Moemi Moehti gold miners which failed to pay gold dues to the government were poorly managed by the Ministry of Natural Resources and Environmental Conservation, according to a report by the Government’s Guarantees, Pledges and Undertaking Vetting Committee submitted during an Amyotha Hluttaw meeting on March 29.

“There were some weaknesses on the ministry’s part when the contracts were made with the miners and also many delays when submissions were made by the miners to pay gold to the government,” U Thein Swe, committee chair and Amyotha Hluttaw MP from Ayeyarwaddy Region, told The Myanmar Times at the end of the meeting.

Three mining companies – National Prosperity, Shwe Moe Yan [Golden Sky] and R Sha Kabamyay [Asia Global] – are due to pay a total of 5.5 tonnes of gold to the government in exchange for conducting their mining activities in Moemi Moehti.

However, as gold production at the mines was not able to reach the expected amount, only 330 viss has been paid back so far. As such, the Ministry of Natural Resources and Environmental Conservation sent warning letters to the companies on November 7, 2017 and suspended gold production at those mines the day after.

“We have suspended them now. After that, the contracts will be terminated. Things will be processed step by step. But, this is going to take some time. During this period, the country stands to lose out from gold owed. I don’t want that to happen,” said the committee chair.

Still, only the government has the authority to take action against the errant mines. “Action should be carried out swiftly. We have notified the union government to conduct things quickly,” U Thein Swe said.

Source: https://www.mmtimes.com/news/budget-deficit-could-have-been-narrower-if-gold-debts-were-paid.html