The Centre for Trade Policy and Development – CTPD hast noted with great concern the lack of transparency (in effect the secrecy) regarding the purported settlement of the over $8 billion tax settlement deal between Zambia Revenue Authority – ZRA and First Quantum Minerals – FQM.
The center has bemoaned lack of openness between the two parties in their dealings hence the demand for a lot more transparency on the part of both FQM and ZRA over the matter. CTPD Executive Director Isaac Mwaipopo told the Zambian Business Times – ZBT in an exclusive interview that ZRA publicly announced some mining firms which included FQM Kalumbila that were owing it huge amounts of money.
This report which generated a lot of interest and praise from a cross section of the general public who at the time commended ZRA for the bold steps taken hence it is only logical that the revenue agency gets back to inform the public on how the whole matter was resolved and at what amount.
Mwaipopo has reminded ZRA and FQM that the amounts in question are not just so huge, but are also public funds which belong to the Zambian people who deserve to know the whole truth over this matter.
He added that ZRA’s agenda of hiding under the veil of tax payer confidentiality restrictions about the matter is not helpful to many Zambians who wish to know what the Tax authority has agreed to settle for a decent amount that is in the interest of the majority of Zambians.
“we wish to repeat our clarion call on the need for transparency from both parties [ZRA and the Mining firm] to avoid similar occurrences in the future. On the part of the mine, they should make their profits in a manner that is clean and transparent, devoid of denying the majority Zambian people the much-needed revenues through payment of the right amount of taxes at the right time” he said.
Meanwhile the center has commended ZRA’s move of setting its bar high by signaling its drive to maximize revenue collection from the mines for the benefit of all Zambians but has called on the agency to open on up on the final settlement amount.
FQM group representatives Clive Newall had stated in a statement availed to ZBT that the company had reached a settlement amount with ZRA over the US$ 8 billion tax dispute saying the amount of the settlement was in line with FQM’s earlier made provisions but did not disclose the actual final settlement amount.
When ZBT followed up the matter, ZRA Corporate Communications Manager Topsy Sikalinda also confirmed the settlement with FQM stating that the act was after the mining firm appealed on penalties through the Ministry of Finance. The ministry of Finance has equally not confirmed the settlement amount.
Further when ZBT reached FQM for detailed information, FQM Public Relations Manager Godfrey Msiska could not avail further information and reacted angrily saying that the company was not in position of giving further information aside what was reported in the statement released earlier. The actual and final figure of the settlement still stands unrevealed leaving questions on weather the country settled for a better deal.
