In an effort to lessen liabilities and support company growth, Konkola Copper Mines PLC (KCM) has put aside $2 million to pay off outstanding debt to small and medium suppliers and contractors.
Following discussions with KCM management, KCM Provisional Liquidator Celine Nair announced the development. She claims she made the decision to pay an existing debt in order to benefit small suppliers and vendors, some of whom had been waiting for payments for a while.
Ms Nair has disclosed that KCM has allocated about $488,675 to pay off 103 vendors with balances below $10,000, while slightly over $1.5 million was set aside for 190 vendors who have been owed amounts in excess of $10,000, under a new system seeking to ensure equitable treatment of all vendors regardless of their type of business with the company.
She has acknowledged that KCM is fully aware that it has been difficult for its business partners to operate smoothly and grow their enterprises because part of their money has been tied up and is only expected to be paid off at the end of the liquidation process.
She says payments to the business partners started on Thursday, 30th June 2022 and will continue through this week until all those listed on the schedule are paid off.
Previously, KCM had focused much on payments to major contractors who helped in keeping operations afloat during the liquidation period, resulting in other suppliers and contractors going for long periods without receiving payment.