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Vol 58 No 9

Published 28th April 2017


To sue or to schmooze

Ministers are torn between demanding cash from a mining giant accused of fraud and maintaining a cosy relationship

The move by Zambia's largely government-owned mining investment company to sue First Quantum Minerals for fraud has put its chief executive officer Pius Kasolo at loggerheads with figures close to President Edgar Lungu. Under Kasolo, Zambia Consolidated Copper Mines Investment Holdings, which holds Zambia's stake in foreign-owned privatised mines, brought a suit against FQM with the Lusaka High Court in November and simultaneously filed a Notice of Arbitration in London claiming the Vancouver-based company cheated Zambia of US$2.3 billion. ZCCM-IH accuses FQM of defrauding it by using money from its Kansanshi copper and gold mine as cheap financing for its other operations without the state investment company's consent.

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