Development And Management Of Mechanisms For Collection Of Revenue In Mining Sector – CAG Report

The mining sector constitutes more than 50 percent of the total exports in the country. The contribution of the mining sector to Gross Domestic Product (GDP) increased from 5.2% in the year 2019 to 6.7% in the year 2020. However, setting the projection of the targeted contribution of 10% to the GDP in the year 2025 makes it imperative to ensure proper management of mechanisms for revenue collection.

Effective management of the mechanisms for revenue collection in the mining sector is of vital importance to assure the contribution of the sector in economic growth. Therefore, the achievement of the set targets can be realized through effective and well-organized management in the overall chain of the activities involved in revenue collection in the mining sector.

The main objective of the audit was to assess whether the Mining Commission has put in place adequate control measures in the management of revenue collection from the mining activities to accelerate the country‟s socio-economic development through sustainable development and utilization of mineral resources. In particular, the audit focused on non-taxable incomes namely; Royalties, Clearance and Inspection Fees, and other charges, since they both contribute to the overall revenues collected by the Mining Commission. The audit covered a period of three financial years (July 2018/19 to June 2020/21).

The adopted methodologies for audit data collection were mainly interviews and document reviews conducted at the Mining Commission Headquarters and in the visited mineral regions.