Ghana lost $14.2 million from six mining companies that failed to pay dividends to the government in 2018

The government of Ghana lost a potential revenue of about $14.2 as at October 2018, after some six mining companies failed to pay dividends due the country.

Ghana lost $142 million from six mining companies that failed to pay dividends to the government in 2018

This follows an investigation conducted by iWatch Africa (a non-governmental organisation that assesses of government commitment towards Ghanaians).

The companies which included Chirano, Adamus, Gold Fields Abosso, Persus Mining, Ghana Manganese and Ghana Bauxite although declared making profits, they failed to transfer dividend attributable to the government.

The government of Ghana under Section 43 of the Minerals and Mining Act of 2006, Act 732, has 10 per cent Carried Interest in all mining companies registered under the Companies Act of 1963.

The companies are required to submit on annual basis, their returns to the Registrar General’s Department and the Minerals Commission as well as conduct annual self-assessment and submit same to Ghana Revenue Authority for tax purposes.

“But these companies failed to obtain the needed prior approval from the Ministry of Finance for the plough back of the profit,” the report said; hence they could not fulfil their obligations to the government.

Meanwhile, the Auditor General, Daniel Yaw Domelevo, in his 2018 report revealed that the absence of government representation on the boards of these mining companies, despite government ownership of 10 percent carried interest has given them the opportunity not to fulfil their obligation.

He said this “inhibits oversight functions and possible cause for cost manipulation by the mining companies,” adding that, “inflation of expenditures through transfer pricing manipulations,” is also part of the reasons for these losses.

He then blamed the Ghana Revenue Authority for their weak oversight responsibilities.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022