22 March, 2010The trade union at the Mining Company Los Quenuales filed a criminal complaint for tax evasion against the mining company, which is a subsidiary of the multinational Glencore.
PERU: The Sindicato de Trabajadores Mineros Metalúrgicos de Empresa Minera Los Quenuales (the Mineworkers' Union of Empresa Minera Los Quenuales) filed a criminal complaint, before the Prosecutor's Office, on charges of tax fraud against Empresa Minera Los Quenuales SA, a subsidiary of the Swiss multinational Glencore.
The union stated that in the second quarter of 2008, the company took advantage of the economic crisis to justify their anti-labour and anti-union policies in the Iscaycruz and Yauliyacu production centers. In early 2009, the company laid off hundreds of outsourced workers in Yauliyacu, while also closing production at Iscaycruz, and displacing workers at the latter to Yauliyacu.
The union declared that an analysis of the economic losses reported by the mining company Los Quenuales found that operating income fell from $ 371 million USD made in 2007 to $ 155 Million USD in 2008, that is $ 216 Million USD, which represents a reduction of -140 per cent as compared to the previous year. In reality, the analysis of the financial statements reveals that the company, for fiscal year2008, undervalued in its favour the sale prices of zinc concentrate per metric ton, reaching selling prices of $ 160 USD in the fourth quarter and an annual average of $ 250 for each metric ton of zinc.
Comparing Los Quenuales' selling prices with those of other zinc producers, with levels of production and operating income lower than Los Quenuales', clearly shows that Perubar, which is another subsidiary of Glencore, owning 33 per cent of the shares at Los Quenuales, declared for the year 2008, an average sales price of $ 360 USD per metric ton of zinc concentrate, that is a 44 per cent higher price than the one declared by The Quenuales.
The company has prevented workers with direct employment relations with the company as well as outsourced workers to benefit in the distribution of the company's profits. In addition, the company's actions have harmed the Peruvian State's tax collection and also the distribution of the Peruvian mining tax revenue, such as was the case for the districts of Pachanga and Chicla that did not benefit from the mining tax revenue in 2009. It is estimated that the economic damage caused by the company reaches up to $ 66 million USD.
The Mineworkers' Union of Empresa Minera Los Quenuales (Yauliyacu section) filed the criminal complaint in cooperation with Sintramin CUT Minería and the Central Nacional de la Mujer Minera, which are partner organizations in the struggle against the multinational Glencore over the fraudulent dismissal of the brothers and sisters at Perubar and the illegal mine closure at ROSAURA at the end of 2008. Both organizations call upon the trade union movement to join forces to stop and denounce the impunity over the plunder of natural resources, demand multinational companies to pay taxes, as well as demand Peruvian State authorities to faithfully perform their duties.