Copperbelt Energy Corporation Plc (CEC) has in a statement made available to Zambian Business Times – ZBT, disclosed that they have welcomed the discharge by the Lusaka High Court of the interim injunction that had been granted on 3 June 2020 to ZESCO Limited (ZECSO) and Konkola Copper Mines Plc (KCM) against CEC following a joint ex parte application by the two parties.
CEC Managing Director Owen Silavwe Stated that the company has always held a view that agreements should always be respected to fulfill the interest of all businesses, investors and stakeholder.
“CEC has always held the view that commercial agreements should be honored and respected in the interest of all businesses, their investors and all other stakeholders. We reiterate that the parties [CEC, ZESCO and KCM] should engage in constructive dialogue to resolve these matters and remain expectant that KCM will come to the table with workable solutions on the discharge of their outstanding US$ 145 million debt to CEC.
“It is also important that firm agreements underpinning transactions in both the energy and mining industries should be in place for the proper functioning of the sectors and entities, and to engender certainty for commercial decisions,” he said.
This ruling follows the dismissal by the Kitwe High Court, on 31 July 2020, of the interim injunction brought by KCM against CEC to restrain the Company’s then intended restriction of power to KCM for failure to pay its outstanding debt to CEC for power it was supplied and consumed.
Meanwhile, CEC takes special note of the two rulings and, more importantly, remains desirous to see all the parties seize the opportunity to commit to an engagement process in good faith to enable equitable resolution of all the contentious matters in the shortest time possible.
Resolution of the debt, commercial contracts and all other outstanding matters is critical to all businesses, without which it will become more and more challenging to continue to provide reliable service.
ZESCO and KCM have since appealed the ruling and are pursuing other legal remedies.
