A non-disclosed alleged gemstone operation has been unearthed at Tubombeshe Mining Limited premises in Lufwanyama district on the Copperbelt.
It is alleged that the operation involved the unearthing of illegal mining of gemstone production and suspected illegal auctions by the mining firm.
And in a related search operation at Good Time steel, a company affiliated with Tubombeshe Mining Limited, the Zambia Revenue Authority discovered USD$250, 000 cash and K2.5million.
ZRA Corporate Communications Manager Oliver Nzala said the authority initiated a search operation at Tubombeshe Mining Limited’s premises, based on compelling allegations of non-disclosed gemstone operations and potential tax evasion.
He said the operation’s primary goal was to gather evidence related to the alleged non-disclosure of gemstone production and suspected illegal auctions by Tubombeshe Mining Limited.
“The ZRA investigative team, in collaboration with various stakeholders, conducted a comprehensive search to secure pertinent documentation and evidence.The search yielded significant discoveries, pointing towards inconsistencies in the reported production and actual gemstone operations,” he said
Mr Nzala disclosed that Initial findings indicate the possibility of active gemstone extraction not accurately declared to the ZRA, contrary to the company’s filings of nominal or zero returns.
He said the collected evidence includes financial records, production logs, auction documentation, undercover operation reports, correspondence, and witness statements.
“These findings strongly suggest potential non-compliance with tax regulations and unauthorized gemstone auctions.The ZRA is now engaged in further investigation and analysis of the evidence obtained during the search,” he said.
He further noted that the findings will be meticulously assessed to determine the extent of non-compliance and to consider potential legal actions in line with tax regulations and business practices.
And in a related search operation at Good Time steel, a company affiliated with the mining firm, He said it was discovered that USD$250, 000 cash and K2.5million cash which has been seized and will be handed over to the Drug Enforcement Commission, (DEC).
He added that to improve efficiency and compliance in the mineral value chain, the authority working with the Ministry of Mines and Minerals Development, has developed a Gemstone Production Reporting and Export Permit Module which provides for online reporting of minerals.
Mr Nzala further added that the module also provides for online processing of export permits for the Gemstone industry in Zambia.
(Mwebantu, Tuesday, 14th November, 2023)
