President Edgar Lungu Taking on the Thieves

President Edgar Lungu Taking on the Thieves

by PD Lawton   4 February 2019

As Zambia moves forward with greater co-operation in the Belt and Road Initiative and Chinese assistance in developing the physical economy of the country, mining giants such as Canadian Barrick Gold are resisting President Lungu`s demands to increase their tax in order to up Zambia`s revenue.

Zambia is Africa`s second largest copper producer, the mineral that the country is dependant on .

It is a very difficult task for any government to increase taxation paid by the giant mining houses. They have historically got away with murder and tax rates as low as 3%. Crooked accounting balances the books and when governments demand increases, mining conglomerates play tricks. They reduce output or threaten to lay off employees.

Quantum Minerals is another Canadian corporation that mines copper in Zambia. After President Lungu`s government informed them of the tax hike they threatened to lay off 2500 miners. They have since back-tracked.

Glencore has one of the most disgusting records of any multi-national in Zambia, they have bled the country dry for decades. In 2012 a documentary was made called Stealing Africa: Why Poverty, produced by filmmaker Christopher Guldbrandsen . The following is a precis of the documentary and the link to it.

“Rüschlikon is a village in Switzerland with a very low tax rate and very wealthy residents. But it receives more tax revenue than it can use. This is largely thanks to one resident – Ivan Glasenberg, CEO of Glencore, whose copper mines in Zambia are not generating a large bounty tax revenue for the Zambians. Zambia has the 3rd largest copper reserves in the world, but 60% of the population live on less than $1 a day and 80% are unemployed. Based on original research into public documents, the film describes the tax system employed by multinational companies in Africa.”

https://youtu.be/WNYemuiAOfU

Source:

http://www.mining.com/web/barrick-ceo-zambia-tax-dispute-threats-dont-solve-problems/

 

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