BHP Billiton South Africa has suggested the development of a forum where its representatives could interact with government to see where their interests intersected on foreign policy.

Chairperson of BHP Billiton SA Ltd, Vincent Maphai was addressing Parliament's Portfolio Committee on Foreign Affairs on South African firms' corporate responsibility when investing abroad, and how this ties in with the foreign policy of the government.

The chairperson of the second-biggest company listed on the Johannesburg Stock Exchange and one with a worldwide market capitalisation of US$122.5 billion, told the committee that the lack of a formalised structure "on the way we [business] work in tandem with our own government on a number of issues" represented a gap between the two in foreign affairs.

Dr Maphai suggested a small forum be set up where representatives of government and business could discuss, perhaps once a year, the relationship between details of foreign policy towards specific countries and the investment plans of multinationals for these countries.

He cited as an example a failed investment in a "certain West African country" that could have been prevented had the company - which has 38 000 South African employees - timeously engaged South Africa's ambassador there on the issues at stake.

The major contribution that BHP Billiton makes to South Africa's economy - it says it has spent R3.5 billion on goods and services from South African companies - "makes us a strong player in the foreign policy of the country".

Dr Maphai added that there was "a great deal of overlap" between the values of Nepad (the New Partnership for Africa's Development) and "our own values", adding that "Afro-pessimism is not in our vocabulary".

He also emphasised to MPs that the kinds of moral behaviour one expected from individuals should also be expected from corporations, and that it was in the best interest of corporations to use these values as they invested abroad.

"These values [individual moral values] are good for countries," said the former SABC chairperson, adding that it was in a company's best interest to be "a good corporate citizen".

The chairperson of the giant mining company, which has around 100 operations in 25 different countries in aluminium mining, base metals, carbon materials, diamonds, coal, steel and petroleum, emphasised the importance to the company of "responsible corporate behaviour", saying that such behaviour actually enhanced its financial results.

BHP Billiton's "footprint" on Africa is growing, MPs heard, with strong operating and exploration activities from the Southeron African Development Community (SADC) to Libya in the north of the continent, with over 50 percent of its exploration activities - such as in petroleum, nickel, diamonds, iron and base metals - taking place in Africa.

Current operations include the mining of manganese, aluminium, coal, mineral sands and petroleum, with a strong foothold in South America and Australia, as well as North America including Alaska and from Europe to the Far East.

The company - billed as "the world's largest diversified resources company" - is committed to sustainable development, "which is a core principle for us to ensure that our business remains viable and contributes to society", MPs heard.

Mahomed Seedat, president of the group's energy coal division, told MPs it was company practice to employ locals where possible, saying that students from a targeted country were often trained in the company's offices elsewhere before being sent back to their home country as BHP Billiton moved in with investment.

Such an example was Mozambique, where in the early days of investment, such as with Mozal, the Mozambican aluminium smelter hired mostly expatriate workers; now 96 percent of the workforce in that country was Mozambicans.

The company "didn't get these staff from the trees", said the chairperson of the mining and commodities giant. They were trained by the company, and now Mozal "is second-best in the world as an aluminium smelter".

Another contribution it made in the long-term interest of the country and its operations there were efforts that reduced malaria infections by 60 percent, which in turn boosted tourism, MPs heard, as the chairperson emphasised its corporate philosophy of "win-win" relationships. -

Call to isolate tax evaders

REP By Clive Ndou, tel: (021) 465-3658

Cape Town - The SA Revenue Services (SARS) has appealed to all law-abiding South Africans to ostracise tax evaders, saying they must be treated "just like any other criminal".

"Tax evasion is an anti-social behaviour, and members of society should make offenders feel uncomfortable where ever they go," said Commissioner Pravin Gordhan.

He added that law-abiding citizens should refuse to appear in the same photograph with a tax evader.

Mr Gordan, who was speaking during the SARS annual report presentation to Parliament's Portfolio Committee on Finance today, warned wealthy tax evaders that SARS the revenue service pursue them to the end.

"Being rich does not give one the right to defy the law - we won't be intimidated by an army of lawyers," he said.

Mr Gordhan told the committee that SARS was currently focusing on South Africa's 500 richest people to ensure they paid all their taxes.

He attributed SARS's close to R30 million legal bill annually to the organisation's eagerness to take on those who flouted tax laws, irrespective of their financial standings.

Turning to small business, Mr Gordhan said they should take full advantage of the current tax amnesty.

"If they don't come forward before the May 2007 deadline, they will be fully prosecuted," he said.

In the previous financial year SARS collected R355 billion in revenue, exceeding its R345 billion target by a whopping R10 billion.

The high revenue collection was attributed to a growing culture of tax compliance among South Africans.

Mr Gordan said due to a high level of compliance among South Africans, collections were set to continue growing above expectations.