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Moxico Caught ‘Offside’ Again, Directors Face Jail for Contempt

Moxico Chief Executive Officer Mr Alan Davies is facing jail in Zambia for failing to obey an ex parte order of interim injunction restraining him and others from interfering with operations of the Euro Africa Kalengwa Mine Limited.

This company has had a long standing dispute over shareholding and while in the middle of this, other shareholders illegally sold shares to Moxico.

Earlier on March 16, 2017, the Lusaka High Court granted an ex parte order of interim injunction against Euro Africa Kalengwa Mines Limited, Mulondwe Muzungu, Nephson Kafwebu, Elijah Munyompe and the Patents and Companies Registration Agency (PACRA) after Euro Africa Mining Limited and Chinua Edgar Mulenga as first and second applicants respectively took the matter of shareholding to court.

The respondents were restrained from interfering with the applicants’ right to participate in the ownership, management and control of the first respondent company (Euro Africa Kalengwa Mines) until further order of the court.

The respondents were further warned of penal repercussions of their failure to obey the order, which included liability to committal proceedings.

However, Moxico illegally bought shares in the mine while the dispute between shareholders was still in court.

This is not the first time that Mr Davies has found himself entangled in controversy over mining dealings because in November, 2016, he was forced to step down as Rio Tinto’s head after engaging in government fraud in West Africa.

Apart from this, Moxico is fighting with KCM over the Mimbula Fitula mine in Chingola.

Both groups of shareholders in Euro Africa Kalengwa actually do not have any right to the prospecting licence over the Kalengwa tenement.

The prospecting licence belongs to KPZ International who have lodged a complaint to the Ministry of Mines against Moxico for interference in their operations in the mine.

The Ministry directed Moxico to vacate the mine or face criminal trespass and prosecution for holding on to a tenement that does not belong to them.

Meanwhile, the second plaintiff in the matter, Mr Mulenga, has issued an ultimatum to lawyers of the sixth and seventh respondents (EuroAfrica Kalengwa Mines Limited and Moxico Resources) to withdraw an application for interpretation and/or variation of the the order of injunction.

The law firms involved are Muya and Company and CL Mundia and Company.

“This is of extreme as this is an attempt at inviting the Supreme Court to grant you large scale mining prospecting licence which is the subject matter in the dispute currently before the Commercial Court in addition to matter regarding the ownership and shareholding of Euro Africa Mining Limited,” Mulenga stated in a letter dated July 19, 2019. “…If the said application is not withdrawn within seven days, we shall accordingly notify the Supreme Court using the rules of Court and report your law firm to the Law Association of Zambia for this gross impropriety.”

6 Comments

  1. Kevin Coulter

    The controversial businessman Shawi Fawaz is about to face a raft of questions this morning from government, community, investors and regulators. Stories will break over the next few days that go to the heart of the life of a mine, that mine is the heart of a community.
    15th July Kalengwa Processsing Zone (KPZ) Limited who own the mine signed an agreement with Xtract Resource. Was this deal legal?
    Another company, Moxico, had ownership of the Mine confirmed by Supreme Court of Zambia. Colin Bird the CEO of Xtract knew this. There is more to come on this: why was the deal not done through Jubliee Platinum? Did they refuse to do the deal because they knew it was illegal?
    Xtract Resource share price hit a 12-month high on 21 July. How? Why?
    The Share Price crashed on the 22 July, losing 23% Market Value.
    Did the owners dump their shares because they knew their deal with KPZ would be ruled illegal by Zambian government. This is the surface of a shady deal involving known criminals, stock price manipulation and foreign interests bartering the assets of Zambian. But is also about the jobs, homes and livelihoods of the people who work in and live near the mine.
    Did Colin Bird and his crew think about them while they cashed in on this illegal deal making. They are going to have to think about them now.

  2. teddy chileshe

    we in kasompe we are waiting for the same moxico company to come and start operations.but all we could hear is that government hasn’t yet given them license to start is it true.

  3. Amos C

    Zambia reports serious legal trouble for you in this your report on Moxico. so many falsehoods and lies. did not know your journalism integrity be bought so easily

  4. Victimized Diplomat

    13 kawyers committed Contempt of Court and stole my belongings, through Orders illegally obtained from their relative Judges, whilst the goods they stole are a subject of an injunction in a Commercial Action ,N started by a conspiracy comprising if the same kawyers on false pretext of them wanting to correct a purported payment by error; yet such payment was my UN benefit entitlement, in which national courts have no jurisdiction in correcting…. Five years on, LAZ and JCC gave failed to take action against the implicated kawyers and respected members of the Bench…. Zambuan civil litigation has been turned into a money laundering, banditry and racketeering device. Which court Rukes are these lawyers talking about when they were grisly abrogated in my case, and to which LAZ are they going to report,myet LAZ is also conflicted fir failing to take action against the banditry kawyers…and for instead conspiring with the said kawyers and committing fraud upon the Concourt… Such selective application of the law must be condemned, as it indicates the existence of corruption and abuse of power..and gross rights infringements.

  5. Victimized Female

    13 lawyers committed Contempt of Court and stole my belongings, through Orders illegally obtained from their relative Judges,; and whilst the goods they stole are a subject of an injunction in a Commercial Action illegally commenced by a conspiracy comprising of the same lawyers on false pretext of them wanting to correct a purported payment by error; when such payment was my UN benefit entitlement, in which national courts have no jurisdiction in correcting..; they just abused the judicial process to steal from me and torture me to inhuman and degrading treatment.
    Five years on, LAZ and JCC have failed to take action against the implicated lawyers and respected members of the Bench, but they want to continue stealing and legitimizing their ill gotten proceeds.

    Zambian civil litigation has been turned into a money laundering, banditry and racketeering device, and this should be condemned by all well meaning Zambians.
    Which court rules are these lawyers mentioned in the Euro Kalengwa saga…talking about when court rules were grossly abrogated in my case, and to which LAZ are they going to report, yet LAZ is also conflicted for failing to take action against the banditry lawyers…and for instead conspiring with the said lawyers in committing fraud upon the Concourt… They are all marred with filthy hands and the doctrine of clean hands commands that they clean their filth first.
    Such selective application of the law must be condemned, as it indicates the existence of corruption and abuse of power..and gross rights infringements.

  6. Rapheal Kapela

    How far is the gorvt grant the need of people,of kalengwa mine?
    Couse we have saffared a lot,until now .
    So we need help from gorvt to give us a real enverstor who is going to vanish global crises in area and the whole entire district,up to country wide.

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