U.S. Govt raises red

By NATION REPORTS

Too many mining companies are evading their tax obligations, U.S ambassador to Zambia Michael Gonzales has said.
He said the mining sector, which generated more than 75 percent of Zambia’s export earnings and 40 percent of government revenue, was plagued by corrupt practices, including bribery, tax evasion, and environmental degradation.
In a speech delivered at the Transparency International Zambia (TI-Z) 2024 Anti-Corruption Conference in Kitwe yesterday, he emphasised the need for transparency and accountability in the mining sector.
“We know some companies seek to evade their tax and royalty obligations, which robs Zambian citizens of resources that it needs to invest in long-term economic and social development.’ He said.
He added that the Auditor General’s 2023 Report revealed that 259 mining companies that did not file mineral royalty declarations were still able to obtain export permits for critical minerals worth more than 14 billion kwacha – or USD 530 million. Requiring these royalty declarations as a condition for obtaining export permits – and doing so digitally without the opportunity for human intervention – could be another simple and discrete adjustment to ensure that Zambians get greater tangible benefit from their resources.”
“The bottom line is that corruption and exploitation go hand in hand, whether we’re talking about minerals, forests, wildlife, or people.
On the other hand, taking concrete steps to increase transparency and accountability in key systems will help protect the Zambian people’s natural heritage and their children’s future.” He said.
He added that Increasing transparency and compliance of beneficial ownership: looking at the people and/or businesses that benefit financially from public procurements was vital.

“By producing public information on who owns, manages, and derives benefits from companies, the Zambian government can reduce conflicts of interest and improve public procurements. Corruption thrives in the darkness of secrecy, but withers in the light of transparency.” He said
“I understand that beneficial ownership registration compliance currently stands at only 30 percent. We hope that the government’s actions to amend the Companies Act will contribute to increased beneficial ownership transparency. Another need is for legislative and regulatory reforms that empower accountability institutions and allow them to function independently. The government launched the National Anti-Corruption Policy in April. Implementing the reforms included in that policy and amending the Anti-Corruption Act will improve the functioning of the ACC and other accountability institutions, and will also help attract qualified experts with the integrity needed to run them.
The Ambassador also said that , a free and independent press enables informed and constructive public debate and helps hold those in power accountable was essential.
“ A free media environment is also crucial – particularly investigative journalism – to exposing corruption practices if and when they occur. It is therefore imperative that journalists be allowed to report freely without fear of harassment, intimidation, and arrest.
The vibrant future that the Zambian people deserve depends on Zambia’s ability to spur sustainable economic growth, which in turn depends on the country’s ability to attract reputable and accountable private sector investment.
We know – and the Zambian people know – that corruption hampers economic progress, robs governments of resources meant for public services, undermines development of infrastructure and agricultural initiatives, discourages investors, erodes public trust in institutions, and robs Zambians of their natural heritage.
Ultimately, Zambians must demand concrete, decisive action from their institutions and elected leaders to root out corruption at all levels and insist on transparency and accountability. The United States is among the many partners that stand ready to support the Zambian people in this endeavor.
The time for change is past due – let’s work together to build a more prosperous and equitable Zambia for all.