Mining Sector: $500million stolen in 2024 alone

Mining Sector: $500million stolen in 2024 alone

US Ambassador to Zambia Michael C. Gonzales expressed concerns about corruption in Zambia’s mining sector during the Transparency International Zambia 2024 Anti-Corruption Conference. Gonzales emphasized the need for transparency and accountability, citing an estimated $500 million lost to illicit financial flows in the mining sector during the first nine months of 2024.

Gonzales highlighted two contrasting examples of mining companies operating in Zambia. The first company prioritizes short-term gains, engages in corrupt practices, and exploits local laborers and the environment. In contrast, the second company operates with transparency and accountability, prioritizes local beneficiation, and invests in neighboring communities.

To address corruption, Gonzales recommended several steps, including:

– *Increasing transparency in licensing*: Publishing issued licenses online and eliminating opportunities for human intervention in processes.
– *Strengthening law enforcement agencies*: Properly resourcing agencies to combat illicit financial flows and capture revenue for public services.
– *Improving beneficial ownership transparency*: Producing public information on company ownership to reduce conflicts of interest and improve public procurements.
– *Empowering accountability institutions*: Implementing legislative and regulatory reforms to allow institutions to function independently.
– *Promoting a free and independent press*: Allowing journalists to report freely without fear of harassment or intimidation.

Gonzales emphasized that corruption hampers economic progress, robs governments of resources, and undermines development. He encouraged Zambians to demand concrete action from their institutions and leaders to root out corruption and ensure transparency and accountability.