Barrick hits headlines again – in Australia – Loses Supreme Court Appeal

By Samantha Cole of Tanzania Business Ethics

Barrick Gold loses their Appeal in the Australia Supreme Court.  
No surprise that the Judges found Barrick “inappropriate” and “not reliable” in their methods. When will someone be accountable?

Last week, in Australia, following THREE lost appeals by Barrick Gold, the High Court of Australia ruled that Barrick must pay $55 million in a case that goes back to 2005 when Barrick acquired 100 per cent of the shares in Placer Dome Inc.

The majority judgement was delivered by Chief Justice Kiefel and Justices Bell, Nettle and Gordon.  Very briefly, the background of the case involves the Commissioner of Revenues’ assessment of Land-Rich Duties at the time of Barrick Gold’s acquisition Placer Dome. Barrick objected to the Commissioner’s assessment.  And the case went on for years and of course the lawyers got rich on the fees.

One the reasons put forward by Barrick for rejecting the land valuation, was the fact that it resulted in a large, unexplainable gap between the value of Placer’s land assets and the purchase price paid for the shares.  The Judges responded:  “That gap necessarily raised a question about the reliability of the DCF valuations [relied upon by Barrick] and, in turn, a question about the content of the $6.506 billion allocated to goodwill in Barrick’s accounts”.
(Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value, which is then used to evaluate the potential for investment.)

The Judges held that the $6.506 billion that had been allocated to goodwill was based on the conventional accounting practice of allocating to Placer’s assets amounts nominated as their “fair value”, and allocating the residual of the purchase price to “goodwill”.
The amount that was recorded in the accounts as goodwill was not legal goodwill.
Further, a number of the “sources” of goodwill that had been identified by Barrick should not have been taken into account as part of the statutory valuation exercise under the land-rich rules and, of those sources that could be taken into account, a number were of no material valueIt followed that the direct valuation approach of valuing Placer’s land was inappropriate, in the circumstances, as it was not a reliable method of valuing Placer’s assets.

This is yet another example of how Barrick Gold tries to write their own rules in countries where they operate. And the most important factors are: Which executives are running the operations? Which executives are responsible for decision making?

Here in Tanzania, we have learnt the hard way with Barrick Gold for over 20 years.
In our Holy Bible, Ecclesiastes 1:9 states in Kiswahili:
Kile kilichokuwapo kitakuwapo tena, kile kilichofanyika kitafanyika tena, hakuna kilicho kipya chini ya jua.
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.

Let us not be fooled by these sophisticated global businessmen who hide behind their hi-power lawyers.  In fact, Barrick Gold is only “the vehicle” driven by people who are responsible for the actions of the vehicle. When Courts of Justice, anywhere in the world, rule on cases involving motor vehicle accidents involving different parties, the ruling is on the drivers, not the vehicles. Similarly, in cases involving companies, there should be a mechanism to rule against the responsible people who take decisions within their companies (the vehicles).

In 2016, Barrick Gold was found guilty to have evaded tax for four years consecutively from 2010. They lost their appeal against being found to have evaded tax for four years consecutively from 2010, amounting to US$ 81,843,1327.  Barrick threw all its weight behind their appeal to fault the judgment issued on March 31, 2016,  by the Tax Revenue Appeals Tribunal on the matter. Hakuna kilicho kipya chini ya jua.

The March 31 guilty verdict by the Tax Tribunal, headed by a High Court Judge, concluded that Barrick had failed to pay any corporate taxes in Tanzania from 2010 to 2013 while still paying more than $400-million in dividends to its shareholders from its gold-mining profits in Tanzania. The Tribunal noted that the company’s three Tanzanian gold mines were its only source of profits for the dividend payout. So, the Barrick Head Office overseas has income of enough billions to pay out astronomical dividends whilst in Tanzania, their ONLY three gold mines were making losses that prevents paying local corporate taxes.   

