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(STICKY) Nawakwi demands audit of all mines

Nawakwi demands audit of all mines
By Chibaula Silwamba
Sat 12 Feb. 2011, 04:01 CAT

EDITH Nawakwi has demanded the independent and comprehensive auditing of all foreign mining firms in Zambia following revelations of tax evasion by Mopani Copper Mine.

Commenting on revelations of glaring inconsistencies in production and revenue figures Mopani submits to Zambia Revenue Authority (ZRA) for tax administration, Nawakwi, a former finance minister, said there was a possibility of connivance between the government and mining companies.

“I think there is something up the sleeves. I don’t like to accuse my colleagues but the more they continue to insist that everything is okay, it raises a lot of suspicion on the ground,” Nawakwi said.

“My concern is that the Minister of Finance Dr Situmbeko Musokotwane is on record as saying that we Zambians don’t understand that he can get more money using his way of collecting tax. Now, his way of collecting tax is obviously costing us billions of kwacha.”

Nawakwi said Dr Musokotwane must be instructed immediately to start collecting windfall tax for the benefit of Zambians and condemned Mopani for evading tax.

“Since they are evading tax, they must be requested to start giving the government withholding tax until they present their reports,” Nawakwi said and demanded thorough auditing of the mines.

“Those in government think they know it all so they have closed themselves to any reasoning. They are not able to draw the expertise of Zambians to assist them. We don’t need British auditors; we have young men and women here who are qualified like those international auditors that can do the work.

“We have forensic auditors in the Ministry of Home Affairs and many professional auditors. There are people who worked in those mines who are still alive that can assist in auditing those mines. These people are more qualified and they know how these mines are evading paying tax; you don’t have to go and get someone from outside.”

Nawakwi, who is also FDD president, said Zambians must find a solution to mining companies’ tax evasion.

She said that Mopani could not do what it was doing in Zambia in England or Chile where authorities were strict. She urged Zambians not to be sleepy but ensure they benefited from their minerals.

“Chile is collecting more money from their copper than we have ever done here. Look at what Chile collected in 2006 and 2007; it was US $12 billion about K57.3 trillion before you even talk about other revenues. But it is the same copper, same value and same grade,” Nawakwi said.

“All we are told here by those in authority is that ‘you people don’t understand’. But these are issues of common sense. Even our advisors, the World Bank and our benefactors the EU, have told us to collect tax but those in government still argue that ‘you Zambians don’t understand’ and yet it’s the same government which wants to go and borrow more money from IMF.”

Nawakwi said Zambians must not sit and watch their economy being looted in the name of capitalism and respect for the market economy. She said the investors were nothing but tourists that come and go.

Nawakwi said international capital by its nature did not have a kind face.

“They government are saying to implement the Sixth National Development Plan, we have to borrow money. Why should we borrow money when the minister is refusing to collect tax? We need to sit as the country to discuss these issues,” said Nawakwi.

Mopani, which operates mining units in Kitwe and Mufulira, is 73.1 per cent owned by the Swiss commodity trader, Glencore AG, and the firm received a 48 euros million loan from the European Investment Bank.

Labels: EDITH NAWAKWI, MOPANI, TAX EVASION, WINDFALL TAX

posted by MrK @ 8:13 AM