TANZANIA MINERALS AUDIT AGENCY PREVENTS US$9 MILLION LOSS TO GEM SMUGGLERS

HIGH DEMAND: After ivory, gemstones are probably the most smuggled items out of the country.

DAR ES SALAAM, Tanzania - Tanzania Minerals Audit Agency (TMAA) has succeeded to rescue Tsh15.8 billion ($9.44 million) from minerals and gemstones nabbed at the country’s three largest airports, Julius Nyerere, Kilimanjaro (KIA), and Mwanza International Airports.

This has been revealed by the TMAA’s acting Director for Mineral Production and Exportation Monitoring, Conrad Mtui while briefing the mdeia who visited the agency for  a familiarization tour.

Tanzania is the East Africa’s biggest exporter of gemstones. However, there are also smuggling rings that seek to by-pass government scrutiny.

Mtui told East African Business Week that in just two years, they were able to rescue Tsh15.8 billion (about $9.44 million) from the 53 consignments of mineral being smuggled to neighboring countries.

He attributed the achievement obtained from July 2012 to July 2014 by TMAA inspection desks.

“Tanzania is losing a lot of money due to mineral smuggling, but TMAA intervention has helped to save over Tsh15.8 billion ($9.44 million) that would have been lost,” he said.

He said since its establishment in 2009 most of large mining’s companies started to pay their corporate taxes as justified by the Ministry of Energy and Minerals Resources.

According to him, the agency has enabled the government to gain Tsh537.9 billion ($319.93 million) in total that was paid as Corporate tax from various large mines in the country as a result of the Agency’s auditing.

 He named the companies as Williamson Diamonds Limited paid Tsh178.9 million ($106,394.). Geita Gold Mining Limited paid Tsh359.98 billion ($215 million), Resolute Tanzania Limited paid Tsh100.39 billion ($59.8 million), Pangea Minerals Limited paid Tsh77.4 billion ($46 million).

 “The agency has achieved to collect Tsh5.2 billion ($3.09 million) in royalties from mining companies in the period of three years after the introduction of the ‘bill of sale’ system in June 2011,” he said.

He said that, the purpose of introducing this system was into to control the production and sales of minerals. 

“Before the introduction of this system, we were able to collect only Tsh3 million ($1,784) annually but now we are able to collect Tsh1bn ($594,707),” he said.

On his part, TMAA Manager for Laboratory services, Ms Mvunilwa Mwarabu said, TMAA has mineral auditors in every mining site, who verify what has been produced. 

She said after verifying all cargos from mines they put government seals ready for transport.

East African Business Week