The Ministry of Local Government and Rural Development (MLGRD) has noted with extreme gratitude that various Local Authorities have started drawing financial benefits from new investments being established in many parts of the Country.
MLGRD Hon Gary Nkombo, MP, has cited the most recent proactive step taken by one of the mining companies-Mopani Copper Mine (MCM), that in its initial operation, decided to offset K87 million it owed Kitwe City Council (KCC).
The payment represents a carry-over of obligations from 2021 from MCM, where International Resources Holdings (IRH) of Abu Dhabi recently completed a US$1.1 billion investment to secure a 51% interests in Mopani by way of a strategic partnership the ZCCM Investments Holdings Plc.
Hon Nkombo said Mopanis decision to pay the debt to the Local Authority is a testament that new investment including those already established in the Country, means well in empowering the Citizens.
He said this is because by paying such an amount at once, the Local Authority was also empowered to clear its outstanding terminal benefits worthy over K8.7 million to 53 employees who retired in 2023.
“Clearly, in no uncertain terms, MLGRD is excited with Mopanis decision. This further demonstrates that Governments choice of an investor for Mopani is most excellent,” Hon Nkombo said.
The Minister commended Kitwe City Councils practical decision to clear the terminal benefits as doing so was financially empowering its former employees.
Hon Nkombo said such a proactive action by the Local Authority was a step in the right direction in fulfilling the Governments position to prioritise payment of retires.
He encouraged investors to continue supporting Local Authorities saying any payment made is also critical for Local Authorities in settling statutory obligations to among other institutions National Pension Scheme Authority, and the Zambia Revenue Authority.