The Tribunal stated that Barrick’s explanation for its lack of corporate tax payments was “far from plausible” and that they engaged in a “sophisticated scheme of tax evasion”.  Needless to say that Barrick’s Tanzanian subsidiary immediately announced that it would appeal the Tribunal’s tax ruling (of March 31, 2016) to Tanzania’s highest court, calling it a “fundamentally flawed” decision. Hakuna kilicho kipya chini ya jua.

The Tribunal’s ruling sparked much publicity worldwide. The Guardian newspaper wrote: “Mining companies have long been suspected of being tax cheats, causing the government to get less than its fair share of revenues from the sector”.

Six months later, in October 2016, The Court of Appeals in Tanzania ruled against Barrick Gold and that the Tribunal’s verdict in March 2016, was correct and to be upheld.

All things being equal, why are the Barrick decision makers not held responsible and accountable in some way, with some form of mechanism, so that they may not be permitted to continue in this way and to rock the legal systems of so many countries in which they operate.  Take Kelvin Dushnisky, for example. Until recently, Dushnisky, himself a lawyer, was the President of Barrick Gold and also the Chairman of the Board of Directors of Barrick’s Tanzania subsidiary, Acacia Mining.  He joined Barrick in 2002 as Director of Regulatory Affairs.

During Dushnisky’s 16 years at Barrick Gold, he held senior management positions and would always have had first hand access to full details from all their operations all over the world. In 2015, he was appointed the President of Barrick.  Who could possibly say he was NOT involved in decision making?  Nonetheless, there are patterns of recurring Barrick problems over and over, worldwide, and one must wonder how many times must Barrick experience the same category of problem before they will learn how to prevent OR when it happens, how to rectify quickly and quietly.

Morally and ethically, the world should take Dushnisky to task over his knowledge, consent and involvement of everything that happened at Barrick during the past 16 years.  He should be made accountable for crimes, violations, human-rights abuses, damages and more in many countries around the world.  Please download the detailed lists of crimes, violations, human-rights abuses, tax evasion, environmental damages, and worse, by clicking here:  K. Dushnisky Accountable Lists

There are those cynics worldwide who criticize our Hon. President, John P. Magufuli for whatever reason they come up with.  However, Dushnisky, who recently became the CEO of AngloGold Ashanti, another Tanzania gold mine, will one day soon have to sit with our Government officials on a host of issues. As he is unquestionably responsible (even partly) for the fraud, corruption, murder, rape, environmental devastation, tax evasion, illegal exports, and many more crimes in Tanzania, whether these crimes were committed under Barrick’s period of management or Barrick’s subsidiary, Acacia Mining’s period of management, in all cases Dushnisky is accountable and our President will undoubtedly take this into consideration in relation to future dealings with Dushnisky.

Should we be surprised if Dushnisky is arrested when he arrives in Tanzania?  Will our President grant him some form of conditional amnesty?  Will Dushnisky manage AngloGold Ashanti in the same immoral and despicable manner in which he managed Barrick Gold?  Hakuna kilicho kipya chini ya jua.

Sources out of London tell us that following the arrests in Tanzania of Acacia Mining’s top in-country executives and the ongoing fraud and corruption investigations of Barrick-Acacia in Tanzania, the UK Serious Fraud Office (SFO) is AGAIN opening investigations of Acacia Mining.  Dushnisky, Brad Gordon, Andrew Wray, Gary Chapman, Katrina White, Peter Spora, and all the other Acacia executives who jumped ship – be assured that law enforcement is coming after you!

 

https://tanzaniabusinessethics.wordpress.com

 

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High Court Judge: Acacia Mining playing tactics to defeat justice.

A PUBLIC LETTER TO THE HON. PRESIDENT OF TANZANIA, MINISTER OF JUSTICE, ATTORNEY GENERAL AND OTHERS

Hon. President John P. Magufuli, Prof Palamagamba Kabudi and Dr Adelardus Kilangi

Copies to:
Board members of Barrick Gold & Acacia Mining;
Chief Secretary, Amb. JWH Kijazi;
Minister of Minerals:  Ms. Angellah Kairuki;
Other Tanzania Ministers;
Journalists worldwide.

