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Article

16 Oct 2014

Author:
Craig McKune, Mail & Guardian (So. Africa)

So. Africa: Questions Lonmin must answer

'Questions Lonmin must answer', 16 Oct 2014: Could Lonmin have afforded to pay the wages the Marikana mineworkers demanded...before 34 of them were gunned down by police?...]A]t the Farlam commission...the company’s former operations chief Mahomed Seedat...disclose[d] how Lonmin... channeled hundreds of millions of rands to a subsidiary in tax-free Bermuda, and more millions...to the British parent company...Lonmin did not respond to this allegation...but it issued a statement...the latest in a series...[by means of] which the company has tried to contain the fallout, but [it] has left key questions unanswered. Part of its problem is that the conversation takes place in the midst of a global pushback against aggressive (though not always unlawful) corporate tax avoidance and transfer pricing...Judge Dennis Davis, who... chair[s] a tax review committee to study tax avoidance and other issues...[said]... “Significant billions” were flowing from South Africa in this way...[Also refers to Shanduka]

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