Mineral Smuggling Denies Dar Multi-Million-Dollars



By ADAM IHUCHA
Tanzania faces a rampant minerals smuggling menace, threatening to deprive the country’s much-needed resources to alleviate poverty.

Latest official statistics show that a country loses Tsh 2.168 billion or $1.36 million every month on illegal export of various minerals, probably the highest in history.

The Energy and Mineral Ministry report indicates that from October 2012 up to April 2013, they have intercepted minerals worth Tsh 13.12 billion or $8.13 million from being smuggled.

Energy and Mineral Minister, Prof. Sospeter Muhongo cited airports as the main conduit for this illegal trade.

Specifically, Prof. Muhongo, mentioned Mwanza, Julius Nyerere and Kilimanjaro international airports as the major gateway used by smugglers to loot the country’s minerals.

“The people behind the rackets have been punished according to the new mining Act of 2010” he said.

However, analysts fault the sentences often handed out to the culprits behind the illegal, but lucrative trade, saying they are no deterrent to the smugglers.

The Mining Act of 2010, section 6 (4) stipulates that an individual mineral smuggler is liable for a fine of Tsh 10 million ($6,250) - or three years jail term, whereas a company is subjected to pay Tsh 50 million ($31,250) - penalty.

“Such penalties are no deterrent. A penalty of Tsh 10 million ($6,250) or even Tsh 50 million ($31,250) is nothing to people who make a lot of money through smuggling activities,” said Charles Ole Ngereza, an industry analyst.

Mr Ngereza was of the view that the country needs to come up with a severe penalty to make the mineral smugglers think twice before committing the offence.

The state through Tanzania Minerals Audit Agency (TMAA) has announced sweeping measures in a latest effort to curb the mineral smuggling in all airports.

Key, among them, is setting up special desks at JKIA, KIA, and Mwanza airfield to inspect all mineral exports.

TMAA Manager for Valuation, Mr George Kaseza said the agency was in the process of establishing a database for all mining licences and other export or import permits with the view of controlling forgery of the documents and easing the officials’ task of tracing the origin of the minerals. 

Lack of modern equipment and manpower at various entry or exit points remain to be among the challenges facing TMAA.

Mr Kaseza said swift measures were in the pipeline to address most of the challenges, citing scanners used to detect minerals in luggage at the airports. 

But, he said some minerals were not detectable by the gadgets, creating loopholes for smugglers to evade government taxes.

 Emerald or tanzanite gemstones are among the expensive metals in the world but which the scanners could not detect.

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