BARRICK’s ACACIA MINING’S LEGAL PROBLEMS GO UP, UP, UP, UP >>>

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:
ACACIA MINING – BISMARK HOTEL: DID ADV. KAREL DAELE ACT UNETHICALLY?https://tanzaniabusinessethics.wordpress.com/2016/06/02/acacia-mining-bismark-hotel-did-adv-karel-daele-act-unethically/ 

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:  https://www.thegazette.co.uk/notice/2885506  (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    🙂 

GAZETTE NOTICE AGAINST KAREL DAELE
https://www.thegazette.co.uk/notice/2885506

IN THE HIGH COURT OF TANZANIA
(DAR ES SALAAM DISTRICT REGISTRY)

AT DAR ES SALAAM

MISC. CIVIL APPLICATION NO. 21 OF 2017

BISMARK HOTELS………………….APPLICANT

VERSUS

KAREL DAELE……………………………………1ST RESPONDENT

PANGEA MINERALS LTD……………………2ND RESPONDENT

BARRICK EXPLORATION AFRICA LIMITED…………………………………3RD RESPONDENT

ACACIA MINING PLC…………………………..4TH RESPONDENT

JOSEPH .S. WARIOBA…………………………..5TH RESPONDENT

SUMMONS FOR PUBLICATION

TO:

KAREL DAELE
MISCHON DE REYA,
SUMMIT HOUSE,  12 RED LION SQUARE
LONDON WC1R 4QD
UNITED KINGDOM

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.

DEPUTY REGISTRAR
HIGH COURT OF TANZANIA
DAR ES SALAAM
IN THE HIGH COURT OF TANZANIA
AT DAR ES SALAAM

MISC/CIVIL APPL. NO. …..21/2017

BISMARK HOTELS…..APPLICANT

VERSUS

KAREL DAELE and OTHERS……..RESPONDENT

NOTICE OF DATE OF MENTION

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.
DEPUTY REGISTRAR
DAR ES SALAAM

TO BE SERVED UPON:
Hon JOSEPH .S. WARIOBA
NYALALI, WARIOBA & MAHALU LAW ASSOCIATES
HAILE SELASSIE/GHUBA ROAD, HOUSE NO. 501/13 OSTERBAY
DAR-ES-SALAAM

 

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BARRICK GOLD SEES THE FUTURE IN TANZANIA – ACACIA MINING LOST ITS WAY FORWARD

By Samantha Cole of Tanzania Business Ethics

It’s clear Acacia Mining urgently need a change of leadership. Brad Gordon & others must resign.

Anyone walking around Dar es Salaam this past week has heard non-stop talk about Barrick Gold. If anything is the talk of the town this week, it’s Barrick Gold and the deal our President, Dr. J.P. Magufuli, finalized with the Barrick Chairman, Dr. J. Thornton.

Yes, many Tanzanian’s were skeptical during the past few months ago.
Yes, many Tanzanians were suspicious as the weeks and months of silence went past.
After all, does not history repeat itself? In the past, our ex-Presidents usually walked away from discussions giving the ‘cream’ to overseas companies and leaving Tanzania with the crumbs.

But no, this is the NEW TANZANIA and our President is not only the “broom that sweeps clean”, but President JPM is our “bulldozer that cleans everything in front of it”.

Dr. J. Thornton learnt that lesson very quickly. He learnt that Tanzania is no longer the colony to play in. The golden years of earning huge profits overseas and leaving only crumbs here (compared to their profits) are all over. Finished. Past. History.

The Barrick Chairman met President Magufuli in the middle of June this year. For more than FOUR MONTHS Barrick used all their resources and specialists to discuss and negotiate with our Tanzania secret team. After about 18 weeks of these negotiations, the Barrick Chairman obviously realized that the winds of change in Tanzania were too powerful to change and he knew that the time had come to look into the future and work with Tanzania instead of against it (meaning leaving us with the crumbs).

Last week on Thursday, October 19, 2017, Dr. Thornton came back to our President and we all know the results of that meeting; 16% ownership in the 3 mines, 50% share in profits, US$ 300 million cash payment.

At Barrick Gold, the next man under Dr. Thornton comes Kelvin Dushnisky. He is the President of Barrick Gold worldwide. We also know that Mr. Dushnisky is the Chairman of the Acacia Mining Board of Directors. Therefore, not only is Barrick Gold tied into Acacia Mining by owning 63.9% of Acacia, but we also see clearly that even the top management of Barrick and Acacia are tied in together.

