Paladin disputes report on shady tax dealings
Dual-listed mining company Paladin Energy Limited has disputed recent findings of a report by international civil society group, ActionAid, which accused the firm of ripping off Malawi through “harmful” tax incentives and tax dealings.
The ActionAid report dated June 2014 titled An Extractive Affair: How One Australian Mining Company’s Tax Dealings Are Costing the World’s Poorest Country Millions estimated that Paladin (Africa) Limited (PAL) ripped off the country $43 million (around K19 billion).
The report blamed Malawi Government’s own decision making and loopholes in the international tax system for facilitating revenue loss.
It also condemned tax breaks agreed between Malawi Government and PAL, saying the decision cost the country $15.6 million (about K7 billion).
PAL, whose main activity in Malawi, Kayelekera Uranium Mine (KUM) in Karonga was suspended on February 7 2014 and ceased uranium oxide exportation in May the same year, was also accused of lowering tax obligation by skipping the payment of 15 percent withholding tax.
But a statement issued yesterday on Australian Securities Exchange (ASX) Limited by Paladin Energy Limited managing director and chief executive officer John Borshoff said the company noted recent media articles concerning the company’s entire operating activities and fiscal arrangements which have appeared simultaneously in Australia, Namibia and Malawi.
“These articles are based on allegations and disinformation contained in a number of coordinated reports published recently by non-governmental organisations which appear philosophically opposed to the activities of mining companies in Africa,” he said in a brief statement.
Borshoff said the mining firm “wholeheartedly” rejects various fabrications and assertions surrounding the recent reports against Paladin.
He said Paladin operates and carries out its duties and responsibilities to the highest standards.
Earlier during the release of its report on Paladin, ActionAid Malawi country director Martha Khonje said their report was not a condemnation of Paladin, stressing that whatever the company did was within the framework of a contractual agreement between the company and Malawi Government.
Ministry of Natural Resources, Energy and Mining acting director of mining Peter Chilumanga said government welcomed the findings of the ActionAid report which he said will help government to learn from the past.
