Kampyongo accuses mine investors of dishonest, threatens expatriate workers
By Staff Reporter
Government has threatened to revoke work permits for expatriate mine workers if the mining companies carry out their threats of cutting over 21,000 jobs for Zambians due to the new tax hikes that have been introduced.
Speaking during a Hot FM breakfast show phone in interview, Minister of Home Affairs Steven Kampyongo said it is unfair that the mine companies want to ‘arm twist’ the government.
Mining companies have threatened to lay off more than 21,000 miners due to the new tax regime, which they claim was restrictive.
Kampyongo who appeared visibly emotional said “government has economic experts who analyse the tax systems before implementation” but when the interviewer tried to clarify if this would chase away investors, Kampyongo interjected saying “no! let me speak, people need to know the truth because the mining companies are not telling the truth”.
But MMD faction estranged president Nevers Mumba has advised the minister to tone down and manage the situation in a sober manner and ensure that the 21,000 miners were not fired.
Speaking in another radio programme titled ‘Frank on Hot’ Mumba said Kampyongo should not try to show who has the bigger ‘punch’ but rather deal with the issue in a mature manner.
“It’s the responsibility of government to protect the citizen not the investor who is not related to them. These investors come from other countries and their first priority is to make profit and not care for people they do not know. They are not the ones related to the Mumbas, Chileshes or Sakalas but we Zambians,” he said.
Mining accounts for more than 70 percent of Zambia’s foreign exchange earnings and major companies operating in Zambia include First Quantum Minerals, Barrick Gold Corp, Glencore and Vedanta Resources who have among them agreed to cut about 21,000 Jobs for Zambians.
The Chamber of Mines recently said it met officials at the ministry of finance last week to present its views on the likely impact of the tax changes contained in the 2019 budget, which include capital expenditure cutbacks of more than $500 million.
Africa’s No.2 copper producer plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt.
