Maputo, 26 Jul (AIM) – Some mining companies operating in the central Mozambican province of Sofala may have evaded, over the last year alone, taxes estimated at 50 million meticais (about 783,000 US dollars, at the current exchange rate), according to the anti-corruption NGO, the Centre for Public Integrity (CIP).
According to a CIP release, the companies in question are: Claya Gravel Mining Limitada, which exploits limestone in Chibabava district; Irmãos Minerais Limitada and Gorongosa Artisanal Miners Association (AMAG), which exploit gold in Gorongosa district; and the country’s largest cement company, Cimentos de Moçambique (CM), which is engaged in limestone mining in Muanza district.
“The Mozambican state lost around 50 million meticais due to lack of adequate collection”, claims CIP. “The exploitation of limestone and gold is associated with possible illegal practices, lack of transparency in production data, and companies failing to channel money to the state coffers”, reads the document.
In order to avoid further tax evasion in the mining sector, the NGO calls on the government to improve its oversight, asking for monitoring of the standards and rules of exploitation, as well as control of production and prices.
CIP also recommends that the government monitor mining companies in terms of hiring local labour, availability of equipment and safety at work, taking into account the monitoring of respiratory diseases among the population living near mining areas.
“The lack of transparency and effectiveness in supervising and taxing the mining industry represents a significant challenge for Mozambique”, the release warns. “Weak institutions, inadequate policies and poorly negotiated regulations have allowed companies to exploit precious resources without making a fair contribution to the state coffers”.
(AIM)
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