Whilst Barrick Gold are praised for moving forwards and looking to the future for better business with Tanzania, our “friends” at Acacia Mining are stuck in the past and fighting the optimism and positive spirit and direction that their mother company is trying to lay out before them. But wait, we have seen something similar to this in the past. And we even wrote about it, before.

Brad Gordon, the CEO of Acacia Mining, is doing his best to damage the deal that Dr. Thornton finalized with President Magufuli. To be honest, we are not surprised. This is almost a perfect repeat of Brad Gordon’s terrible performance as CEO of Intrepid Mining only 4+ years ago.

In fact, on July 14, 2016, we wrote about this exact scandal. Here is the link:
https://tanzaniabusinessethics.wordpress.com/2016/07/14/will-acacia-minings-honeymoon-with-the-gold-price-be-short-lived/

Here is a short extract from the above article (from July 14, 2016):

In March 2013, the media exposed a report of Mr. Gordon (at that time, the CEO of Emporer Mines) intimidating the Intrepid partner (at that time), Mr. Paul Willis, and forced him into signing a release for his rights to the Indonesia project. The report stated that Mr. Willis was outnumbered nine-to-one, including Intrepid CEO, Brad Gordon, and legal counsel Vanessa Chidrawi and six locals, armed with revolvers in holsters.

The Business Day claims they obtained an email to show how Intrepid conspired with the local partners to squeeze Paul Willis out of the venture.

Reports that the sole reason that the Tujuh Bukit Agreement expired was that Emperor Mines was too busy with the merger with Intrepid Mines and they left it until the last weeks to try and complete documents with the Indonesian’s that at best would have taken 3 months to complete. Intrepid simply left it until too late and “missed the boat” with the Indonesian’s, forcing the deal into crisis.

Reports were clear that Mr. Gordon spent aggressively (almost US$100 million) to prove up the huge scale of Tujuh Bukit without having finalised agreements to secure a direct stake in the project. Another great “achievement” by Mr. Gordon!! Who spends money without finalized agreements?

Why is there no surprise when we see that shortly after everything was exposed in the media, Mr. Gordon has started negotiating secretly with Barrick and only a few months later, in August 2013, Mr. Gordon resigns from Intrepid and walks away from the massive black hole in Indonesia that Mr. Gordon, as CEO, has left Intrepid ??

The good news for Intrepid was that Mr. Gordon had left! 

Only six months later, in February 2014, Chairman Ian McMaster announced Intrepid successfully brings the end of the dispute with the Indonesian’s and a few months later, in June 2014, Intrepid receive US$ 80 million.​

And now, here in Tanzania, we have almost the same depressing picture.
Brad Gordon creates a huge mess in Tanzania via Acacia Mining – guilty of tax evasion, alleged fraud and corruption, falsified exports, and the list goes on. And now the Chairman comes to clean up the mess, much against Brad Gordon’s wishes – causing more problems and a bigger black hole. Mr. Gordon and his top management circle, including Peter Spora, Deo Mwanyika, Charlie Ritchie, Peter Geleta all need to join Brad Gordon in the line handing in their resignations (or if not, be fired). Barrick Gold need to send in new, fresh, honest, mining professionals to start a clean page working with Tanzania as partners.

At least Ambassador Juma V. Mwapachu saw the writing on the wall and a few months ago, in mid-July, he took his bags and ran away from the Acacia Mining Board of Directors. Good move!!

On June 1, 2017, we wrote a public email letter to Dr. Thornton suggesting that the time was right for resignations at Acacia Mining. Here is the link:
https://tanzaniabusinessethics.wordpress.com/2017/06/01/time-for-resignations-at-barrick-acacia-mining/
Two weeks later, Dr. Thornton was sitting in front of our President at the Ikulu (State House) in Dar es Salaam. 

President Magufuli’s public speech earlier this week was amazing! This is the link:

The speech sends us all the right messages. Amongst many things JPM spoke about, his speech was a call to all us Tanzanians to stand together and work together and build together.

How do we build with negative, damaging and undesirable people like Brad Gordon, Peter Spora, Deo Mwanyika, Charlie Ritchie, Peter Geleta and we are sure Barrick knows who else.

Without a doubt, Gordon and Mwanyika should be the first to go – Gordon needs a new, fresh replacement CEO and Mwanyika needs no replacement as his job as “Mr. Fix-It” in Government offices must definitely fall away. The days to pay our Sisters and Brothers in Government positions to “Fix-It” are all over. As is written above – this is the NEW TANAZANIA.

