In September 2021, the Environmental Investigation Agency (EIA) uncovered a significant illegal logging and laundering scheme involving mukula timber in Zambia. The investigation revealed that over 10,000 mukula trees were illegally felled, exploiting land allocated to people with disabilities. The Zambia Agency For Persons With Disabilities (ZAPD), the Ministry of Community and Social Services, the Ministry of Tourism and Arts, and the office of the vice president were implicated. The scheme began in 2017 when land was allocated under the guise of empowering disabled individuals through farming. However, the land was used to harvest and launder mukula timber, with cutting permits repeatedly misused. The logs were stockpiled and transported by the Zambia National Service (ZNS) and a well-known logistics company. The profits did not benefit the intended disabled individuals but rather a small, well-connected elite. The investigation highlighted a revenue loss of approximately US$214 million due to unaccounted timber exports to China. The election of President Hakainde Hichilema brings hope for addressing this systemic corruption.
Keywords: Sub-Saharan Africa, Zambia, timber, primary production, trade and transport, illegal logging, tax evasion, money laundering
Source: Environmental Investigation Agency (EIA) Blog
In September 2021, Milingo Lungu, the state-appointed provisional liquidator of Zambia’s Konkola Copper Mines (KCM), was arrested and charged with money laundering. Lungu, who had been overseeing the operations of KCM since its liquidation in 2019, faced allegations of laundering more than $2 million. The charges were brought forward by Zambia’s Drug Enforcement Commission, which accused Lungu of transferring the funds to his personal accounts. Lungu, however, dismissed the charges as baseless and politically motivated. The case has drawn significant attention due to its implications for Zambia’s mining sector and the ongoing legal battles over KCM’s ownership. The outcome of this case remains closely watched by financial professionals and stakeholders in the mining industry.
Keywords: Sub-Saharan Africa, Zambia, minerals, copper, primary production, money laundering
Source: https://www.reuters.com/world/africa/zambias-konkola-copper-mines-liquidator-arrested-calls-money-laundering-charges-2021-09-29/
The article from Mail & Guardian's Green Guardian delves into the multifaceted impacts of mining for electric vehicle batteries in Zambia, focusing on forced labour, human trafficking, and environmental crimes. It highlights how the surge in demand for minerals like cobalt and lithium has led to exploitative labour practices, including forced labor and human trafficking in Zambia's mining sector. These practices often affect vulnerable populations, including children, who are coerced into hazardous work conditions.
Environmental degradation is another critical issue, with mining operations causing deforestation, soil erosion, and water contamination, threatening local ecosystems and community health. The article underscores the need for stringent regulations, enforcement of labor laws, and sustainable mining practices to mitigate these adverse effects. It calls for greater transparency and accountability in the supply chain, urging companies and governments to prioritize ethical sourcing, protect human rights, and minimize environmental harm in the pursuit of renewable energy solutions.
Keywords: Sub-Saharan Africa, Zambia, minerals, cobalt, lithium, labour rights violations, human trafficking, forced labour, child labour, deforestation, human rights violations
Source: https://mg.co.za/the-green-guardian/2024-06-09-zambia-tallies-the-costs-of-mining-for-electric-batteries/
Transparency International's report focuses on allegations of corruption and organised crime linked to Zambia's Mukula trade, a valuable timber species. The investigation reveals widespread fraud and collusion involving government officials, timber traders, and organised crime syndicates. These groups exploit loopholes in regulations to illegally harvest and export Mukula timber, evading taxes and enriching themselves at the expense of Zambia's forests and economy.
The report highlights how corruption undermines efforts to sustainably manage natural resources, exacerbating environmental degradation and depriving the country of revenue that could support development. It calls for a comprehensive investigation into these allegations, urging authorities to prosecute those involved and strengthen governance mechanisms to prevent future abuses.
Transparency International emphasises the importance of transparency, accountability, and international cooperation to combat organised crime and corruption in Zambia's timber industry, safeguarding natural resources and promoting sustainable development.
Keywords: Sub-Saharan Africa, Zambia, timber, primary production, tax evasion, illegal logging, organised crime, illegal timber trade, corruption and bribery
Source: https://www.transparency.org/en/press/zambia-full-investigation-into-reports-of-corruption-mukula-trade