Tonse demands answers on $3.5bn

Tonse demands answers on $3.5bn

 By Tony Nkhoma

THE Tonse Alliance has demanded an explanation from government on the US$3.5 billion illicit financial flows recorded between January and December 2024 largely coming from illegal mining in North-Western and Luapula provinces.

Alliance spokesperson Sean Tembo expressed worry that illegal mining in Zambia was now more pronounced representing more than half of legal mining in value terms.

Commenting on the 2024 Financial Intelligence Center (FIC) Trends Report, Tembo, who is also a chartered forensic auditor, questioned the source of the US$3.5 billion and how it was spent.

“This figure is extremely alarming due to its proportionate magnitude. To put it in context, the value of Zambia’s total copper exports in 2024 was only about US$6.7 billion representing about 820,000 metric tonnes, and our GDP [gross domestic product] for 2024 was only about US$29.4 billion,” he said.

Tembo said Zambians should be worried if law enforcement agencies could fail to detect illegal mining activities where over US$3.5 billion left the economy quietly.

“How then is it possible that a U$3.5 billion industry has managed to escape the detection of our law enforcement agencies?” he said.

Tembo said the United Party for National Development (UPND) had questionably shelved plans to incorporate a parastatal company called Zambia Gold Mining and Trading Company Limited which the Patriotic Front (PF) had decided to create in late 2020 to bout gold from informal artisanal miners.

“This company was intended to undertake gold mining at Kasenseli, as well as buy gold from small-scale artisanal miners in Mumbwa and other places across the country,” he said.

Tembo said the UPND had shelved the company and proceeded to deploy the Zambia National Service (ZNS) soldiers to guard Kasenseli Mine.

“It is a fact that some time in 2022, a number of ZNS officers guarding Kasenseli Gold Mine were accused of undertaking illegal mining at the site and the ZNS command did promise the nation that disciplinary action will be taken against the erring officers,” Tembo said.

He said no action had been taken against any erring officers.

“It is a fact that subsequently, the UPND government decided to deploy ZNS officers to guard the various sugilite mines in Luapula which it promised to commercialise,” Tembo said.

He wondered that the sugilitte mine had not been commercialised in Luapula Province.

He said the FIC 2024 Trends Report on illicit financial flows had citeed Luapula and North-Western provinces where gold and sugilitte mines had been shelved and were being guarded by the ZNS.