God Bless President Magufuli
God Bless the Tanzanian People

Tanzania Business Ethics
Samantha Cole

 

SUMMARY OF BARRICK GOLD’S BAD NEWS

BARRICK GOLD WILL REPORT THEIR FINANCES ON OCTOBER 26:

By Samantha Cole of Tanzania Business Ethics

Summary of Barrick Gold’s Bad News:

> A very BIG drop in Barrick Gold’s sales on a year-to-year and sequential basis in the third quarter.

> To make matter worse, Barrick did not receive much support from better gold prices.

> The above will almost definitely pull DOWN Barrick’s earnings, and cash flows.

SHOULD THE WORLD BE SURPRISED?

Analysts say that things changed at Barrick when Chairman John Thornton was forced to get involved in Tanzania as Barrick’s daughter company, Acacia Mining, in which Barrick owns majority of 63.9%, slipped deeper and deeper into their own-made mud slide.

In July, Barrick Gold announced that it would start to pre-release the quarterly production numbers in order to increase transparency and strengthen disclosure. Apparently, this type of disclosure is a FIRST for Barrick Gold in all its years in business. Surprise surprise!

Barrick’s production report for the third quarter stated:
Production: 1.24 million ounces 
Sales : 1.23 million ounces

This means Barrick’s sales have fallen 12.2% from Quarter 2 in 2017 (sales then were just under than 1.4 million ounces.
Also, Barrick’s sales fell 11.5% from Quarter 3 in 2016 (sales then were 1.39 million ounces).

Barrick Gold reported a drop in sales from all their operating units, including the crucial USA Barrick Nevada mine where sales dropped significantly.

Barrick Gold’s daughter company, Acacia Mining, continues to struggle with weak production and weak sales due to the dispute with our Tanzanian Government over tax evasion and fraud exports and other issues reported to President Magufuli by his two Committees earlier this year.

Barrick chairman, John Thornton came flying into Dar es Saalam thinking he can turn our President into one of his “victims” – but he did not realize that this is the NEW TANZANIA and our “Bulldozer” President is very wide awake and his care and love for Tanzania is the highest on all priority lists. Therefore, the situation remains until our President is ready to make changes.

For two years, our Anti-Corruption lobby has written to the bosses at Barrick Gold and also Acacia Mining to ask them to come personally to Tanzania to clean up all their mess here. It is undisputed that their local “Fix-It” people were making their company sink deeper and deeper into trouble. Of course, we are Black Tanzanians and since when do rich Whites take us Blacks seriously. After all, regardless of the double standards and hypocrisy they write on their websites and in their speeches, they think Tanzania is still a colony and that colonization is still alive here.

However, our President has proved that the NEW TANZANIA demands new systems and new methods and these mining giants are going to have TO SHAPE UP OR SHIP OUT!

We have written over and over again that our wish is that Acacia Mining will be successful in our country… IF they will pay their taxes, their export royalties and they will NOT allow rape, murder, destruction to our villages and properties and they will stop creating devastation in our environments.
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MORE DECEPTION & SCAM FROM BARRICK GOLD & ACACIA MINING

By Samantha Cole of the Tanzania Business Ethics Group 

Do those billionaire gold miners have no shame? We see their forked tongues over and over.

A public letter to our President, Dr. John P. Magufuli
Copies to Prime Ministers of Canada and England, Barrick, Acacia and many more – please see below.

Dear Mr. President, Dr. Magufuli

On 14 February 2017, we sent you a copy of our website blog, “Acacia Mining – Buzwagi Mine Deception & Scam in President Magufuli’s Face”.  Here is the link:
https://tanzaniabusinessethics.wordpress.com/2017/02/14/acacia-mining-buzwagi-mine-deception/

At that time, Barrick Gold, 63.9% owners of Acacia Mining were DESPERATELY trying to finalize the merger of Acacia Mining into Endeavor Mining.  Thank God that did not happen.  Better the devil we know than the devil we don’t know.

