Extractive sector companies regularly avoid taxes by exaggerating expenses. Through 2012, Anadarko claimed explorations costs in Mozambique of $700 million. One year later they claimed exploration costs of $3 billion. The Government should immediately audit exploration expenses for Anadarko and ENI. The contracts allow for an initial audit of the last three years, with provision to go further back if there has been “manifest disregard of applicable procedure, fraud or willful misconduct.
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