Kabudi quotes Shakespeare to justify new mining laws

Dodoma. Parliament yesterday approved the Written Laws Miscellaneous Amendments) Bill, 2017 as part of efforts to end years of complaints about the failure of the country to benefit from the mining sector.

The minister for Constitution and Legal Affairs, Prof Palamagamba Kabudi tabled the Bill in style as he borrowed some metaphoric expressions from William Shakespeare’s Julius Caesar and calling upon lawmakers to endorse the Bill on grounds that it brings the much-needed opportunity to tweak Tanzania’s future.

“There is a tide in the affairs of men, which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures,” Prof Kabudi quoted a section from Shakespeare’s famous play – Julius Caesar.

The metaphor in question – as translated by several literature scholars – means that there is a time in every man’s life when he can commit himself to a course of action that will lead to his success; but if he fails to take the opportunity when it presents itself, he will for sure be a failure for the rest of life.

According to Prof Kabudi, the writing was on the wall for the amendments, largely because they are simply a response to several committees that were formed by the government – at different phases - to investigate claims that Tanzania has not been getting its fair share of revenue from the mining sector.

“These amendments are based on findings of several committees that – on different occasions – which were formed with a view to study the reported malpractices of some mining firms in the country,” said Prof Kabudi. He said the committee found out – among others issues – that the Mineral Act, 2010 was quiet on identifying the right owner of Tanzania’s minerals.

“There were no procedures that clearly defined the participation of the government and Tanzanians in the mineral sector. There were serious shortfalls in the management of the Mineral Act. There were hopeless powers of the minister and of the commissioner for minerals in management of natural resources,” he said, outlining several shortfalls in the way the country has been managing its natural resources to warrant the approved amendments.

Other weaknesses include poor management of mineral concentrate export; tax evasion and avoidance; evasion of income tax through cheating of the actual price of products and services; mining companies’ cheating on operational services and poor collection of royalties.

Others include illegal repatriation of money accrued through mining operations; tax exemptions that are not beneficial to the nation; mining contracts that are not beneficial to Tanzania and weak management of mining areas.

As a result, said Prof Kabudi, the amendments will affect six laws including the Mining Act, Cap. 123; the Petroleum Act, Cap. 392; Income Tax Act, Cap. 332; the Valued Added Tax Act, Cap 148; the Insurance Act, Cap 394 and the Tax Administration Act, Cap. 438.

Goodbye TMAA

Among the notable changes in the Written Laws Miscellaneous Amendments) Act 2017 is the fact that Tanzania Mineral Audit Agency (TMAA) will now be dissolved.

The government will form a new body known as the Minerals Commission which will take over all responsibilities of TMAA. “Apparently, this means that TMAA will cease to exist,” said Prof Kabudi.

The Minerals Commission will have nine commissioners – three of whom – will be employed on full-time basis, who will cooperate with the chief executive officer in executing the commission’s day to day activities.

The other six commissioners, said Prof Kabudi, will be those holding the posts of permanent secretaries in ministries of Finance and Planning; President’s Office (Regional Administration and Local Government); Defence and National Service; Land, Housing and Human Settlements Development as well as the Deputy Attorney General.

Insurance Regulation

Amendments in the Written Laws Miscellaneous Amendments) Act 2017 are also amending the Insurance Act, Cap 394 with a view to empowering the Commissioner for Tanzania Insurance Regulatory Authority (Tira) to streamline the premiums charged by various indemnity (insurance) firms in the country with a view to setting the minimum and maximum charges.

“The aim is to do away with the current system whereby insurance agents charge premiums haphazardly,” he said.

The move, he said, will also empower local insurance firms in the sense that all products being imported into the country will have to be insured by a company that is registered locally.

Economic Freedom War

At least 15 Members of Parliament contributed to the Written Laws Miscellaneous Amendments) Bill, 2017 debate yesterday morning, with some saying Tanzania must prepare for the outcome of the changes.

“These are revolutionary measures. We only need to understand that we’re getting into crosshair of multinationals that may decide to pullout from our country and adversely affect our current account and the value of the Tanzanian shilling,” said Mr Hussein Bashe (Nzega Urban - CCM).

He said to counter such negative outcomes of ‘economic freedom fight’ the government must start investing in small scale miners.

“That way, we will keep exporting our gold despite any of the steps that these multinationals might take against our ‘economic freedom’ fight as shown in this law,” he argued.