Not all debt owed by KCM has been paid-Milingo Lungu

 Not all debt owed by KCM has been paid-Milingo Lungu

Konkola Copper Mines (KCM) Provisional Liquidator Milingo Lungu says not all debt owed by KCM to the stakeholders has been paid off.

Mr Lungu was clarifying a report carried in the Daily Nation newspaper edition of August 17, 2020 in which he was quoted on some issues surrounding the liquidation of the company.

He said while the company had made significant strides in clearing some outstanding debt, especially to small and medium contractors and suppliers, but not all had been paid off.

“Like in any liquidation process, the company continues to engage suppliers and contractors of goods and services on new terms post-liquidation. In order to have smooth operations in the company, all new debt is being given priority in terms of settlement for various reasons, including ensuring the sustainability of KCM and protecting employment, and to have continuity with relations enjoyed with these suppliers and contractors.

“However, all historical debt pre-liquidation will only to be settled at the conclusion of the liquidation process in line with provisions of the law. Therefore, KCM will continue to owe suppliers and contractors who will be paid at the conclusion of the liquidation process,” he said.

The Provisional Liquidator urges patience to all stakeholders owed money by KCM as the debt owed by the company will be settled in full once the liquidation process is over. We thank our stakeholders for the support they continue to render to Konkola Copper Mines.

“I also would like to advise our stakeholders that KCM Management is indeed focused on ensuring continued production in order to maintain the company as a going concern and meet its immediate obligations as the government continues with the process of seeking a new strategic equity partner for Konkola Copper Mines,” he said.

The Independent Observer

John Sakala is a Journalist yearning for independent journalism

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.