Mining company workers arrested

BY THE GUARDIAN REPORTER


**Firm evaded paying 10bn/- in taxes in 5 years, say police

Police are holding three officials of a foreign mining firm, Aureus Limited, for allegedly furnishing the government with false information on gold extraction data and sales during the past five years, causing the government revenue loss of 10bn/-.

However, the government is still searching for the company's owner, Marc Rene Roelandts, who lives in Barcelona, Spain, Energy and Minerals deputy minister Stephen Masele said here yesterday, adding that the government will use Interpol to arrest and bring him back so he can face charges.

He said that Roelandts also owns a single share in a Mauritius-based company, MS Quaester Limited.

The minister said the foreigners were arrested on Monday in Mwanza, adding that the mining company owns two plants in Nyarugusu and Nyakato villages in Geita district, Mwanza region.

He named the suspects as David Gommeren (43), a Dutch, who is a plant supervisor; production manager Gidion Ludwick, a South African, and Andrey Vash (44) from Israel.

Elaborating, he said in August and September, last year, Tanzania Minerals Audit Agency (TMAA) audited the company’s financial statements from the year 2006 to 2010 where it discovered that Aureus Limited was providing false information, especially on gold sales to avoid paying taxes (VAT) to the government.

He said the company, which was previously known as Minextech, has been concealing its gold sales records and according to TMAA it has evaded tax payments amounting to 9,085,031,656/- from its gold exports from 2006 to 2010.

“The agency discovered the revenue loss after comparing the information provided by the company with that furnished to Tanzania Revenue Authority (TRA),” said the minister.

Masele said that apart from evading VAT payment, Aureus Limited was also discovered to have not paid PAYE tax amounting to 252,683,678/- during the same period.

It also avoided paying royalties amounting to 371,026,716/- in the period between 2006 and 2010.

“The government will continue to take stern measures to ensure the money is paid back…so far we have arrested and filed a case against the three officials,” he said, adding that the police were still investigating the matter.

He said according to TMAA findings, the company deliberately concealed its accounts and sales information to evade paying due taxes and royalty charges to the government.

The deputy minister said further measures to be taken against the company include confiscation of its plants and suspension of its mining license.

He said the government was determined to take legal measures against all dishonest investors, especially those engaging in mining activities.

He said the foreign investors also had a tendency to ignore top government officials, citing a recent incident in which one of the company's officials insulted Defence and National Service minister Shamsi Vuai Nahodha when he toured the mine.

The company is also said to have intentionally gone against its agreement with the government aimed at controlling its mining activities.

The government’s move to arrest the company officials comes after members of Parliament raised concerns over the foreign firm, accusing it of exporting minerals illegally. Wawi legislator Hamad Rashid (CUF) at one time told the National Assembly House Aureus Limited produced 15 kilogrammes of gold every week and exported the lot without paying any tax to the government.

SOURCE: THE GUARDIAN (13/09/2012): http://www.ippmedia.com/frontend/index.php?l=45758