Sogavare reveals all mining workers don’t pay PAYE, MOUs under review

Former Prime Minister and now Minister of Finance and Treasury Manasseh Sogavare has revealed all MOUs with mining companies that run into billions in tax free will be reviewed.

Sogavare exclusively told SBMOnline yesterday that Memorandum of Understanding (MOUs) with mining companies run into billions of dollars.

He explained that only the minister and commissioner of Inland Revenue have powers to allow exemptions and not MOUs.

“We will review all MOUs, they run into billions,” Sogavare said.

When asked to give example of one case of loss of money to the country, he revealed that all foreign workers engaged in mining companies do not pay PAYE (pay as you earn), which is an income tax for employees.

Further to that, Sogavare added all consultants that are engaged from outside by the mining companies are not paying non residence withholding tax.

There are currently mining operations in Guadalcanal, Isabel so as Rennell and Bellona.

This revelation adds some of the information he disclosed in parliament this week in the logging sector. He pointed that “we don’t know how many logs were exported from the country.”