Tens of millions of taxes lost to illegal timber exports from Mozambique

Read All Posts

It has been identified, after massive discrepancies appeared in the import and export data between Mozambique and China, that half of the timber being moved into China is illegal. The report, including details from research and undercover operations, exposes the log smuggling techniques and political patronage and corruption that make it possible.

Chris Moye, the Environmental Investigation Agency (EIA) forests campaigner, said “Despite recent commendable efforts by the Mozambican Government to control the illegal trade in timber to China, our investigation uncovers how high-level politicians, in league with unscrupulous Chinese traders, continue to not only breach Mozambique’s export and forest laws but are now putting pressure on the sustainable yield of Mozambique’s forests”.

The report reveals that just under half of the estimated 215,650 cubic metres of illegal timber was imported by China. This exceeds the licensed harvest exports by 154,000 cubic meters.

The UN puts Mozambique as the fourth least developed country in the world, so with an EIA estimated USD $29,172,350 in avoided tax, this does not help the country by any means, in turn reducing state revenues for 2012 from unlicensed exports.

The report has expressed aims to prevent corruption of this nature to end through China prohibiting the import of illegal timber, encouraging better understanding of timber export / import laws and ensure that state-owned companies are not exporting illegal timber and likewise, countries do not import it.