Konkola Copper Mines -KCM- in Liquidation has sued its former liquidator Milingo Lungu for alleged illegality in the manner in which the remuneration agreement and addendum was entered into.
In a statement of claim filed in the Lusaka High Court, the company says the remuneration agreement and addendum are illegal and contrary to the provision of the corporate insolvency Act.
KCM states that following Lungu’s appointment as provisional liquidator, he drew over US$81-million dollars from the company in breach of corporate insolvency Act and Corporate Insolvency Regulations.
It is further stated that Lungu breached his duties when he withdrew over US$59- million dollars from KCM for his personal endeavors and has failed to account for the said monies.
The Mine is asking the Lusaka High Court to declare the remuneration agreement and addendum to be null and void.
KCM also wants Lungu to pay back over us$59-million dollars drawn.
The mine has also asked the Court that Lungu be liable for damages for his breach of duties as provisional liquidator.
KCM has also cited Lungu Simwanza and Company as the second defendant.