By Samantha Cole of Tanzania Business Ethics


Acacia’s Adv. Karel Daele’s slap in the face of the Tanzania legal system

In our Holy Bible:  Ecclesiastes 1:9
That which has been, is that which will be, And that which has been done, is that which will be done. So there is nothing new under the sun.

Last year, on June 02, 2016, the local newspaper, RAIA TANZANIA, on page 4, published an article in which it was reported that Adv. Karel Daele must remove himself as Adjudicator in the matter between Bismark Hotels and Acacia Mining because of his conflict of interest.
Our anti-corruption group decided to research and report on this to our readers.

We published our full results in this report called:

This month, we found that Karel Daele is back in the news relating to the case here in Tanzania of the small family business in Mwanza called Bismark Hotel.

To remind our readers:  In July 2015, Bloomberg News was first to expose the story of the legal dispute between the giant Barrick Gold – Acacia Mining and the Mwanza family business.
Bismark lost its land and mining license through negligence and inefficiency on Barrick-Acacia’s side in 2011 and then almost four years later, Acacia Mining’s attempts to upset the legal processes of the Mining Act of 2010 by collusion with dishonest officials of the Ministry of Energy and Minerals.

Adv. Karel Daele was selected as Barrick Gold – Acacia Mining’s adjudicator in the legal dispute.  Of course, he jumped at the opportunity (big $$ fees in his pocket) even though there was a conflict of interest.

Later, Bismark applied to the High Court in Dar es Salaam to force Barrick – Acacia to change Karel Daele for a new Adjudicator who is NOT conflicted.

Our sources tell us that the High Court Judge set dates earlier this year for the sides to present their cases.  Bismark went to court as required.  Karel Daele did NOT go and he did not even send applications for extension or to apologize for being absent.  Finally, the Judge instructed a written “warning” to Karel Daele to be published in public.

A few weeks ago, the High Court notice against Karel Daele was published in the UK Gazette :
See:  (Text included below)

Once again, we see the arrogant, controlling, self-superior attitudes of Barrick Gold – Acacia Mining against our Tanzania People and moreover, our Tanzania legal system.  Do they have no shame?

Can anyone imagine Karel Daele ignoring the High Court in London?

There is nothing new under the son with anyone or anything connected to Barrick Gold and Acacia Mining.  As the British say : “same old, same old”.

BUT – Came along President J.P. Magufuli, and day after day, we are seeing improvements for our country.

Maybe Karel Daele will continue to ignore the High Court warning and maybe he will NOT appear before the judge later this month as instructed in the UK Gazette.  Maybe he knows that he is conflicted and Acacia Mining does not want to face more failure and embarrassment?  Maybe Acacia Mining will foolishly dig in their heels deeper and continue to fight our Mwanza Brothers?

One thing is for certain under God’s blue skies.  Everything must improve soon because we will own 16% of Acacia Mining    🙂 















WHEREAS, the above mentioned applicant has instituted an application against you at the High Court of Tanzania (Dar es salaam Registry) the facts of which may be found on request in the Court file, you are hereby summoned to appear in this Court in person or by a pleader duly instructed and able to answer all material questions relation to the application or who shall be accompanied by some person able to answer all questions on 30th day of November, 2017 before Hon. A. Munisi, Judge to answer the claim. You must be prepared to produce on that day all the documents upon which you intend to rely in support of your defence.

TAKE NOTICE that in default of your appearance on that day aforementioned, the application will be heard and determined in your absence.

GIVEN under my HAND and SEAL of the Court this 2nd day of OCTOBER 2017.


MISC/CIVIL APPL. NO. …..21/2017





TAKE NOTICE that, the above mentioned case has been fixed for mention on the 30th day of November 2017 at 9:00 AM, before Hon Munisi ……Judge

YOU ARE required to appear in this Court without fail and must produce on that day all the documents upon which you intent to rely in support of your case.

GIVEN under my HAND and the SEAL of the COURT this 27TH day of SEPTEMBER 2017.





Acacia Mining – A drop of praise amidst the flood of chaos & despair. But the net is closing in.

Let’s call a spade a spade!

The “Mining Bad Boy” of Tanzania, Acacia Mining, owned 63.9% by “Mining Bigger Bad Boy”, Barrick Gold, has its few moments of goodwill whilst in parallel, they cause grief and anguish in Tanzania.

The apple does not fall far from the tree because Acacia Mining’s parent company, Barrick Gold, reek havoc and misery wherever they go in the world.

Since Tanzanian’s are know as a gentle, docile and kind Nation, let’s first enjoy the moment of good Karma and talk about Acacia Mining’s moment of goodwill and kindness  – and let’s enjoy it and savour it because so sadly there are too few of these moments!

One of our info contributors from the city of Kahama sent us information that recently, the residents started to see the start of the “one moment of kindness” towards Tanzania on the part of Acacia Mining.

About a week ago, as also reported in the media, they saw the start of the initial stages of Acacia Mining’s campaign to fund the planting of 1,600,000 trees!  Yes, you read correctly! Acacia are funding a campaign to plant 1,6 million trees and the first stage of a half a million trees started in and around the city of Kahama, located about 10 km’s from Acacia’s Buzwagi mine, in the Kahama district, near to Shinyanga.

This is truly an amazing and generous gesture – especially because Acacia Mining get nothing back for their “investment” into our environment.  That is certainly unusual and we have to say a big THANK YOU to Acacia Mining for this.

This is not the first time the Kahama district has received support from Acacia Mining.  About a year ago, the Mwendakulima Health Centre, funded and furnished by the Buzwagi mine, went into operation providing basic medical services for the communities around the Acacia mine.  Indeed, another thank you albeit to benefit the mines workers as well, which loops the benefit back to Acacia Mining.

However, planting trees benefits our environment and makes our world a better place.  Calling a spade a spade, this tree planting campaign is an investment in a league of its own.

On the other side of the coin, we will still call a spade a spade.

Acacia Mining reported plans to spend US$ 2 million to improve their image in Tanzania?  Do they not understand that their public reports to their shareholders are far from reality and Tanzanian’s living in and around all the communities of Acacia’s three operating mines live the nightmare of ongoing problems causing chaos and despair at family and community level and God knows what problems our Government have with the blatant unlawful and dishonest ways that Acacia Mining does their business in Tanzania.

The Chairman of Acacia Mining is Kelvin Dushnisky.  He is also the President of Barrick Gold.  As the “Mining Bad Boy” of Tanzania, should we be surprised at their business methods when quite obviously Barrick Gold pulls the strings and lays down policies for operations in Tanzania.  After all, if you compare Barrick Gold’s record of human rights crimes, environment damage, fraud and more in all the overseas countries where Barrick operate, you will see a copy of how Acacia operates in Tanzania.  They do the same, with a different name.

And now they are trying to pull Endeavour Mining into a merger so we might get the new CEO, Sébastien de Montessus on our Tanzania soil?  God help us with his disastrous background record with Areva and UraMin Mining.

He was on Executive Board and Group Deputy CEO of Areva Group and the CEO of Areva Mining, connected to an alleged fraud of billions of dollars (no-one really knows how much).  That was some years ago and surely much to the worries of de Montessus, recently the US Government entered the Areva nightmare and instructed the FBI to start a full investigation.  Besides the mega-fraud, is a history cancer death, reports of corruption and implicating political figures through alleged bribes, violations of rules at nuclear fuel fabrication plants,  disregard of environmental regulations, poisoned air, contaminated soil and polluted water, polluting underground aquifers, aggravating a chronic water shortage, and exposing its employees to uranium contamination, public accusations of funding rebels.  Do we need such businessmen in Tanzania?
For more detailed information to see the real bowl of poisoned spaghetti that stands behind Endeavour Mining, please read our January blog about the possible merger between Acacia Mining and Endeavour Mining – God help us!

Moving back to our “Mining Bad Boy” of Tanzania, another of our info contributors shared with us some info about the Acacia Mining North Mara airstrip.  By chance, whilst our contributor was talking to workers at North Mara mine,  a plane came in to land on the runway.  We looked up and found the location – even showing runway number 29 in this link.,34.5446575,781m/data=!3m1!1e3
The length of the runway is a little over 1 km long.

This reminds us of President Magufuli’s speech towards the end of last year in which he said that some gold mines have private airstrips and the authorities were not able to monitor what the mining company’s planes were transporting from the gold mines out of Tanzania.  And the President is correct.  Google Earth shows the distance from North Mara’s airstrip to the Kenya border as less than 14 km’s.  A plane flies that distance in less time than it takes to make a cup of tea!