Dear Hon. President Magufuli and Distinguished Dignitaries

OUR HIGH COURT JUDGE MAKES JUDGEMENT AGAINST ACACIA MINING ADJUDICATOR

In July 2015, as a result of media reports in Bloomberg online, and in August 2015 another report from African Intelligence online, and then again in November 2015 from African Intelligence online our group took great interest to investigate further what was honestly behind these two stories about the small family mining business from Mwanza fighting against the biggest gold mining company in the world.  We understood from these media reports online that there were two mining cases that were being disputed; one case in Mgusu (near Geita) and the second case in Siga Hills (near Kahama).

We tried to communicate with the Mwanza family (company called Bismark) to receive indepth details but they would not discuss serious details with us because of their restrictions of confidentiality due to the cases being in the formal process of Adjudication.

A few months later, in February 2016,  The Citizen TZ online published yet another public report about this Mgusu case. This report started a constant flow media coverage about the Bismark-Acacia-Barrick disputes.

In March 2016:

The Business Times newspaper reported further about this case as did the Raia Tanzania newspaper and the Majira newspaper also published their reports.
Added to the news of the dispute was the huge Acacia-Barrick scandal of the tax evasion Judgement against them which the media jumped onto as well.

In April 2016:

Another Business Times newspaper report with more details about the case followed by the Mwanachi newspaper releasing their report and then again the Raia Tanzania newspaper and the Majira newspaper and the Business Times newspaper also published their follow up reports.

Mr. President, all these above public media reports and those that came after April 2016 represented the picture of how Acacia Mining were trying to manipulate our local Tanzanian companies for the sole benefit of Acacia.  Even when it became public knowledge that Acacia proposed an Adjudicator in their case against the Mwanza family (Bismark), Acacia chose Karel Daele who was found to be conflicted and he deliberately hid the truth about his past contacts with Barrick Gold and Acacia Mining.  Mr. Kaele did not disclose:
–  his history with Barrick-Acacia;
–  his having working closely with Acacia Mining’s lawyers, Quin Emanuel;
–  he worked with Acacia Mining employees in previous jobs.

When Bismark objected to Karel Daele in 2016, Acacia triggered their standard operating procedure with disputes with their opponents:  Attack, pressure, legal fees, break the opponent.  Acacia’s UK lawyers are Quin Emanuel and they are famous for this exact procedure.

Furthermore, Mr. President, you remember that we reported to you in February 2017, Quin Emanuel even sent us a letter of threat to take legal action against our group because we expose everything which Barrick-Acacia is doing in Tanzania.

Bismark’s objection against Karel Daele was met with accusations that Bismark are acting frivolous. So they had no objection but to turn to the High Court for assistance in this matter.

For almost two years, Karel Daele used delay tactics to upset the Bismark application to the High Court to remove him.  Judge Ama Munisi was on the bench for this case.

A UK journalist investigating different African cases explained that during these past almost two years, Karel Daele did not make any effort to respond or appear at the Court according to Judge Munisi’s instructions. The Judge even took the extra step of instructing Bismark to insert notices in the UK so that Karel Daele will never have an excuse that he did not know of the proceedings in the High Court in Dar es Salaam.  Bismark proceeded to arrange the notice in the UK and the cost was quite high as well – exactly what Acacia and Quin Emanuel wanted.

Recently, Judge Munisi presented her final judgement in which she ruled AGAINST Acacia Mining and Karel Daele and Quin Emanuel and their local lawyers, IMMMA.

The same UK journalist contacted the lawyers of both sides for comment on the judgement against Acacia and Mr. Daele.  He contacted Advocate Fatma A. Karume at IMMMA, representing Acacia Mining and he contacted Advocate Onesmo S. Mpinzile from FMD Advocates, representing Bismark.
The UK journalist said that Adv. Karume ignored his requests for comments.  However, Adv. Mpinzile did comment via messenger.  Adv. Mpinzile said that in Court, it was observed (by Judge Munisi) that Karel Daele was wasting time and playing tactics to defeat justice while he should have recused himself long ago and let Adjudication take its cause. Further, he commented that Judge Munisi’s ruling took more than 45 minutes to read meaning that the judgement was detailed and extensive.

