Friday, November 3, 2017

...Analysts link move to Acacia’s stance over Govt, Barrick deal

BERNARD LUGONGO
SOME academicians and ordinary citizens yesterday termed the resignation of two Acacia mining company bosses as ‘diplomatic decision’ --linking the move to a recent stand-off over an agreement reached between the government and Barrick Gold Corporation.

Those who resigned are Chief Executive Officer, Brad Gordon and Chief Financial Officer, Andrew Wray.
Their resignation comes just two weeks after the government and Barrick, Acacia’s major shareholder, ironed out issues that emerged out of the copper concentrates saga, among other agreements were that Barrick will pay Tanzania 300 million US dollars as a gesture of good faith.
Under the agreement, the Barrick agreed to give the government 16 per cent stake in three of its mines and share economic benefits under 50-50 arrangement.
Acacia seemed to be unhappy with the decision, with Mr Wray reported saying the company had received no proposal for approval, but it did not have the ability to pay the money, and the agreement must be approved by Acacia’s board and shareholders.
Reacting to resignation of the two, University of Dar es Salaam lecturer Dr Benson Bana opinioned that there was something behind their move and that was to do with being accountable over what happened.
“What they did is a wise decision and from my experience this is normal in commercial companies. Their resignation has positive correlation with what was happening; I remem ber one of them even declared that they didn’t have the capacity to pay Tanzania such agreed amount,” Dr Bana said.
And, their statements went in contrary with the decision reached by the major shareholder and the government. “It was clear that all what happened in the copper concentrates saga was under their management… and their resignation will result into restoration of good image of Acacia,” he said.
Another academician from the UDSM, Prof Haji Semboja, commented that though he would not directly connect the decision to gold concentrates saga, he argued that it was normal for white men to step down as a sign of being accountable when they see that something happened and they did not have control over it.
“In this mineral saga, Tanzania was not dealing with a person but rather the system, therefore their resignation will not affect anything,” he said.
Mr David Bufule, an ordinary citizen, said he could see promising future on agreement reached between Barrick and the government after the resignation of the two, whom he believed were setbacks to the implementation of the agreements.
In line with this, Mr Bufule was also optimistic over the formation of a new company to operate under 50-50 partnership with the government.

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