KONKOLA Mines (KCM) terminates ALL contracts of Zambian comp



Messages: 226

Inscription: Mar 25 Sep 2012 18:12

Message Jeu 24 Oct 2013 13:50

KONKOLA Mines (KCM) terminates ALL contracts of Zambian comp

KONKOLA Mines (KCM) terminates ALL contracts of Zambian companies
Published on 23/10/2013.
http://lusakavoice.com/2013/10/23/konko ... companies/

KONKOLA Copper Mines (KCM) has terminated contracts of Zambian companies at its Nchanga plant in Chingola.

Chingola District Commissioner George Sichula said almost all the local contracts involving Zambian companies have been terminated by KCM.
Mr Sichula said no reasons have been advanced by the mining company for terminating local contractors’ and suppliers’ contracts and that KCM had created a problem that needed to be addressed.
He said his office had been trying to engage KCM management into discussing the issue.
“Termination of contractors for Zambian companies is a serious issue which KCM should re-address because the company has created a problem and I thought we needed to call for a meeting and address the problem,” he said.
Mr Sichula said the number of contractors and suppliers operating in Chingola was huge and sending them on the streets was a big challenge to Zambians.
Some contractors affected had complained that KCM had offloaded them on the street due to termination of their contracts.
They said some contractors were only given contracts for three months despite being the longest serving at Nchanga Underground mine.
They complained that it was difficult to get long-term contracts from KCM while companies with Asian origins had better rates, better contracts and were paid on time.
KCM management could not be reached for a comment.
Meanwhile, Government has directed KCM to bear the liability of offsetting the huge amount it owes Zambia Revenue Authority (ZRA) after it underpaid its workers Pay as you earn (PAYE) for a period of four years.
Labour Minister Fackson Shamenda has since summoned the Vedanta Resources Plc management and union representatives for a meeting to chart the way forward, saying Government would not allow investors to flout the labour laws with impunity.
“My ministry has received reports that KCM underpaid ZRA its employees’ PAYE deductions and further that the mine will effect deductions from the affected employees. My ministry directs that KCM management bears the liability to ZRA to offset the difference in taxes due, no employee shall be affected,” he said.
Speaking when he addressed journalists yesterday, the minister said those summoned were expected to appear before him and other officials by this afternoon or tomorrow morning.
Mr Shamenda said KCM, as an agent of Government, had a legal obligation to deduct the appropriate and correct tax from employees’ emoluments and remit such tax to the relevant authorities.
According to an audit report, KCM had underpaid PAYE for workers to ZRA and effected deductions from affected employees who were in employment during the 2006, 2007, 2010 and 2011 period.


Messages: 226

Inscription: Mar 25 Sep 2012 18:12

Message Jeu 24 Oct 2013 13:51

KCM must bear costs of unpaid PAYE – Shamenda

KCM must bear costs of unpaid PAYE – Shamenda
Published on 24/10/2013.
Saved under MAIN NEWS
http://lusakavoice.com/2013/10/24/kcm-m ... -shamenda/