We are confident that our President will soon send to Acacia Mining a knock on the door at the airstrip, where they will be disappointed to find a new Customs Office to control who and what comes into and goes out from that airstrip.
The net is closing in!!

Can everyone be wrong about how Tanzania is losing huge amounts of money from these overseas miners ?  As an example, about 9 years ago, a Norwegian organization financed an investigative report as where and how our country are losing out in the gold mining sector.  So sad that year after year, decade after decade, our gold goes out the country, overseas investors earn hundreds of millions maybe billions of US Dollars and what do we get in direct proportion to those overseas earning?  The answer is an embarrassment to our country.
So what has changed all the years down the line?
The answer is :  President Magufuli!

Last year, Ami Mpungwe, the Chairman of  the Tanzania Chamber of Minerals and Energy (TCME), stood up for the mines and said that the Government benefits directly from royalty payments of 4 or 5 per cent depending on minerals produced which is charged on gross turnover.  He also said that as a result of mines that were constructed, rural communities have had access to power and water supplies where there none, thus enabling improvement of the quality of life that prior to the arrival of investors, might have seemed unattainable in rural Tanzania.

Hello? Ami? Obviously you will support the miners. After all, they pay the TCME, so your loyalties lie with them.  But in fact, when you so proudly talk about the royalty payments of 4 or 5 per cent, you carefully leave out the most important factor and that is “4 or 5 per cent of what?”.
It is public knowledge that Acacia Mining mix their mining sand.  Last year, media reports exposed the exports of Acacia’s mining sand allegedly as fraudulent and at one time, President Magufuli placed a ban on the export of mining sand.

This question of “how is the royalty calculated” will really clarify if the country is truly benefitting from the gold mining. Needless to say, the government mines authorities are studying this subject very carefully so companies like Acacia Mining who are suspected of this “sand mix” problem need to be concerned.
The net is closing in!!

More hurtful to us all is the TCME attitude as to how wonderful is the quality of life for our People in the communities around these mines.  Hello? Ami?  Where is this wonderful water you talk about?  We are researching the water problems and will report soon about this very serious problem for our rural communities.   However, we can say to you, Ami Mpungwe, that after you read our research about the water problems, we expect you to resign from the TCME since the world will see how you are totally disconnected from the realities of the mining industry that you are paid “to represent”.  Simple as that, Sir!

We continue with our Nation’s ongoing battle to contribute positively towards changing the old reality of why Tanzania, so rich in God-given minerals, is still amongst the 25 poorest countries in the world (according to Business Insider, UK).  What is the explanation for this tragedy?
There is still no one single answer to the question.
According to our professors and analysts, the recent decades of weak policies and suspicious mining contracts definitely contributed to the unfavorable situation we find ourselves in.

We all know “where to from here” – hard work, increased public awareness, support for our President and unbreakable determination to drive forward our efforts on behalf of the thousands that encourage us to inspire Barrick Gold & Acacia Mining to fix their mess and operate cleanly, legally and transparently in our country, Tanzania.  Solutions come from dialogue and actions, not from US$ 2 million advertising campaigns.  😦

Acacia Mining CEO finally admits in public: “….. CRITICS MAY HAVE A VALID POINT”


This week at the Indaba 2017 Convention in Cape Town, Brad Gordon, the CEO of Acacia Mining, gave his speech and presentation.  We found a copy of the presentation on the Acacia Mining website.

Is Mr. Gordon finally waking up to the reality that Tanzanian’s are not as sleepy as he and Kelvin Dushnisky thought?  And all the Barrick Gold Board of Directors?  And all the Acacia Mining Board of Directors?  They all sit overseas in their posh offices earning hundreds of millions of US Dollars a year and they use all sorts of schemes not to pay their fair and legal taxes in Tanzania?

We are proud of our President, Dr. Magufuli, for standing up in public this past year and fighting the war on behalf of his Nation against corruption and fraud and tax evasion.  And make no mistake, President Magufuli has made his point publically and blatantly about Acacia Mining. Is that the reason that Acacia Mining is starting a process to run away from Tanzania and start mining in other African countries?
After all, according to the website of Tanzania’s Ministry of Mines, Acacia Mining have many dozens of mining licenses for new concessions.  Can it be that the concessions are all bad and useless and have no value?  Are all of the concessions so poor that Acacia must go buying into mining in Kenya, and Mali and Burkino Fasso?

Kelvin Dushnisky, the Chairman of Acacia Mining and the President of Barrick Gold, and all his colleagues, have all learned the hard way that the days of manipulating “the little Black man” are gone.  They are all shocked by President Magufuli’s courage and wisdom to protect his Nation by stopping the corruption, fraud and tax evasion.

Can you blame our President if he thinks the old fashion saying;
“I don’t know what’s worse: People who lie, or people who think I am stupid enough to believe their lies.”

Brad Gordon said in an interview in Cape Town that “… we need to look at the distribution of that wealth and how taxes are paid”.  What are we missing here?  Since when does our Government and the TRA (Revenue Authorities) need Acacia Mining to look at how taxes are paid?  And if Mr. Gordon intended that Acacia needs to look internally at how to pay their taxes, that is even worse because for better or worse, Acacia must pay taxes according to TRA demands.  Whatever way you choose to understand Mr. Gordon’s statement, it is a disgrace and a slap in our Governments face.

We see here what hypocrites these Barrick Gold and Acacia Mining people really are.  Look at these double standards using the Acacia presentation on their website:
(The cherry on the top comes at the end…)

On page 4, Acacia writes about “Our Strategy” and they claim that they work towards zero harm; additional focus on Government dialogue; delivery on community commitments; enhanced public relations profile.

How deceitful can Mr. Gordon be?  Is this the same company who has been reported for murder, rape, environment destruction, corruption, tax evasion, fraud and the list goes on?  How can Acacia claim all the above when the reality is out in the public domain and the truth is quite the opposite of their claims?

On page 5, Acacia writes about “Our Operating Philosophy” and they claim that they create a sustainable competitive advantage based on core competencies and that they will never outsource Government and community relationships.

It is clear to us Tanzanians that Acacia Mining and Barrick Gold will do whatever it takes to create your competitive edge – at any cost, regardless if legal or if you need some corrupt assistance like the media reported about the corruption investigation ongoing with Acacia and one or more officials in the Ministry of Mines who allegedly acted for Acacia against a local company called Bismark Mining & Hotel.

Now let’s look at what Acacia writes on this page that they “will never outsource Government and community relationships”.
Is this a joke? Or sarcasm? Or an insult to our President?
The two things Acacia desperately needs in Tanzania are relationships with our Government and with our communities (around Acacia operations).

So, Mr. Gordon, you clearly need to replace all your senior staff at your Dar offices since they are obviously making a total mess. And your top “Mr. Fix-it” (as people in your Dar office call him) urgently needs to be replaced as he is causing more trouble in Tanzania than you realize (whilst you and Mr. Kelvin Dushnisky sit overseas in your offices).

Therefore, your statement about “never outsource….” needs to be reversed and you should immediately appoint a local Tanzanian specialist company to provide “relationship” services to Acacia Mining and Barrick Gold.

Oh, we almost forgot about your announcement this week that you plan to spend about US$ 2 million on a campaign in Tanzania, in print, radio and television, to boost and improve the Acacia Mining name and image and reputation.

Needless to say that in the near future, you will add this US$ 2 million to your total that you “invested in Tanzania” and then you will brag to the world how much money Acacia contributes to the economy here.

But in fact, you are wasting your US$ 2 million.  The People don’t need to hear more blah-blah words and see propaganda pictures.
We want to watch you pay your taxes and export royalties legally and morally without any “changes” to the mixture of copper and gold in the mining sand.
We want to see that you stop destroying our environment.
We want to know that you are fighting corruption and not feeding it.

Stop with the problems and fix your relationship with our Government.
What is so difficult about that?  You can cancel your US$ 2 million campaign – it is unnecessary.  Your actions speaks louder than your words.
Barrick Gold messed up in Tanzania.  Acacia Mining inherited the Barrick mess and added to the mess. Start a fresh page and fix all the mess and move onwards with a new start which will surely rally the support of the Government and the People behind you. So what if it costs you money and your profits are less for a year or two but then after that, you will fly in Tanzania!

