Good afternoon. President Daniel Chapo has promised to reduce waste and corruption in government, but when will it be possible to measure his success? One test has arisen in the form of the taxation of mining licences (see below). Mining licence holders are liable to pay a “surface tax”, even if they are not using it, but in practice, there are a great many plots of idle land covered by mining licences where the tax, although minor, is not being paid.
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These plots are commonly held by so-called veterans of ruling party Frelimo. Despite enjoying the title of veteran, many of them did not actually fight in the war of independence. They have been given gifts of mining licences on account of their position in Frelimo, but being unqualified to run a mine, they sit on the licences waiting for a mining company to offer to buy it off them. Previous governments have tried to take action over these licences, but have failed.
