Zimbabwe News and Internet Radio

Marange owes $3,7 Million in unpaid taxes

By Bernard Mpofu

THE state owned diamond miner, Marange Resources owes the tax collector $3,7 million from 2010 while government has no board representation in two Chiadzwa diamond mines despite holding a significant stake in both, the latest Auditor-General’s report has shown.

Marange owes $3,7 Million in unpaid taxes
Marange owes $3,7 Million in unpaid taxes

The AG’s financial report for parastatals for the year ended December 2012 shows Marange Resources owes treasury $3,1 million in corporate tax and $663,000 in value added tax accrued in 2010.

“Marange Resources (Private) Limited’s tax liabilities from the 2010 financial year were not paid in the year under review. Unpaid tax liabilities accrue interest and penalties. There was a corporate tax liability of $3,152,820 and a VAT payable of $663,931 as at December 31 2011,” said the AG the report.

Marange is wholly owned by the government’s mining investment arm, Zimbabwe Mining Development Corporation. The firm has shareholding in all other diamond miners operating in Chiadzwa area.

ZMDC, according to the report, also has no board representation in Anjin and Diamond Mining Company despite a 10 percent and 50 percent share holding in those companies when it should be actively involved in their day to day management to protect its interests.

It also has appointed one board member in Mbada Diamond Mine instead of two.

“As a major shareholder, the corporation should be actively involved in managing the joint ventures to protect its interests as per the arrangements. Representatives should be appointed to stand for ZMDC on every board of each joint venture,” said the AG.

The report showed that board appointments for the companies are still awaiting ministerial approval.

“ZMDC, its subsidiaries and joint ventures had been remitting their corporate tax and royalties to the ministry of mines instead of remitting to Zimra and MMCZ,” the AG also noted in the report.

On the state-owned National Railways of Zimbabwe, the AG said the parastatal has failed to remit taxes since 2012 due to its failure to generate sufficient revenues. The company, the auditor general said has also agreed on a payment plan to pay NSSA arrears and current obligations.

“This agreed plan was not met for several months and subsequently NRZ was fined $380,000. Payments for November and December 2012 had not been made as at April 10 2013,” the AG said.

As at December 2012, NRZ’s loss position had worsened to $154,6 million compared to $102 million in prior year. The Source

Comments