On page 7, Acacia writes more about “Relationships – Mining & Governments” and that Acacia needs to address misconceptions about the mining industry and Acacia continues with the following that can only be defined as fantasy fanfare:
>>   …. a lack of trust between mining companies and Governments
>>   …. lack of communication led to an ‘imagination gap’ between the realities faced by mining operations and the perceptions of Government
>>   …. need a fresh approach to re-boot these relationships
>>   …. need to address misconceptions about the mining industry and the cycle of mistrust needs to be broken and a shared narrative developed

What misconceptions is Acacia Mining referring to?
Is murder not murder?
Is rape not rape?
How terrible must environment damage be before it is called what it really is?
Is there a legal kind of corruption and fraud?
Are Tanzanian’s all so dense and dimwitted that all the crimes and deceit that we are exposed to on Barrick Gold and Acacia Mining’s part, are ALL MISCONCEPTIONS?   Is this yet another insult and slap in our President’s face and indeed in the faces of all Tanzanians?  In fact, is it not true that Acacia holds the “cycle of trust” in their hands to fix?

The Tanzania Nation will agree you need to re-boot your relationship and you need to do it urgently.  Start with our President first.  But pay all your taxes before you ask for a meeting.

On page 9, Acacia writes more about “Highlighting our contribution” and they are quick to state that over US$3 billion of capital invested into Tanzania in the last 15 years and they built three mines and expanded a fourth.
Sadly, Acacia are not quick to include how badly their mother company, Barrick Gold manipulated and abused the Tanazania mining system in 2013 by closing down the Tulawaka Mine and transferring it to Stamico (Tanzania’s State Mining Corporation).

In doing so, Barrick Gold weaseled and slithered (in the lowest sense possible) themselves away from the complete responsibility of the full rehabilitation of the mine and the surrounding area of land.  It was public knowledge how terribly Barrick Gold exploited the weaknesses and flaws in the system (should we go down the road of corruption here as well?)

The bottom line was that Barrick Gold walked away from the Tulawaka Mine, laughing all the way to the bank.  Is this not an insult of the highest degree that this disgusting Tulawaka scandal by Barrick Gold is included in this “highlighting our contribution”? Talk about laughing in our faces!?

On page 10, Acacia writes about “Aligning with Government aims” and they have the audacity to include the words:  Free from corruption.  Really? Seriously?
Any Google research of tax evasion shows that corruption and tax evasion are coupled together.  There are multiple millions of links in Google that highlight this point.
Barrick Gold and Acacia Mining – “Free from corruption”? Astounding that they can even write these words!  Twice, within 6 months last year, Barrick – Acacia were found guilty of tax evasion.

On page 11, Acacia writes about “Creating high-tech hubs” and they are proud to state that every year they move over 40 million tonnes of earth and they utilise the best global technology to make this happen.  In addition, they claim their mines are as advanced as any mine in the world.

Frankly, who could possibly doubt this?  After all, they list above over US$3 billion of capital invested into Tanzania in the last 15 years. Probably close to all that money has been for Barrick Gold (Acacia Mining) and they have to impress their shareholders who demand dividends, so?

Is Acacia Mining to be complimented for achieving this? Should less be expected?

Finally, on page 13, they write “Aiming to create Sustainable Communities” and they continue declaring that their goal is to create communities that enjoys good access to strategic social infrastructure such as health services, water and sanitation and education.  Does Acacia Mining have no shame to write about water (amongst other factors) where they know that the North Mara mine is a huge problem for water in the region but they successfully swept this under the carpet.  (Is this more “free from corruption”?)

Anyone researching North Mara water will see water problems going back many, many years!  But let’s try be objective and look only at the past 12 months.

In January and February 2016, the media reported that due to complaints from communities around North Mara mine, the Government were investigating the water and they wanted proof via testing that the water was safe.  Even Deputy Environment Minister Luhaga Mpina personally took a leading part in the investigation. What results from water testing?
Nothing!  All swept under the carpet.

One of our group contacted Dep. Minister Mpina directly to ask for the progress of the testing.
Nothing!  All swept under the carpet.  (Is this more “free from corruption”?)

However, on 3 May 2016, a laboratory testing report was published on behalf of the National Ground Water Association regarding the North Mara water.  Very briefly, as a summary, the report stated:
>>  Eleven trace elements (Al, As, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, and Zn) were determined, and averages of Fe and Al concentrations were higher than levels accepted by the Tanzanian drinking water guideline.
>>  Levels of Pb in three samples were higher than the World Health Organization (WHO) and United States Environmental Protection Agency (USEPA) drinking water guidelines of 10 and 15 µg/L, respectively.
>>  One sample contained a higher As level than the WHO and USEPA guideline of 10 µg/L.
>>  Analysis confirmed a relationship between element concentration and distance of a sampling site from the mine tailings dam. This relationship raises concerns about the increased risks of trace elements to people and ecosystem health.
>>  A metal pollution index also suggested a relationship between elemental concentrations in the groundwater and the sampling sites’ proximity from the mine tailings dam.

On 20 June 2016, this writer contacted Dep. Minister Mpina again.  This time, the question was regarding the TSh 40 million fines that Dep Minister Mpina was involved in issuing in January 2016 for companies breaching environment management laws and regulations.  Dep Minister shrugged off the question and simply answered “Thanx Samantha NEMC will respond accordingly”.
Nothing!  All swept under the carpet.

On 18 July 2016, the media reported that residents in communities around the region near the Acacia North Mara Gold Mine still insisted that the water was not safe for human consumption.
After that… Nothing!  All swept under the carpet.

We are now one year past Dep Minister Mpina’s on site investigation where he took water samples.  And no solution to this ever surfaced. And the risk and danger still remains for the women, men, elderly, children and their animals and cattle in communities around the region near the Acacia North Mara Gold Mine – and we did not even raise the danger factors for the fish and water fauna and flora in the rivers and streams in that region.

As much as our President Magufuli is busy and under pressure with managing our country’s affairs, we hope the President will agree that this is a matter of possible fraud and corruption for the PCCB to investigate.
More important, our People around North Mara mine need genuine clean water.

So it is not hard to understand the extent of deceit and double standards on the part of Barrick Gold and Acacia Mining when they declare publically “aiming to create Sustainable Communities that enjoys good access to water and sanitation!

If all of the above is not enough to raise the hairs at the back of your necks, then the following may well make you fall off your chairs!
The following must be the height of disingenuousness, hypocrisy and deception in what they write in this same presentation to the Indaba earlier this week:

On page 2 of the presentation, the following extracts appears regarding the contents of the presentation (that we analyzed above) and which was presented publically by Brad Gordon in Cape Town:
>>  Neither Acacia Mining nor any of its directors, officers, partners, employees, affiliates, agents, consultants, advisors or representatives has verified, or will verify, any part of this presentation……
>>  Acacia Mining nor any of its Associates makes any warranty, express or implied, as to the fairness, adequacy, accuracy or completeness of the information in this presentation……
>>  The information or opinions contained in this presentation or any written or oral information made available to any person does not purport to be comprehensive and has not been independently verified.

And they go on…. Telling us that whatever their presentation states is not verified by anyone and it might not be true.  What can we comment about the double standards of such people?  Are there words for people who publically make statements and then in the same breath say that these statements may not be true?
Does it get any worse than this?  Maybe the worse to still to come?

Acacia Mining and Endeavour Mining both confirmed they are in merger talks.  We already wrote a blog about “Ni bora shetani unaemjua kuliko shetani usiemjua – Better the devil you know, than the devil you don’t know!”
We wonder if the US$2 million campaign that Acacia Mining are planning to boost their image and reputation, will they include the fact that the USA Government has recently instructed the FBI to investigate the UraMin scandal involving alleged fraud of well over US$ 1 billion – and surprise surprise – the CEO of Endeavour Mining today, Mr. Sébastien de Montessus, was the past CEO and President of this same UraMin mining company!  Is this the quality of “leader” that Acacia Mining chooses to bring to our gold-rich country?

We asked this question in our blog last week and it still bothers us:  Can it be that the God-given gold in our country is a magnet for these “types” of people?

Mr. President, our thanks for your hard work and God bless you and God bless Tanzania and God bless our Nation.

Samantha Cole

Tanzania’s President focus again on Acacia Mining’s tax evasion.

Last week, President John Magufuli was again an unhappy man with companies who do not pay their taxes.

He made it very clear that the time has come to really toughen up and crackdown on tax evasion by big businesses including mining companies. Everyone is working hard in Tanzania to improve our domestic revenues but according to what our President says, we have to wonder WHY the mining companies think they are excluded and that they can write the laws to suit themselves?

In Dr. Magufuli’s speech to members of the Judiciary that gathered in Dar es Salaam, he gave direct and blatant instructions to the Judges and courts to immediately ensure and enforce the outstanding payments of tax claims on big businesses in Tanzania. There is a staggering amount in excess of 7.5 trillion Tanzanian shillings owing in old, unpaid taxes to the Government. That is the equivalent of about US$ 3,35 billion. Overwhelming in anyone’s language!

