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(STICKY) Mineral wealth is a curse under Rupiah, says Kambwili

Mineral wealth is a curse under Rupiah, says Kambwili
By Gift Chanda
Wed 22 June 2011, 07:50 CAT

ZAMBIA’S mineral wealth has become a curse under President Rupiah Banda’s rule due to his failure to reintroduce higher mine taxes, says Chishimba Kambwili. And Kambwili has mocked finance minister Dr Situmbeko Musokotwane for failing to provide proper guidance to his government on reintroducing windfall tax on mining companies.

Commenting on the decision by Tanzania’s Parliament last week to approve a US $27.4 billion five-year development plan that backs the introduction of a super-profit tax on mining companies, Kambwili said that was the direction Zambia needed to be heading.

Kambwili, who is PF Roan member of parliament, said President Banda’s government was careless and needed to be voted out of office for failing to maximise revenue from mining companies.

He said the foregone revenue could be an important source of finance in reducing poverty levels in the country.

Kambwili said there was no reason whatsoever the government could give for not appropriately taxing mining companies.

“Mining companies are making super profits at the current copper prices. But the question is how much of that money is coming back to the country?

We can boast as a country that copper production will double this year and that the copper industry is booming but in essence the country’s mineral wealth has become a curse instead of a means to wipe out poverty,” he said.

“People are not benefiting from the mines. They have allowed these investors to externalise profits…finance minister Dr Situmbeko Musokotwane is saying that his government is creating a platform to tax these companies more in future but copper is a wasting asset. When will the Zambians benefit?”

Kambwili said the failure to reintroduce the windfall tax on mining companies was an act of corruption by the government.

“The MMD government wants to get the money which the mining companies should have paid as windfall tax to pump into the campaigns this year hence their decision to remain adamant on the windfall tax,” Kambwili said.

“Our colleagues in Tanzania have gone the right direction and should be commended. This government is careless and should be voted out of office.”

He said foreign mine owners in the past cared more about the welfare of the Zambians unlike the situation currently.

“The new investors are not even building houses so what are they going to leave for the Zambian people?” Kambwili questioned.

He said townships like Mpatamatu and Roan were built using money earned from copper mined in the area.

“But even the roads they are currently working on, it’s because of our pressure in Parliament,” he said.

“If they can’t introduce the windfall tax just as well we should stop mining copper and leave it to the future generations who will be thinking well than us.”

And Kambwili said despite Dr Musokotwane high education standards, he was not bold enough to advise his government correctly.

He said the finance minister was being used to propel the party’s efforts to stay in power.

Labels: CHISHIMBA KAMBWILI, CORRUPTION, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, WINDFALL TAX

posted by MrK @ 2:48 PM