United States (U.S) Ambassador to Zambia Michael Gonzales says corruption and exploitation in Zambia’s mining sector are undermining the country’s potential for economic growth.
Delivering his remarks at the Transparency International Zambia (TI-Z) 2024 Anti-Corruption Conference in Kitwe yesterday, Gonzales emphasised the need for transparency and accountability in the mining sector, citing the example of two fictional mining companies, one company prioritised short term gains, bribed officials, and exploited local labourers, while the other company operated transparently, prioritised local beneficiation, and invested in community development.
Gonzales noted that Zambia’s Financial Intelligence Center (FIC) identified mining as a primary sector for illicit financial flows, costing the country $500 million in tax revenue this year alone, stating that this staggering loss of revenue was a stark reminder of the urgent need for greater transparency and accountability in the mining sector.
The Ambassador said he had heard of credible stories about licence holders checking the online portal map only to see that another entity had assumed ownership of their licence.
“We have heard concerns from mining sector stakeholders about the government’s decision to move away from the Flex Cadastre online platform, which is widely considered the global gold standard for transparent cadaster management,” Gonzales added.
The U.S Ambassador’s observations deserve serious introspection, especially from our officials in the government.
There is surely a lot of wrong going on in our mining industry so that the Zambian people can have a just return on their precious resource. But sadly, the people who are actually aiding these mining companies to engage in actions bordering on criminality, such as tax evasion and other vices, are often times the officials in the government mandated to ensure that they put in place sound policies and other mechanisms necessary for nationals to receive a just reward on their resources.
Here we are as a country going to every length sacrificing our dignity and well-being, literally undressing ourselves before the multinationals, just to earn some $188 million IMF facility, yet we allow $500 million to be stolen out of the country at no cost at all. Sadly, even the institutions that we have mandated to secure our national resources are sleeping. If one were to ask a question, when did you ever hear that some big mining corporation was being taken to taken to task or was being investigated for tax evasion?
It seems our investigative wings are only proficient at investigating small level corruption, or the corruption involving former senior government politicians who were earmarked for punishment. Nothing more. And we emphasise; senior government leaders earmarked for punishment. Because we are aware of the other senior officials who have pleaded with those in government not to be pursued for corruption in return for being supportive to the ruling party and its government. We have heard of one story where one member of parliament literally pleaded profusely in the office of one cabinet minister not to be investigated and was promised freedom in return for supporting the ruling party.
But while the focus has been on the politicians, we have allowed multinationals to rip us off. For some government officials who receive bribes from some of these unscrupulous people in the mines, the temptation for money has proven too strong than the call to patriotism, and sacrificing one’s narrow desires for the 20 million Zambians. But despite the odds, Zambians must not grow weary in demanding their rightful share from the mines.
And Gonzales ably put it that Zambian citizens and their partners closely watched the issue of mining companies evading tax obligations, saying that as the government addressed fiscal pressures, it was essential to hold companies accountable for submitting required reports and paying their dues.
By Daily Revelation Editor
United States (U.S) Ambassador to Zambia Michael Gonzales says corruption and exploitation in Zambia’s mining sector are undermining the country’s potential for economic growth.
Delivering his remarks at the Transparency International Zambia (TI-Z) 2024 Anti-Corruption Conference in Kitwe yesterday, Gonzales emphasised the need for transparency and accountability in the mining sector, citing the example of two fictional mining companies, one company prioritised short term gains, bribed officials, and exploited local labourers, while the other company operated transparently, prioritised local beneficiation, and invested in community development.
Gonzales noted that Zambia’s Financial Intelligence Center (FIC) identified mining as a primary sector for illicit financial flows, costing the country $500 million in tax revenue this year alone, stating that this staggering loss of revenue was a stark reminder of the urgent need for greater transparency and accountability in the mining sector.
The Ambassador said he had heard of credible stories about licence holders checking the online portal map only to see that another entity had assumed ownership of their licence.
“We have heard concerns from mining sector stakeholders about the government’s decision to move away from the Flex Cadastre online platform, which is widely considered the global gold standard for transparent cadaster management,” Gonzales added.
The U.S Ambassador’s observations deserve serious introspection, especially from our officials in the government.
There is surely a lot of wrong going on in our mining industry so that the Zambian people can have a just return on their precious resource. But sadly, the people who are actually aiding these mining companies to engage in actions bordering on criminality, such as tax evasion and other vices, are often times the officials in the government mandated to ensure that they put in place sound policies and other mechanisms necessary for nationals to receive a just reward on their resources.
Here we are as a country going to every length sacrificing our dignity and well-being, literally undressing ourselves before the multinationals, just to earn some $188 million IMF facility, yet we allow $500 million to be stolen out of the country at no cost at all. Sadly, even the institutions that we have mandated to secure our national resources are sleeping. If one were to ask a question, when did you ever hear that some big mining corporation was being taken to taken to task or was being investigated for tax evasion?
It seems our investigative wings are only proficient at investigating small level corruption, or the corruption involving former senior government politicians who were earmarked for punishment. Nothing more. And we emphasise; senior government leaders earmarked for punishment. Because we are aware of the other senior officials who have pleaded with those in government not to be pursued for corruption in return for being supportive to the ruling party and its government. We have heard of one story where one member of parliament literally pleaded profusely in the office of one cabinet minister not to be investigated and was promised freedom in return for supporting the ruling party.
But while the focus has been on the politicians, we have allowed multinationals to rip us off. For some government officials who receive bribes from some of these unscrupulous people in the mines, the temptation for money has proven too strong than the call to patriotism, and sacrificing one’s narrow desires for the 20 million Zambians. But despite the odds, Zambians must not grow weary in demanding their rightful share from the mines.
And Gonzales ably put it that Zambian citizens and their partners closely watched the issue of mining companies evading tax obligations, saying that as the government addressed fiscal pressures, it was essential to hold companies accountable for submitting required reports and paying their dues.
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