Does anyone understand how US$ 3,35 billion can make the most unbelievable differences to the People of Tanzania?
How many schools for our children? How many hospitals and rural clinics for our sick? How many ambulances? New bridges? New electricity power stations? New water systems? New busses? New sports facilities? New or repaired many things?

Tanzania is the 4th largest gold producer in Africa. We also have huge deposits of coal, uranium, diamonds, natural gas and precious and semi-gemstones.

It is exactly one year since President Magufuli’s first attack on the Tanzanian Judiciary. Last year, in early February, he accused the Judiciary of not being supportive in the war against corruption, adding that many people facing serious corruption charges walked free because of poor investigations and mishandling of cases. He publicly stated that he was worried that even the people he was firing because of corruption, would easily secure freedom despite watertight evidence against them!!

Here we are, one year down the line, and what has changed?

Big companies in Tanzania are one of the top sources of tax revenue for the government because a large informal economy within Tanzania operates without payment of any taxes at all.


“It is unacceptable that an investor is extracting our minerals but doesn’t pay taxes. That investor was taken to court and lost, both their case and their appeal, yet still refuses to pay the taxes,” Magufuli said plainly and openly.

It is public knowledge that last year, the media reported in early April that Acacia Mining were found guilty of tax evasion and ordered to pay $41.25 million in taxes to the Tanzanian government.
Of course, Acacia appealed the guilty sentence and in October, the Appeal was dismissed and the guilty sentence was re-enforced.
Did Acacia Mining pay the $41.25 million in taxes?
Is President Magufuli holding back his anger about such cases?

The President stressed that the 7.5 trillion Tanzanian shillings worth of taxes were still unpaid by various companies even after the government won tax claim cases against them in courts and that this was hurting the east African nation’s economy.

He added that about 28 Tanzanian magistrates were prosecuted in 2016 for various criminal offences, most of them charged for corruption, but yet somehow all 28 of them were acquitted. The President stated his doubts openly that all 28 of those magistrates were not guilty.

Tanzanian’s are still fighting fraud and corruption all over the country, even 15 months after President Magufuli, also known as the bulldozer, was elected to office and swore to wage the war against corruption.

What will our Judiciary do in the coming weeks and months?  Why is our Judiciary afraid to take steps against all companies, local or overseas, that laugh in the face of the Tanzania Revenue Authority who demand payment of unpaid taxes?

Acacia Mining are in talks to merge with Endeavour Mining, another Canadian mining company.  Are we in trouble in this merger happens?  Will that merger allow Acacia Mining to have added muscle to ignore Tanzanian laws even more?

Merger talks between Endeavour Mining & Barrick Gold – Acacia Mining

Ni bora shetani unaemjua kuliko shetani usiemjua – Better the devil you know, than the devil you don’t know!

An Open Letter to the President of Tanzania, Dr. J.P. Magufuli
Copies to Prime Ministers Theresa May, Justin Trudeau, Ministers, Ambassadors, Media reporters

The internet and newspapers are full of the news that Acacia Mining are in discussions with Endeavour Mining to merge the two companies.
In reality, we Tanzanian’s have much to worry about if Endeavour Mining will come to our East African shores.

Acacia Mining might be the “devil” of gold mining in Tanzania and their misconducts of human rights corruption, fraud, tax evasion, environment damages and more is continually exposed in the media but when we research Endeavour Mining, we are afraid that Endeavour might be the “devil” we don’t know and “Ni bora shetani unaemjua kuliko shetani usiemjua” – Better the devil you know, than the devil you don’t know.

Barrick Gold certainly will love the merger idea because, as the media reports, Barrick will reduce their holdings in Acacia Mining from 63.9% to about 30%.

We know from the media that Barrick have been trying hard for some time to get rid of their stake in Acacia Mining but there have simply been no takers.  Mining analysts are reported to have said that the reason is because of the huge legal and reputation problems that Acacia and Barrick Gold have in Tanzania.

After all, Acacia’s operational results have been quite impressive.  So one must ask, why is there no queue of other mining companies to grab Acacia Mining?

The answer is quite simple: Acacia Mining’s huge legal burdens and potential losses in Tanzania that are waiting in the “shadows”.  Who needs burdens like those?

People here and surely overseas are waiting patiently for the outcome of the corruption and fraud investigations that the media reported, which are being carried out by our Corruption Police (PCCB) and other authorities.

And if these investigations are not enough, Acacia Minings website reports that as at 30 June 2016, they were defendants in approximately 255 lawsuits, (probably more since they use the word “approximately”), for a total amount of US$234.9 million.

We know that their head lawyer, Katrina White, suddenly and mysteriously disappeared one day, that was a few months ago. Our friends in the Acacia Mining offices in Dar es Salaam tell us that the rumors, disappointments and uncertainty are still very much alive there and even more so now that there is talk of a “new devil” that might be taking over.

Mr. President, before we shock you with our research of Endeavour Mining, we must share with you and the public what we are hearing from the Acacia offices in Dar es Salaam, from Acacia’s Bulyanhulu gold mine and our friends in the Shinyanga region.  We all know about Golden Ridge and the gold rich mining in that area.  There are many rumors flying about Acacia Mining problems there.  We know from the report on the website of “African Intelligence” in November 2015, that there was problems between Acacia Mining and Bismark.  The website reported “Suspected of corruption, Acacia unloads Siga Hills for free”. There are reports now that this is another legal battle brewing in the shadows.  We tried to get information from Bismark’s Directors but they would not give us comments due to their legal restraints of confidentiality.  We are waiting to see when the press will provide more information about this.

Is Tanzania about to come under the influences of Endeavour Mining? Mr. President, did you know Endeavour Mining people have been exposed in the media for “interfering” and scams in presidential elections in the USA, where even the FBI were involved?  When we share our research with you, Mr. President, you will understand why we call this article “Ni bora shetani unaemjua kuliko shetani usiemjua – Better the devil you know than the devil you don’t know”.

Mr. President, if ever you saw a “commercial” bowl of spaghetti that confuses everyone, our research from online reports gives us in Tanzania quite a scary picture:

Endeavour Mining is linked to La Mancha and linked to Mr. Naguib Sawiris, an Egyptian telecoms billionaire. Mr. Sawiris has been accused of making an illegal political donations to a group affiliated with the 2012 USA presidential elections.  The ex-CEO of Endeavour, Neil Woodyer, who was replaced recently by Sebastien de Montessus, was also involved in suspicious funding connected to presidential elections.

La Mancha is linked to Areva, a French nuclear energy company.  Areva were involved in a controversy over their $2.5 billion purchase of uranium miner, UraMin, after reports were received about fraud activities.

Is it a surprise that Sebastien de Montessus, the new CEO of Endeavour Mining was a member of the Executive Board and Group Deputy CEO of Areva Group and CEO of Areva Mining (uranium)?

With that said, should we be surprised that Areva is documented in the media for:
>>  Judicial investigation opened on irregularities in the Central African Republic;
>>  High Court condemns Areva for disregard of environmental regulations;
>>  Numerous violation of criticality rules at nuclear fuel fabrication plants;
>>  Spill of uranyl nitrate at a Areva site;
And many, many more…

A Social Security Tribunal in France condemned Areva for lung cancer death of a former employee at one of their uranium mines in Niger.  Greenpeace accused Areva of neglecting the health of their workers in their mines in Niger.

“The people of Arlit and Akokan continue to be surrounded by poisoned air, contaminated soil and polluted water,” Greenpeace said. “With each day that passes, Nigeriens are exposed to radiation, illness and poverty — while Areva makes billions from their (Niger’s) natural resources,” reported that former Niger President Mamadou Tandja openly accused Areva of funding the Tuareg rebellion in order to discourage them from attacking its mining infrastructure.  Besides alleged bribes made to Tuareg rebels, Areva was also criticised by several NGOs for polluting underground aquifers, aggravating a chronic water shortage, and exposing its employees to uranium contamination.

So, Mr. President, should we be worried that Sebastien de Montessus is in merger talks with Acacia Mining?

Let’s move now from Niger to Namibia.
The Mail & Guardian reported that Areva was involved in a payment of about N$30 million to United Africa Group (UAG) shortly after the Namibian company had bought shares in Areva’s desalination plant.  Both companies have refused to explain the payment amid allegations that UraMin (Areva’s company) deliberately sought out political connections to advance its businesses, implicating Namibian political figures such as former Prime Minister Hage Geingob.

Let’s move now from Namibia to Mongolia.
Global Research reported that herders near to an Areva uranium mine, began correlating disease in domestic animal herds.  The herders took action after calves started dying. Even the wolves would not eat the dead animals, and carcasses decayed in a few days even when frozen solid in the dead of Mongolian winter.
Tests by the State Veterinary and Animal Breeding Agency revealed chronic poisoning by heavy metals and radioactive isotopes.

