August 20, 2017

Zim probing Rio Tinto for possible tax evasion

Prompted by information released by the Panama Papers, which revealed that the world’s rich and famous and some multinational have been evading tax payments, the Government of Zimbabwe is probing mining giant’s Rio Tinto of sale of its stake in two mines in Zimbabwe, according to News2 wire.

Rio Tinto disposed 78% of its stake in the Murowa diamond mine and 50% of its interest in the Sengwa coal Mine. According to information, both stakes were disposed off to RioZim, a separate, locally-listed entity that held 22% in Murowa and about half of Sengwa.

In his brief to Parliament, the country’s Mining and Mining Development Minister, Fred Moyo, said his ministry is establishing whether due procedure  was followed.

“The shares were actually held offshore… we are still investigating to verify the manner in which the shares changed hands outside the country,” he said.

The Panama Papers leaks have opened a proverbial can of worms worldwide, with the latest casualty being the Prime Minister of Iceland, who has been forced to resign from his position by public pressure.

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