Business
Miners under declaring royalties to government
Publish Date: Jan 28, 2014
Miners under declaring royalties to government
  • mail
  • img
newvision

By Mary Karugaba

Mining companies in Uganda are cheating the Government out of a fortune by under declaring their royalties.


“They are taking advantage of the minerals ministry’s laxity at making independent verification of their returns,” the Auditor General said.

In a report that is under debate by the public accounts committee, the Auditor General noted that mining regulations require the commissioner for geological surveys and mines to assess the royalty payable basing on monthly returns submitted by the holder of the mining rights.

The commissioner is also supposed to use other information obtained from the field inspections, which in many cases does not happen.

Energy ministry officials led by the acting permanent secretary Eng. Paul Mubiru blamed shortage of funds for field visits to make independent assessments.

They said they have requested the finance ministry for sh1b from the non-tax revenue (NTR) collected in royalties to be able to do field visits.

“In order to address the weaknesses in the verification of revenues, management has requested to utilise a portion of NTR, which finance has accepted,” Mubiru said.

MP Paul Mwiru noted that recently the URA had to force a mining company to pay sh3b after under declaring its returns for many years.

He also expressed concern that the minerals ministry is under staffed and may not have capacity for independent assessment visits.

But MP Eddie Kwizera complained that since the discovery of oil, other sectors have been neglected.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Govt allocates sh20b for restocking
THE Government has allocated sh20b for livestock restocking in West Nile, Acholi, Lango and Teso sub-regions in the 2014/15 financial year...
Power extended to Masaka sub-counties
The sub-counties benefiting from the project are Kyesiga, Lwankoni, Kyanamukaka and Kabira with a total population of about 60,000 people...
UCC urges mobile operators on App for child protection
Telecommunications regulator, Uganda Communications Commission (UCC), has urged local mobile operators to offer a free new application, Guardian App, to its clients as a measure to protect children from online abuse...
Bitature assures investors on market for produce
THE chairman Private Sector Foundation of Uganda Patrick Bitature has called on investors to take advantage of the central location of Uganda to tap into surrounding markets...
BOU warns of possible food price increase
THE shilling may depreciate further and food prices increase more than expected if farmers post poor agricultural harvests, Bank of Uganda has warned...
Restraining order on Uganda Clays lifted
THE High Court has lifted an interim order barring the takeover of Uganda Clays by the National Social Security Fund paving the way for negotiations to commence...
What is causing the rise in Early child marriages?
Decaying social structures
Poor Education
None of the above
follow us
subscribe to our news letter