ACACIA Mining confirmed the Tanzanian government today widened its crackdown on alleged corrupt practices in respect of a property company operated by the UK-listed firm in partnership with the East African government.
Providing an update to an earlier announcement in which the company became aware of additional arrests by Tanzanian media, Acacia said a current and a former employee of its Tanzanian businesses, together with three of the group’s Tanzanian companies, had been charged by the Tanzanian Prevention and Combating of Corruption Bureau (PCCB).
The charges related to “… a number of different offences including breaches of the Tanzanian Anti-Money Laundering Act,” the company said. All charged had made not guilty pleas but were not bailed under the Anti-Money Laundering Act.
A total of 39 charges have been levelled by the PCCB relating to the historical structuring and financing involving a range of entities including Acacia’s locally-owned subsidiaries Bulyanhulu Gold Mine Limited and North Mara Gold Mine (NMGML). They delve back into company history as far as 2008 before Acacia was formed when it was African Barrick.
MEDIA REPORTS
Earlier today, Acacia said the PCCB had arrested a former employee and an a person currently employed. This was in addition to another employee who was charged by the PCCB as per an Acacia announcement on October 11.
The PCCB is reported to have told Tanzanian media that the two arrests today were part of its “… ongoing investigation into natural resources exploitation” and as part of the ” … war that the government is waging in the minerals sector”. The two people arrested are alleged to have “… occasioned Government losses”.
In respect of the previous arrest announced by Acacia on October 11, it was a South African national in respect of his past activities with the Land Task Force (LTF), an entity that handled property deals between the Government of Tanzania (GoT) and NMGML.
The charge adds a layer of complexity to the dispute that Acacia already has with the GoT regarding blocked exports of mineral concentrates from two of its other mines – Bulyanhulu and Buzwagi. The GoT alleges Acacia has dodged tax for more than two decades worth tens of billions of dollars, according to its calculations.
Whilst the charged Acacia employee was not involved directly in the LTF, he was nonetheless responsible for signing off cheques for approved payments made by NMGML, including one to “… an agreed LTF process”. Two former government employees have also been charged in connection with receiving these specific funds from NMGML.
In addition, a former employee of NMGML has also been named in connection with the transaction, but no charges have been levelled, Acacia said. The employee left the firm in 2014. The charged Acacia employee has pleaded not guilty and has been granted bail.
Acacia also said the PCCB had laid additional charges against a number of government officials in connection with their relationships with NMGML and North Mara, one of which also relates to the LTF exercise, but no further charges have been laid against NMGML or any of the group’s employees.
“[H]istorical allegations and issues around the creation and implementation of the LTF at North Mara from 2013 to 2015 have been subsequently investigated over the past four years, including by the PCCB itself since early 2017, and NMGML and the company have been working with and assisting the responsible authorities throughout,” said Acacia.
“The company is committed to running its business to the highest ethical standards and is taking this matter extremely seriously,” it added.
Commenting on negotiations between Barrick Gold and the GoT, Acacia said that it continued to engage with the parent company, adding that “… the interests of all stakeholders are being protected through the international arbitrations commenced in respect of its Bulyanhulu and Buzwagi businesses, with a number of procedural steps completed and in which the GoT has been fully participating”.
