Zambia News

Milingo Lungu is sued by KCM

Konkola Copper Mines (KCM), which is in liquidation, has filed a lawsuit against its former liquidator MILINGO LUNGU for allegedly entering into the pay agreement and addendum in an unlawful manner.

The company claims in a statement of claim submitted to the Lusaka High Court that the remuneration agreement and addendum are unlawful and in violation of the corporate insolvency Act.

According to KCM, Mr. LUNGU violated the corporate insolvency act and the corporate insolvency regulations by withdrawing more than US$81 million from the company after his appointment as temporary liquidator.

Furthermore, it is claimed that Mr. LUNGU violated his obligations when he took more than US$59 million out of KCM for personal use and failed to account for it.

The Mine is requesting that the Remuneration Agreement and Addendum be declared void by the Lusaka High Court.

Additionally, KCM demands that Mr. LUNGU repay approximately 59 million dollars that were drawn.

The mining has also requested that Mr. LUNGU be held accountable for damages for failing to uphold his obligations as temporary liquidator.

LUNGU SIMWANZA and Company is the second defendant listed by KCM.

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