Africa-Press – Zambia. Mines and Minerals Minister Paul Kabuswe MINES and Minerals Development Minister Paul Kabuswe says Konkola Copper Mines (KCM) Provisional Liquidator Milingo Lungu can only be removed from his position through a court process or him having to tender a resignation.
In recent weeks, Lungu has been engulfed in allegations of abuse of authority and corruption while executing his duties at the mine which have generated pressure on government to have him dismissed.
Last week, the Drug Enforcement Commission (DEC) arrested Lungu for theft of K17,250,000 after previously arresting him on similar charges in September. Commenting on the development, Kabuswe explained that Lungu was appointed by the court and as such, could not be fired by government.
“The liquidator is not appointed by the government, he is usually appointed by the court. So, if we were to remove him, we have to use the court process or [him having] to tender his resignation. But very soon, you will hear some announcements. I cannot give you all the details because issues that involve court are legal matters, they are quite sensitive. So, it’s not very easy to make a comment on them that should go to the press, until you hear an action has been taken,” said Kabuswe.
When asked to share his thoughts about the recent development, he said “of course I don’t feel good, somebody is innocent until proven guilty. As a personal opinion, I think we must do the honourable thing.”
DEC public relations officer Mattias Kamanga confirmed Lungu’s arrest on Friday, saying the Commission has since seized funds amounting to K136,828,795.00.
“The Drug Enforcement Commission through its Anti-Money Laundering Investigations Unit has arrested the Konkola Copper Mines (KCM) PLC Provisional Liquidator Milingo Lungu for theft involving K17,250,000.00 contrary to the Laws of Zambia. Particulars of the offence are that Mr. Milingo Lungu, a 45 year old male of Plot No. 22763, Mulungushi Road in Lusaka, jointly and whilst acting together with other persons unknown, on dates unknown but between 6th May 2021 and 30th Agust 2021, and in his capacity as Provisional Liquidator for KCM, transferred funds from the Liquidation Account to his Law Firm’s Account and instructed the Bank to put the said funds into a fixed account deposit. This arrangement earned him interest of K17,250,000.00 which he withdrew. Thereafter, he transferred back part of the principal amount to KCM Plc (in liquidation) through another account,” said Kamanga.
“The Commission has since seized K136,828,795.00 in connection with these transactions and has charged and arrested Mr. Lungu for theft contrary to Section 272 and 278 of the Penal Code Act, Chapter 87 of the Laws of Zambia.”
Kamanga said Lungu was released on police bond and was expected to appear in court soon. According to sources, the latest arrest is in connection with the usage of money amounting to about K700 million which government deposited in the KCM account.
The sources explained that after the money came in from the Ministry of Finance, Lungu transferred close to K600 million to his firm, Lungu Simwanza, where it gained the said interest from a fixed deposit account.
Further, the sources explained that during his reign as KCM liquidator, Lungu opened a KCM account where he was the sole signatory, and used it to make suspicious transactions.
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