By ADAM IHUCHA
Tanzania has announced sweeping reforms
which would see key border posts with Kenya, put under 24 hours surveillance in
its latest efforts to tighten noose on mineral smugglers and boost the
country's returns from the precious stones.
It is estimated that Tanzania loses Tsh
15billion ($9 million) from minerals smuggled through border posts per annum.
Blacklisting dealers who are found
involving in mineral smuggling syndicate and intensification of border
surveillance are among the measures to be enforced in the first quarter of 2014.
There would be a zero tolerance for all
mineral dealers and brokers operating without having a proper registered
companies and licenses under the laws of Tanzania.
“All informal smugglers will be
blacklisted and never again allowed to do mineral business in Tanzania,” Deputy
Minister for Energy and Minerals, Stephen Masele said.
All minerals consignments would be
exported through the proper channels where proper documentation is done.
The documents will include an export
permit; export receipt, company invoice, custom clearance, and freight
forwarding documentation.
Idea is to build transparency and a
paper trail so the buyer has assurance that their goods have originated from
legitimate source and exported through the appropriate procedures.
For this to be successful, the state is
finalizing a major deployment contingency plan of mineral inspectors in all
northern Tanzania sprawling borders.
Assistant Commissioner for
Minerals in Northern Tanzania covering Arusha, Manyara and Kilimanjaro regions,
Engineer Benjamin Mchwampaka said the leading mineral smuggling routes of
Horohoro and Namanga border posts, would be under 24-hours surveillance.
From the first quarter of 2014, mineral inspectors
would man the two borders, alongside with others such as Tarakea and Holili.
"This is not going to be business
as usual, we have resolved to curb the mineral smuggling which denies the
country a lot of revenues," Engineer Mchwampaka noted.
Statistics
Latest official statistics show that
from October 2012 up to April 2013, the state intercepted minerals worth Tsh
13.12 billion or $8.13 million from being smuggled.
This implies 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.
Reports indicate that mineral exporters
have been under declaring volumes of gemstones in the country—particularly
Tanzanite gemstone, whereas the world market shows clearly there was more
Tanzanite coming out of the Tanzania than the official figures show.
For instance, official figures show that in the year 2000, Tanzania earned merely $12 million from Tanzanite exports – but the actual value of the gemstone traded at the world market was over $150 million.
The United States Ministry of Commerce in the same year spent nearly $328 million on Tanzanite purchases exported from Tanzania.
Other studies have it that Tanzanite sales in the America alone are worth more than $400 million a year, which means nobody knows exactly how much Tanzanite, is being smuggled out of Tanzania.
For instance, official figures show that in the year 2000, Tanzania earned merely $12 million from Tanzanite exports – but the actual value of the gemstone traded at the world market was over $150 million.
The United States Ministry of Commerce in the same year spent nearly $328 million on Tanzanite purchases exported from Tanzania.
Other studies have it that Tanzanite sales in the America alone are worth more than $400 million a year, which means nobody knows exactly how much Tanzanite, is being smuggled out of Tanzania.
Energy and Mineral Minister, Prof.
Sospeter Muhongo cited airports as the main conduit for mineral 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 set 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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