So, Mr. President, should we be worried that Sebastien de Montessus is in merger talks with Acacia Mining?

But the problems go further and deeper inside our “spaghetti bowl”.
Behind and above Sebastien de Montessus and Endeavour Mining is La Mancha!

La Mancha is the private natural resource investment vehicle of the Sawiris Family. They added to the “spaghetti” through their strategic alliances formed with Evolution Mining and Endeavour Mining.

Here we introduce Frank Giustra, another Canadian billionaire – another of the La Mancha group and close to Mr. Naguib Sawiris.  Mr. Giustra is publically close to Stephen Dattels, an ex-Barrick Gold senior executive.  Should we be surprised?

Frank Giustra is known for his part in La Mancha – he was after all a Director.  Mr. Giustra is all over the world media regarding the famous scandal involving Bill and Hilary Clinton and what went on before the recent elections.  Ken Silverstein, a Washington, DC-based investigative journalist for VICE and for the New York Observer reported about the whole Clinton-Giustra scandal that it was going to be virtually impossible for the Clinton-Giustra group to put their house in order with the USA authorities without acknowledging that the group was engaged in massive accounting fraud since its inception.

Frank Giustra was Chairman of Endeavour Mining until 2007 and apparently, he is still an adviser there.

Mr. President, The World Net Daily reports an interview with Peter Schweizer, an investigative reporter and author.  The contents of interview is quite shocking.  One of the things that Mr. Schweizer focuses on is Frank Giustra.  He explained how Mr. Giustra uses his relationships with Bill and Hilary Clinton to seek profit in natural disasters, including earthquakes in India and Haiti, and a hurricane in New Orleans. “The pattern we see with the Clintons is that they are money-driven and that’s what is of most interest to them,” said Schweizer.  “Those issues – earthquakes, etcetera – create a mask for which they can conduct the rest of their behavior,” he explained.  One example he shares in this interview was their trip to Kazakhstan in 2005.  Mr Schweizer raises the question why Bill Clinton went to meet the dictator of Kazakhstan in November 2005? He explains that Clinton went there to help Frank Giustra secure a uranium deal. But he used the cover that he was there to help on HIV/AIDS issues.  This and so much more is all online for the public to read.

Thom Hartman hosts the most popular radio talk show in the USA and he is a New York Times best-selling author. He reported online that “Giustra had other projects in Latin America that received US taxpayer money. Giustra’s Endeavour Mining arranged for Export-Import funding in September 2010 as part of an $858 million package of loans for a copper mining project in Mexico called Baja Mining. (According to an Endeavour PowerPoint marketing presentation, it “closed” the deal.)

The project involved developing an underground copper-zinc mine near the Mexican town of Santa Rosalia. Endeavour was an adviser on the deal, but Baja Mining was also a “core investment” for the firm, according to one investment document.  US taxpayers were on the hook for approximately $420 million.

So, Mr. President, should we be worried that Endeavour Mining is in merger talks with Acacia Mining?

Let us go up the ladder to the billionaire ultimate Boss, Mr. Naguib Sawiris.  This is a man of almost unlimited power.  The Financial Times reported that Mr. Sawiris publicly opposed the rule of the Muslim Brotherhood in Egypt and he played an active role in its downfall. The Centre for Public Integrity ( also reported on whether Mr. Sawiris made an illegal political donations to a group affiliated with the 2012 USA presidential elections.

The Court in Algeria found Mr. Sawiris’s telecoms company guilty for breaching foreign-exchange regulations and fined them $1.3 billion.

Daily News Egypt reported that Italy’s financial police stated that Mr. Sawiris was under investigation for alleged corruption in a probe over the acquisition of the Italian mobile phone operator, Wind SpA.  The probe concerned consultancy fees of more than €90 million ($135 million) which prosecutors believe were kickbacks masked as consultancy fees.

Still in Italy, Bloomberg News reported that Italy’s Tax Authorities were claiming about $75 million (€57 million) because Wind allegedly avoided paying taxes in 2009 transactions.   The Tax Authorities determined that Wind Telecom used a combination of put and call options to avoid paying taxes.

Moving on to Israel, where a local newspaper, The Maariv, allegedly claimed that Mr. Sawiris paid bribes to then Israeli Minister of Defense, Ehud Barak and his wife Nili Priel, to help him win approvals for his company, Orascom Telecom Holding to increase its stake in the biggest mobile phone operator, Partner Communications.

On to the UK, where media reports exposed Mr Sawiris for abusing U.K. bankruptcy laws for his personal profit. The report states that Mr. Sawiris’s Greek telecoms company, Wind Hellas, was put through the UK bankruptcy system.  Wind Hellas was Greece’s third largest telecom company.  Mr. Sawiris knew that Wind Hellas was going bankrupt so he quickly moved the Wind Hellas assets and changed its address from Luxembourg to the UK.

The Independent described Wind Hellas as the third biggest mobile phone operator in the country, with 4.6 million customers and more than UK£ 1 billion revenue a year.

Apparently, this massive company had new “headquarters” in London in one office with one man!!   Then, just two weeks later, Mr. Sawiris began the administration process and Wind Hellas collapsed.  However, Weather Investments was born which belonged to Mr. Sawiris, of course, and Weather Investments “bought back” the ruins of Wind Hellas for a small amount and they were back in business!

The Indepedant reported that when Mr. Sawiris finished this procedure and Weather Investments were back in control, the loss to the Wind Hellas bondholders (creditors) was reported at € 1.5 billion.

Still in the UK, it was reported by Arab Finance that a U.K. judge ordered Mr. Sawiris to pay a former business associate more than € 75 million ($ 104 million) in relation to the acquisition of Wind SpA.

Mr. Sawiris was sued in the High Court in London by Italian businessman Alessandro Benedetti.  The Judge, Lord Justice Nicholas Patten ordered Mr. Sarwaris to pay Benedetti € 75.1 million plus interest as a fee for his services. To indicate the type of people that Mr. Sawiris chooses to work with, we refer to the words of the Lord Justice Nicholas Patten in his written judgment online, in which he wrote: “….. in the 1990’s, Mr Benedetti was himself the subject of a criminal investigation in connection with MC (a dormant company) which led to his arrest on charges which included false accounting. He entered into a plea bargain with the prosecuting authorities under which he entered a guilty plea and accepted a sentence of imprisonment.”

Yet Mr. Sawiris selected Benedetti as his agent/representative/partner or whatever other title one will choose for a person that Mr. Sawiris offered to pay € 75.1 million for his business activities with Mr. Sawiris.

The straw that breaks the camel’s back was the way Lord Justice Nicholas Patten described Mr. Naguib Sawiris in his judgment, Lord Justice Patten wrote that Mr. Sawiris “told what can only be described as a deliberate lie about his involvement in other litigation. For this reason, I have approached his evidence with caution.”

So, Mr. President, should we be worried that Endeavour Mining is in merger talks with Acacia Mining?

In our culture, we say Muongo ni mwizi  – A liar is a thief.

There is so much more to report to you, Mr. President, but there is one more media report that we feel we must share with you because it is so close to home, with our neighbors on our doorstep.

Nerrati News reports blatant corruption involving Mr. Nuguib Sawiris in Congo Brazzaville and Mauritius.

Mr. Sawiris’s company Orascom bought 100 percent of Libertis Telecom and that is how they obtained a mobile phone license in Congo Brazzaville. In exchange for this “favor” from the Congolese President Denis Sassou Nguesso,  that Osracom now had a significant part of that mobile phone market, Mr. Sawiris promised to give the President’s daughter, Giulia Sassou Johnson (aka “Joujou”),  a 20 (twenty) percent share in the “new” Libertis Telecom.

In addition, Mr. Sawiris’s partner, Rami Antaki made a Mauritius off-shore company called BabyBells.  This was for the purpose of tax evasion. Mr. Sawiris arranged for 15 (fifteen) percent of the telecom company to go to Babybells.  In other words, one can say that a total of 35% of the business was allocated to corruption.

Ground Report online describes the ethical part of this corrupt deal by writing: “It would be bad to suggest Naguib Sawiris is robbing his business partners of cash. But in this case, he’s also robbing his shareholders.” Also interesting is that when Mr. Sawiris was on trial in the London High Court, the lawyers questioned him about the Libertis Telecom license.  Evidence presented by a witness, Jack Hazout, testified that Mr. Sawiris’s account was not correct.