Mr. President, is this typical of the Acacia Mining we know in Tanzania?  We asked lawyers for comments about this and the feeling was that Adv. Fatma Karume is also responsible for allowing Karel Daele to delay and obstruct justice.

Mr. President, at what point do we say TUMECHOKA to Acacia Mining for even interfering with our judicial system? If we understand Judge Munisi’s observation, these are people who waste our Courts time (and the wasted efforts and costs of our Judges and their staff) and they play tactics to defeat justice. Where will these people stop?  How can they believe that they are the law to do what they will, when they will and how they will?  Our Tanzanian Sisters and Brothers who have legitimate claims against Acacia Mining are entitled to a fair and stable process of justice without their interfering with their high-power lawyers delay tactics.  These UK people with their Quin Emanuel lawyers will continue to make fun of our judicial system until there is a road-block erected in their way that will make them stop and understand that in Tanzania, there will not be any more of these games that they play or manipulate.

God bless you and our Country and our People.

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

(Any reader who wants a copy of the Judge Munisi’s 12 page judgement, please email me at scoop20151@gmail.com and I will send the copy to you)

Has the Devil come back to Tanzania wearing a different uniform?

AN OPEN LETTER TO HIS EXCELLENCY, PRESIDENT JOHN P. MAGULFULI, TANZANIA

Dear Mr. President

We all, in Tanzania, thought that our Nation received a blessing when Kelvin Dushnisky, the Chairman of the Acacia Mining Board of Directors announced that he was resigning (also as the president of Barrick Gold).  We were so happy that this man who has allowed so much suffering in Tanzania and other countries in the world, was finally leaving us and going somewhere else.

Then we received the terrible news that he is coming back into Tanzania but working for another company.  That is what we ask:
Has the Devil come back to us wearing the uniform of AngloGold Shanti ?
Kelvin Devil.jpg

There are no secrets about the Fraud and Corruption sponsored by KELVIN DUSHNISKY whilst he was President of Barrick Gold & Chairman of Acacia Mining.
See at the bottom of this letter, there is a link to the LISTS of crimes and abuse and violations over many of Dushnisky’s years at Barrick & Acacia.

Why was he NOT held accountable for his companies illegal activities?
The main difference between responsibility and accountability is that responsibility can be shared while accountability cannot.

Mr. Dushnisky being accountable, not only means he is responsible for everything he authorized, but also he was ultimately answerable for damages and devastations that his ex-companies caused globally.  The murders, the rapes, the misery, the damage to environments, the fraud, the corruption, the tax evasion….. This is NOT a Hollywood movie, this is for real! Mr. Dushnisky should have been accountable.

Let us call a spade, a spade. Mr. Dushnisky ran Barrick Gold and Acacia Mining with a clear tendency and pattern of FRAUD and CORRUPTION.
Regardless of if we call it money FRAUD, human rights FRAUD, environment FRAUD – whatever he decided, was without thinking twice.
His bottom line was: “make more money and screw everyone else”.

Most of the Barrick’s and Acacia’s mines under Dushnisky’s past control are located in regions referred to as Developing Regions and Nations? Tanzania, Chile, Papua New Guinea, Argentina, Burkina Faso, Pakistan, Kenya, Philippines, Dominican Republic ?

Let us call a spade a spade…
Those Barrick mines are in areas where the labor force is all Black, Brown or Native – all local populations that Barrick can control with their money.
Barrick will take out the gold from the ground as quickly as possible and then run away to their next victim mine.

Please allow us to give a clear picture of the “Kelvin Dushnisky business model” for Barrick Gold and Acacia Mining and the operations of their mines:

1.    Manipulate the local Government to give Barrick the land almost for free on the promises of wonderful taxes (if we open the subject of Barrick’s corruption, this letter will never end!)
2.    Use the local population labor force and pay them lowest possible salaries – money that workers can never save for their family’s futures after working for years in Barrick mines
3.    Make a terrible mess and damages of the local environment that is almost impossible to remedy. Local deaths and rapes and misery by Barrick’s “security” workers.
4.    Barrick will pay NO taxes because Barrick complain that they make no profits – but they pay hundreds of millions in Dividends to shareholders overseas using the system of illegal price transferring!
5.    As soon as Barrick decide that they want to leave the mine, they close shop and walk away for FREE.

