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Wednesday, 9 February 2011

Pilot Audit Report – Mopani Copper Mine

The secret audit of Mopani's tax avoidance practices are now laid bare in this report by Amis de la Terre et al:
Pilot Audit Report - Mopani Copper Mine (Summary)

8 comments:

  1. Their threats and intimidation aren't going to last very long.

    In the meantime, here is some background on the owner of Glencore AG, Marc Rich.

    He has been convicted for tax evasion before. In fact he was on the FBI's Most Wanted List, and was actually convicted for tax evasion, the same stunt he is pulling here.

    You see for a sociopathic criminal like that, there is no such thing as 'enough'. It is not enough that there are historic copper prices, he has to evade taxes too. It is not enough that the Zambian government gave Mopani 10 years to forward their losses - he has to inflate their losses, and deflate their production and the price they received for the copper.

    This is the criminal mindset. Why did the Zambian government ever allow someone with a criminal history to own a mine in Zambia?

    Of course Chiluba is the most crooked president Zambia has seen in it's history, not even the present bully in office can top him.

    I am not surprised that they are threatening you, because they are crooks. And crooks can never do what they do in the full light of day. They are afraid of accountability and prosecution.

    And that goes for everyone who knows about this and has known about it.

    That is why they kept the Development Agreements secret, that is why they took kickbacks for the sale of ZAMTEL. That is why a privatisation that sells a company from one state to another state makes no sense as a 'privatisation'.

    According to Joseph Stiglitz in his 2001 interview with Greg Palast, politicians 10% of the sales price when they privatise a state owned enterprise.


    The Globalizer Who Came In From the Cold
    Wednesday, October 10, 2001
    by Greg Palast

    Each nation's economy is individually analyzed, then, says Stiglitz, the Bank hands every minister the same exact four-step program.

    Step One is Privatization - which Stiglitz said could more accurately be called, 'Briberization.' Rather than object to the sell-offs of state industries, he said national leaders - using the World Bank's demands to silence local critics - happily flogged their electricity and water companies. "You could see their eyes widen" at the prospect of 10% commissions paid to Swiss bank accounts for simply shaving a few billion off the sale price of national assets.


    There's Switzerland again. Both Marc Rich and his Glencore AG and his good friend Nathaniel Rothschild are residents of Switzerland.

    (See: Glencore May Expand to Rival BHP Billiton, Rio, Investor Rothschild Says by on January 6, 2010

    ReplyDelete
  2. Hi Cho,

    Forget about those threats, as of this morning they have bigger headaches than a report published on Zambian-Economist.com.

    From The Post:

    The organisation which comprised Oxfam, Counter Balance, Eurodad, Tax Justice Network and Centre for Trade Policy and Development (CTPD) stated that additional fines should be imposed on mines not cooperating with government’s audit efforts.

    “Mopani Copper Mines, a Swiss-owned mining company, funded with EU development monies, is siphoning its profits out of Zambia without paying taxes. Instead, it is putting the money into a tax haven, Switzerland. Mopani Copper Mines is dodging taxes in Zambia,” the organisations stated.


    Let them explain to the donors why they sat on an auditing report that showed the embezzlement of hundreds of millions of US dollars from one mining company alone. And never audited any other mining company to see if the same thing wasn't happening there. In fact, let's have some transparancy about the MMD's finances (or all parties finances).

    I have said it before, but the even without the windfall tax, Zambia is due at least $1 billion a year in taxes and dividends to ZCCM-IH - of which minister Musokotwane at one time was a non-executive director.

    ReplyDelete
  3. Cho,

    I do sympathize with you

    The Rupiah’s gang and their mining cronies threaten because they are beginning to wet their pants...

    they understand Time is running out for them :-))

    ReplyDelete
  4. Wiki leaks Zambia version. I love it. Lets have more.
    Just be prepared for the rape charges.
    Those raping the economy get off free though.

    India has a law that every citizen has a right to know any information about their Government. Politicians hate it but I think all countries should have such laws. What gives a government the right to have any secrets? They work for us. Its our money. Its our copper. We are entitled to know.

    ReplyDelete
  5. Only one solution :

    GLENCORE OUT OF ZAMBIA IMMEDIATELY

    ZCCM-IH takes 100 % of MOPANI

    GRZ searches a new partner for 51 % in MOPANI...

    With a dividend policy between ZCCM-IH (the Zambia) and the new partner !

    ReplyDelete
  6. Congolese state expelled FQM from DRC because of malversations several months ago

    Why Congolese politicians can do it and the MMD crooks are not be able to expel FQM and Glencore from Zed ???

    ReplyDelete
  7. the GRZ must send a strong message to the foreign companies.

    GLENCORE must BE EXPEL FROM ZAMBIA

    ZCCM-IH takes 100 % in MOPANI

    And a new partner for 51 % in MOPANI later with a dividend policy for all mines in zambia with ZCCM-IH (86 % for people of zambia !)

    The minister of finance must change, magande could be a good finance minister

    ReplyDelete
  8. An odd editorial from The Post. They are trying to shift guilt away from the 'foreign investors', to the Zambian cabinet and 'negotiators'. They are throwing the 'good fellow hypothesis' around.

    Also, they trying to offer up the idea that underdeclaring profits (which is what Mopani/Glencore AG did) as 'tax avoidance'. Lol.

    We are not benefitting from foreign investment because of corruption
    By The Post
    Tue 15 Feb. 2011, 04:00 CAT

    ReplyDelete

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