No end to Acacia woes as CEO is remanded

Dar es Salaam. Acacia Mining was thrown deeper into turmoil on Tuesday October 23 when its managing director for Tanzania, Mr Asa Mwaipopo, was remanded after denying criminal charges involving billions of shillings.

Mr Mwaipopo, who was earlier this year promoted to occupy the newly created position, was arraigned at the Kisutu Resident Magistrate’s court on nine counts that included money laundering, tax evasion, forgery and conspiracy and abetting crime.

He joined in remand former Acacia vice president of corporate affairs Deo Mwanyika and government liaison officer Alex Lugendo, who face 39 criminal charges. Mr Mwanyika and Mr Lugendo were last week jointly accused of making illegal transactions ranging from $1.5 million to $752 million per payment between April 2008 and July 2018. The charges claim that in one transaction, $719 million was transferred into the account of a government official.

Earlier this month, a South African expatriate working with North Mara Gold Mine was charged with corruption in a Tarime court and released on bail pending hearing of a Sh18 billion case against him and four other individuals.

The remanding of Mr Mwaipopo means Acacia will remain without a chief executive until a replacement is announced by the company’s headquarters in London. Mr Mwanyika initially doubled as its senior-most leader in the country before his retirement was announced in July. Acacia’s four affiliated mines, namely Pangea Minerals, North Mara, Exploration Du Nord LTEE and Bulyanhulu Goldmine, were charged as entities in the same jcase.

Acacia’s London office immediately reacted to yesterday’s arraignment of Mr Mwaipopo, saying it was deeply concerned about the increasing risks to the safety and security of its workers, given the criminal charges being brought against them by the government.

“The Company believes that these recent actions represent a significant escalation of governmental pressure, as the Company’s 19 month dispute with the government remains unresolved,” the firm said in a statement posted on its website. It expressed frustration that the discussions between Barrick and the government have not yet been concluded.

Acacia was locked out of the talks over the disagreement following a ban on the export of gold concentrate by the miner.

The company last week said it would push for dialogue with the government over the latest moves against its operations or seek to enforcement its investment treaty for protection. However not such approach has been made yet to authorities, the company noted in its statement.

Yesterday, Mr Mwaipopo was brought before Resident Magistrate Huruma Shaidi and denied all charges.

It was alleged that between April and June, he conspired with other officials in Dar es Salaam, Tarime, Kahama and Biharamulo as well in Johannesburg, Canada and Barbados to forge documents and evade taxes.

They are also accused of entering into a contract with Barrick International Bank PLC, while knowing that it was against the law.

The prosecution led by Faraja Nchimbi alleged that on diverse dates in the said months, Mr Mwaipopo conspired to evade tax on a transaction of $90 million and $9.34 million and also failed to declare a tax payment of $840,000 to Tanzania Revenue Authority.

Defence lawyer Agustino Mwanyika asked that the investigation into the case be expedited so that hearing could start as soon as possible. The case will come up for another mention on October 31.