Rampant Corruption Ongoing In The DRC

[MoneyBags1348]

Why the DRC is a dangerous place to invest

The DRC government and mining sectors are rife with bribes, corruption and extortion. In the last two years alone, dozens of articles have been written on the corruption in the Congo by sources including NGOs, Civil Societies and mining and investment sites. These articles sound the alarm on the corruption in the DRC and its mining sector, including China's influence, mining fraud, money laundering, and extortion.

In April 2023 Media Congo released an article showing the Congo Study Group (GEC) and Ebuteli survey, with the Bureau d’études, de recherche et de consulting international found that the level of corruption has not changed. They found, in some cases the situation had got worse and that more than 77% of the public think that the country is affected by corruption.

In May 2023 the Frazer Institute ranked the DRC 82nd out of 83 countries for attractiveness to investors in the mining sector. Also in May 2023 four of the DRC's main opposition politicians wrote to the IMF, World Bank and African Development Bank, asking them to conduct an audit of their funds in the Congo because they suspected misuse.

In June 2023 the DRC's own National Business Climate Barometer (BNCA) involving 403 companies gave it a 37% success rating. Also in June 2023 the DRC was excluded from the list of investments of the French mining group ERAMET, sighting corruption in the DRC.

In July 2023 non-compliance and flagrant violations of the DRC Mining Code were reported and Congolese civil society organizations and platforms specializing in mining issues (Justicia Asbl, LICOCO, RND Asbl, POM, MDR, GANVE, CDH, ESPOIR ONG, RCEN, CERN / CENCO, TPRDC, MAX IMPACT) have all shown concern.

Also in July 2023 an article in the Africa Report on 4 July shows that a bill for sanctions against corruption in minerals trafficking in the DRC has been introduced in the US. With the appalling working conditions present in the DRC mining sector, and extremely opaque business climate that exists throughout the country, the bill aims to counter these abuses and calls for sanctions, including asset blocks on persons found to have facilitated child and forced labour in the DRC mining sector "including any official of the government of the DRC".

But the corruption is not just in the government and mining sectors, it's in other sectors such as the legal system, administration, police and infrastructure just to name a few. The DRC's own Inspector General of Finance recently stated over 145 thousand cases of civil servants and agents of the state had committed forgery and massive fraud.

Financial patrol: The IGF flushes out in industrial quantities duplicates, forgers and cheaters among civil servants and agents of the State! - Scoop DRC (scooprdc.net)

778 million $US per year embezzled from the salaries of agents and civil servants of the State according to the IGF - Kongo Presse

 

[MoneyBags1348]

Corruption in the DRC remains

International miners & investors are more aware of the corruption in the DRC business & mining sectors. Under China’s influence, the DRC invites companies to invest in mining projects & once developed, removes their rights and sells them to Chinese companies.

DRC state mining companies have continued to operate under the influence of China, and under the protection of the DRC government, which ignores and changes its own laws both legislative (mining code), and contract law (JV), and allows state companies like Cominiere to continue to commit illegal fraud and steal a foreign company's projects and licences from them.

The DRC lacks the expertise and finance to build projects yet wants a greater percentage in projects earnings on top of collecting tax and other revenue from them.

International Investors
1) Pay for exploration permits
2) Spend millions developing the projects
3) Create jobs for local workers
4) Build accomodation for local workers
5) Pay to build the mine and infrastructure
6) Negotiate off-take agreements
7) Arrange financing for construction
8) Incur the costs related to the above

Felix Tshisekedi has given state actors like Cominiere more power. He says he wants more wealth going to the DRC and talks about so called win-win contracts and the DRC controlling the entire production chain of minerals from the investment, production and processing, to the sale of the final product.

http://kongopress.com/2023/09/27/rd...-lithium-et-integrer-la-chaine-des-batteries/

Now he is asking other countries to invest $30 billion in the DRC's battery metals industry, suggesting it could be worth $7 trillion by 2040, and the DRC wants to capture between 30% - 40% of that value.