And the devil we know is continuing with their dishonesty and deception, Mr. President, right in your face again.  Your Nation are all watching for results in the negotiations between your team and Barrick Gold.  Whilst these negotiations are happening, in true Tanzanian hospitality and positive spirit, please look at the trickery and corrupt news that Barrick-Acacia are feeding to their shareholders via the media:

Fact:  4 October 2016
The Buzwagi Mines’s Sustainability Manager, Mr. George Mkanza, told journalists that there was no hope for Buzwagi to do better after the year (2016).
He added that production declined and the company incurred a big loss and that they lost Sh40 billion during the first half of 2016.
The Planning Manager, Ms. Zonnastraal Mumbi, complained that Buzwagi only has the potential to produce under 900,000 ounces of gold and other sad woes.
The Business Improvement and Mining Manager, Mr Rodney Burgess concluded by saying that Acacia would close the mine in December 2017.

Stock brokers at the Dar es Salaam Stock Exchange said that these Acacia announcements were really actually threats to close Buzagwi Mine in retaliation against the you, Mr. President who, just weeks before the announcement,  publicly told Acacia Mining to go back home if they do not make profits (but they declare hundreds of millions of Dollars in dividends overseas??).

In addition, analysts said that the timing of Acacia’s announcement to close Buzwagi mine end of 2017 was also planned to scare you, Mr. President and also the Appeal Board who was exactly at that time dealing with Barrick Gold and Acacia Mining’s appeal against the Tax Evasion guilty verdict handed down about six months earlier.

Fact:  14 February 2017:
Barrick-Acacia were in the middle of their merger discussions.  Brad Gordon, also known in the media  as the “Mining Bad Boy” of Tanzania,  announced to the media that Acacia would boost its gold production at its Buzwagi mine by 40 per cent in 2017. Of course, Acacia’s shares jumped UP six percent that same morning.

So in October 2016, Barrick-Acacia use the closure of the Buzwagi mine as a threat against the President and to try scare him into taking a lower profile position against Acacia Mining and then suddenly, hocus pocus, only a matter of a few months later, Endeavour Mining pops up onto the Tanzania mining scene and the “Mining Bad Boy” does a 180 degree turn and tries to deceive the public and Endeavour Mining with the announcement that Acacia expect a 40 percent boost from a mine-life extension of Buzwagi gold mine in 2017.

Mr. President, what Barrick Gold and Acacia Mining did NOT calculate into their corrupt plans, was that t our President Magufuli would NOT be afraid of their threats and would NOT crumble at the knees.  They still don’t realize that Colonization is history!

In fact, not only were you not afraid of their threats, you actually shocked them so deeply that the big boss of mother company, Barrick Gold, came running to talk to you!

Fact:  22 March 2017:
Only a matter of about five weeks later, after Acacia’s announcements on 14 Feb 2017 about the 40 percent boost at Buzwagi Mine,  Endeavor Mining announced that they suspended merger talks with Acacia (thank the Good Lord).  Obviously Endeavor saw the truth behind the decades of corruption, fraud, tax problems, false export declarations and more, and they ran away from the merger table as quick as they could.

Fact:  18 May 2017:
Mother company Barrick Gold and daughter company Acacia Mining are standing all alone in the world.  What happened to the 40 percent boost from Buzwagi?
On this day, Buzwagi General Manager ,Stewart Hamilton, wrote in an internal memo (as reported by The Citizen newspaper) that the company will stop the mining activities at the site in December (2017)….

The analysts were all correct about the deception of the yo-yo announcements made only for Endeavor Mining and the stakeholders.

Fact:  22 September 2017:
Hocus Pocus strikes again and Barrick – Acacia have wonderful news.  Suddenly, they are changing Buzwagi Mine and the mine is now designed to maximize gold doré (bars) production.  Should we be surprised?  After all, it is public knowledge that Acacia Mining have been exporting sand ore from its mines and NOT declaring the true contents and value of the sand ore.

Mr. President, we are all confident that your minerals investigating team will have the capability to find where the sand ore came from, what mines it came from, what areas it came from.  Even though Barrick – Acacia deny the charges, they think Tanzanian’s cannot put one and one together to see the truth.

Analysts told us that this announcement made (about the gold bars from Buzwagi) a few days ago did not have any influence at all on Acacia Mining’s share value in the London stock exchange.  Actually, the analysts added, the market sees the value today in Acacia Mining and that is why their shares are struggling.  After all, last year in August, the shares almost passed the 600 mark.  Acacia was really the “up & coming” company to watch in the mining industry.  From there, it has been downhill all the way.  At the last week of July, the shares collapsed to under the 160 mark and since then, the share value is struggling and limping along.

