AUTHORITIES in Kahama District, Shinyanga Region, have unveiled measures to curb mineral smuggling in collaboration with the Mineral Commission.
Among the outlined measures include meetings with mining stakeholders to identify the causes of rampant smuggling, particularly in mining sites and mineral markets.
District Commissioner Mboni Mhita revealed these strategies recently, following reports that the area leads the country in mineral smuggling, which primarily perpetrated by small-scale miners, depriving the government of revenue and facilitating significant illegal financial activities.
DC Mboni stated that discussions with stakeholders raised several concerns, including excessive levies imposed by local councils and a shortage of operational mineral markets, as some, like Segese, have closed, leaving only the Kahama Municipal market active.
"We’ve received these concerns and are in the process of addressing them. In our efforts to control smuggling, we’ve also strengthened security at Kahama airport, gold mining sites, and mineral markets, placing our personnel in key areas," said Mboni.
Ongoing operations aim to apprehend individuals involved in mineral smuggling, with those caught facing severe legal repercussions, including license revocation. As a result, three miners at Mwime Mine and three traders in the Kahama mineral market have had their licenses suspended due to their involvement in smuggling.
Mboni reported a significant increase in revenue collection, with July alone yielding 11bn/-, up from 9bn/-.
Winfrida Mrema, Mining Officer for the Kahama Mining Region, noted that mineral smuggling has caused the government to lose revenue and allowed individuals to earn illicit money.
She stated that operations to apprehend those involved in smuggling are ongoing, resulting in multiple arrests, including a Mining Officer implicated in these activities, who has since been dismissed.
"Mineral smuggling is a major issue that prevents the government from collecting necessary revenue. In 2023, we were tasked with collecting 29.75bn/-, but only managed 24.9bn/-," Winfrida explained. For 2024, they are expected to collect 34.6bn/-, having already gathered 32.12bn/- by September, equivalent to 92.63%. This trend reflects the success of their anti-smuggling efforts.
Dotto Maligisa, the Shinyanga Region investment coordinator, pointed out that the small size of the mineral market contributes to the smuggling issue, leaving traders feeling insecure.
Zabroni Ngereja, chairman of the Kahama Mining Market, stated they have reduced smuggling by 99%. He emphasized that any trader found involved in smuggling, whether within the market or in mining areas, will be removed from business to protect the market's reputation.
"Currently, smuggling is concentrated in small mining areas such as Nyangarata, Nyikoboko, Nyamishiga, and Masabi. The government needs to invest significantly in these areas," Ngereja added.
Joseph Masunga, a small-scale miner from Mwime Mines, noted that smuggling is driven by market scarcity and high levies. Trader Mpanzu Nswila remarked that smuggling results in lost national revenue and prevents the country from benefiting from its resources.
Shinyanga Regional Police Commander Janeth Magomi reported numerous arrests related to mineral smuggling. Recently, six individuals were apprehended for attempting to smuggle gold weighing 930.88 grams, valued at 93m/-.
Preliminary investigations revealed they intended to smuggle the minerals out of the country to evade taxes and government levies.
"This problem of mineral smuggling is prevalent in Kahama District. As the police force, we are conducting various operations to apprehend those involved and bring them to justice," Magomi stated.
Shinyanga Regional Commissioner, Anamringi Macha emphasized the commitment to controlling mineral smuggling, stating: “We have identified several areas where this illegal trade occurs, including rice milling factories.”
Macha highlighted the embarrassment of mineral smuggling occurring within rice mills, where middlemen exploit ongoing milling operations for illegal trade. He warned that those facilitating this illegal activity in rice mills will face severe legal consequences.
While the Kahama Mining Region excels in mineral production, RC Macha noted the overwhelming market challenge and urged for strategies to expand the market size, helping to control smuggling and ensuring proper sales in legitimate markets.
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