Mines could be short-changing govt, Auditor General fears

A special audit into the Department of Mines’ efficiency in collecting revenues from the mining sector, found loopholes through which companies could be side-stepping their obligations to government.

Mineral revenues are government’s most important source of funding, accounting for one third of budget incomes, or P20.3 billion, in the current financial year. Government earns mineral revenues through royalties paid on production, dividends in instances where it has equity in the mining companies and taxes.