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.

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