High Court stays some powers of KCM liquidator
By Staff Reporter
LUSAKA High Court judge Anessie Banda-Bobo has stayed some of the powers of the Konkola Copper Mines (KCM) provisional liquidator Milingo Lungu pending determination of the winding up petition against the mining firm.
Last month, ZCCM-Investment Holding petitioned the court to wind up KCM for engaging in tax evasion and being managed in a manner detrimental to the interest of government, among other issues.
According to an ex-parte order to stay some of Lungu’s powers signed by judge Banda-Bobo, on June 25, the provisional liquidator has been barred from making any compromises or arrangements with creditors, disposing of assets by public tender or selling them, pending the outcome of the Winding-Up petition.
“Upon hearing counsel for the contributor and upon reading the affidavit sworn by Hermien Uys filed herein, it is hereby ordered that the following powers of the provisional liquidator Milingo Lungu, be and are hereby stayed pending the outcome of the hearing of the Winding-Up petition. (i) The power empowering the provisional liquidator to ‘make any compromises or arrangements with creditors’. (ii) the power empowering the provisional liquidator to make any agreement on all questions in any way relating to or affecting the company or its assets. (iii) The power empowering the provisional liquidator to dispose of assets by pubic tender or the most transparent manner under the circumstances and (iv) The power empowering the provisional liquidator to sell the real and personal property and things in action of the Respondent by public auction, public tender or private contract,” ordered judge Banda-Bobo.
The judge has set July 4 for inter parte hearing.
In May this year, judge Banda-Bobo granted ZCCM-IH an order to appoint Lungu of Messrs Lungu Simwanza and Company as provisional liquidator of KCM.
Lungu as provisional liquidator was to carry on the business of KCM so far as is necessary for the beneficial winding up, make any compromises or arrangements with creditors, make any agreement on all questions in any way relating to or affecting the company or its assets and take possession, custody and control all the assets of the Respondent.
The provisional liquidator was also authorised to bring or defend any action or other legal proceedings in the name and or on behalf of KCM, dispose assets by pubic tender in the most transparent manner under the circumstances and sell the real and personal property and things in action of KCM by public auction, public tender or private contract.
According to an affidavit in support of ex-parte summons for an order for joinder of a party to the proceedings, Hermien Uys of Stellenboach in South Africa, who is a representative of the respondent, stated that Vedanta Resources Holding limited was the majority shareholder in KCM with 79.4 percent shares, respectively.
KCM’s representative wanted Vedanta to be joined to the winding up proceedings to challenge the appointment of Lungu as provisional liquidator.
Uys had contended that following his appointment as provisional liquidator Lungu had assumed the responsibility of a provisional liquidator and demanded that some personnel in KCM’s senior management should prepare handover notes for him.
He lamented that Vedanta stood to suffer great prejudice if the court ordered that the mining company be wound up without hearing it.
