FIVE non-governmental organisations (NGOs) have filed a complaint to the Organisation for Economic Co-operation and Development (OECD) against Mopani Copper Mines, a subsidiary of Glencore, the world’s largest commodity trader, over allegations that its Zambian mine may not be paying enough tax on its profits.
The NGOs– the Centre for Trade Policy and Development (CTPD), in Zambia; Sherpa, a Paris-based NGO; Berne Declaration, a Swiss-based NGO; Mining Watch Canada; and L’EntraideMissionaire, also based in Canada–believe the operations of Mopani Copper Mines, in which Glencore has a 73 percent stake, may be at odds with OECD guidelines for multinational companies.
Recently, Glencore, which buys and sells metals, sugar, wheat and oil, announced plans for its flotation on the London stock exchange, initially valued at US$60 billion.
The complaint has been made to the OECD’s Swiss and Canadian national contact points, based on the findings of an audit report last year by accountants Grant Thornton and consulting firm Econ Pöyry into Mopani.
The audit was commissioned by the Zambia Revenue Authority (ZRA).
The report, which was leaked, allegedly identified a series of “problems” in Mopani’s figures related to costs and revenues.
The leaked report first emerged in February but Swiss-based Glencore refuted the allegations.
In a statement to Christian Aid, a partner of CTPD, it said: “We refute the conclusions of this draft report and we question the reasons for the manner in which it was leaked. This draft report contains factual errors and inaccuracies. It is based on broad and flawed statistical analysis and assumptions.” It repeated its comments when approached by the Guardian last week.
But Savior Mwambwa, executive director of CTPD, wrote: “For me, the leaked report lends some support to Zambian civil society organisations’ claims that mining companies are depriving us of social and economic benefits which are rightly ours, through tax evasion and avoidance.”
In a post on the Poverty Matters blog, he said he hoped the complaint would “prompt the Zambian government to do a financial audit of all mining companies so that ZRA can update its assessments of the tax they owe. Donor countries such as the UK – which gave Zambia almost £50 million in aid last year – should support our government in such an exercise”.
David McNair, economic adviser at Christian Aid, said: “We hope that this complaint to the OECD will highlight the huge difficulties developing countries face in determining whether multinational companies are paying the correct amount of tax – and the urgent need for new accounting rules to help deter multinationals from artificially shifting their profits out of those countries.
It is currently all too easy for companies to use financial secrecy to book their profits where they pay less tax. This is a massive problem for developing countries, which currently lose more to tax dodging by multinationals than they receive in aid.”
Christian Aid is campaigning for more financial transparency around the world and greater support for developing countries in challenging tax arrangements.
It is also a member of the End Tax Haven Secrecy campaign, urging G20 to put the issue on the agenda of its meeting in November.
GUARDIAN
THE 10 COMMANDMENTS
The real reason that we can’t have the Ten Commandments posted in a courthouse or Parliament, is this –
You cannot post ‘Thou Shalt Not Steal’, ‘Thou Shalt Not Commit Adultery’ and ‘Thou Shall Not Lie’ in a building full of lawyers,
judges and politicians….. It creates a hostile work environment
Zinduma, what in H3ll does that have to do with anything!
This proves we don’t have a working government. Other people are now fighting our fight. Shame!
And why isn’t the Government of Zambia spearheading this? Institutions out there HOPE this will prompt the Zambian government to do a financial audit of all mining companies so that ZRA can update its assessments of the tax they owe. They are fighting on our behalf, truly shameful period!
It is a shame to see other organizations championing the cause of Zambian people. Where does GRZ stand in all this. Are they busy enjoying the money they receive under the table? Not receiving tax is stealing from Zambians! Zambian people are the ones that are shouldering the costs involved with all the profits going to these companies and their local puppets. I have one question to all Zambian people. Why do we deal with shady mining companies and not companies like Anglo or BHP Billiton who embrace CORPORATE RESPONSIBILITY. Is it because it is easier to receive bribes from these UNKNOWN companies? A well established mining house like Anglo will never give bribes to politicians and that is why they prefer to work with such scum. It is time to put the mining industry in order!
Sad really, I hope zambians get their due and don’t let these companies get away with this #5 the mess Anglo left in Kabwe seriously….they are no better infact may even be worse Kabwe is noted as one of the most polluted places in the entire world
baza ululana………. lol
#5:
Ladies and gents if you recall the research conducted by the professor from Oxford university about mining companies failing to deliver towards the social community. Western well found to be helping and abiding with health and safety. While the chinise were so close with the president, ministers and those along the corridors of power. On this note it is easy to say the govt is the major problem and not the solution to the mess it has created under MMD.
it is worse than ever
After the decad of plunder (1991-2001), scheming is back…
Thieves and crooks run our Zed
They are bought and paid for by the foreign mining companies
Remember
“The Zambian government has declined to investigate Mopani’s tax affairs despite calls from development charities. “We are disappointed with the government’s lukewarm reaction,” said Savior Mwambwa, executive director of the Centre for Trade Policy and Development, Zambia. “They need to take action and change the whole taxation system.”
Wake up !! and kick out those crooks !!
Wake up !! and kick out those crooks !!
I thought the audit was commissioned by ZRA is that not government?????