Zimbabwe’s largest gold mining company, Metallon, has become the latest miner in Africa to be accused of value shifting, allegedly by making payments abroad for non-existent services or to service debt that does not exist.

Acacia Mining meanwhile has agreed to pay new surcharges on its revenues in Tanzania even as it battles the government over changes to the laws applied to its three gold mines (Trade-based Financial Crime, 14 & 28 June 2017).

Fictitious payments

In a case that the Zimbabwean media says is now before a court in Harare, Metallon is accused of transferring more than US$30 million out of the country.

The miner is accused of violating the Exchange Control Act by failing to obtain proper approval from the Reserve Bank of Zimbabwe for overseas payments.

Metallon, which has four mines in Zimbabwe and operations in the Democratic Republic of Congo, allegedly made payments to payees in foreign countries on the pretext of servicing external loans, paying for services rendered or settling obligations to management.

Acacia position

In Tanzania, Acacia Mining has said it will pay a new royalty rate of 6 per cent rather than 4 per cent on its revenues and comply with other conditions contained in new legislation.

But the UK-listed miner’s dispute with the Tanzanian government is not over, and the future of the export ban remains uncertain.

Categories: Trade Based Financial crimes News