Mr. Dushnisky can never explain :
   the disgusting disparity of mine worker’s salaries in the Barrick North American mines compared to an equivalent Black or Native worker in Chile / Argentina / Tanzania / Papua New Guinea / etc!   Does a Barrick mine worker in Nevada USA receive the same salary as the same worker, doing the same job, in a Barrick mine in Tanzania?
•    why there are no proportionate percentages of Blacks or Natives in senior management positions.
•    why are there no proportionate percentages of Blacks or Natives on the Barrick or Acacia Boards of Directors?

In all the many years of mining in Tanzania, in Chile, in Argentina, in Papua New Guinea, in the Philippines, etc…. how is possible that Mr. Dushnisky never met or trained any of the talented local brain-power to sit in the senior positions in his companies?
Why not? Because they are not “WHITE” !!
Because in Mr. Dushnisky’s world …. When he is right, he is right …. And when he is wrong, then he is still right….. But that is ONLY BECAUSE HE IS WHITE!

Mr. Dushnisky can NOT show you, what did he and Barrick do for “Developing Regions or Countries”?  He can send sophisticated lying lawyers letters.  He thinks to pay for a soccer team or contribute to a new clinic is all they must do whilst they cleverly take all the precious gold out of the all the lands (natural given resources).
And then to add insult to injury, THEY KILL, RAPE, ABUSE, MISTREAT, DESTROY ENVIRONMENTS AND IN THE END, BARRICK STILL PAY LITTLE OR NO TAXES ….
However, Mr. Dushnisky simply sends his sophisticated lawyers and accountants to prove to the Blacks and the Natives why Barrick Gold makes NO PROFITS…. Whilst they pay hundreds of millions of Dollars in Dividends and … let us not forget about the tens of millions of Dollars that they throw around in bonuses!!

Please allow us to bring to your attention the very painful and distressing example of Barrick Gold’s two-faced, deceitful and treacherous swindles that they played with the Tulawaka mine in Tanzania:

Internet research tells us:
The original discovery of gold at the Tulawaka mine was in 1998.
Barrick Gold’s involvement was in 2000 via Pangea Goldfields and they operated this mine from 2005 through to 2013.
During those 8 years, from 2005 through to 2013, the mine produced nearly 1 million oz of gold.
That was ALMOST DOUBLE THE QUANTITY OF GOLD OF THE ORIGINAL EXPECTATIONS!

Then suddenly Barrick decided to stop and within a short period of time, they were all gone!!
What did Barrick leave behind after taking 1 million oz of gold ? They certainly did NOT pay much taxes!
They left behind massive unemployment, massive damage to the environment, massive social problems…. All for the Tanzania government to repair and remedy alone. This is the style of Mr. Kelvin Dushnisky… he takes, he rapes and he leaves!
It is NO surprise that President Magufuli said publicly in a speech that mining companies who report no profits in Tanzania “better go back to their countries” and the President instructed the Tax Revenue Services to seal the loop holes for tax evasion that the mining companies are using!!

And this is the same style of treatment he gives local mining companies that are partners with Barrick. He will use them and then abuse them – as we see with the very real example of Bismark Limited in Tanzania. On June 3, 2016, Business Times reported that a Tanzanian MP stated in Parliament how Barrick Gold “colluded with certain officials of dubious probity at the Ministry of Energy & Minerals in order to get their support for the Big Miner’s “suppression of small Tanzania mining companies!”

And one thing is for certain…. When Barrick decides to stop operations in their other 3 mines in Tanzania, they will do exactly the same….. they will fraudulently and in a corrupt manner, search for a hole in the system and then sneak out the back door!
Barrick will leave their three mines as “ghost towns” and walk away from total devastation in every direction and sphere.

