Billions in Mining Royalties Intended for the Poor Squandered, Stolen or Diverted
That’s the conclusion of Mmashudu Masutha and Deborah Mutemwa-Tumbo, authors of Corruption Watch’s Mining Royalties Research Report 2018, which examined communities in Limpopo and North West provinces and found that the payment of royalties to affected communities was mired in “greed, competition for a finite financial resource, deliberate exploitation, mismanagement of funds and resources, poor administrative oversight and a lack of will, accountability and commitment on various levels to repair and transform the pay-out of mining royalties.”
One of the aims of the Mineral and Petroleum Resources Development Act (MPRDA), which came into effect in 2004, was to uplift poor communities whose land was being used for mining. The Act makes provision for lease agreements between mines and mining communities, who are to receive royalties for these leases.
The MPRDA recognises two forms of royalties: “state royalties” payable by mines to the government, and “contractual royalties” payable by mining companies to the owners of the land.
Source: private contributor to Daily Maverick