Malawi’s government is seeking a staggering $309 billion in unpaid taxes and royalties from Columbia Gem House, a US-based gemstone company, for rubies exported from the southern African state over the last decade.¹ Attorney General Thabo Chakaka Nyirenda made the announcement, citing under-reporting of ruby values by the company.
Columbia Gem House dismissed the claim as “baseless and defamatory,” arguing that the government’s figures do not add up. The company claimed it does not operate in Malawi but instead buys gemstones from Nyala Mines, a Malawian-owned company with a 10% government stake.
Malawi is also demanding $4 billion from French gas giant TotalEnergies in unpaid revenue from an oil storage deal and $9.5 million from Turkish tobacco firm Star Agritech. TotalEnergies declined to comment, while Star Agritech denied owing any money.
The total amount claimed from the three multinationals is nearly 300 times Malawi’s national debt and 22 times its GDP. Malawi’s economic struggles led to a $174 million bailout from the International Monetary Fund (IMF) last year.
Malawian economist Wisdom Mgomezulu suggested that the government’s aggressive claims might be driven by its financial difficulties. “They’re looking at all potential sources of income, but if you look at the claim versus the size of the economy, it’s just way too much,” he said.
The disputes with TotalEnergies and Star Agritech International are ongoing, with Malawi seeking payment for alleged unpaid revenues. The government has taken TotalEnergies to court in Malawi, seeking $4 billion in settlement.
Malawi’s actions reflect a broader trend in Africa, where governments are pursuing financial disputes with multinational corporations. Recently, Mali’s military junta issued an international arrest warrant for Canadian mining firm Barrick Gold’s CEO over an alleged $500 million tax debt.
