Association of Mine Suppliers and Contractors President Augustine Mubanga has accused Lumwana Mine of having a registered a Company in Mauritius and Dubai to deny Zambians any works at the Mining giant.
Speaking at a media briefing in Kitwe today, Mubanga charged that Lumwana Mine has registered a company called Trade Corp which also has an office in South Africa and which has been getting all the works including stationery.
Mubanga said the association has been conducting an investigation to establish why the participation of local contractors at the Mining giant has reduced to less than 5%.
He charged that Lumwana Mine has been giving all the works to Trade Corp which he said a trading company and not even involved in any manufacturing works.
“They collected all the prices for local companies and submitted these prices to this company called Trade Corp so that when Trade Corp is quoting they have reference from the local prices and also international prices and what they do is that when a local prices is cheaper than what Trade Corp has quoted, Lumwana always insists on Trade Corp to drop the price so that they are given the order or the contract, and they have also gone further to give them a long term contract to supply bolts, stationery and even tissues,” Mubanga said.
He added that the Association will evoke the law citing Lumwana Chief Executive Officer and Supply manager for alleged breach of Mines and Minerals Development Act and apply penalties as guided by the law.
“It is a crime to sideline Zambians, they have set up their own company is South Africa to procure goods, which goods they will deliver in Zambia at a high cost and claim VAT on that at a cost of Zambians and we are not going to tolerate this, Lumwana shared significant information to Trade Corp which they ahve never shared to any Zambian company,” He added.
And when contacted, Lumwana Mine Country Manager Nathan Chishimba said the allegations being raised are unsubstantiated stating that he is no position to respond to such.
“I cannot comment on such broad allegations especially when they didn’t provide any evidence of that happening, what i can just clarify is that Lumwana does not employ underhand methods in dealing with suppliers, we have a very realistic and committed local contractor development programme, we treat every commercial partner seriously, I think those allegations sounds every strange to me,” He stated.
When asked if the mining firm is working with Trade Corp Chishimba said “I cannot do that because our supply chain is a separate department which is based on site but i will just have to clarify that with them,”