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Mining Investor Says Zambian Gov’t Overlooking Corruption

Mining Investor Says Zambian Gov’t Overlooking Corruption

Written by Charles Sakala | From Zambia Reports

A local mining investor operating in Northwestern Province has written to State House seeking for presidential intervention in the illegal acquisition and grabbing of mining areas by foreigners in Northwestern province.

The director for Lion Resources Limited Lulenga Bweupe wants Michael Sata to intervene in a case where his mining area has been encroached by a South Africa miner who has been refusing to relocate by boasting that he had connections with senior Patriotic Front (PF) government officials.

Bweupe has bemoaned rampant corruption and abuse of government systems in the acquisition of mines in Zambia.

He said the government was not protecting local people in business because it was focusing too much on foreign investors who were perpetrating lawlessness and externalizing local resources.

Lulenga said from Kasempa that the mining area for his firm had been encroached by the South African company that is registered under the construction sector and it operating as Ven Construction Company Limited.

He said the government was not taking necessary legal measures to intervene and resolve the problem to protect the interest of the local people.

“The company Ven Construction Company Limited is obviously doing illegal mining in Kasempa on our prospecting licence number 16199, which belongs to our company Lion Resources Limited. Ven Construction Company has no licence whatsoever, but they are seriously conducting mining activities.

It is obvious that they are not paying any taxes to the Zambia Revenue Authority because all miners need to submit a licence before declaring their taxes. We feel this is not fair because the government is being so unfair for local investors. If it was a local investor who is involved in this kind of lawlessness, the consequences will be too big, but we wonder they the foreigners are going away with it,” he said.

According to Bweupe, Ven Construction was importing machinery without showing mining licences and a recent probe had shown that the South African company was mining gold worth over US$7 million every month and this went without paying taxes and loyalties to ministry of minea and Zambia Revenue Authority.

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