Where do we begin to describe the mining giant called ACACIA MINING … really a front for BARRICK ? Let’s begin with the fact that Acacia is the 12th LEAST ETHICAL COMPANY in the world !!
Here is the source:
And there is much more to follow….
The latest ACACIA MINING bullying, maltreatment and manipulation in Africa
This month, these articles were published on the internet:
This is another sad “Goliath vs David” story taking place in Tanzania.
The “Goliath” is Barrick Gold, the largest gold mining company in the world.
The “David” is a small private Tanzania family business called Bismark Hotels.
The two companies decided to join into a cooperation agreement back in 1995. Everything started positively, as joint cooperation’s generally do.
The cooperation agreement between the sides involved Bismark land with valid mining licenses in the Mgusu area of the Geita District and Barrick providing their mining operation speciality. Together, the two parties were make a great success mining gold.
All the contents of this document from our very reliable sources can be confirmed by either of lawyers for each side:
Adv. Diane M. Wamunza.
Legal Counsel Corporate and Contracts at Barrick – now called Acacia.
Tel: 022 2164200 Ext 3204 or 0755 838900
Email : firstname.lastname@example.org or email@example.com
Adv. Rosan Mbwambo.
Partner at Law Associates Advocates
Tel: 0715 266 698
So, back to this sad and bitter story….
In the cooperation agreement, Barrick had three basic obligations prior to actual mining activities:
- They were obligated to ensure the licenses for each land would be taken care of, maintained in good standing and renewed as and when renewal was required.
- They were obligated to provide quarterly reports – which, in fact, is a statutory requirement by the Ministry of Mines
- They were required to provide geological reports for all the lands in the agreement.
Sadly, the Goliath and David bullying story started from very early on in the relationship. Goliath (Barrick) did not submit quarterly reports every quarter. When the David (Bismark) Directors chased Goliath, David was dismissed most times with the usual delay tactics of “we’ll do it when we get around to it”.
Why must the powerful European man send the small African away with nothing, time and time again?
In fact, apart from a few reports during the almost 19 years, Barrick simply did not fulfil their contractual obligations to Bismark – needless to say, nor did they fulfil their statutory requirement by the Ministry of Mines.
The Barrick obligation to provide geological reports was handled even worse. During the almost 19 years, Bismark never received even one geological report from Barrick… and that, again, was in spite of the Bismark Directors chasing Barrick to fulfil this obligation.
But the blatant negligence and lack of efficiency of Barrick with regards to taking care of the licenses of the Bismark land and ensuring the licenses were kept in good order all the years, this is the most painful and the most damaging. In a sentence, Barrick actually succeeded to lose a license and a piece of land causing massive financial damages to Bismark.
Here are the facts:
At the start of the agreement period, There were 3 live licenses.
During the period of termination (April 2012), two licenses were still valid and in good standing. These were returned to Bismark. No problems at all.
Only the third license had to be renewed by following the standard renewal process at the Ministry of Mines.
Here are the facts that we found about the license that was lost by Barrick:
- The date of the Termination Letter from Barrick was 12 April 2012
- The license actually expired on 17 May 2011 (11 months before)
- According to the Mining Act of 2010, Barrick had to submit their application for license renewal EXACTLY FOUR months after the expiry date, i.e. the application had to be exactly and only submitted on 17 September 2011.
- However, as 17 Sept 2011 was a Saturday, the application had to be submitted on Monday 19 September 2011.
- Negligently, Barrick submitted their application on Wednesday, 07 September 2011 !! They knew about the license renewal laws in the Mining Act of 2010. Barrick have dozens of lawyers !!
Back to Monday, 19 September 2011:
Our sources informed us that four outside companies all applied on that Monday, 19 September 2011 for the license for that same piece of land.
The four companies entered into a bidding process through the Ministry of Mines and the winner came out on top.
Barrick was totally excluded from all processes because they did not follow the procedures as per the Mining Act of 2010.
In fact, their application on Wednesday, 07 September 2011 was never even dealt with at all. It was as if they never applied because no-one took notice of applications when submitted on the wrong dates.
Through this negligence, Barrick lost the land and were unable to fulfil their obligations to Bismark.
There can be no other explanation for this mess besides blatant incompetency.
And instead of standing up like a man and taking responsibility, they rather use their money and power and bully the little man into giving up his claim and going away.
And let us not forget the Barrick failure about the Quarterly Reports (which is also a statutory demand of the Ministry of Mines) and also their failure to submit the Geological Reports.
Today, Acacia knows this is a problem. Diane (the lawyer there) especially knows it is a problem.
Did Acacia in Dar ever give all the truth and the facts to Acacia Head Office in the UK ?
Do the powers that be at Acacia in UK really know about this maltreatment, bullying and manipulation in Tanzania ?
In Barrick’s Termination Letter to Bismark, Barrick promised in black and white to send Geological reports within 60 days. That never happened either.
Bismark lost their land and the potential financial profits all went “poof” and disappeared. What are Barrick fighting about?
If I could place a bet, I would say that they will use their overseas lawyers (probably our local lawyers are “not good enough” for them) to draw Bismark into a long, long legal process over many years and in so doing, will probably pressure Bismark to withdraw due to legal costs, cash pressure, whatever, until eventually Bismark will have no option but to withdraw leaving the huge corporation to win, once again, without justification.
Just look at the lawyers that Acacia are using ? The Bloomberg article online reports that Acacia’s lawyers in Dar es Salaam are AKO who actually operate under the control of Clyde & Co from London, UK. Any Google search confirms this. Of course they would not take our local lawyers!!
Bottom line: If Acacia failed to return Bismark’s land or license or whatever… either they returned it or they did not.
There is no reason that prevents these international companies from operating in Africa with ethics and integrity towards our People. There is enough money to be made in Africa without bullying, maltreatment and manipulation tactics!
Barrick’s human rights’ track record is very much public knowledge – here is a link that shows facts of Barrick’s activities in 14 countries worldwide:
Indeed, one could really be shocked when reading the different reports in the afore-mentioned link. One could say that these tragic situations in Acacia’s ambit of operations and their handling and response has been nothing short of scandalous.
As you know, in November 2014, Barrick changed their name to Acacia Mining.
Following the name change, Dr. Honest Ngowi of the Mzumbe University Business School (in Dar es Salaam) published an extremely interesting article:
Whether change of corporate name implies ‘foul play’.
Dr. Ngowi is also on the Board of Directors for The Foundation for Civil Society:
“Foul play” ?? Strong words!!
Perhaps the problem is that Barrick/Acacia know that there is no “Big Brother” watching so they can do anything they want, anywhere they want ?
Perhaps the Barrick PR Machine works with such success to cover-up human rights violations and dishonest dealings ?
Our nation’s benefit from overseas companies’ operations. There are jobs and advantages. But look at how they bully, manipulate and abuse the small business man here !!
It is unlikely that one can “change the world” but we can certainly at least start somewhere and focus on our country, Tanzania:
Just look at the devastation that Barrick/Acacia cause in Tanzania alone:
What happened to the “where there is smoke there is fire” ?
The Tanzanian public have every right to know some small part of the facts concerning the treatment of their local business people, i.e. Bismark.
Barrick / Acacia are powerful enough to weather almost any storm. Their PR machine is certainly a “super power” in its own right. Nevertheless, all things being equal, let the Tanzanians know the truth. Let all Tanzanian businessmen who would like to deal with Barrick/Acacia be “warned and fore-armed”. Is this not the least we can do ?