Skip to main content

ACEP takes on Newmont over less payment of taxes


By: Mathias Amoah- Daily Express with files from GNA

The African Centre for Energy Policy (ACEP), an energy policy think tank said Newmont Ghana is enjoying a lot from the country because Ghana has not been able to capture adequate share of the mineral value over the years.

The energy policy think-tank made this observation at a launch of a report titled: “Golden Days for Newmont.”

Mr. Ismael Ackah, Head of Policy Unit, ACEP who led the discussion said according to Extractive Industries Transparency Initiative (EITI), Newmont is taken advantage of the country’s inability to capture values of gold product produce by the company.

He said this is very serious because government had lost an estimated US$90 million in 2011/2012 as a result of mining stability agreements and US$387 to US$1168 million from non- optimisation of royalty receipt from 1990 to 2007.

Mr. Ackah said from 2010 to 2013, the country’s average share of the total value for gold production was 7%, while government received US$1.7 billion in taxes, the total value of gold production in 2014 was exceeding US$23 billion.

He said the report revealed that from 2003 to 2012, Newmont paid less than US$500 million tax to government despite reporting annual revenues of US$931 million in 2012.

Mr Ackah said the country’s domestic revenue is expected to be 8.1% lower than the 2014 budget estimates, explaining that the situation is likely to persist with decreasing oil revenues which could lead to cut in social services such as education and health.

In order to prevent this from occurring, ACEP is calling for mining investment law to ensure that the country’s mineral revenue is collected, disbursed and spent in a transparent manner.

The Centre suggested that the country needs to introduce a law on resource rent tax in the mining sector to capture a share of excessive profits while introducing other exempted taxes without negatively affecting long term mining investment.

"Government must develop a public investment management plan and judiciously apply mineral revenues to the realisation of government’s investment objectives," the group urged government.

The Centre commended government for re-negotiating the Newmont contract, while urging the Executive government to introduce a law on resource rent tax to capture a share of excessive profits.

ACEP called for effective transparency and accountability to track share of royalties that goes to traditional authorities as well as effective tax administration to detect and publish transfer pricing and other illegal corporate practices.


Comments

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

Ghana to benefit from oil spill fund

By: Fred Yaw Sarpong

Ghana as crude oil importing country will benefit from the International Oil Pollution Corporation Fund if the country witnesses oil spill at its ocean.

“The fund is a global fund and it’s meant for the countries that import crude oil. The fund is voluntary but Ghana through the Tema Oil Refinery (TOR) contributes annually on behalf of Ghana,” Mr. Kojo Agbenor Efunam, the Deputy Director in charge of oil and gas at the Environmental Protection Agency (EPA) told the Daily Express.

He explained that the fund is mostly for crude oil importing countries but not those into production and exportation.

Mr. Efunam further explained that once Ghana is part of the fund, anytime there is an oil spill involving an oil tanker on the seas of Ghana, the country can apply for the fund to solve any problem resulting from the spillage.

“If the incident does not involve a tanker the country does not benefit. But if the incident involves a tanker the country applies for the fund,” he ment…

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…