DRC Requires a Minimum of $30 Billion for Electric Battery Industry Development - Copperbelt Katanga Mining

Corruption in the mining sector hasn’t improved and was demonstrated by an outburst from Celestin Kibeya Kabemba (Managing Director of DRC Mining Company, Cominiere) at the 2023 DRC - AFRICA Battery Metals Forum.

Following the the 2023 DRC - AFRICA Battery Metals Forum, the most alarming feature to come out of the event was how much corruption there is in the DRC mining and investment sectors, a fact which has been highlighted in many reports following the forum.

The DRC is again asking other countries to trust investing $30 billion in its projects even when there are ongoing arbitration disputes involving the ICC and ICSID due to Cominiere’s illegal disillusion of its joint venture contract with AVZ Minerals, seizing of the Manono lithium project and illegal sale to China’s Zijin Mining

Financial patrol: The IGF flushes out in industrial quantities duplicates, forgers and cheaters among civil servants and agents of the State! - Scoop DRC (scooprdc.net)

778 million $US per year embezzled from the salaries of agents and civil servants of the State according to the IGF - Kongo Presse

DRC: 7 institutions including the Presidency, the Prime Minister and the National Assembly show budget overruns of more than 100% | Politico.cd

https://static1.squarespace.com/sta...f+DRC+Mining+Assets+by+COMINIERE+SA+-+ENG.pdf

 

[Dave Evans]

AVZ spent $140 million developing the Manono project before Cominiere illegally took a bribe from Zijin and went about stealing the project, all under the watchful eyes of the Minister of Mines and the Mining Cadastre.

Cominiere continues to violate the ICC and ICSID interim orders. Follow the links below to see the evidence and read the facts

1. The AVZ Minerals Story
2. Cominiere being bribed by Zijin Mining
3. The IGF Report detailing the corruption
4. First ICC Rulings against Cominiere
5. Second ICC Rulings against Cominiere
6. The ICSID Interim Orders against Cominiere
7. The ICC Ruling against Jin Cheng
8. The money Cominiere owes in penalty’s

THE AVZ MINERALS STORY

Since 2017 in the DRC, AVZ Minerals has spent over $140 million on Acquiring Equipment for Infrastructure, Soil Sampling, Field Mapping, Consulting, Drilling, Metallurgical Testing, Completing a FEED Study, Environmental Study and Impact Assessment Reports including Groundwater Management, a 160...

thestockexchange.com.au

https://static1.squarespace.com/sta...f+DRC+Mining+Assets+by+COMINIERE+SA+-+ENG.pdf

https://announcements.asx.com.au/asxpdf/20230508/pdf/05pgtwvs1482j9.pdf

https://announcements.asx.com.au/asxpdf/20231117/pdf/05xgd2s91x97y0.pdf

https://static1.squarespace.com/sta...+AVZ+Successful+in+ICSID+Interim+Measures.pdf

https://static1.squarespace.com/sta...s+Against+Jin+Cheng+ICC+Proceedings+-+Eng.pdf

DRC ICC Penalty Calculator 2.0

 

[Dave Evans]

13/04/2025

 

[Dave Evans]

13/04/2024

 

[Dave Evans]

04/05/2024

Mining in DRC

MOÏSE KATUMBI EXPOSES CORRUPTION SCANDAL IN CONGOLESE MINING SECTOR​

MAY 3, 2024 CONSTANCE

Moïse Katumbi, a prominent Congolese opposition figure and former governor of Katanga, has raised concerns about a corruption scandal involving the public mining company COMINIERE and a mysterious Congolese NGO in the lithium exploitation project in Manono with Australian firm AVZ.

According to Katumbi, after the sale of shares in COMINIERE, a significant sum of $70 million was transferred to the accounts of an NGO, whose president is an administrator of the public company. He highlighted that $40 million of this amount mysteriously disappeared.

