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Government Criticized for Failure to Collect Gold Export Revenue
Members of Parliament (MPs) on the Public Accounts Committee (Central Government) expressed serious concerns regarding the Ministry of Energy’s failure to collect taxes totaling sh47,281,373,934.95 from seven gold export companies over the past three years in a tense session at the Parliament committee room. The atmosphere was charged with frustration as lawmakers grilled ministry officials, demanding explanations for the failure to collect revenue from these companies.
The issue of unpaid taxes by gold exporters came to light through the auditor general’s report for the year ended June 30, 2023. Muwanga Kivumbi, the chairperson of the PAC-Central Government, did not mince words in blaming the ministry for what he described as negligence. He emphasized the seriousness of the matter and questioned the ministry’s inaction, stating that the failure to collect these taxes was unacceptable.
During the committee’s interface with the ministry, concerns were raised about the Uganda Revenue Authority’s (URA) plans to close some debtor’s accounts despite the outstanding tax arrears. Permanent Secretary of the Ministry of Energy and Mineral Development, Irene Batebe, admitted that efforts to collect the owed taxes had been unsuccessful and revealed that the matter had been escalated to the Prime Minister for mediation.
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The auditor general’s report highlighted the implications of the failure to recover the gold taxes, emphasizing that it deprives the government of essential funds needed to deliver services to citizens. Lawmakers expressed frustration at the ministry’s apparent inability to enforce tax laws and ensure compliance among gold exporters, especially considering the significant contribution of gold exports to Uganda’s revenue.
During the committee’s previous interface with the ministry, concerns were raised by MPs about the lack of progress in collecting taxes from gold exporters. Paul Omara, Otuke County MP, questioned the ministry’s effectiveness in handling the issue, highlighting the discrepancy between the potential revenue from gold exports and the actual tax collection. He called for accountability and demanded to know if URA had taken action to garnish the companies’ accounts.
In response to the committee’s demands, the ministry provided a list of the directors of the seven gold export companies.
The table below summarizes the volume of gold exported, total tax arrears, amount paid, and outstanding balance for each company:
| Exporter | Volume (Kgs) | Total Tax Arrears | Amount Paid | Outstanding Balance | Remarks |
|---|---|---|---|---|---|
| Aurnish Trading Ltd | 8,075.10 | Sh5,887,888,637.42 | Sh0 | Sh5,887,888,637.42 | Not responded |
| Bullion Refinery Ltd | 23,664.25 | Sh17,213,849,270.97 | Sh0 | Sh17,213,849,270.97 | Not responded |
| Metal Testing & Smelting Ltd | 17,880.49 | Sh12,950,762,600.76 | Sh0 | Sh12,950,762,600.76 | Not responded |
| Simba Gold Refinery Ltd | 3,685.96 | Sh2,633,131,908.30 | Sh979,810,695 | Sh1,653,321,213.30 | Paid two instalments of sh428,703,624 in March 2023 and sh551,107,071 on January 29, 2024. |
| Thaba Investments Ltd | 9,338 | Sh6,834,984,034.00 | Sh1,139,164,005 | Sh5,695,820,029.00 | Paid one installment of sh1,139,164,005 on January 30, 2024, and entered MoU with the ministry to pay the balance in 5 instalments. |
| Faru Trading Uganda Ltd | 70.31 | Sh52,460,839.90 | Sh52,460,840 | Sh0 | |
| Africa Gold Refinery (AGR) | 2,421.32 | Sh1,708,296,643.60 | Sh0 | Sh1,708,296,643.60 | Not responded |
| TOTAL | 652,135.43 | Sh47,281,373,934.95 | Sh2,171,435,540.00 | Sh45,109,938,394.95 |
The failure to collect these taxes not only affects the government’s revenue but also undermines its ability to provide essential services to citizens. Lawmakers emphasized the need for accountability and urged the ministry to take decisive action to recover the outstanding tax arrears from gold exporters.
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