On the subject of deceitful and treacherous swindles, kindly permit us to raise the subject of mine labor manipulation and falsification:
Barrick have a system where they bring an overseas labor sub-contractor to their mines. In this case, we refer to the Australian company, BYRNECUT OFFSHORE GROUP who operates in Tanzania on behalf of Barrick Gold.  Barrick created a sophisticated system to distance themselves from their labor force by bringing the Australian’s to employ workers.  This means that all labor suppression and humiliation problems are directed away from Barrick Gold and to the Australian’s.
What is this scheme for ?
Why bring an Australian company to Africa to hire local workers? Is there no local company in all of Tanzania that can offer this same service?
Or maybe Mr. Dushnisky only relied on the Australian’s because they are white?

Mr. Dushnisky was born in September 1963 and is a qualified lawyer. His career in Barrick Gold began in 2002 and over the past about 16 years, he has worked and been promoted up through the different levels of senior management, up the top of Barrick Gold. Following below, you can find a detailed report of Mr. Dushnisky’s employment at Barrick and his other positions and Directorships outside of Barrick.

So, we have established that Mr. Dushnisky, a lawyer, has risen up through the senior management ranks of Barrick over the past 16 years. Undoubtedly, he has been exposed to most issues facing Barrick all around the world – he has been exposed to the full spectrum from the success stories to the crisis situations and tragedies.
A man who earns multi-million dollars a year is paid to deliver to his company full value services – ideally success stories as opposed to crises and tragedies. Whilst one cannot question accidents, one can question a crisis situation and the management skills behind those responsible for solving each and every crisis situation for the benefit of that company.

There have been literally hundreds of crisis situations, disasters and tragedies during the 16 years that Mr. Dushnisky worked in Barrick. Suffice it to say that Kelvin Dushnisky can boast that “he has seen it all, done it all and got the t-shirt”.

Certainly he has “seen it all” but is it not obvious that he lacks the managerial skills to actually keep all aspects of the global company on track and under control in Barrick operations around the world? Despite the fact that he has “seen it all”, one would think even more so that he would ensure that problem situations are put to rest immediately that they rear their ugly heads! And better yet, why are the same problems cropping up all the time – year after year and similarities country by country around the world?
But no, Mr. Dushnisky prefers to come out fighting with his sophisticated lawyers and accountants, bullying, intimidating, mistreating and oppressing anything or anyone that might be a “threat” to Barrick. Indeed, these are strong words BUT the facts speak for themselves.

We started this public letter with the question:
Has the Devil come back to Tanzania wearing a different uniform?

Mr. President, we prepared a list of problems, disasters and tragedies that go on and on, year after year, for you….  The internet does wonders when researching Barrick and Acacia scandals and indignities.  Sadly, the results do not seem to finish….

What with all these hundreds of crisis situations right under Mr. Dushnisky’s nose during his 16 years in senior management, one must wonder why Barrick did not have a better management team to steer their ship away from these recurring problems?
One must wonder why the Board of Directors and Shareholders and Investors were not sick and tired of hearing about crisis after crisis, over and over again in multiple countries? Does Kelvin Dushnisky not learn from his mistakes?
And, let us not make a mistake here:  The buck stops with him and these are effectively his mistakes!

Being accountable not only means being responsible for something but also ultimately being answerable for your actions. Why is Mr. Dushnisky NOT answering for all these failures?
And failures they are because Barrick knows how to prevent these problems, failing which, by

Mr. Dushnisky thinks we, Tanzanian’s may all be underprivileged / unexposed / uneducated / uncivilized “Blacks and Natives” but it is obvious to us that as things stand now, looking at the scenario presented above, it is time for Governments to take pro-active action so that MINING COMPANIES will change their tendencies and patterns of Fraud and Corruption.

Great caution is needed and emergency measures to be prepared when this Devil arrives wearing his new CEO uniform of AngloGold Shanti.

Following are the links to the LISTS of crimes and abuse and violations over many of Dushnisky’s years at Barrick & Acacia:
Lists online:
https://wordpress.com/post/tanzaniabusinessethics.wordpress.com/1752 
Lists download:

https://tanzaniabusinessethics.files.wordpress.com/2018/09/k-dushnisky-accountable-lists.pdf

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