Tanzania: JPM Fire Pulls Acacia Out of Hiding

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JUST two days after President John Magufuli received the second report on the export of mineral concentrates that revealed how Acacia Mining evaded tax, occasioning loss amounting to trillions of shillings to the government, Barrick Gold Corporation – Acacia’s largest shareholder – has declared that it is ready to negotiate and pay the dues.

Barrick Gold Corporation Executive Chairman, Prof John Thornton made the commitment at State House yesterday after holding talks with President Magufuli, a press statement issued by the Directorate of Presidential Communication stated.

Prof Thornton, who flew by his private jet all the way from Canada to Dar es Salaam, held talks with President Magufuli in the presence of Canada’s High Commissioner to Tanzania Ian Myles and Minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi.

Barrick Gold Corporation is the largest shareholder of Acacia Mining Limited’s issued shares, holding approximately 64 per cent. Currently, Acacia operates three gold mines in the country namely: Buzwagi, Bulyanhulu and North Mara.

According to Prof Thornton, the management of Barrick Gold Corporation is willing and ready to hold talks with Tanzania based on win-win situation to ensure the evaded tax is settled.

“We had very extensive and productive discussions about the situation affecting Acacia and I have come here in order to help resolve the problem,” Prof Thornton said.

He added: “I have assured the President that we are very interested in sitting down to reach resolution based on win-win situation. A win for Tanzania, a win for Barrick and our subsidiary company – Acacia.”

Prof Thornton said after having extensive conversation with the President, he felt optimistic that they will reach a resolution that will benefit all parties involved.

“We will be sitting down soon with the team designated by the President and our team to go through the details. I feel good about the progress today,” the Executive Chairman said.

Dr Magufuli, on his part, said the government was ready for negotiation with Barrick Gold Corporation. He said the government will form a panel of experts to represent the country in the negotiations with the mining company, including looking on how Barrick Gold Corporation will carry out its activities in the country for the benefit of all parties.

President Magufuli said apart from agreeing to pay the government dues, Prof Thornton also agreed to cooperate with Tanzania in installing a smelting plant in the country. The unprecedented visit by Barrick Gold Corporation Executive Chairman opens a new page in efforts to resolve the matter.

On Monday, this week, President Magufuli received the second report from a team of economic and legal experts. The document revealed that between 1998 and March 2017 Tanzania lost between 68.6 trillion/- and 108.5 trillion/- in revenue from mineral concentrates.

The Chairman of the second probe team that handed over the report to the President on Monday, Prof Nehemiah Osoro recommended for summoning and questioning of officials involved in the shoddy mining agreements, through which the nation incurred huge losses in government revenue.

Dr Magufuli formed the second probe team under Prof Osoro to establish the amount and value of copper concentrates exported since 1998 to 2017 for smelting.

©Daily News

1 COMMENT

  1. Subject: “Tanzania: JPM Fire Pulls Acacia Out of Hiding”, Jun 15, 2017

    Commentary, 15 June 2017
    Given History:
    It is given as historical fact that the, Quote “Fraud in the mining sector since 1998 has cost Tanzania 75 billion euros ($84 billion)” Unquote. This is monumental sum of money for a “developing” country.
    It is, on the other hand, historical testimony that the Tanzanian ordinary people sacrificed their energy and youth for the profit of foreign masters – and still do all over Africa.
    It is a historical moment for the President of Tanzania, presenting his report, in a somber attitude, on the greatest crime perpetrated by modern colonial entities. Tanzanians expressed their uncontrollable joy on the President’s Report.

    And NOW:
    A top notch president of business venture [‘The White Man’] flew to Africa on his private jet.
    Civilized manner of smiles and words of promises for future course of actions enunciated.
    Mutual understanding on future course of action was sealed, with broad smiles, by firm handshake of the two leaders. A firm insidious understanding was sealed.
    It was solemnly agreed that henceforth [after 19 years of deception] there should be a “Win-Win”(1) situation in the exploration and emaciating Africa out of its natural resources – in a sophisticated manner, of course. Africa, after all, is known for its pure and gullible heart

    The Western educated indigenous African professors too colluded in the happy moments of reconciliation with the new breed of colonial powers. Their eloquently written REPORT with deep RED COVER Page is there to show the world of the injustice [putting it mildly] of colonial powers. The REPORT was accepted without argument – indeed, there is hidden suspicion that they NEVER read it. In practical reality, no body can blame them. On the other side of the scale too, the REPORT was not really prepared to be scrutinized – page by page, word by word — but to use it as bargaining chip for the ultimate endeavour. It worked.
    The result of the firm hand-shake between the two antagonists is supposed to be a covenant (a promise) to the poor people of Africa for prosperous ‘TOMORROW’ . But then, the wisdom of TRUE African (unscathed by blinding Western theology) roughly goes like this >>> “IF YOU DON’T DIE BY THEN, YOU HAVE SOLID HEALTH”. Africa is full of ‘wisdom’ that was never appreciated by its modern educated children. On the contrary, they are embarrassed of ‘themselves’ – a perfect example of hypnotism!!!
    Glory to African Miraculous Development in thin air. THE END

    (1) How is it possible to have cozy relationship between a giant Elephant and a mini-mouse — for the same interest?

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