Muongo ni mwizi  – A liar is a thief

In the Arab world, the reputation of businessmen often comes down to his relationship with dictators and corrupt political leaders.  And unlike many people in the Arab world, Mr. Sawiris interfered in another country’s politics and supported the overthrow of Saddam Hussein in Iraq.

However, is it surprising that corruption was waiting in the shadows?

John Shaw, U.S. Deputy Undersecretary of Defense for International Technology Security, reported that Nadhmi Auchi, a controversial British-born Iraqi, was the key figure who engineered the disbursement of bribes to leading Iraqi officials who determined that Orascom’s bid would be the winning bid. Nadhmi Auchi was also reported to be a close ally and financier of Sadam Hussein and sat on Iraq’s Governing Council. Of course, Mr. Sawiris quickly became the owner of Iraqna, Iraq’s top mobile phone operator at the time, when Iraq was torn to shreds by war.

Reports from the Washington Times quoted a Pentagon investigation that said it had uncovered “fraud on the Ministry of Communications by Orascom…”

Nadhmi Auchi was in serious trouble as well. The British Government arrested Auchi on a French Extradition Warrant.  He had to testify in a corruption and embezzlement trial involving a French oil company.

One must wonder about the type of person Mr. Sawiris chooses to work with?Forbes website reports investments between Mr. Sawiris’s Osracom and Hamas, which is designated a terrorist organisation by USA, EU, Canada, Japan and other countries.

Ni bora shetani unaemjua kuliko shetani usiemjua – Better the devil you know, than the devil you don’t know.

Mr. President, for the past 15 months you have set the standards for the new Tanzania.  You have not been afraid to tell mining companies like Acacia Mining to stop the robbery.  You have not been afraid to tell them that if they plead losses all the time, they should go home back to their countries.  We are busy working and pulling together as a Nation to stop corruption and fraud. Do we need people like Endeavour Mining and their leaders like Naguib Sawiris, Frank Giustra, Sebastien de Montessus and others to come and make our ship unstable?

Will they interfere with our politics?
Will they operate here like they did in Niger?
And Namibia?
And Central African Republic?
And Mongolia?
And Iraq?
And France?
And only God knows where else and what else they do, at any cost to human rights, the environment, political stability, and more just to make more money?
Will we see more tax evasion schemes like our TRA exposed last year with Barrick Gold & Acacia Mining?

President, you are spreading the teachings of ethics, honesty and integrity here in our country.  Please don’t allow these powerful, wealthy people with the track record you can see above (and there is so much more), please don’t allow them to buy their way into our new Tanzania if there is no perfect picture that our country and our nation will truly and justly benefit.  You can see from the “spaghetti bowl” how these people create their businesses and hide behind their confusing camouflage safety nets.

Mr. President, we reported above what Mr. Sawiris did with his Greek company, Wind Hellas.  One of our research team rightly asks the following question:

If Mr. Sawiris wants, he can take over Acacia Mining, come here and destroy the local company overnight and start the next morning with a different name and all our people who are owed money or who have claims against the local company – even our TRA who found Acacia guilty of tax evasion will not be able to collect their unpaid taxes – because the “old company” no longer exists.  It will be an economic earthquake for our country.  Of course, that is fraud and dishonest.  But Mr. Sawaris did it once with Wind Hellas.  Perhaps he plans to do it again here in Tanzania?

We already know from previous research sent to you, Mr. President, that Barrick Gold was founded with finances from the Saudi Arabian notorious arms dealer, Mr. Adnan Khashoggi.  There is no shortage of scandals – illegal, financial, sexual, ethical and others, surrounding this Saudi man.
Can it be that God-given gold in our country is a magnet for these “types” of people?

Thank you, Mr. President and God bless you and God bless Tanzania and God bless our Nation.

Samantha Cole

Tanzania President to Mining Companies: The Robbery must stop!

By Samantha Cole of Tanzania Business Ethics

President Dr. John P Magufuli openly stated in a news conference at State House in Dar es Salaam, that mining companies must make greater contributions to Tanzania.

Tanzania has a lot of minerals, but there have been a lot of funny deals ….. we have to look carefully at our laws so that we move forward as a country,” said the President.

Tanzania is the fourth-largest gold producer in Africa and also has vast deposits of natural gas, diamonds, uranium, coal and precious and semi-precious gemstones.
This message is not news to mining companies in Tanzania, such as Acacia Mining, who are the largest gold miners in the country. In fact, President Magufuli is consistent in his drive and efforts to wipe out corruption, fraud, tax evasion and mismanagement in Tanzania.

Dr. Magufuli added that his government had recently introduced new mining laws that specifically focus at ensuring all the financial benefits within the mining sector are shared evenly, fairly and according to the law between the multinational mining companies and the country.

Furthermore, the President focused on the lack of transparency and disclosure of the mining companies. He said that some of the gold mines even have private airstrips and he was forthright about the lack of possibility for the authorities to monitor what the mining companies planes are transporting from the gold mines, out of Tanzania and, he said openly, that the robbery in our country must stop.

Dr. Magufuli also addressed the issue of the export of mineral sand from Tanzania and his demand for the need of building gold smelting works within the country. This is also consistent with the President’s speech in August this year in which he imposed a ban on the export of mineral sands due to irregularities of the mining companies.

Earlier this year in May, sources within Acacia Mining leaked reports to the media and to the Tanzania authorities, that allegedly indicated how Acacia Mining were involved in fraudulent gold exports and price transferring. These reports address elements such as the correlation of Acacia Mining’s export royalty taxes to the total weight of gold exported which leads to the losses of taxes incurred by the State.

In addition, the leaked documents address Acacia’s assaying process, an essential component in determining the quantity of gold in a mineral deposit. Details are given in the documents regarding the manner of purifying and the % of gold purity declared at the time of export, including differing of values and percentages of copper and gold in the mining sand.  All this leads to paying less export royalties and further losses of taxes to Tanzania.

With all of the above reports in the hands of the authorities, coupled with the guilty verdict in March 2016 of Barrick Gold – Acacia Mining for tax evasion, and their alleged corruption scandal involving one or more officials in the Ministry of Energy and Minerals in the case of Bismark Hotel (Mining) Ltd, it is no wonder there is such attention and focus by the authorities on Acacia Mining and in turn, on all the mining sector.

Barrick Gold of Canada, majority owners of Acacia Mining, have desperately been trying to sell their 63.9% holdings in Acacia, but there are no buyers. Analysts overseas are saying that despite Acacia’s good performance, there are too many problems, legal cases and complications with the authorities, surrounding Acacia in Tanzania.

To make matters worse for Barrick’s prospective buyers, last year on 17 November, there were media reports about Barrick – Acacia terminating their alliance with Bismark Hotel Mining on other joint venture mining lands in Siga Hills, also known as Golden Ridge. The report described a letter sent to Bismark to hand over the Siga Hills permits back to Bismark for free.  The local artisanal miners on these same lands are reporting major conflicts between Barrick-Acacia and Bismark regarding Siga Hills. If reports being received are true, there is allegedly a new law suit brewing from Bismark against Acacia Mining that will involve hundreds of millions of US Dollars. Certainly not the news that any company wants to hear – whether the company owners or the prospective buyers!

President Dr. J.P. Magufuli, Tanzania
Prime Minister J. Trudeau, Canada
Prime Minister T. May, England
Tanzania Government Officials
Canadian Government Officials
British Government Officials
Uganda Government Officials
Kenya Government Officials
Media contacts and journalists worldwide


By Samantha Cole of Tanzania Business Ethics

Another strongly worded and direct message on Thursday, October 6, 2016 from President Dr JP Magufuli at a public inauguration ceremony of a new fruit processing factory in Dar es Salaam, Tanzania.

In his public statement, the President said:  “I like businesses that pay tax and hate those which don’t. I like businesspeople who create jobs for Tanzanians….  We seriously need the businesspeople of your kind and my government will cooperate with you. You created employment, paid taxes and anyone who is against you is a devil….” said the President.

In July 2016, the FT reported online that President Magufuli questioned the deals struck with foreign miners, and actually singled out London-listed Acacia Mining, formerly African Barrick Gold, arguing that companies have been allowed to declare years of losses while paying dividends overseas.  Only a few months earlier, on March 31, 2016, a Revenue Authority Tribunal found Barrick Gold guilty of a sophisticated scheme of tax evasion.  In fact, Barrick appealed that guilty verdict and last week, the Court of Appeal gave their Judgment – and again (not surprising), Barrick Gold and Acacia Mining find themselves facing the Court’s decision of GUILTY, again, of tax evasion.

In parallel to the above tax evasion judgments and the President publicly voicing his “hate” for companies who don’t pay tax, there is also the Barrick Gold public corruption and fraud scandal that was exposed by Bloomberg media in July 2015.

