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Gemfields said the Zambia Revenue Authority served two warrants on Kagem Mining Limited and Limpopo Polygraphs, allowing it to seize documents and files. Pictured here is the Kagem mining site.
London—Gemfields reported that the Zambia Revenue Authority has launched an investigation into alleged tax evasion at its Kagem emerald mine.
The colored stone miner said the governmental body served two search warrants during an unannounced visit to Kagem Mining Limited on Thursday.
The authority issued the warrants on Kagem Mining Limited and Limpopo Polygraphs, a South African company that conducts periodic polygraph testing at the site and currently has a representative there.
Revenue authorities have seized a range of documents and files, including those allegedly “used by Kagem Mine Ltd/Limpopo Polygraphs CC to evade the payment of Value Added Tax, income tax, with-holding tax and other taxes.”
Gemfields said it will provide updates as more information becomes available.
The company holds a 75 percent stake in the Kagem emerald mine.
This news is the latest in a number of problems for the colored gemstone miner this year.
In late June, a large mob overran Gemfields’ emerald exploration site in Ethiopia. A month later, members of that same mob looted the site and stole emeralds from the safe in the sort house.
Earlier this year, a group of Mozambicans hit the colored stone company with a lawsuit regarding alleged human rights abuses at the Montepuez ruby mine, a case that is still making its way through the London court system.
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