The assertion that the Malawi government had granted Paladin Africa Limited a subsidiary of Paladin Resources Inc. a sixteen (16) year tax exemption is deplorable and in bad taste to every concerned Malawian.
It is further disheartening to note that Malawians from various sectors and all walks of life do contribute annually millions of Kwachas in form of taxes to support the government. But how much more disappointing can it be to hear that a foreign investor (Paladin Africa Limited) is discussing to be exempted from paying taxes for a period of sixteen years yet the mining life span is ten years. Who sanctions such exemptions and what is the criteria for qualification? Do such favours need involvement and approval of the National Assembly let alone the licensing? We wonder how Malawians would benefit from such a venture.
We are well aware that Paladin Africa Limited will definately rake billions of dollars considering that the world market prices on uranium are currently very high, but how about Malawi and its people benefit? We wish to remind our government that taxes need to be paid for investment in the much needed social programs such as health, education, infrastructure, agriculture and the list is endless. Whereas a large chunk of the national budget is donor funded, how then, does the government afford to grant tax exemption for such a long period of time and at the same time continue to solicit for donor funding?
Once again, we wish to assure the government and all Malawians that from the outset, we are not opposed to the development of the mining project at Kayelekera but we advocating for moral, ethical and social responsibility to be upheld.
We would also like to remind Malawians that Uranium mining and milling is a dangerous and risky polluting process that threatens the health of workers, communities, and the environment. Uranium mining process also creates large amounts of long-lasting radioactive waste products known as tailings. The tailings contain 80% of the radioactivity of the original uranium ore, which are difficult to control and isolate, and they pose a direct threat to humans and the wider environment for thousands of years and this will affect countless Malawians and not just people surrounding the mine.
Once again, we bring to the attention of the public that studies conducted in Kayelekera area by a German Institution have shown that uranium from the mine site has been able to move to the North Rukuru River, which drains, into Lake Malawi. This being the case, many Malawians ought to be more apprehensive about the legacy of our beautiful fresh water lake and its natural habitat.
We further bring to the attention of the public that uranium mining is banned in Western Australia the base of Paladin Resources Incorporated. According to the Managing Director of the company Mr. John Borshoff as quoted in an Australian daily (Melbourne Herald Sun) on 3rd April 2006 “there has been an over compensation in terms of thinking about environmental and social issues” in regard to uranium mining operations in Australia, forcing companies like Paladin into Africa.
If this is the case then Malawians should be querying if at all issues of “weak governance zones” or less advocacy on environmental and social policies are at stake here.
The environmental degradation and other social concerns cannot and will not be traded for anything tangible. If Malawians are taking the risk of accepting a project that will be detrimental to their own safety without any benefits then what use would be the sacrifice? Probably the only way Malawians may benefit from such a hazardous venture is by government taxing the multinational company. As much as this is not a trade off, money cannot compensate loss of life nor environmental degradation, but tax might be an incentive for the sacrifice Malawians are making.
We may want to believe that the dealings between the Malawi government and Paladin are openhanded, but we question the sensation of certainty that the company will be granted the full mining license to start its operation. We are troubled that this sensation may propagate a feeling of sloppiness in the legal procedures that the company is mandated to undertake before it can start its mining operation. This (sensation) should have been avoided as the company is still in the process of conducting an Environmental Impact Assessment (EIA) and the Bankable Feasibility Study (BFS), which are needed to apply for a full mining license.
We wish to implore the government to act as the guardian of protecting the interest of Malawians as President Bingu Wa Mutharika said in his Banjul, Gambia speech titled “ One Africa One Destiny“ that “These God given endowments are not in the hands of Africans but controlled by the north through their transnational corporations” he further said “Globalization and the strong cord between rich countries and multinationals has forced Africa into the fringes of the economic pie of the global village, it cannot control its own destiny.” Finally, he said, “now that Africa is free from colonialism, the next step is to attain economic liberation of our continent.” Yes, as the President rightly stated, Malawi needs to guard against exploitation of our natural resources by multinational corporations.
Finally yet importantly as concerned Malawians, we appeal to the government to let all the legal procedures involved in such investment ventures capture the due process. Discussions of tax breaks at a time that Paladin is conducting Environmental Impact Assessment that will allow it to apply for a full mining license are not healthy for a stringent project of the caliber of Kayelekera. This is a rush that all concerned Malawians ought to be worried about.
Lastly, we remind all that Paladin is here for business and not charity, therefore our natural resources are precious and not meant for charity.
Signed by:
Centre for Human Rights and Rehabilitation - (CHRR)
Citizens for Justice - (CFJ)
Karonga Development Trust - (KADET)
Foundation for Community Support Services - (FOCUS)
Uraha Foundation Malawi - (UFM)
