Tanzania says 19 years of mining fraud cost $84bn

2017-06-13 11:44
iStock

iStock

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Nairobi - Fraud in the mining sector since 1998 has cost Tanzania 75 billion euros ($84 billion), an investigating commission said Monday, blaming foreign companies failing to declare revenues.

The conclusions of the study, conducted by Tanzanian economists and legal experts and seen by AFP, were approved by President John Magufuli.

The report attributed much of the loss to foreign companies, including mining giant Acacia Mining, also accused of operating for several years in the country without being registered.

The London-listed company immediately rejected the claims.

Magufuli, referring to Acacia Mining, said: "If they admit that they were stealing from us and if they reimburse what they stole, only then can negotiations over registration begin".

"Even the devil is making fun of us. God gave us these ores, these many natural riches and we remain poor while others enrich themselves at our expense. We cannot continue like this," he added, after receiving the report in a ceremony broadcast live.

"Even the devil is making fun of us. God gave us these ores, these many natural riches and we remain poor while others enrich themselves at our expense. We cannot continue like this," he added.

Poor management 

Last month Magufuli dismissed the country's mines minister after receiving a report from geologists that said mining companies had underestimated their mineral exports in order to pay lower taxes.

The report had said that poor management of the sector meant officials were not able to tell how much or what kind of ores were being exported.

On Monday, Magufuli ordered a revamping of the laws governing mining contracts, telling the justice department to question and if necessary prosecute officials responsible for attributing operating contracts in recent years.

Acacia Mining Monday said in response to the report that the accusations were unfounded and that it has operated in Tanzania in full accordance with the law.

Tanzania is rich in minerals including gold, ranking fourth among gold producers on the continent.

Gold is the country's leading mineral export and one of its primary sources of revenue.

Tanzania also exports copper, nickel, silver, diamonds and other precious stones such as tanzanite.

In March, Tanzania said it was banning exports of non-processed ore in a bid to promote the development of the mineral processing sector, create new jobs locally and increase revenues generated by the sector.

Read more on:    john magufuli  |  tanzania  |  east africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News
 

Man scores date with tennis superstar after Twitter bet

It’s a modern day Cinderella story, but one American man took ‘shoot your shot’ seriously in 2017.

 
 

You won't want to miss...

Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
5 top leg exercises for men
10 best dressed men of 2017
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.