The
company has failed to pay royalties for 2012 and 2013 after exporting over
Gh130million worth of gold in the two years.
The
default in payment is contained in the Ghana Extractive Industries Transparency
Initiative (GHEITI) Report for 2012 and 2013.
“Whatever
the excuse, it’s something that is due the State and they have to pay,” said
Kwadwo Asafo-Aidoo of Boas & Associates, which prepared the GHEITI Report.
Prestea
Sankofa is essentially a Ghanaian gold mining company with the Ghana National
Petroleum Corporation (GNPC) holding majority shares.
The
company produced 21,237 ounces of gold in 2012 at total revenue of $36,012,936
and an additional 22,853 ounces at revenue of $31,760,747 was recorded in 2013.
According
to the GHEITI report, the company paid over Gh1.5million to the GRA over the
period, but the amount covered outstanding royalty payments for 2011.
Liquidity
and production challenges are some factors attributed to the company’s failure to
honour the obligation.
But
Mr. Asafo-Aidoo says the appropriate legal penalties should be meted out to the
company.
“If
these people have waited for two years without any payment of royalty, then you
can imagine the quantum of liability… the GRA is at the moment taking up that
issue with them and I believe that in the shortest possible time they should
come up with that payment,” he stated.
The
GHEITI Report has requested the GRA to investigate and reconcile the revenue to
royalty payment and to recover the probable difference due the state.
The
Report has also recommended regularization of royalty payment frequency in
split quarterly payments to ensure standardization and adherence to procedures
for royalty payments to promote compliance.
The
Report noted that corporate tax has exceeded mineral royalty for three
continuous years. “This may require further investigation and actions to ensure
the sustainability of mining revenues,” it concluded.
Story by Kofi Adu Domfeh
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