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A legal battle has ensued between Mashrock Mining Limited and the Zambia Revenue Authority (ZRA), with the former accusing the latter of defamation and is demanding US$5 million as damages to its business reputation.
The crux of the matter filed in the Lusaka High Court revolves around an article published on the official ZRA page and subsequently shared across various media platforms, including ZNBC, Diamond TV Zambia, Mwebantu, and OneZiko.
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The article, titled “ZRA unearths tax evasion scheme involving over K82 million,” implicated Mashrock Mining Limited in alleged tax evasion activities.
The mining company stated that these publications were made despite ongoing investigations by ZRA concerning its tax affairs, without any formal notice or communication to the company, thus violating standard investigative procedures.
Mashrock Mining Limited claimed that despite issuing a demand letter to ZRA requesting a retraction of the media statement and citing injury to its business reputation and ensuing losses, ZRA had not responded.
Instead, ZRA’s officers allegedly continued to harass and intimidate the company’s directors and agents under the guise of investigative procedures.
However, Mashrock Mining Limited stated that in April 2024, upon request from Dangote Cement Limited, ZRA issued a Tax Clearance Certificate, demonstrating the company’s compliance with tax regulations.
Despite this, the alleged harassment and intimidation, coupled with the earlier defamatory publications, have reportedly led to the cancellation of contracts and business arrangements, as well as damage to its business reputation and significant financial losses.
As a result, Mashrock Mining Limited is seeking several reliefs; including an immediate retraction of all defamatory publications, a public apology, an injunction to restrain ZRA from further publishing similar words, compensatory damages amounting to US$5,175,670, and interest on all sums found to be due as damages.
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