CEC seeks leave to counterclaim against KCM | Zambia

This is in a matter where Zesco limited and Konkola Copper Mines in liquidation have sued Copperbelt Energy Corporation PLC for switching off the supply of power to KCM.

The plaintiffs want an order or declaration that the action by CEC to unilaterally restrict power supply to KCM contravenes the law as promulgated under the Electricity Act (common Carrie)(Declaration) Regulations Statutory Instrument No.57 of 2020 (“S.I No.57 of 2020”).

Zesco and KCM want an order of injunction restraining CEC by itself, directors and officers or its agents from interfering in the time sheet agreement between Zesco and KCM through restricting KCM from receiving supply from Zesco pending determination of the matter.

According to an affidavit in support of ex-parte summons for leave to counter claim against a company in liquidation, Christopher Nthala, a chief operations officer at CEC ( intended plaintiff) stated that following the expiration of the power supply agreement on March 3, 2020 between CEC and KCM, the intended plaintiff continued to supply power under the Power Supply Agreement (PSA) to KCM at a request and instance of Lungu.

The said the agreement was for purposes of continued operations of the mine which position was confirmed by the terms of the Supplemental Agreement to the PSA dated July 18, 2019 and consequently thereto CEC issued invoices which as of May 15, 2020 stood at US$131,811,794, which is equivalent to 11 months supply to KCM.

Nthala stated that the outstanding amount has accumulated interest to over US$144 million as at June 1, 2020.

“The sum of USD144 million represent the cost of power supplied to KCM by CEC for purposes of running or operating a mine and therefore an expense of winding up,” Nthala said.

He contended that despite several requests and demands, KCM has refused or neglected to settle the US$144 million debt owed to CEC.

Nthala added that CEC has various claims against KCM, which it wishes to pursue in this action.

“It is appropriate for this court to grant leave to CEC of the intended counterclaim to commence proceedings against KCM being a company in liquidation and against the other defedants,” said Nthala

CEC in its application for leave to counter claim against the company in liquidation had cited Zesco, KCM and Lungu as the intended respondents.

Source: themastonline