Report uncovers Sh402 million hole in Tanzania's mining revenue
What you need to know:
- The deficit stems from the total revenue of Sh1.8 trillion paid by mining, oil and natural gas companies to the central government and local authorities, whereas the government acknowledged receiving Sh1.8 trillion.
Dar es Salaam. The 14th report on accountability and transparency in Tanzania’s extractive sector has uncovered a deficit of Sh402 million for the 2021/22 financial year.
The deficit stems from the total revenue of Sh1.8 trillion paid by mining, oil and natural gas companies to the central government and local authorities, whereas the government acknowledged receiving Sh1.8 trillion.
The Minister of Minerals, Mr Anthony Mavunde said this in Dar es Salaam during the launch of the Tanzania Extractive Industry Initiative (TEITI) report on transparency and accountability in the extractive sector for the 2021/2022 financial year.
He directed the Parliamentary Standing Committee on Energy and Minerals to investigate the missing funds, noting that the discrepancy stood at Sh404.4 million, representing 0.021 percent of the reported revenues.
“The TEITI law mandates that discrepancies of 1percent between payments and revenues must be submitted to the Controller and Auditor General (CAG) for investigation.
“This amount does not meet that threshold, but it must be investigated because it is public funds,” Mr Mavunde said.
He emphasised the importance of the public understanding the report to provide advice to the government, ensuring the country benefits from its resources.
In addition, the minister said that the government benefited from approximately Sh3.1 trillion from the purchase of goods in the mining sector(local content) that ensure the money remains in the country.
In another development, he highlighted efforts to improve the sector, noting that the Buzwagi mine is establishing a special economic zone, which will include industries for product manufacturing and service provision.