We have always wanted Acacia Mining to succeed in Tanzania.  We have written this dozens of times.  However, their success must be unconditionally and tightly bound to the ethical, moral and honest ways of business in our country.  No more fraud.  No more corruption.  No more deception.  No more tax evasion.  No more murder.  No more rape.  No more destruction to our villages.  No more devastation to our environment.  We believe all Tanzanians with give you their blessings to make your millions from our gold BUT only in with integrity and honor.

May God bless you and grant you wisdom and understanding for your loyal and dedicated work that you do for our country.

May God bless Tanzania and all our Nation.

Samantha Cole
Tanzania Business Ethics Group

Copies to:
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
And others

 

Is Barrick Gold – Acacia Mining about to STING President Magufuli & the Tanzania Nation?

By Samantha Cole of Tanzania Business Ethics

CHUI HAGEUKI MADOADOA !!

Dear Hon. President Magufuli

Last week, after the President’s meeting with John Thornton, we wrote a letter to you that we believe there is another agenda to Barrick’s sudden and urgent need to meet the President. We wrote Chui hageuki madoadoa – A leopard cannot change its spots and according to the media reports over the past few days, we see how correct we are about these Canadian and British millionaire businessmen.

Only five days ago, the following words from the Hon. President were quoted in the media worldwide:
If they (Acacia Mining) accept that they stole from us and seek forgiveness in front of God and the angels and all Tanzanians and enter into negotiations, we are ready to do business.” Even as Thornton flew across the world in his private jet, he could have thought long and hard about the Hon. Presidents words about the need to accept the theft and to seek forgiveness. We believe there was only one thought in Thornton’s head – to put on the best show for the world media so the company shares turn around and go up and the stock exchange analysts start looking positively again on Barrick Gold and Acacia Mining.

Thornton’s comments in his press release after meeting the President was telling us they will look at every claim of our Presidents two Committee reports and they discuss one claim after the next. He promised NOTHING else.
Mr. President, CHUI HAGEUKI MADOADOA and they will fight us and argue and dispute and use their media power to fight Tanzania. We can already see their arrogance and aggression in the media this weekend.

Please look at how they feed “The Economist” in London with lies and terrible insults about the Hon. President. And such insults not even 48 hours after the Barrick boss was hosted so warmly and elegantly by the Hon. President.
Is this the way they demonstrate “… accept that they stole from us and seek forgiveness in front of God and the angels… “?

The Economist in London wrote that the Hon. Presidents gesture to Thornton “could hardly have been more fork-tongued.” What a disgusting insult to the Hon. President!
Google defines “fork-tongue” as: to deliberately say one thing and mean another or, to be hypocritical, or act in a duplicitous (two-faced) manner. 
Mr. President, do those people have no shame as to be so insulting? The Economist goes on to describe Tanzania as having “… initially wooed (Barrick) into the country by generous tax concessions.” As if to say there was no gold here and let’s not talk about the hundreds of millions (billions?) of US Dollars of dividends to overseas shareholders whilst they defraud our country of the little export royalty that should be paid. Thornton received warm hospitality from the Presidency and they feed these lies to the media? If anyone here is two-faced, it is Barrick – Acacia!

Even worse, Mr. President, please look at what Brad Gordon, CEO of Acacia Mining said in a telephone interview with MiningMx (a South African media company) the day after Thornton’s meeting with the Hon. President:
Brad Gordon rejected the claims made in a report by Bloomberg – that Barrick is ready “to pay all the money it’s expected to pay Tanzania”. Who is fork-tongued?
Also, Gordon said negotiations had yet to begin and the negotiating teams from both sides had yet to be appointed. So we see again (same as I wrote last week – they will continue to fight and dispute).
Also, Gordon said Acacia’s response to these assessments and allegations had not changed from the statement issued on June 12 in which Acacia said: “Acacia strongly refutes these new unfounded allegations. We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law.” Who is fork-tongued? Barrick boss comes supposedly with one agenda (which is a lie anyway) and the Acacia boss has another agenda with no shame at all.
Finally, Gordon said “John Thornton wanted to experience the situation on the ground for himself and that’s why he was in the country.” Thornton did not come to Tanzania to fix the situation. He came to fix and boost their share prices!

