Pons-Vignon, who is a specialist on minerals economy and energy industrialization, said natural resources can be an opportunity if the concerned government understands the broader contexts.

    “Zambia’s privatisation was a worse moment when copper prices were low and the country settled for 0.6 per cent mineral royalty (now revised to 3 per cent) and gave out various incentives to the buyers at the expense of national economic development, this is not fair and it is not too late since there are still strategies to reap benefits from the minerals sector,” Pons-Vignon said.

    “Firstly, there is need to renegotiate those unfair development agreements especially that there is now increased competition for mineral resources and there must be in place a development productive strategy that links mineral rights to local content conditions and training and lastly, there must be capacity building in geological survey because there is a tendency by foreign investors with vested interests to hide something, for instance, they will say the mineral content on this site will last a few years and ask for a lower price but if your people are qualified then it will be a different story.”

    And Tanor said there is need to bring back state intervention and to play an
    active role in the political and socio-economic sectors of African countries.

    “It is widely recognized that the current financial crisis is the result of
    fundamental drawbacks of the neo-liberal model that has been shaping global
    economic policies in the last three decades and these drawbacks were magnified by policy failures and lax regulations in the advanced countries were the crisis originate d from,” said Tanor.

    “African governments have followed economic reform programmes based on the primacy of self regulating markets, severely reduced government involvement and the attraction of FDI for promoting development, however, these programmes have neither been able to address the key structural constraints in these economies, nor have they led to structural change and economic diversification but neo-liberalism has just reinforced the inherent vulnerability to external shocks.”

    ReplyDelete

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