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Malawi seeks billions of dollars from US firm over ruby sales

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Malawi’s government is demanding the astonishing sum of $309bn (£245bn) in unpaid taxes and royalties from a US-based gemstone company for rubies exported from the southern African state over the last 10 years, its attorney-general has told the BBC.
Columbia Gem House, a family-owned business which says that it upholds fair trade practices, dismissed the claim as “baseless and defamatory”.
The government is also demanding $4bn from French gas giant TotalEnergies in unpaid revenue from an oil storage deal, and $9.5m from Turkish tobacco firm Star Agritech, said Attorney General Thabo Chakaka Nyirenda.
TotalEnergies declined to comment while Star Agritech denied owing any money.
The amount being claimed from the three multinationals is nearly 300 times Malawi’s national debt of around $1.2bn, and 22 times its Gross Domestic Product (GDP) of $14bn.
Malawi was forced to take a $174m bailout from the International Monetary Fund (IMF) last year after running into financial trouble.
Speaking to the BBC Focus on Africa podcast, Nyirenda said that Columbia Gem House had been under-reporting the value of rubies it had exported from Malawi.
He added that “some of the evidence that we’ll be using comes from Columbia Gem House itself, such as declarations they have made in the US, and what they have reported on their website, which they have now deleted”.
“The amount is not just [for] one year, it goes over 10 years back. It also includes the interest,” Nyirenda said.
Columbia Gem House said that the government’s sums do not add up.
The $309bn claim “implies Malawi has somehow produced and exported trillions of dollars’ worth of coloured gemstones”, the firm said in a statement.
“They haven’t done this by any stretch of the imagination,” it added.
Columbia Gem House said it does not operate in Malawi, but buys its gemstones from Nyala Mines, a Malawian-owned company in which the government has a 10% stake.
However, Nyirenda told the BBC that as a minority shareholder, the government was not involved in the day-to-day management of the company, and “the name of Nyala Mines had been changed to disguise its ownership”.
An attempt by the US embassy in Malawi to settle the dispute fell through when the attorney general failed to attend an online meeting, which he put down to “technical challenges”.
Mining contributes only 1% to Malawi’s GDP, although the government has announced plans to scale this up in the next few years.
Malawian economist Wisdom Mgomezulu said the government may be making the claims now because of 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 told the BBC.
The dispute with TotalEnergies is rooted in a deal Malawi entered with it in 2001, according to Nyirenda.
The French multinational was to provide fuel to Malawi and was to get tax incentives in return, he said.
The profits from the arrangement were to have been shared equally but TotalEnergies “only paid for two years and stopped paying in 2006”, Nyirenda alleged.
The government has since taken the company to court in Malawi, and Nyirenda said the government wants it to pay $4bn to settle the matter.

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The French winemaker whose wines are illegal in his home country

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Winemaker Maxime Chapoutier would be arrested if he tried to sell two of his newest wines in his native France.
“There would likely be outrage about these wines in France, and that would be a good thing,” he says. “Sometimes you need to be provocative to drive change.”
The two bottles in question, one white and one red, would be illegal in France because they are made from a blend of French and Australian base wines.
Under both French and European Union law it is forbidden to make a wine that combines EU and non-EU fruit. In France in particular, authorities take such things very seriously.
The French wine industry has a celebrated word called “terroir”, which applies to all the environmental factors that affect vines growing in a vineyard, such the soil, the climate, and the elevation. As a result, wines from a specific place are held in the highest esteem.
Add a strict appellation or classification system for France’s wine regions, and the thought of blending French and Australian wine to create a global hybrid would horrify many French wine lovers.
Yet Maxime has done just this, and it is all thanks to one word – Brexit.
For while he cannot sell the two wines in the EU, he can do so in the UK now that London no longer has to follow food and drink rules set by Brussels.

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Musk, MrBeast, Larry Ellison – Who might buy TikTok?

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Jimmy Donaldson – aka MrBeast – was jubilant as he told his tens of millions of TikTok followers about his bid to buy the platform.
“I might become you guys’ new CEO! I’m super excited!” Donaldson said from a private jet. He then proceeded to promise $10,000 to five random new followers.
The internet creator’s post has been viewed more than 73 million times since Monday. Donaldson said he could not share details about his bid, but promised: “Just know, it’s gonna be crazy.”
Donaldson is one of multiple suitors who have expressed interest in purchasing TikTok, the wildly popular social media platform that’s become the subject of a fast-moving political drama in the United States.
Last year, then-President Joe Biden signed a law that gave TikTok’s China-based parent company ByteDance until 19 January to sell the platform or face a ban in the United States.

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UnitedHealthcare names new boss after former CEO killed

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UnitedHealthcare has named a new boss almost two months after its then-chief executive Brian Thompson was shot and killed in New York.
Company veteran Tim Noel will take charge of the largest health insurer in the US, which has more than 50 million customers, at a critical moment.
Mr Thompson’s killing on 4 December in central Manhattan ignited a wide debate about how the US healthcare system operates.
Many Americans, who pay more for healthcare than people in any other country, have expressed anger over what they see as unfair treatment by insurance firms.
Mr Noel “brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners,” UnitedHealthcare’s parent company UnitedHealth Group said.
A manhunt ensued for days as police worked to identify who was responsible in the December killing, which happened outside a Manhattan hotel where the CEO was staying.
After five days, Luigi Mangione, 26, was arrested in a McDonald’s restaurant in Pennsylvania after a worker called police.
Mr Mangione has pleaded not guilty to charges in the killing. He is facing 11 state criminal counts, including murder as an act of terrorism.
As well as the state-level charges, he is also accused of federal – national-level – stalking and murder offences that could lead to a death penalty sentence.
Prosecutors allege that Mr Mangione shot Mr Thompson before going on the run.

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