How does one understand this astonishing, zero-accountability strategy of Barrick Gold and Acacia Mining?

Jonathan Drimmer is Vice President and Assistant General Counsel at Barrick Gold.  His online profiles states that Mr. Drimmer’s has multiple responsibilities, such as:
>  to oversee the company’s anti-corruption and business and human rights programs; 
>  overseeing entity level disputes, including litigation, international arbitrations, and mediations;
>  helping oversee international regulatory and compliance programs, focusing particularly on anti-corruption and human rights,
>  overseeing internal and external investigations, including global corporate investigations group, encompassing a variety of issues from around the world;
>  involvement in contract negotiations, corporate governance, securities disclosure matters, legislative efforts, employment and labor issues, and M&A due diligence.

We must publically ask Mr. Drimmer:
Since you joined Barrick Gold some 6 years ago, long before Acacia Mining was even born, where were you when you had to fulfill these responsibilities here in Tanzania? 
The answer runs much deeper and therein, we must present here more research.

Let us understand the roots and beginnings of Barrick Gold and Peter Munk. 
Google research tells us that Barrick Gold was the idea of Peter Munk, a former radio manufacturer.  Mr. Munk made headlines in Canada when he sold his shares in the company shortly before it was declared insolvent.  Talk about a “golden parachute” paid for by investors and the Canadian taxpayer?
Mr. Munk’s name was instantly mud in the investment community, but fortunately for him, no indictment was ever brought against him.  Surprised?

Enter into the picture, the Saudi Arabian notorious arms dealer, Mr. Adnan Khashoggi.  There is no shortage of scandals – illegal, financial, sexual, ethical and others, surrounding this Saudi man.
>  Mr. Khashoggi was held for illegal dealings involving millions of dollars allegedly stolen from the Philippines government by former President Ferdinand Marcos and his wife, Imelda.
>  He negotiated the arms sales to Iran in the Iran-Contra affair
>  He was arrested for money laundering of US$ 300 million, using an Indian citizen, through the Zurich branch of Swiss bank, UBS.  The case goes back to 1982.
>  The UK Daily Mail revealed in April 1989, that Khashoggi was the man behind Pamella Bordes, the girl involved House of Commons sex scandal, who obtained a job there, was given security clearance as a researcher while working as a call girl.  Much of her activity was masterminded from abroad.  She was used as a sexual bribe to facilitate international dealings by Khashoggi.
>  He was eventually brought to justice by the ever-vigilant SEC in the USA.
(As a matter of interest, Khashoggi’s sister, Samira, was the mother of Dodi Fayed, who was killed with Princess Diana in Paris, in 1997.)

Peter Munk chose Mr. Khashoggi as a partner to finance the start of Barrick Gold. Clearly, Mr. Munk had no ethical or other considerations of integrity in choosing such a partner to finance his business plans.   Khashoggi and Munk kicked off their partnership with a series of hotel investments.   In 1983, the Saudi arms dealer came up with the cash to purchase Barrick. Peter Munk was installed as chairman.

Mr. Khashoggi distanced himself from Barrick shortly after the Iran-Contra scandal was exposed in the mid-1980’s.   The scandal involved the secret sale of USA weapons to Iran (which was supposed to help in the release of U.S. hostages in the Middle East).  Some of the proceeds from these sales were used to covertly fund the Contra war in Nicaragua.

Even though Mr. Khashoggi  removed himself from the Barrick Gold picture,  he still held onto his stock, tied up as collateral for Oliver North’s arms transfers to Iran in 1985).    His Triad Holding Company went bankrupt after he was indicted for using it to channel money for the Iran-Contra deal.   Fortunately,  Mr. Khashoggi made his $4 million bail thanks to his friend, Peter Munk,  the Chairman of Barrick Gold.  Barrick Gold, which was founded by Khashoggi in the first place, is also deep into illegal government activity. 

Adnan Khashoggi is connected to numerous shocking events that occurred since 1960, usually by no more than one or two degrees.   A partial list would include Iran-Contra, Wedtech,  BCCI,  the Marcos Philippine kleptocracy,  the Synfuels fiasco, and the discovery of buried mustard gas in the pricy Spring Valley neighborhood of Washington, D.C.
To these we must add the tragic events of Sept. 11 and a connection to Osama Bin Laden!!

There is so much more – one could write a best seller book, all based on fact!  But let us get back to the ethics and integrity of Peter Munk and Barrick Gold.
In 1995, Mr. Munk’s took steps to restore his reputation, at least in his own mind, in part by massive donations to the University of Toronto. 
Following this act of philanthropy, the university awarded Mr. Munk an honorary degree.  Several students were arrested protesting what appeared to them as a cash-for-honors deal.
Thus began Peter Munk’s “pay cash to buy honors” career.

We already researched and reported on Barrick Chairman, John Thornton – see the online article: The Height of Hypocrisy – Does It Get Any Worse Than This? Barrick Gold Chairman Lays It On Thick.
In addition, we reported online on the Fraud and Corruption sponsored by Mr. Kelvin Dushnisky – President of Barrick Gold & Chairman of Acacia Mining.

Furthermore, we reported online on the CEO of Acacia Mining, Mr. Brad Gordon and we listed some of the situations that Mr. Gordon was part of which paints a very clear picture of the integrity and morals (or lack thereof) in his responsibilities and functions as CEO of the companies in which he has worked over the past 10 years.

It is definitely an eye opener, and very distressing how the Acacia Mining “TRIO” of Brad Gordon, Peter Spora and Deo Mwanyika work together against Tanzania and the People of our country.
And now, we see that Jonathan Drimmer, Barrick Gold Vice President, based out of Washington in the USA, follows closely in the footsteps of his bosses at Barrick.

Here is a man who, according to online profiles, is :
>  teaches business and human rights law at Georgetown University Law Center.
>  on the Board of Directors of Trace International, a non-profit dedicated to anti-corruption compliance
>  on the American Conference Institute’s Global Advisory Board for anti-corruption
>  representative of Barrick on UN Global Compact steering committees and working groups for human rights, security, and supply chains.
>  recognized by Ethisphere Magazine as a leading attorney in Ethics & Compliance
>  named by The Law 500 as one of the 100 most influential in-house counsels.
And the list goes on and on…

So we ask Mr. Drimmer:
How does he feel working in a company that was built on dirty money – certainly unethical money?
How does Mr. Drimmer justify working in a company that has roots and funding from a man who is linked to 9/11 and Osama Bin laden? 
How does Mr. Drimmer feel knowing that his anti-corruption responsibilities are twisted and concocted by Barrick Gold and Acacia Mining officials in different countries around the world?

Even worse, Mr. Drimmer dares to state openly on public record:  “Together with my colleagues, I plan to continue developing Barrick’s human rights program to ensure the company fulfills its commitment to respect and elevate human rights wherever it operates. These are ideals that I am passionate about and that continue to be the focus of my career.

Does this law lecturer, this Professor at law understand how false and dishonest it is to declare such words in public when he knows all too well how terrible, shocking and soul-destroying his company operates in the sphere of human-rights and anti-corruption?  We will still address the other elements below…..  The worst is still to come…..

