https://www.miningweekly.com

Acacia says senior manager charged in Tanzania corruption probe

23rd October 2018

By: Creamer Media Reporter

     

Font size: - +

Acacia Mining on Tuesday reported that a senior manager of its Tanzanian businesses had been arrested and charged by the Tanzanian Prevention and Combating of Corruption Bureau (PCCB). 

The senior manager has pleaded not guilty to all charges.  

Acacia said it believed the senior manager was charged as an additional accused to some of the 39 criminal charges brought by the PCCB on October 17 against another Acacia employee and a former Acacia employee.  

"We understand that he has been charged with various counts of tax evasion, forgery and money laundering, but have not yet seen a copy of the charge sheet.

"Acacia is deeply concerned about the increasing risks to the safety and security of its people given the criminal charges being brought by the government of Tanzania. The company believes these recent actions represent a significant escalation of governmental pressure, as the company’s 19-month dispute with the [government] remains unresolved and as the discussions between Barrick Gold Corporation and the [government] have not yet been concluded," the company said in a statement. 

Acacia noted that its parent company Barrick had not yet provided it with a proposal for a comprehensive resolution of the disputes that Barrick had been able to agree in principle with the Tanzanian government, despite their direct discussions since announcements were made in October 2017.

The dispute between Acacia and the Tanzanian government started in March 2017 when the country implemented a ban on copper and gold concentrate exports and a Presidential Committee accused Acacia of historically under-declaring the contents of its concentrate exports. Acacia has disputed the findings of the committee’s investigation.

The Tanzania Revenue Authority issued Acacia with adjusted tax assessments of a combined $200-billion over alleged unpaid taxes, penalties and interest.

Negotiations between the Tanzanian government and Barrick to resolve the dispute started in July 2017 and by October 2017, the parties announced that they had reached an agreement, which would result in the establishment of a new Tanzanian operating company to manage the existing Bulyanhulu, Buzwagi and North Mara mines, as well as future operations in the country.

Economic benefits from the three existing mines would be distributed on a 50:50 basis between the new operating company and the government. The government’s share of economic benefits would be delivered in the form of royalties, taxes and a 16% free-carry interest in the Tanzanian operations.

Further, Acacia was expected to make a one-off $300-million payment to the government to resolve outstanding tax claims.

Acacia on Tuesday said it was seeking Barrick's proposals for the next steps in its discussions with the Tanzanian government, in which Acacia was not directly involved.   

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.154 0.189s - 90pq - 2rq
Subscribe Now