STRAIGHT TALK : Outcomes from govt, Barrick negotiations

This was certainly Barrick and Acacia week in Tanzania.

The media, especially social media, reported that the government of Tanzania had negotiations with a Canadian company, Barrick, on the fate of cooper concentrate impounded at Dar es Salaam Port.

Government action led to stiff resistance both from Barrick, but also the operating company, Acacia. They defended themselves that the cooper concentrate was being exported legally to Japan, where a final smelting stage was going to be conducted. They said it was within the agreement with the government, but it was not the understanding of President John Magufuli’s government, which said it was not acceptable and it was economic sabotage. While negotiations were just beginning the Tanzania Revenue Authority (TRA) announced a huge backlog of taxes due to be paid by Acacia only to be understood that the latter was not registered by Brella to operate in the country.

The government quickly formed a probe commission and came out with findings that led to full negotiations with Barrick and the two parties locked horns for 80 days until President Magufuli came out to declare victory and from this declaration, a lot has been said.

From the target of $490 trillion Tanzania was gunning to have been duped, the government has accepted $190 million in what was said to be of good will. There was also a list of other things said, like Tanzania has pushed her ownership in the business to 16 per cent, and that it would accrue 50 per cent in dividend.

That was a bombshell that some believe was too soon to be revealed, but also not better presented because the information was very scant to Tanzanians, who blessed the government for passing two pieces of legislation protecting the ownership of national resources.

The issue on how Tanzania would accept only 0.0005 per cent of the total claim was made trivial and did not receive proper explanation and people were only made to believe that the settle off amount of $190 million was good for the country and soon politics was into the very heart of the matter. Before even the dust had settled, Acacia, which is an independent firm listed on the London Stock Exchange, announced that it had not money to pay the agreed amount between Barrick and the Tanzania government.

Experts in this field are saying, the government should have known about that because in 1996 Acacia agreed the same thing on tax payment, but backed out. Similar things were also promised in Bolivia, Ecuador and other places.

So, while many of us were sceptical, but gave the government the benefit of doubt, we are again question the modus operandi. Do we have requisite expertise to deal with these multinationals, which are giants in their field of operation? Was this the best deal that the country would get, when initial presentation does not tend to look so? Was the handling of the information correctly done? Was there a need to release the information right now? Have we learn anything? Was there and has there been the need for our President to speak on the matter, or many others, which could only be handled by his ministers lest he is tainted and contradicted?

The author is a lawyer, journalist, author, political commentator, media consultant and poet. He is also legislator for Malindi in Zanzibar.