GOVERNMENT says the unremitted Pay as You Earn (PAYE) tax to the Zambia Revenue Authority (ZRA) by Konkola Copper Mines (KCM) should be paid by the mining company and should not be deducted from workers’ salaries.
Minister of Labour and Social Security Fackson Shamenda said at a media briefing in Lusaka yesterday that it is not the employees’ responsibility to ensure that correct tax is deducted from their salaries but it is KCM’s duty.
“A tax audit report has confirmed that KCM has underpaid ZRA PAYE from its workers for a number of years and intends to correct this anomaly by effecting deductions from its employees,” Mr Shamenda said.
The minister said KCM management should bear the responsibility and no employee should be adversely affected by management’s incompetence.
He said it is the responsibility and obligation of any company or investor to remit the correct tax to ZRA and urged KCM to do just that.
“My ministry directs that KCM management bears the liability to ZRA to offset the difference in taxes due,” he said.
Mr Shamenda said Government has the duty to ensure that workers are respected and provide a conducive environment for conducting business.
He said the stance taken by KCM to make deductions from employees’ salaries to raise funds to pay ZRA the outstanding PAYE, can create problems that can possibly result in industrial unrest.
Mr Shamenda urged investors to abide by the law and meet their legal obligations.
“Incorrect remittance of tax is a serious offence and this refund should be made to ZRA and management of KCM should bear the costs. Making deductions from employees can bring about industrial unrest,” he said.
Mr Shamenda has since asked KCM management and representatives of the Mine Workers Union of Zambia to discuss and resolve the matter.
On Monday, the Daily Mail revealed that a tax audit established that Konkola Copper Mines (KCM) underpaid Pay As You Earn (PAYE) tax for its workers to the Zambia Revenue Authority (ZRA) due to a payroll system error.
This covers the financial years 2006, 2007, 2010 and 2011.
According to an internal memorandum dated October 17, 2013 obtained by the Daily Mail, KCM vice-president for human capital management David Kaunda said the Vedanta Resources Plc-owned mining company will effect deductions from affected employees who were in employment during the period under review.
“Therefore, effective October 2013, KCM will effect deductions from affected employees who were in employment during the period under review,” Mr Kaunda said.
Earlier this year, KCM asked Government for time to pay back an overdue K136.8 million (US$25.8 million) debt it owes ZRA.
Daily Mail investigations established that the Vedanta-owned company had held “high-level” talks to discuss the unbundling of the debt, according to documentation in possession of the newspaper.
The US$25 million debt was first discovered after a standard routine ZRA probe which commenced in April.


Messages: 226

Inscription: Mar 25 Sep 2012 18:12

Message Mer 30 Oct 2013 14:37

KCM deploys riot police at its plants

Suite de l'histoire, semblerait que ça chauffe un peu...

KCM deploys riot police at its plants
http://www.tiozambia.com/8/post/2013/10 ... lants.html

KONKOLA Copper Mines (KCM) yesterday deployed riot police officers in its plants with the view of preventing the possible riotous behavior from the miners.
Riot The thought of miners rioting has come by following KCM’s defiance and arrogance to go ahead and deduct K150 from each employee as backdated recovery of Pay As You Earn (PAYE) despite Government saying no.

Police officers were deployed in designated areas and the command was put on higher alert of possible riot but miners at Nchanga proceeding underground without working.

Government must be ashamed of itself for providing security to KCM, whether at a fee or free because KCM had defiantly gone ahead to defy Government orders of not to deduct any money from employees in the name of PAYE.

This has raised eye brows that Government especially Labour Minster Fackson Shamenda may not be innocent in the whole scam in which by now Government could have already order for the arrest of KCM management.

We earlier mentioned that this is a cartel which has finally succeeded in fraudulently stealing from miners in the day broad light and in the eyes of Government, law enforces and Anti-Corruption will surface after Presidential directive.

Instead of providing security, Government could have arrested vice president for human capital management David Kaunda for his failure to advise the so called investor that has continued to break Zambian labour laws with impunity.

The miners are upset because they voted for change not change for the worst but for the better.

MMD may have been labeled corrupt and important but under MMD one of KCM’s chief executive officer was deported for such behavior and arrogance.

The Government inspectorate on the mines is also sleeping and seems not to know the root clause of all these problems; such as termination of almost all major constructs and deductions of PAYE.

Today Government SHOULD have a clue that the root cause of these problems is the famous Konkola Deep Mining Project (KDMP).

We challenge Government to inquire issues surrounding KDMP to know everything about it, the source of funds that financed it, how that financer claims the refund and how much, the effect on other project, the viability of KDMP; these and many other questions that Government investigators deem fit.

Government must always remember that it is an interested party by virtue of it, having little shares in KCM. ZCCM has equally slept, it seems not to be interest at all.

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