Gold miners ordered to pay rates in forex
BUBI Rural District Council (RDC) is now demanding that mining companies operating in the gold rich area pay 55 percent of their rates in foreign currency as they partially earn forex.
The council says the new development is in line with Government’s Monetary Policy which stated that mining companies would receive 55 percent of their revenues in foreign currency with 45 percent in RTGS dollars.
Bubi RDC chief executive officer Mr Patson Mlilo said the local authority held a full council meeting last Wednesday, which resolved that mining companies should partially pay in forex to council.
Mr Mlilo said partial payment of bills in foreign currency would help improve service delivery in the district.
“For instance, if a motorised grader develops a mechanical fault, it takes very long to fix it. So if you have foreign currency in your bank account, it makes it easy to procure parts. Even in purchasing fuel, we have been using coupons but each time you get to a service station they might tell you that there is no fuel but when you have forex it is easily accessible and does not stall service delivery,” he said.
Mr Mlilo said the council would hold a meeting with the involved companies next week to update them about the new developments.
In the Wednesday full council meeting, Mr Mlilo said the council officials had proposed a 50 percent debt clearance incentive for individuals who pay their bills within a stipulated period.
“However, the councillors proposed that they first consult the community on how this should be implemented.
“So, we will make the final decision after the councillors have concluded their community consultation meetings on the said subject,” he said._The Chronicle