Tanzania has slapped a travel ban on all former government officials mentioned in the second report on export of copper concentrates presented to President John Magufuli on Monday.
The Minister for Home Affairs, Mr Mwigulu Nchemba, wrote on his instagram page on Monday evening saying: “There is no patriotism that exceeds protection of national resources. . . Congratulations honourable President for displaying high level of patriotism by protecting national resources with actions.
” The Minister added: “I order all officials mentioned (in the report) not to travel outside the borders of the country, except under special government permit.
I order all security apparatus to implement the President’s directive with utmost attention and high level of professionalism.” The Minister confirmed issuing the order yesterday when reached for a comment. “Yes, I have issued the order as the message reads on my instagram page.
They will not be allowed to travel until State apparatuses complete the task,” Nchemba responded in short. The Police Force, on its part, has vowed to reach every former government official mentioned in the second report.
Speaking to the ‘Daily News’ yesterday, Police Spokesperson Advera Bulimba said no stone will be left unturned until all officials mentioned in the report are summoned for questioning on their involvement in the rot. “When the directives are issued, it becomes our responsibility to implement them.
The implementation of the directives is now going full throttle as we speak,” she said. Asked further about the duty, the Assistant Commissioner of Police (ACP) replied: “We cannot divulge details about this operation. We don’t want to spoil our moves or disturb our strategies.
” Presenting the report to President Magufuli on Monday, the Chairman of the probe team, Prof Nehemiah Osoro, recommended summoning and questioning of officials involved in the shoddy mining agreements, through which the nation incurred huge losses amounting to between 68.6tri/- and 108tri/- in revenue from exporting mineral concentrates from 1998 to 2017.
Some of the individuals featuring in the report include former ministers for energy and minerals -- Daniel Yona, the late Dr Abdallah Kigoda, Nazir Karamagi, Wiliam Ngeleja and Professor Sospeter Muhongo.
Others are former commissioners of minerals -‑ Paulo Masanja and Dr Dalaly Kafumu, as well as Acting Commissioner of Minerals Ally Samaje. Featured too are former AGs (by virtual of which they were chief state legal advisors) Andrew Chenge and Johnson Mwanyika. The list also includes former deputy AGs, Felix Mrema and Sazi Salula as well as the heads of the contracts department, Maria Kejo and Julius Malaba.
The report proposed legal measures against workers and owners of mining companies for violating the country’s laws. The team that presented the second report on Monday consisted of economists and legal experts.
It was formed by President Magufuli to establish the amount and value of copper concentrates exported since 1998 to 2017 for smelting. Having received the report, the President upheld the ban he imposed on exportation of copper concentrates.
The report recommended for review of all Mineral Development Agreements (MDAs) by Bunge, initiating the process to have a smelter in the country and payment of all outstanding taxes and royalties.
Meanwhile, Acacia shares have tumbled by over 40 per cent since the gold concentrate saga rocked the nation in the last one month. The shares went down to 7,800/- yesterday from 13,260/- on May 12 as investors see a bleak profitability future in the days ahead.
The share price dropping has wiped over 40 per cent or over 2tri/- of Acacia total market capitalization in the past month. The market cap dropped from 5.44tri/- to 3.19tri/-.
Acacia said in a statement yesterday that “they would like to confirm that it is continuing to operate all three of its mines in Tanzania,” namely Bulyanhulu, Buzwagi and North Mara.
” Some stockbrokers believed investors are selling their shares to get a better gain now instead of waiting for dividends —predicted to slump. “Anything regarding under declaring affects future prospects of a firm as it is going to reduce profit margins thus dividend and earning per share,” analysts told ‘Daily News’.
The two presidential probe teams alleged that Acacia underdeclared export of mineral concentrates, translating to tax increase obligation affecting dividend payout amount.
On Monday, Acacia share fell by 8.0 per cent immediately after the second probe team revealed its finding that accused the DSE cross-listed firm of operating illegally without having compliance certificate. Acacia, however, said in a statement that they strongly refute these “new unfounded accusations”.
Acacia confirmed in a statement yesterday that the three mines are all owned and operated by companies that are legally incorporated and registered in the country. The three mines have special mining licence and indirectly owned by Acacia Mining which is a UK incorporated and registered company.
“The group structure formed part of the information memorandum approved by the CMSA (Capital Markets and Securities Authority) for the cross listing. “Since the cross listing the only change has been the change of Acacia’s name from African Barrick Gold to Acacia Mining,” Acacia said.
The first probe team report left Acacia shares plunging over 30 per cent to around 8,500/- of last Friday. In another development, Business Registration and Licensing Authority (BRELA) yesterday admitted that a letter from African Barrick Gold Ltd requesting the authority to change the company’s name to Acacia Mining Ltd which went viral in the social media was valid.
Immediately after the second presidential committee report on the exports of mineral concentrates was released at State House in Dar es Salaam on Monday, a letter from BRELA responding to Acacia Mining Ltd which was casting doubts due to inconsistence on the dates started circulating in the social media raising eyebrows from members of the public.
BRELA Chief Executive Officer, Frank Kanyusi said the mining company had on May 4 written a letter to the authority requesting for change of the company’s name which was received on May 8, when the President had already appointed an eight-member probe team led by a Professor of Economics, Nehemiah Osoro.
He said the authority responded that it was working on the request, but was surprised to see the request coming after the probe team was named by the President. He admitted that the dates were confusing but the authority wrote another letter to the mining company that had corrected the earlier mistakes.
Mr Kanyusi however said it was true that Acacia Mining Plc was a non-existing entity as it was yet to be registered. Presenting the Committee report findings on Monday, the Chairman of the probe team said inquiries by the team revealed that Acacia Mining Plc has been operating in the country for 19 years without any legal registration or certificate of compliance.
Prof Osoro, said the documents obtained from BRELA indicated that the company doesn’t have permission to conduct mineral activities and business in Tanzania. The Committee revealed that Acacia had under-declared revenues and tax payments over a number of years, occasioning loss to the government of over 380 trillion/-.