The Government of Tanzania has accused London-listed Acacia Mining for carrying out illegal operations in the country.
A report by the Presidential Second Committee appointed by the government has alleged that Acacia falsified its accounts and tax declarations, which resulted in underpayment of tax in the range of tens of billions of dollars.
Recommendations made by the committee include the payment of outstanding taxes and royalties, renegotiation of mineral development agreements, government ownership in the mines, and continuation of the export ban.
Last month, the First Presidential Committee accused Acacia of under-reporting the amount of gold concentrate exports by as much as ten times.
Meanwhile, in a response to the findings of the second committee, Acacia dismissed the charges as ‘unfounded accusations’ and said that the committee based its findings on samples from 44 containers.
The company further stated that it has fully complied with Tanzanian law and has made right declarations of its operations in the country.
In addition, it reported that all applicable royalties and taxes on the company’s production were paid.
Acacia is also willing to negotiate with the government on the matter, while it continues to assess all of its options.
Headquartered in the UK, Acacia operates gold mines in Africa including three in Tanzania- Bulyanhulu, Buzwagi, and North Mara.