The Zambian Digest Logo
22.2 C
Lusaka
Sunday, February 9, 2025
The Zambian Digest Logo

Attorney General Defends Mopani Copper Mines Share Transfer

Must read

Attorney General Mulilo Kabesha has argued that the transaction transferring 51 percent of Mopani Copper Mines shares to Delta Mining Limited did not breach the constitutional requirements under Article 210.

According to Kabesha, the deal did not involve the sale or disposal of a major state asset and therefore did not necessitate parliamentary oversight or procedural safeguards.

He contends that the nature of the transaction, which involved the dilution of shares rather than a direct sale, falls outside the scope of Article 210, which governs transactions involving state-owned assets.

In a submission to the Constitutional Court, Kabesha maintained that the legal process was properly followed.

He stated that the nature of the transaction fell outside the confines of Article 210, which mandates parliamentary approval for the sale or disposal of major state assets.

Kabesha clarified that ZCCM-IH, which previously owned 10 percent of Mopani Copper Mines shares, acquired the remaining 90 percent from Glencore in 2021 for a nominal price of USD 1 per share.

This acquisition resulted in ZCCM-IH holding 100 percent ownership of Mopani Copper Mines.

He explained that the issuance of additional shares by ZCCM-IH led to the dilution of its 100 percent shareholding in Mopani to 49 percent, as 7,181,633 new shares were created.

This increased the total shares in Mopani to 14,081,633, with the remaining unallocated shares allotted to Delta Mining Limited.

The Attorney General reiterated that there was no sale or transfer of a major state asset since the government did not directly hold equity in Mopani Copper Mines.

He argued that Mopani has never been classified as a parastatal and remains outside the purview of government ownership.

The submission was in response to a petition filed by Miles Sampa, the Matero Member of Parliament, who seeks the nullification of the transaction.

Sampa contends that the deal violated Article 210 of the Constitution, which requires parliamentary approval for transactions involving major state assets.

Sampa has called on the Constitutional Court to declare the transaction unconstitutional and to direct the government to ensure compliance with constitutional provisions in future dealings involving major state assets.

He alleges that the transaction lacked transparency and was framed as a subscription to shares to bypass constitutional safeguards.

Sampa challenges the legal foundation of the Attorney General’s guidance, asserting that ZCCM-IH, as a government-controlled entity, qualifies as a major state asset subject to constitutional oversight.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article