Tovosia grilled over 33 shipments of bauxite export worth $288m

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The government was today unable to provide any records on how much in taxes, royalties and duties a former mining company on Rennell had paid to the state, the province after 33 shipments of bauxite worth $288m between 2017 and 2018.

Minister of Mines and Deputy Prime Minister Bradley Tovosia was grilled by the Opposition and Independent MPs’ following his response to a question on the issue raised by the Leader of Opposition, Matthew Wale.

His responses angered Wale who even called on the Prime Minister to sack his deputy who is also the minister of mines.

One of the issues of debate was the taxes derived from the $288m and how much of the royalties had been paid to the landowners. The mining was undertaken by APID, which the minister said were had no longer mining on the island.

Tovosia detailed each of the shipments and the dates which they were sent to China. He confirmed 33 shipments worth $288m with a total value of $8.6m in royalties.

The minister stated that he’s committed to pursuing the outstanding in taxes, royalties and duties—though admitting that the person behind the company, APID, had already died.

Minister of Finance and former PM, Manasseh Sogavare in response to the questions on taxes and royalty said: “I am just keen as the leader of opposition to know what duties and taxes are outstanding from the shipments.”

He told Parliament that by the time he was heading for the meeting today he was yet to be informed of duties and taxes outstanding from the shipments.

“I am directing a full report from IRD and Customs to come me,” said the minister.

He said usually issues like this when tax payers are at default it triggers the need for a tax investigation.

“But it looked as though it had not happened, I am just keen as the leader of opposition to know what duties and taxes are outstanding from the shipments. I am requesting that from IRD and others and as soon as I get that and if we need to get a statement in a floor of parliament, we will do that,” said Sogavare.

However, the former PM also acknowledged that the unpaid shipments by APID are now unlikely to be paid.