Court audit says that agency supervision is insufficient and that there are losses of R$4 billion due to non-payment of Cfem
THE TCU (Federal Audit Court) charged the ANM (National Mining Agency) actions to combat Cfem (Financial Compensation for the Exploration of Mineral Resources) evasion. An audit carried out by the Court found losses of R$4 billion in so-called mining royalties and indicated that the agency’s supervision has been insufficient to curb the practice.
This Wednesday (9.Oct.2024), the Ministers of the Court issued orders for ANM to improve monitoring of collections and present to the Court an action plan to develop the National Collection, Revenue and Collection System, placing it in full operation in the shortest possible time. Here’s the complete of the ruling (PDF – 2 MB).
The Court also asks the agency to evaluate the possibility of signing agreements with state finance departments to obtain access to electronic invoices, or even working with the Digital Government Secretariat to promote the integration of information and make the process more effective. calculation and collection of royalties.
The TCU audit states that due to the lack of efficient ANM control systems, the potential loss from Cfem evasion tends to be even greater and reach R$20 billion. This value refers to credits already launched, but which have not yet been constituted.
Cfem collection is spontaneous by mining companies. It is made from production/billing data that are self-declaratory. As a result, the average royalty evasion rate was 40%, according to the audit.
ANM supervision is unable to deal with the problem. According to Minister Benjamin Zymler, rapporteur of the process, there are only 4 employees at the agency who take care of collecting all mining royalties in Brazil. The problem is the agency’s serious staff shortage.
“Since 2010, TCU has been looking into the matter and there has been no improvement. On the contrary, there were worsenings in the structure inherited by the National Mining Agency, which was born from the structure of the former DNPM without any budgetary adjustment taking place for this. There are 2,033 positions, but only 34.2% of the positions were filled”says Zymler.
As shown by the Power360ANM is the regulatory agency with higher level of vacant positions. The average for other entities is ⅓ of open positions. In the mining body, it exceeds 60%.
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