What do you say?
Nashukuru mkuu Ben kwa kutuwekea hii makala hapa. Labda tujikumbushe ule usemi wa 'walk the talk and not talk the talk.
Niliposoma hii artickle nimemkumbuka Barack Obama. Huyu rais ni mzuri mno wa kuongea, anajenga hoja zenye mashiko na ukisikiliza hotuba zake unaweza hata kumkabidhi fungo za gari maana ni rahisi sana kuamini mwisho wa mikosi umewadia, kumbe wapi. Obama sio kama ni sifuri kwenye utendaji lakini he is just as weak as the man standing next to him.
Zitto ni mzuri sana wa kujenga hoja, hilo halina ubishi, je, yukoje kwenye utekelezaji? Wakati wa Speaker Sitta, Zitto alipigania (kwa nguzu zake zote na kwa gharama kubwa) utata wa Barrick/Buzwagi. Fast foward, Barrick hao hao wanampa mabati Zitto kwa ajili ya huko jimboni kwake - ceteris paribus!
Lugha/nguvu aliyokuwa anatumia bungeni kipindi hicho wakati anajadili Buzwagi/Barrick ni tofouti kabisa na sasa. Kuna thread moja inaongelea hii issue ya mabati ya Barrick hapa jf, na Zitto alijaribu sana kutoa maelezo na hata kusema kuwa (tafsiri yangu) amekuwa, uelewa wake umekuwa mpana.
Katika hali ya kawaida, ni vigumu kumsimamia vema mtu wakati huo huo unamtegemea akupe push (hata kama ni push ndogo kama ya mabati). Kisiasa unakuwa umesha-compromise your position.
Labda nikumbushe, mwaka jana waziri mkuu Pinda alisoma majina ya makampuni 15 yanayoongoza kwa kulipa kodi kwa miaka 5 iliyopita. Barrick hapo! Hili lilikuwa bunge la bajeti 2011/12. Mchango wa Zitto kwenye hicho kikao ni pamoja kuweka utaratibu wa 'windfall tax' ili bei ya dhahabu inapoongezeka kwenye soko la dunia basi ongezeko hilo liwe reflected kwenye kodi wanayolipa. Lakini sijamsikia Zitto akiongelea kwa kina kuhusu Barrick na kodi kwa ujumla hasa ukizingatia kuwa hawapo kwenye top 15. Sasa leo anataka watanzania waamini kuwa akiwa kwenye top position atasimamia vizuri madini na gas? Hapa ndio Zitto anatakiwa ku- walk the talk and talk the talk.
Sisemi haya kwa kumvunja moyo, hata kidogo. Nataka Zitto ajue exactly ni mambo gani anatakiwa aangalie, na vipi anaweza kujijengea imani mbele ya watanzania - wapiga kura. Mabati yanaweza kuwa ni kitu kidogo sana lakini yanatoa taswira kwamba huyu ni mwanasiasa wa aina ipi?. Huwezi kuniambia kwamba shughuli za mtu huyu zina walakini wakati huo huo unapeleka bakuli kwa hiyo mtu akusadia kutokana na mapato ya shughuli zile zile zenye walakini!. Utanicha na maswali.
Ushauri wangu Zitto, be yourself, rudi kwenye principles zako za zamani. Hauna sababu ya kuzibalisha. Achana na mashorabo wa mjini. Hawaaminiki.
FJM
This I wrote last year and on my blog
Dear Balozi,
I send my congratulatory message following the bold step by the Countrys leading exporter to trade its shares at Dar Bourse(DSE). It is an opportunity for Tanzanians to own part of this lucrative business and individually benefit from it. I have some issues that I would like to raise for your attention. I am using the opportunity in your capacity as Board of ABG to air my concerns. I understand that*crosslisting of ABG shares at DSE*has been a dream of many Tanzanians working with the company.
I personally in 2009 intervened and asked BoT to relax the capital account and allow Tanzanians to buy ABG shares during its IPO in London. Crosslisting is thus welcome and encouraged. Below is a list of issues (which makes me have genuine reservations) about the move.
