Lusaka based economist Trevor Simumba has condemned the silence by Zambia Revenue Authority – ZRA and First Quantum Minerals Kalumbila – FQM over the denial to disclose the actual figure of tax dispute final settlement amount.
Last month, FQM group President Clive Newall had stated in a statement availed to the Zambain Business Times – 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.
Zambia is currently grappling with austerity measures and a national external debt of about US$10.3 billion and a tax dispute of over US$8 billion is not something to joke about or sweep under the carpet. Ordinary citizens in Zambia get sentenced for for longer terms for much lesser crimes and tax dodging in other jurisdictions is considered a serious crime.
Simumba stated that being an issue of public interest, it has raised concerns as to why the two firms have gone mute on releasing the actual amount settled for when government had publically announced the agreement.
The Lusaka based economist has bemoaned the lack of transparency by both FQM and ZRA stating that the act of silence does not send a good signal to the public hence government should open up and discuss the actual amount settled to avoid speculations in the public domain.
He told the Zambain Business Times – ZBT in an interview that placing financial and public information in the public domain shows how transparent the country is to its people and it is a powerful element of good governance as it helps fight corruption.
“I think ZRA commissioner General Kingsly Chanda and newly appointed Minister of Finance Dr. Bwalya N’gandu should open up and disclosed the agreement because whatever money has been made in exchange will go to the treasury, so going mute on this issue when the agreement was made public is not a good move,” he said.
Meanwhile, ZRA Corporate Communications Manager Topsy Sikalinda confirmed the settlement with FQM stating that this arrived at after the mining firm appealed on penalties through the Ministry of Finance.
And when ZBT reached out to the FQM Public Relations Manager Godfrey Msiska, he reacted angrily to the question and could not avail further information saying that the company was not in position of giving further information aside what was reported in the statement released earlier.
