By SYLVESTER MWALE –
LUNGA Minerals and Exploration has asked the Anti-Corruption Commission (ACC) to institute investigations into how Nkana Alloy and Smelting Company (NASC) acquired the copper slug dump site in Kitwe.
Meanwhile, Lusaka High Court Judge Mwila Chitabo has withheld his earlier injunction restraining NASC from interfering in the operations of Lunga Minerals and Trustees of Vision Wusakile Empowerment Trust.
The mining company claims in a letter addressed to ACC director general Roswin Wandi dated April 16, 2015 that NASC has defrauded the Government to a tune of K966,000 in unpaid property transfer tax.
NASC in 2012 purchased 38.6 hectares of the land where the dump site, commonly known as the Black Mountain, is situated.
The ACC could neither confirm nor deny whether investigations had been launched by Press time.
But Lunga Minerals stated that the whole transaction was marred by false declarations and misrepresentations as well as corruption to public bodies.
“The Zambia Revenue Authority values the land at K19,320,000 for which property transfer tax of K966,000 was paid by Chambishi Metals,” read
the letter in part.
Coincidentally, at this point there was a purported transfer of large-scale mining licence over the said piece of land.
The letter says NASC had failed to provide proof of payment of tax for the transfer of the mining licence but had conveniently used the land purchase transaction as evidence that property tax was paid.
“It has come to our attention that the transfer transaction itself was valued at over US$20,000,000 thereby evidencing that NASC with its associate foreign companies defrauded the Zambian Government and the country as a whole,” the letter states.
“We implore your good office under this note to immediately investigate the transaction between Chambishi Metals Plc and NASC as the same begs the question as to whether legal taxes were paid.”
Meanwhile, Judge Chitabo this week upheld the injunction granted in March to Lunga Minerals where the exploration firm had sought to
restrain NASC from interfering with activities at the Black Mountain.
“I formed that this is a fit and proper case to exercise my discretionary powers to confirm the peremptory mandatory injunction I
granted on 11th March, 2015 and I so confirm it,” Judge Chitabo said.
The court also ordered each party in the matter to cover its own costs but gave them the right to appeal.