Press Release: Lonmin is hoodwinking the Marikana Commission of Inquiry and the South African Public: SARS must investigate the conglomerate’s finacial affairs
The AIDC wishes to express its grave misgivings at the response of British mining company, Lonmin, to concens raised regarding its role in transfer pricing and shifting its profits out of South Africa to its subsidiaries in various tax havens.
It is also shocking that the third biggest platinum producer in the world has not paid one cent in taxes in the UK where it is headquartered between 2000 and 2013!
In spite of its claims that the wage demands of its workers during one of the longest and most damaging of strikes was unaffordable, Lonmin through its South African operations was able to transfer R1,5 billion in so called "sales commissions" from its South African operations 2007-2102 to Western Metal Sales Ltd in Bermuda. Western Metal Sales in wholly owned by Lonmin.
In addition, a further R1,4 billion was transferred from its South African operations to its head office branch in SA, Lonmin Management Services (LMS) in "management fees.
In spite of denials and attempts to rewrite history it is a fact confirmed in audited financial statements that between R181- R334 million has been transferred annually to Bermuda, except for one year (2011) when instead Lonmin's SA branch LMS allegedly received a R280 million "commission".
In response to denials made by Lonmin's chief finacial officer and the testimony of Lonmin's former chief operating officer Mahomed Ismail Seedat at the Marikana Commission of Inquiry, AIDC will hold a press conference in which we will provide further information of how Lonmin has avoided its social responsibility by shifting profits out of SA at the expense of wages for their workers, dividends to minority shareholders in subsidiaries and tax revenue to SARS.
The press conference will be held on Wednesday 8 October at the Devonshire Hotel in Braamfontein, Johhannesburg, at 11.00. All media is invited to attend. A full report on Lonmin's Bermuda connection will be made available that contradicts the statements of Lonmin's present and former executives.
For further information:
Brian Ashley (+27 820857088), Director at AIDC.
Dick Forslund (+ 27 828 957 947), senior economist at AIDC.