Mr. President, Tanzanian’s were shocked on Wednesday after the meeting with Thornton when Mr. Ian Myles, Canada’s High Commissioner in Dar es Salaam said to reporters (on the video):
Canada is very proud that it expects all its companies to respect the highest standards, fairness and respect for laws and corporate social responsibility. We know that Barrick is very much committed to those values.
It is so insulting that these Canadians and British still think they can trick us with their fancy nonsense “spin” politics and dishonesty. What values is Barrick committed to? Have our nation not witnessed with our own eyes killings? rape? arson and burning our homes? destruction to our environment? poison in our water? corruption? fraud? hundreds of legal cases with local Tanzanian companies who are abused, bullied and suffer? and the list goes on. What “values” is Ambassador Myles boasting about? How dishonest and unethical to stand there and lie about values. He should rather say NOTHING because every country where Barrick operates has a long, long list of illegal activities and crimes.

Chui hageuki madoadoa – A leopard cannot change its spots. 

The Tanzania People are behind you, Mr. President. Barrick will arrive with the most expensive specialists and lawyers and accountants that money can buy. Their intention and focus will be to belittle our two President’s Committee who prepared the two mineral reports. We trust that the Hon. President will prepare to have a Team of similar standing, experience and know-how, to oppose these Godless, shameless Canadians and British who have little or no values, standards, fairness nor respect for laws and corporate social responsibility.

May God bless our President with wisdom and understanding to see through these vicious business people who prey on our land, on our minerals and on our People.
Amen.

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Time for Resignations at Acacia Mining & Barrick Gold

Acacia Mining – Fraud, Criminal Dealings & Deception in President Magufuli’s Face.
Time for resignations at Acacia Mining & Barrick Gold

An open and public letter to Barrick Gold Chairman, John L. Thornton

Dear Mr Thornton

We, the simple Tanzanian volunteers against corruption and fraud, wrote quite a few emails to you, to Kelvin Dushnisky, Brad Gordon & other senior directors and managers,
about the mess you and your company are making in our country.

You preferred to block our emails “as spam” because it did not suit you, White money-people, to hear the truth from simple Black non-money people.
Instead you sent security investigators to find us and when that failed, you sent super-expensive lawyers to threaten our group, and our families and also to threaten and intimidate the media companies who chose to allow us freedom of speech and expression.   Did you know there is no more Colonialism in Africa (or anywhere else for that matter?)

We, the simple Tanzanian’s, emailed you numerous times requesting – almost begging you – to clean up the mess of your company’s activities here, but you took no notice. Now you see how things have gone from BAD to WORSE for you all, because you have the WRONG Barrick-Acacia people working here in your local offices. These Barrick-Acacia people continue to try manipulate and behave all wrongly in the face of our new President, Dr. Magufuli.
These Barrick-Acacia think that they can “play the same games” and “pull the same tricks” and “make the same arrangements” that they did in the 1990’s and during the past 15 years until President Magufuli took office.

Just look at the terrible state of your companies here.  There are public charges of corruption, fraud, tax evasion, price transferring, falsifying export documentation – and no-one has forgotten the crimes of rape, murder, arson, environmental devastation and poisoning our rivers and water sources.  If all these charges are not enough, last week, a Presidential Commission returned their findings to our President – Acacia is GUILTY!

Yes, you all (top management at Acacia Mining and Barrick Gold) are all GUILTY of the crime of under-invoicing and deliberately manipulating and under-stating values whereby cheating our country from the export royalties that should rightfully be paid.

If you ask your lawyers they will confirm that in our country, these are crimes punishable with JAIL sentences.

Our President demands the resignations of his key people who fail him. You can learn from President Magufuli and demand the resignations of Kelvin Dushnisky, Brad Gordon & other senior directors and managers in Acacia Mining for their total failure to manage Acacia Mining ethically, morally and compliance to the laws of the land.
In addition, their resignations should be demanded for the guilty verdicts (twice) of tax evasion last year and even more so, the fact that last week, they have been caught under-invoicing exports, price transferring, false declarations of exports and should we include money laundering as well?

The question is if you have the courage and resolution that our President has, to demand the resignations from Mr Dushnisky, Mr Gordon, Deo Mwanyika, Charlie Ritchie and others responsible for the illegal activities in our country!  They can all run but they cannot hide!

Do you have any idea how much money you owe Tanzania from unpaid (deliberately) export tax royalties?  What about company taxes for real profits not declared (whilst you pay hundreds of millions of dollars in dividends overseas?  More crimes punishable with JAIL sentences.)

Your lies, deception, double standards and falsehoods late last year and early this year were directed mainly to romance Endeavour Mining to merge with Acacia Mining. Thank God for Tanzania that the merger failed.  We certainly don’t need Endeavour Mining management people here in our country!  But that’s old news and we prefer look forward.
It is no secret that for over a year Barrick Gold have been trying so hard to sell off its daughter company, Acacia Mining, but there have been no takers.  No other company in the world has been even vaguely interested in Acacia Mining – not because of the production but because of the terrible problems and scandals that surround Acacia Mining in Tanzania.  Now, Acacia’s complications are even worse!