*In 2010 (from*its prospectus) ABG had a turn over of $975m, EBITDA of $419m and a Net Income of $218m. As a result of that performance it declared dividend of $3.7 per share.*I later learnt that ABG posted an incmoe tax expense of $86,471,000. However TRA did not receive this revenue as a corporate tax from ABG, thus this was definately*not paid at source due to a fact that ABG resides in London.*You*will take a strong note that WHILE all ABG operations are in Tanzania,it is Her Majesty(HM) Revenue*collecting its corporate tax.
ABG has designed Tanzania (Dar) as a logistics Office while Jburg is largely procurement office and London HQ. This structural design is one of the ways Multi National Corporations(MNCs) use to minimise tax payments to developing countries. The source Domicile method is used by many tax avoiders and it is really causing alot of stress to governments in LDCs.
You will as well note that while ABG declares profit in London, pays dividends and even corporate tax at domicile, no single ABG subsidiary in Tanzania declared profit and paid corporate tax in 2010. Bulyanhulu Goldmine (Kahama Mining ltd), NorthMara Goldmine ltd and Pangea Minerals (owning Tulawaka and Buzwagi) all didnt pay corporate tax in Tanzania in 2010, but ABG posted an income tax expense as shown above. From my knowledge of International Taxation, it seems ABG is enjoying a Double Taxation Treaty(DTT) between Tanzania and UK which is unfair in all measures.
I am kindly asking you Balozi to consider this matter and raise it in your Board meetings so that ABG either relocate to Tanzania as its HQ or subscribe to a system whereby it pays its corporate tax at source rather than at domicile (with 5 officials only).
I read from The Citizen and DailyNews that you raised the issue of wider benefits and that ABG brought back to Tanzania more that $540m as wages and salaries and other costs. I totally agree with your views of gross benefits (jobs, skills transfer etc)*and looking at things in a bigger picture rather than just Government Take Statistic (Royalties, Taxes and other fees). However we must balance the two as the Government has a duty to provide for its citizens including the companies themeselves.
These are Public goods like Defence, Law and order as well as infrastructural development, and Merit goods like Health, Education and even social security. Therefore focus on Government Take statistic is as crucial as Gross benefits. I understand that ABG is one of the largest contributor to NSSF. But we shouldnt close our eyes on the importance of government Revenue. I kindly ask you to understand when some of us repeatedly raise this issue. It doesnt mean i belittle the bigger picture NO as i am big fun of linkages approach of looking at mining sector and its contribution to our economy.
From 7th December, ABG will start trading at DSE as a crosslisted company. 24% of the shares of ABG held by individuals and institutions will be traded locally, ofcourse at LSE prices. This doesnt mean Tanzanians will be buying some slice of ABG from itself but from investors owning the shares now.
This isnt the spirit behind the Mining Act 2010 which aim at having part of the company to be owned by Tanzanians. I think ABG was supposed to sell atleast 10% of its shares to Tanzanians (reducing the shareholding of BarrickGold Corporation from 76% to 66%). You might argue that the market wouldnt absorb this amount but ABG could do a private placement to Tanzanias institutional investors like Pension Funds and even Unit Trust of Tanzania.
Let Tanzanians buy the shares traded at LSE as they wish (ofcourse we are a free market country) but strategic shares sell to Tanzanian institutions (on behalf of the people) shall be explored. I kindly ask that ABG does this for its gesture to be meaningful. I will be shocked and saddened if Pension Funds will buy ABG shares to be crosslisted.
I think ABG should engage our institutional investors through a private placement of 10% from shares held by BarrickGold Corporation in addition to crosslisting. This is good for ABG as i must remind you that according to the Mining Act 2010* the Government has the right to own up to 15% of each company and for ABG it will be a big trouble as the government will treat all subsidiaries separately and not as ABG. In real sense there is no ABG in Tanzania but Bulyanhulu Goldmine ltd, NorthMara Goldmine ltd and Pangea Minerals ltd.
A strategic private placement by ABG to institutional invetors will place it on upperhand when the government decides to enforce the new law and this will be very soon.
I have written to you believing You are*one of the*Tanzanians highly trusted and with credibility to effect changes to our country. I hope you will take note of my views, weigh them and take forward the ones you think are relevant. We must together answer this paradox: A Rich Country with Poor People. It is very clear to me that mining sector will not alone end all poverty we have in Tanzania, but its contribution to poverty reduction is massive.
Zitto
Also read my speech as shadow minister finance about mining taxation