Lusaka, Saturday (May 25, 2024)
The Socialist Party (SP) has demanded that the shareholding transaction be reversed, allowing the Ministry of Finance to assume its rightful position as a shareholder in Eagles Holdings Ltd, with immediate effect.
SP Deputy General Secretary, Antonio Mwanza, cited the Ministery of Finance (Incorporation) Act, Cap 349 of the Laws of Zambia, which grants exclusive power and authority to the Minister of Finance to acquire and hold land, government securities, shares in any company, and securities for money on behalf of the Republic of Zambia.
Mr Mwanza questioned how individuals, not even designated representatives, are currently holding shares on behalf of Zambia.
He emphasized the need for politicians to learn from the case of Cyprian Chitundu vs. ZESCO Ltd, where ZESCO sued its former Managing Director over 10,000 shares held in the Kafue Gorge Lower Project.
“In this matter,” Mr Mwanza explained, “ZESCO sued Cyprian Chitundu for retaining shares in ZESCO’s special purpose vehicle known as Kafue Gorge Lower Power Development Corporation Limited.”
Mr Mwanza recalled that Judge Newa subsequently ordered Chitundu to relinquish his shareholding by signing a share transfer.
The SP Deputy General Secretary urged the Government to officially designate the Ministry of Finance as the shareholder for Government shares in Eagles Holdings Ltd to avoid complications arising from individual ownership.
Mr Mwanza emphasized the importance of adhering to the highest standards of corporate management, given that taxpayer money is at stake.
This statement was issued by SP Director of Media, Brian Hapunda.