Do you really think our President is worried about YOUR regular threats to close Buzwagi and Bulyanhulu mines?

Do you really think our President is worried about YOUR carefully initiated media reports in the overseas media referring to our President’s actions as:

     “….. thanks to Government incompetence”
     “…… everything to get back to normal in the next few months, once Tanzania 
              realizes its mistake.”
     “why the claims of government of Tanzania simply can’t be right”

And many more….
How dare you insult our President and his Government when you are blatantly operating so illegally?

Mr. Gordon lied in the media trying to deceive Endeavour Mining regarding the extension of Buzwagi mine.  Did he really think that Endeavour would not do their own due diligence and be tricked into believing Mr. Gordon?

More deception and lies directed as a threat to our President was published just two weeks ago in the local media where your Buzwagi Mine general manager Stewart Hamilton said that Acacia will stop the mining activities in December 2017 while other plant processes will cease in 2020.  He was quoted, “According to our plan on the closure of Buzwagi Mine, we have decided to reduce the number of our manpower by 100 as an initial stage of the total closure in 2020”.

Mr. Thornton, just who are you trying to fool?
Your own people in the Acacia Mining offices who are so unhappy with your existing management are volunteering to assist our group with real information because they know the truth and the harm you are bringing on our country.  They told us your publicised plans make no mining sense at all!! 

Should we, “simple Black people” teach you, rich sophisticated White people, how to behave and operate with integrity and morality?
Mr Dushnisky, Mr Gordon and others from the UK and Canada will not step a foot into Dar es Salaam because they KNOW their crimes and they KNOW they will be prosecuted, even with their high-price lawyers fighting their battles.

We all know that its only a matter of time before Deo Mwanyika is called in by the Police and/or PCCB.
We all know how well you will create a “story” about this mess for your shareholders.  As our British boss always says:  You can fool some of the people all of the time.

Tanzanian’s are culturally peace loving people.  You cannot undo the past; you can pay for past mistakes and you can ensure the future is better.  However, for this, you need a clean broom.  A broom not associated with the corruption, fraud and commercial cancer from the past.  A new broom that you need to select and activate to start sweeping up the mess.  A new broom with a big budget and a clear, honest vision for the future. 

Yours sincerely

Samantha Cole
http://www.facebook.com/sam.cole.ethics
http://www.tanzaniabusinessethics.wordpress.com

 

ACACIA MINING SHOULD BE MORE TRANSPARENT TO TANZANIANS

TANZANIA ORDERS AUDIT OF MINING COMPANIES’ EARNINGS OVER TAXES

Dar res Salaam, Tanzania – 30th March, 2017:

A stop order issued by Tanzania Government on March 3rd 2017 barring mining companies to export copper concentrates for smelting outside the country has significantly exposed Acacia, which exports the stuff from Buzwagi and Bulyanhulu mining projects.
 
Acacia statement opens a can of worms.

On March 15th 2017 Acacia Chief Executive Officer (CEO), Brad Gordon responded officially pertaining to the Government order. The CEO is quoted expressing jittery for Acacia incurring loss of US$17 million (Tzs. 37 billion) in just two weeks of executing Government stop order. 

He is concerned if the stop order is maintained Acacia may fail to continue running operations because export of copper concentrates accounts for 50 percent of Acacia earnings from Buzwagi and Bulyanhulu mining projects. 

This statement exposes the vital information not previously disclosed to Tanzania Extractive Industries Transparency Initiative (TEITI). Actually, it opens a can of worms. Acacia is TEITI member with obligation to correctly disclose material production and Government payments information pertaining to its mining operations in Tanzania.
 
But reading Acacia statement we note the implication that Acacia had since TEITI launch (2009) disclosed only half the production and payments value data from Buzwagi and Bulyanhulu mining projects. 

And this sends bad signal to TEITI because it discounts material information and data compiled and published in the successive annual reports since 2011. 

The credibility of TEITI reports’ data and integrity of entire EITI work in Tanzania is exposed to irreparable risk if corrective remedies are not done in real time. Acacia has the obligation and should therefore come out immediately to patch up the anomaly.   
 
Acacia statement exposes a gap in the TEITI reports.

