Kagem Mine Should Answer to the 2021 Audit Report on Parastatals about their losses and not me-Emmanuel Mwamba

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Kagem Mine Should Answer to the 2021 Audit Report on Parastatals about their losses and not me-Emmanuel Mwamba
Kagem Mine Should Answer to the 2021 Audit Report on Parastatals about their losses and not me-Emmanuel Mwamba

Africa-Press – Zambia. Former Zambia’s Ambassador to Ethiopia Emmanuel Mwamba has said that Kagem Mine Board Chairperson Sixtus Mulenga should respond to the Auditor General’s report that showed that Kagem had made losses in the least five years instead of responding to him.

In response to Dr. Mulenga’s remarks urging the Minister of Mines Paul Kabuswe and all well-meaning Zambians to treat Mr. Mwamba’s post on his Facebook page as false and ignore it, Mr. Mwamba said that the information from his post was extracted from the 2021 Auditor General’s Report on Parastatals that stated that Kagem was among a list of companies that declared losses and never submitted dividends to the state.

Mr. Mwamba further added that the Auditor General’s Report on Parastatals has consistently named Kagem Mining Limited as one of the companies that have not rendered any dividends in the last five years.

Mr. Mwamba further said that the Auditor General’s Report on Parastatals revealed that out of 33 companies in which IDC holds shares, 21 recorded a net loss of K3.8billion in 2018, K7.3 billion in 2019, and K17.3 billion in 2020 and that these companies included ZESCO, Zambia Railways, and Kagem Mining Ltd and Kagem Mining is owned by ZCCM-IH (25%) and Gemfields (75%).

Mr. Mwamba further said that Kagem Mine was the single largest producing emerald mine in the world and Zambia is the second-largest producer of emeralds after Columbia.

Mr Mwamba said that the Auditor General’s Report stated that a review of the State-Owned Enterprise (SOEs) Situational Analysis Brief issued in September 2021 revealed that out of the thirty-nine (39) companies that were operational, twenty-five (25) companies reported losses during the period under review as indicated in table 7.7 of the report on page 40, which include Kagem Mining

Yesterday Dr Sixtus Mulenga described as laughable and ignorant an article which was written by former Zambia’s Ambassador to Ethiopia Emmanuel Mwamba where he claimed that the gemstone giant posted losses in 2020.

Dr. Mulenga said that the emerald mine ceased production in 2020 due to the COVID-19 pandemic, adding that the Facebook post by Mr. Mwamba is false and should be ignored by well-meaning Zambians.

Dr. Mulenga said that most companies scaled-down production while some closed due to the impact of Covid-19, adding that Kagem, the largest emerald producer in the world, is the only company which paid workers in full for one year despite halting its operations.

Dr Mulenga said this when Mines and Mineral Development Minister Paul Kabuswe and Lufwanyama Member of Parliament Kenny Siachisumo toured the gemstone mine recently.

Earlier, the minister visited Grizzly Mine where he urged management led by Company Vice Chairperson Abdoul Ba to be transparent in their operations. Mr. Kabuswe said management should ensure there is skills transfer to employees to encourage artisanal mining.

And Mr. Ba commended Government for its support and pledged to continue supplementing its efforts through corporate social responsibility programmes. In response, Mr. Kabuswe urged the workers unions to be proactive and vigilant in fulfilling their mandate and cautioned management against intimidating workers.

He urged Kagem Mine and Grizzly Mine to collaborate and tar the over 40-kilometer road which connects Kalulushi District to the two mines. The Audit Report on parastatals for 2020 can be downloaded on the link below https://www.ago.gov.zm/?wpfb_dl=246

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