In a press release issued by Thierry Charles, President of ZCCM Defense, alarming allegations have been raised about a $120 million procurement debacle at Ndola Lime Company, now renamed Limestone Resources Limited. The statement calls for an immediate investigation into a suspected syndicate that allegedly defrauded the state, resulting in significant financial turmoil for the company.
Background to the Scandal
Ndola Lime Company (NLC), a wholly-owned subsidiary of ZCCM Investments Holdings (ZCCM-IH), has been embroiled in a controversial procurement deal that resulted in a massive financial loss. The company reportedly spent nearly $120 million to replace a kiln, which had long been a source of operational issues. Over time, NLC had struggled with financial instability, prompting ZCCM-IH to inject significant funds into the company.
However, suspicions began to surface regarding the kiln’s poor design and functionality. Despite concerns, ZCCM-IH made full payment for the equipment without conducting prior verification. Shockingly, the Italian supplier, who was responsible for providing the kiln, went bankrupt shortly after the transaction. This unusual sequence of events led to allegations that Zambian accomplices were involved in a scheme to defraud the state.
Calls for Action from the Parliamentary Committee
The Parliamentary Committee on Parastatal Bodies to the Industrial Development Corporation (IDC) has raised serious concerns about the procurement process surrounding the VK2 kiln. The Committee’s report, presented during the third session of the twelfth National Assembly, highlights that the supplier’s bankruptcy and the kiln’s failure suggest the involvement of a larger syndicate intended to deprive the state of its resources.
The Committee has called on IDC to engage Interpol in the investigation and conduct a forensic audit to identify the Zambian consultants and NLC employees potentially responsible for the fraudulent transaction. The sum of $7,976,140, part of a larger recapitalization project, is said to have been misappropriated during the procurement process.
Minority Shareholders Raise Concerns
Thierry Charles, representing a group of minority shareholders in ZCCM-IH, has voiced concerns about the lack of action taken by IDC regarding the scandal. In emails to both the former IDC CEO, Mateyo Kaluba, and the current CEO, Cornwell Muleya, Charles requested an investigation into the matter. Despite the gravity of the allegations and the public recommendations from the Parliamentary Committee, IDC has failed to initiate formal proceedings, further intensifying suspicions of a cover-up.
The fact that IDC, which is one of the few remaining profitable assets of ZCCM-IH, has remained silent on the matter is troubling, especially considering the President of Zambia, who is also the Chairman of IDC, had pledged to take strong action against corruption during his tenure.
A Call for Accountability
On December 17, 2024, Thierry Charles took a bold step by formally requesting that the Anti-Corruption Commission (ACC) investigate the scandal. He emphasized that the amount of money involved is equivalent to roughly half of ZCCM-IH’s past dividends from Kansanshi Mining Plc, one of its most profitable ventures. The scandal has severely impacted Ndola Lime Company’s financial standing, and with ZCCM-IH planning to inject additional funds into the company under its new name, Limestone Resources Limited, the urgency to address the situation is critical.
Charles urges the ACC to conduct a thorough and impartial investigation into the matter, ensuring that those responsible for the fraudulent activities are held accountable. The involvement of high-level Zambian officials in this suspected syndicate, if proven, could have far-reaching consequences for the country’s economy and public trust.
The Ndola Lime Company scandal serves as a stark reminder of the potential for corruption within state-owned enterprises and the need for effective oversight. With millions of dollars at stake, the call for transparency, accountability, and justice is more urgent than ever. The outcome of the investigation could send a powerful message about the country’s commitment to fighting corruption and safeguarding its resources for future generations.