The quantity of gold or money value declared as having been produced or earned by Acacia and therefore payments made to government in the form of royalties, taxes, fees, levies, duties and statutory contributions should be correctly captured and documented in the TEITI reports. 

However, that may not be the case when we evaluate inherent logic exposed by Acacia statement. The payment data documented in the TEITI reports from Pangea Minerals Ltd (Buzwagi) and Bulyanhulu only present half the story. 

None of the six TEITI reports (2008/09 – 2013/14), has documented either quantity or value of copper concentrates, which according to Acacia, account for 50 percent of Bulyanhulu and Buzwagi revenue combined.
The documented evidence available at TEITI indicates during the 2012/13 fiscal year:
Pangea Minerals Ltd (Buzwagi goldmine) produced 205,240 ounces of gold worth Tzs. 520.9 billion (US$328,025,425)
Bulyanhulu goldmine produced 197,571 ounces of gold worth Tzs. 477.1 billion (US$300,413,402)
(TEITI Report 5th, 2015:11). 

Again, the data documented during the subsequent fiscal year show no difference. Bulyanhulu is recorded to have produced 192,550 ounces of gold worth Tzs. 430.5 billion (US$265,884,907) while Pangea Minerals (Buzwagi) produced 198,995 ounces of gold worth Tzs. 384,539,239,000 (US$237,516,516) (TEITI Report 6th, 2015:10). 

Not only are the quantity and value of copper concentrates exported from Buzwagi and Bulyanhulu missing from the duo fiscal years’ TEITI reports, but also are entirely not documented in the previous four reports.
 
There is one more controversial issue, which previously, Acacia hadn’t disclosed yet, but it is implied in the statement. The statement underscores that Acacia exports (sells) copper concentrates to foreign buyers rather than sending the stuff for smelting outside the country where appropriate technology is available. 

This means the ownership title of copper concentrates changes from Acacia to a foreign buyer immediately the stuffs are exported. This notion is new to Tanzanians, who hitherto held common knowledge that Acacia sends copper concentrates to foreign countries with appropriate technology for smelting the stuff, which whatsoever, wouldn’t involve ownership title transfer from Acacia to a foreign entity. 

That being the case, Acacia would be expected to report such significant transaction to TEITI because copper concentrates and gold are materially different. The local media quoting persons involved in the export of copper concentrates from the Tanzania Mineral Audit Agency (TMAA), Tanzania Ports Authority (TPA) and Acacia officials estimate 50,000 [8ft (2.43m) x 8.5ft (2.59m) x 40ft (12.2m)] containers of copper concentrates have had been shipped annually.    
 
Our Position and recommendations
The Coalition of Tanzania Civil Society Members of global EITI Association (TEICS) considers the amount of money raised from export of copper concentrate but Acacia hadn’t reported to TEITI for public scrutiny is significant enough to alter both TEITI reports and Government records of payment received from Acacia. 

Disclosure of these payments is even more urgent than ever considering Acacia nonpayment of Corporate Income Tax (CIT) since the company started (1998) operating in Tanzania up to 2016, on the ground that the company is still recuperating losses incurred during the investment startup phase.
         
We, TEICS, recommend and call upon:-
 
1.     That Acacia should disclose all details related to quantity and proceeds obtained from exports of copper concentrates since 2001 to 2017. Data presentation should comply with the EITI recommended pattern of data disaggregation – project by project and year by year – to allow and facilitate ease use by TEITI and Government.

2.     That TETI Committee should immediately start retrospective review and upscale all previous TEITI reports’ data to accommodate significant material information disclosed by Acacia reflecting proceeds from annual exports of copper concentrates.
 
3.     That the Government of the United Republic of Tanzania should assume leadership to evaluate the Mineral Development Agreement (MDAs) entered with Acacia to establish parties’ consistency and compliance with agreed terms therein, and thereafter, in consultation with Acacia, correct inconsistencies in the MDAs, if any, and ensure Acacia repays all the unpaid royalties, taxes, fees, levies, duties and statutory contributions resulting from exports of copper concentrates for entire period effectively from 2001 to 2017.    
 
4.     That the media should follow up and report to public about the actions taken by Acacia, TEITI Committee and the Government to correct the anomaly caused by Acacia not disclosing copper concentrates export business to TEITI and Government.
  
Issued and signed on behalf of TEICS members today, 30th March 2017.

Found on Issa Michuzi site and presented here by Samantha Cole of Tanzania Business Ethics.