Marange owes $3.7 million in unpaid taxes


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.

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 10 April 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


Don't be shellfish... Please SHAREShare on google
Share on twitter
Share on facebook
Share on linkedin
Share on email
Share on print

Like it? Share with your friends!

Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


Your email address will not be published. Required fields are marked *