Mopani deal remains a scandal – Ng’uni

By BARNABAS ZULU

FORMER Deputy Finance Minister Newton Nguni has demanded for a detailed and comprehensive explanation from the government on the opaque transaction on the Mopani Copper Mines (MCM) whose 51 percent shares have been awarded to a Dubai-based company, Delta under the International Holdings Resources (IHR).
The Mopani Mine shares were initially held by Zambia Consolidated Copper Mines – Investment Holdings (ZCCM-IH) after Glencore. Mr. Nguni’s demand for clarity comes after Minister of Mines and Minerals Development Paul Kabuswe made a fresh ministerial statement on Thursday, in which he claimed that Mopani was not a parastatal and the government did not need to seek the approval of Parliament in the transaction.
“Mr Kabuswe should not insult us in such a manner. In government, you cannot do a wrong thing to achieve a good thing. All the time, procedures must be followed. The Mopani issue is not about investment per se. It is about racketeering and the abrogation of procedures, coupled with incompetence, leading to failure to get the best value for money on behalf of the people,” Mr Ng’uni said.

Mr. Kabuswe is insisting that the government did not subject the sale to parliamentary scrutiny because the Attorney General had advised that Mopani was not sold, despite the transfer of 51 percent shares. The minister’s statement has drawn strong reactions from various stakeholders, including Members of Parliament.
Mr. Nguni, in particular, has expressed his dissatisfaction with the government’s explanation, accusing Mr Kabuswe of insulting Zambians
“Mr Kabuswe must be feeling very big and untouchable right now,” Mr. Nguni said. “When Speaker Mutti ordered him to issue a ministerial statement on the floor of the House, disclosing full details on the sale of Mopani, most of us thought the matter would be put to rest for once and for all. But no, the minister could not hide his holding of all of us as a bunch of children at some kindergarten.”
Mr. Nguni criticised Mr. Kabuswe for presenting two key points in his statement, with the claim being that no sale took place and the second being a feeble argument that Mopani was not a parastatal and therefore not subject to constitutional provisions on asset disposal. “To spew such nonsense on the floor of the House takes a lot of courage and can only happen when whoever is spewing it knows that there is nothing the people or their representatives in Parliament could do about it,” Mr. Nguni said.
“He may be correct that there’s nothing the people can do right now, otherwise, their MPs could have immediately constituted a committee to inquire into the sale of Mopani themselves.”
Mr. Nguni pointed out that ZCCM-IH, being a state-owned company, had always had directors appointed by the state, and that Mopani, prior to the majority share acquisition by Delta, was wholly owned by ZCCM-IH.
“ZCCM-IH is owned by the State, and it has always been like that since the two mining companies were consolidated under UNIP,” Mr. Nguni explained.
“Mopani was, until Delta got 51 percent, wholly owned by ZCCM-IH. The Board of Directors of Mopani, which Delta dealt with, was appointed by ZCCM-IH, a state company.”
He also raised questions about how Delta acquired the majority stake, stating that if no sale occurred, it still resulted in the state losing part of its asset, which should have been authorised by Parliament. “Since no sale took place, how did Delta acquire the majority shareholding?” Mr. Nguni asked. “When the law talks of a ‘sale,’ it means loss of beneficial ownership of a major asset. Right now, regardless of the method used to admit Delta into the majority share ownership of Mopani, the state has lost part of its asset. And that loss requires authorisation by Parliament.” Mr. Nguni also questioned the cancellation of the tender for the sale of Mopani shares, noting that Delta was not among the companies that participated in the bidding process.
He demanded answers on when the tender was cancelled and when new investors, including Delta, were invited to participate.
“There was a tender running for the sale of a stake in Mopani, and Delta was not one of the companies that participated in the bidding,” Mr. Nguni said.
“When was that tender cancelled, and when were the new interested investors invited to create a new window through which Delta participated?
In the absence of that, how did the government determine that what Delta offered under the new terms was the best without subjecting that to competitive bidding?”
Mr. Nguni accused Mr. Kabuswe and the government of mishandling the Mopani deal, suggesting that the issue was not about investment but about racketeering, procedural violations, and failure to secure the best value for Zambians.