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(LUSAKATIMES, BLOOMBERG, REUTERS) Zambian Exports Must Be Cleared by Central Bank-Sata

Zambian Exports Must Be Cleared by Central Bank-Sata
TIME PUBLISHED - Friday, September 30, 2011, 1:47 pm

President Michael Sata has ordered that all exports from the country need to be cleared by the central bank. The government, formed this week after Sata’s election win, is seeking more information on what is being shipped out of the southern African nation, Sata said in a speech in Lusaka, the capital, today.

Sata said all export payments had to be routed via the central bank, including those for copper, its main export.

“Nothing will be exported out of Zambia unless confirmation of payments is received from the Bank of Zambia,” Sata told a news briefing after swearing in his new cabinet.

Sata has long questioned copper export data and some experts say his concerns are legitimate. Copper accounts for three-quarters of Zambia’s export earnings, but the mining industry contributes only about 10 percent of its tax revenue.

Former President Rupiah Banda told Reuters in March audits had revealed that the Zambian mining sector owed up to $200 million in unpaid taxes.

According to Zambian figures, much of the copper exports are destined for Switzerland but little of them show up in Swiss customs data, raising questions about transparency.

The anti-corruption moves follow Sata’s decision to fire his respected central bank governor and the appointment of a new mines minister who may look at plans to boost tax receipts from mining companies.
{Bloomberg,Reuters}

Labels: EXPORTS, MICHAEL SATA, MINING, TAX EVASION

posted by MrK @ 1:24 PM