Bloomberg News

Malawi Central Bank to Co-Sign Paladin Account, Governor Says

November 29, 2011

Nov. 29 (Bloomberg) -- Malawi’s central bank said it will be a co-signatory to an offshore account held by a unit of Paladin Energy Ltd., which mines uranium in the north of the country.

“It is common knowledge in any country that proceeds of main exports are recorded as part of the foreign reserves of that country,” Reserve Bank of Malawi Governor Perks Ligoya said in a statement published in the Blantyre-based Daily Times newspaper today. “We have now agreed with Paladin Africa Ltd. that Reserve Bank of Malawi will be a co-signatory to the offshore account. This will improve levels of accountability.”

Paladin, based in Perth, is the biggest investor in the southern African nation’s mining industry, spending $500 million since 2009, when its Kayelekera uranium mine became fully operational. The southern African nation’s government holds a 15 percent stake in Paladin Africa, the unit through which the Malawian assets are held.

Paladin Africa received the central bank’s request to be a signatory to its offshore account in November last year and provided it with the documents to enable this, International Affairs General Manager Greg Walker said by phone today from the capital, Lilongwe.

“Until today, the documents are still with the bank,” Walker said. “Every month we send a report to the Reserve Bank on the operations of Kayelekera because we believe in transparency.”

--Editors: Ana Monteiro, Antony Sguazzin

-0- Nov/29/2011 11:08 GMT

-0- Nov/29/2011 11:31 GMT

To contact the reporter on this story: Frank Jomo in Blantyre via Johannesburg at gbell16@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


China's Killer Profits
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus