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Monday, 27 May 2013

Minority Shareholders on ZCCM-IH Mismanagement

ZCCM-IH miniority shareholders have made available this open letter to Vice President Guy Scott which raises concerns about "bad governance and ineffective management of the ZCCM-IH". The Open Letter has been submitted via Zambian Embassy in Paris. Their main target is the ZCCM IH Chairman Willa Mungomba and it centres around his alleged unwillingness to nominate a representative of minority shareholders to sit on the Board. 

They also allege that : the chairman and directors' remuneration are hidden; there has been no legal procedure brought against looters for fraud e.g. Mopani/Glencore; that the management has not brought sufficient pressure against FQM to pay US$550m of minority interest from Kansanshi; and, questions around how the valuation of ZCCM-IH assets and clouded plans to convert debt in equities.  These are important questions which ZCCM-IH must move to address swiftly to ensure that tax payers money is being safeguarded and the company is run with utmost transparency. 

Copyright © Zambian Economist 2013

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