Malawi Demands $309bn from Gemstone Firm Amid Tax Disputes

Malawi’s government is demanding $309bn from US-based Columbia Gem House over unpaid taxes and royalties related to ruby exports spanning the last decade. Attorney General Thabo Chakaka Nyirenda alleges the company under-reported export values and withheld payments. Columbia Gem House denies the accusations, calling the claim “baseless and defamatory,” and asserts that Malawi has not produced such vast quantities of gemstones.

The dispute extends to other multinationals, including $4bn sought from French energy giant TotalEnergies over an oil storage deal and $9.5m from Turkish tobacco firm Star Agritech for unpaid transactions. TotalEnergies declined to comment, while Star Agritech refuted the claims, citing issues with the quality of the purchased tobacco.

These demands come as Malawi grapples with severe financial challenges, including a $1.2bn national debt and reliance on a $174m bailout from the International Monetary Fund. Economist Wisdom Mgomezulu suggests that the government’s aggressive pursuit of revenue reflects its dire financial situation, but the sums involved far exceed the country’s $14bn GDP.

Mining contributes only 1% to Malawi’s economy, but the government aims to expand its role. Nyirenda insists the claims are based on evidence, including data from Columbia Gem House itself. The disputes highlight a broader trend across Africa, with countries like Mali also pursuing unpaid taxes from multinationals, underscoring the growing tension between resource-rich nations and foreign corporations.

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