Audit firm files K11.5 million lawsuit against China Copper mines over alleged fraud

HLB Zambia Audit Services Limited has filed a K11.5 million lawsuit against China Copper Mines Limited and two affiliated entities, alleging reputational damage from fraudulent misrepresentations.

In a statement submitted to the Lusaka High Court, HLB Zambia claimed the defendants—China Copper Mines Limited, United Quarries Limited, Datong Construction Limited, and individual Yu Wang Ping—made false statements that harmed the audit firm’s reputation.

The audit firm asserted that on December 31, 2016, United Quarries Limited, through Yu Wang Ping, falsely presented financial statements for that year as having been prepared by HLB Zambia.

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These statements were allegedly shared with third parties without the firm’s consent.

Datong Construction Limited, also represented by Yu, was accused of similar misrepresentations.

Between 2016 and 2018, Yu, acting as Managing Director of the three companies, reportedly provided audit and financial statements to third parties in Jersey (UK), falsely naming HLB Zambia as the auditing firm.

The suit states that, due to these actions, HLB Zambia’s Managing Partner was summoned by the Drug Enforcement Commission (DEC) in July 2024 as part of a money laundering investigation involving the defendants.

The investigation also reportedly involved authorities from Jersey, who sought clarification on the matter from HLB Zambia.

HLB Zambia claims it became aware of the alleged fraud in July 2024 and asserts it has suffered significant reputational harm as a nationally recognised audit firm within an international network spanning over 150 countries.

In addition to K11.5 million in damages, HLB Zambia is seeking punitive damages, compensation for reputational harm, interest, and legal costs.

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