Google research points to an investigative journalist, Greg Palast, who wrote articles and a book called “The Best Democracy Money Can Buy”. 
In November 2000, Mr. Palast wrote an article in the The London Observer, called: Bush family finances: Best democracy money can buy.
Here are some excerpts from his investigation article and associated websites:
>  During George W. Bush’s presidency, Khashoggi was identified as conduit in the Iran-Contra conspiracy.   As his last act in office, the president pardoned Khashoggi’s alleged co-conspirators, key members of Bush’s own cabinet – the co-conspirators who helped Khashoggi arm the “Axis of Evil” (in 2002, Bush’s son who was President then, referred to Iraq, Iran and North Korea as the “Axis of Evil”).  This pardon made charges against the sheik (Khashoggi ) all but impossible. (Bush pardoned the conspirators not as a favor to Khashoggi, but to himself.)
>   In 1992, in the final hours of the Bush presidency, Barrick took control of US government-owned property containing an estimated $10bn in gold.  For the whole shooting match, Barrick paid the US Treasury only $10,000.  According to experts at the Mineral Policy Center of Washington, DC, Barrick saved—and the U.S. taxpayer lost—a cool billion or so. Upon taking office, Bill Clinton’s new interior secretary, Bruce Babbitt, called Barrick’s claim the “biggest gold heist since the days of Butch Cassidy.”
>   In 1992, Clinton’s newly elected administration was ready to prevent Barrick’s stunning grab. But Barrick is a lucky outfit. Bush’s Interior Department expedited procedures to ram through Barrick’s claim stake before Clinton’s inauguration.  Clinton had no choice but to give them the gold mine while the public got the shaft.
>   Ex-Pres George Bush was lucky, too. When the electorate booted him from the White House, he landed softly – on the Barrick Goldstrike payroll, where he comfortably nested until last year (1999).
>   In 1995, Barrick hired the former president as Honorary Senior Advisor to the Toronto company’s International Advisory Board. Bush joined at the suggestion of former Canadian prime minister Brian Mulroney, who, like Bush, had been ignominiously booted from office. I was a bit surprised that the president had signed on. When Bush was voted out of the White House, he vowed never to lobby or join a corporate board. The chairman of Barrick openly boasts that granting the title “Senior Advisor” was a sly maneuver to help Bush tiptoe around this promise.
>   In September 1996, Bush wrote a letter to help convince Indonesian dictator Suharto to give Barrick a new, hot gold-mining concession.  Bush’s letter seemed to do the trick. Suharto took away 68 percent of the world’s largest goldfield from the finder of the ore and handed it to Barrick.
>   Mobutu Sese Seko, the late dictator of the Congo (Zaire), was one of the undisputed master criminals of the last century having looted hundreds of millions of dollars from his national treasury— and a golfing buddy of the senior Bush. That old link from the links probably did not hurt Barrick in successfully seeking an eighty-thousand-acre gold-mining concession from the Congolese cutthroat.
Rebellion against Mobutu made the mine site unusable, though not for the company’s lack of trying. In testimony in hearings convened by the minority leader of the House Foreign Affairs Subcommittee on Human Rights, expert Wayne Madsen alleged that Barrick, to curry favor with both sides, indirectly funded both and thereby inadvertently helped continue the bloody conflict.
>   In 1997, Mother Jones (American magazine reporting on politics, the environment, human rights, and culture) named Barrick’s chairman Munk one of America’s “10 Little Piggies”—quite an honor for a Canadian—for allegedly poisoning the West’s water supply with the tons of cyanide Barrick uses to melt mountains of ore.
There is so much more but we must move on…

So we repeat our questions to Prof. Jonathan Drimmer, Vice President of Barrick Gold and in-house specialist for human rights, compliance, ethics, etc and of course, the specialist against corruption etc:
Are you satisfied to be employed by those Barrick people? 
Is this company and the foundations upon which it was built and stands today, acceptable to you and in conformity with your integrity and morals?
Can you honestly teach and lecture to your students how you, their Professor, can work for a company as described above… or even if the above is partly accurate…  can you teach students about “partly ethics” or “partly integrity”?

In the June 2016 Canadian General Counsel Awards (CGCA), Barrick Gold was awarded the “Social Responsibility Award“.  Prof. Drimmer and Mr. Rich Haddock received the award on behalf of Barrick Gold.

It’s amazing that Prof. Drimmer was quoted, at the award celebrations, saying publically:  “I came to Barrick because of the company’s commitment to enhance its existing program”.

The only “program” that we see from your global operations is violence, rape, murder, destruction of villages and property around your mines, environmental devastation, poisoned water, and more….

Are you so impressed with the “existing program” that you can condone the firing of senior engineer Raman Autar in 2014 because Barrick Gold needed to “escape publication” of critical health, safety and environmental violations he found at the Veladero mine, one of the world’s largest gold mines.
Raman raised serious safety concerns about the mining operation responsible for the contamination – linked to a valve failure and open sluice gate — and Barrick Gold dumped more than one million litres of the cyanide solution into five rivers in Argentina’s San Juan province.

Prof. Drimmer…. Will you stand up in front of your law students and lecture to them that the above conforms to your standards of “human rights” ?
Or perhaps it agrees with your ethics and compliance standards? 
Or perhaps you would stand up at one of your many law conferences and give a speech how you condone this disgusting and unfair treatment of Raman Autar?

Like your Chairman, and President and CEO and others ..… Prof. Drimmer, your standards are a farce, a mockery to human rights, an embarrassment to ethics, a disgrace to anti-corruption and a sham to compliance and integrity.
You, Sir, have no right to lecture or teach to the professionals of tomorrow.
God help us if they go out into the world with your teachings as their basis!

There are media reports that your company is closing down Buzwagi Gold Mine in Tanzania in December 2017 as production has fallen.  If this happens, we will be truly saddened for more than 1,300 people will lose jobs and Kahama District Council will miss Sh1.7 billion it has been getting every year as a service levy.

On the flipside of the coin, we are inspired by our President’s attitude as regards overseas mining companies who do not pay their taxes in Tanzania.  Only a few months ago at the celebrations marking the 50th anniversary of the establishment of the Bank of Tanzania (BoT), our President publically stated that apart from proper collection of government revenue, the President instructed the Treasury to put measures in place that would ensure that the revenue assurance system was working. Our President also asked senior officials to ensure that they supervise tax collection in mining companies as well as ensuring that they seal loop holes for tax evasion.

The President said, “There have been instances where a mining company operates in the country for 10 years but still its officials are telling you that they don’t make any profit … if that is the case, they better go back to their countries

Furthermore, he sent this clear message to mining companies:
“It is better for us Tanzanian’s to remain with our precious gems under our grounds for even 1,000 years than to let overseas mining companies take our precious gems and NOT pay taxes and fairly and honestly.  It is not a sin to leave our precious gem mining pits for the next generations to work on and benefit from fair and correct taxes and royalties.”

The President’s focus on Barrick Gold and it’s daughter company, Acacia Mining, in which Barrick owns and controls 63.9%) is no shock to the global mining sector.

Tanzanians still talk about the 1997 massacre at Bulyanhulu mine in the Shinyanga district.  We all mourn the 50+ artisanal gold miners whom, our villagers witnessed, were bulldozed and buried (maybe alive).
If only President Magufuli would have been in office on that terrible day in 1997, certainly one of the blackest days in the history of Tanzanian human rights.  And the accountability, Prof. Drimmer?  Perhaps this massacre would be a good subject matter for one of your semesters?  

Prof. Drimmer, next month, on November 2, you will be a key note speaker at the 2016 annual BSR conference.

If only we could arrange to have you on live TV or Skype online for all Tanzanians to hear your speech.
You have the opportunity to make things right but history repeats itself and your non-accountable bosses will fire you on the spot if you try introduce change to Barrick Gold – just as they did to the senior engineer, Raman Autar.
The decision is.. do I take the money and be quiet or do I stand up tall (like Raman Autar) and sleep peacefully at night?

Your online profile states that you are “passionate” about your ideals of anti-corruption, human rights, ethics and compliance.  There are tens of millions of people around the world who are influenced, in one way or another, by Barrick Gold.  Does Prof. Drimmer have the wherewithal to be THE ONE who can deliver on his ideals to make the world a better place?

Finally, we remind our readers of Prof. Drimmer’s online interview with Nick Elliot from the Wall Street Journal.
One of Nick’s many questions to Prof. Drimmer, was:

There has been keen competition for mining assets around the world, sometimes involving unscrupulous companies that will pay bribes. How do you deal with that and what do you do if you think you lost out on a project because of corruption?

Prof. Drimmer replied:
Barrick strives to operate according to the highest ethical standards, wherever we do business.  We support enforcement of anti-corruption laws to ensure there is a level playing field, and hope that Western governments will increase their efforts on the “demand” side of bribery, working with foreign governments and foreign government officials.

In fact, Prof. Drimmer, Barrick Gold was built on the exact opposite of what you answered.
We already established that Chairman John Thornton and President Kelvin Dushnisky and CEO Brad Gordon could not care less about anything other than making more Dollars.  Barrick has failed over and over around the world to follow the ideals in your above answer to Nick. 
In Tanzania, Barrick Gold has been lambasted publically in Parliament and exposed in the media for corruption, fraud, human rights offenses, dishonest dealings with local companies, and so much more.

Tanzanians are waiting to see if Professor Jonathan Drimmer can rise up tall and deliver on his ideals – for Tanzania in particular and the rest of the world, in general.
Copies to:
President Dr. J.P. Magufuli
Tanzania Government officials
Prime Minister Justin Trudeau
Canadian Government officials
Prime Minister Theresa may
British Government officials
Barrick Gold Directors & Management
Acacia Mining Directors & Management
Journalists & Social Media worldwide
BSR Conference and all 2016 speakers
U.S. Justice Department’s Office of Special Investigations
Office of the U.S. Solicitor General
Georgetown University Law Center.
Trace International
American Conference Institute’s Global Advisory Board for anti-corruption
UN Global Compact Network
Ethisphere Magazine
The Law Firm 500