Katumbi implicated a Chinese subsidiary of Zijin Mining Group in the bribery scheme and criticized the neglect of justice and transparency institutions like the Extractive Industries Transparency Initiative (EITI) in addressing the issue.

Expressing concern for the well-being of the Congolese people, especially those in the East, Katumbi urged an end to the “shameful looting” of resources and demanded accountability to secure the future for the country’s children.

This accusation of corruption adds to a series of scandals tarnishing President Félix Tshisekedi’s governance. Katumbi, with presidential ambitions, called for national mobilization against corruption and impunity.

Notably, COMINIERE has faced accusations of favoring the Chinese group Zijin Mining Group over the lithium project in Manono, despite hopes raised by AVZ Mineral Limited’s initiative within the local community.

SOURCE:mines-cd.

Moïse Katumbi Exposes Corruption Scandal in Congolese Mining Sector - Copperbelt Katanga Mining

Moïse Katumbi, a prominent Congolese opposition figure and former governor of Katanga, has raised concerns about a corruption scandal involving the public

copperbeltkatangamining.com

 

[Dave Evans]

05/05/2024



Translated from French by
#RDC : STEVE MBIKAYI* Open forum 42 Inaptocracy has settled in the DRC* Increasingly, the political class is made up of people who have never worked. Under family influence or by the corruption of election organizers and judges, unemployed people, students or new graduates are bombarded with deputies, senators, governors, representatives, ministers... Without ever having worked or paid taxes and without any professional experience, you begin your career with a presidential order or an elective mandate. What can we expect from this phenomenon? Because we are sitting on the state coffers, we use it to save space for different members of the family by applying for all positions with the idea of making a pass to a son, a wife, a brother (Substitutes). If it is true that we cannot refuse the latter to occupy different positions as Congolese, there is however reason to denounce the fact that those who manage, use state money to propel a lot of inexperienced family members. As a result, around 60% of elected senators are national deputies, ministers, governors, provincial deputies… With substitute parents without known backgrounds who will find themselves senators, national deputies or careerist ministers. So, both rooms will be occupied by the same families who will have ramifications in the government and in public companies. Public opinion is helplessly witnessing the resurgence of an oligarchy in the Democratic Republic of Congo. The people murmur and may one day scold. In our capacity as elected representatives of this people, we must not turn a deaf ear. We must anticipate and propose solutions to address their concerns. He says no to this caste which has just settled in the country. In order to mitigate this phenomenon, when the time comes, we will introduce an amendment to the electoral law. In the event of the incapacity of an elected official or his appointment to other functions, his substitute must be the deputy candidate who was on the same list as him, who had campaigned and who came in useful order in terms of votes obtained rather. than offering the party's mandate to a substitute who has not contributed any votes to the list with a view to reaching the threshold or the electoral quotient. Thus, it will no longer be our women, our children and our neophyte brothers and often unknown to the party, who will come to replace us with a view to keeping the large number of our compatriots under the yoke of a privileged class constituted by cunning and without no merit. Also, before aspiring to high positions (Government, Parliament, companies, etc.) you must prove that you really have real and known professional experience (Not provide false certificates of services rendered). You must also prove that as a good citizen, you had to work and pay taxes. Thus, we will begin to end the system of “luck eloko pamba”, in other words inaptocracy. That is, the system of government where those least able to govern are elected by those least able to produce and where other members of society least able to provide for themselves or succeed are rewarded (bought) by goods and services which were paid for by the confiscation and misappropriation of the wealth and labor of a continually decreasing number of producers . ( Jean Lefèvre d'Ormesson). We will also insist that it be prohibited in law to make donations and offer money to voters at all levels. This practice established unfair competition which saw all members of the government and governors being elected to different functions to the detriment of those who did not have the opportunity to take control of the state coffers. In any case, this time, it is very blatant and shameful. This has to change.

 

[Dave Evans]

11/05/2024

 

[Dave Evans]

13/05/2024

MINES.CD - First Congolese media in the mining sector > Blog > CONTINUOUS > DRC: The Minister of Mines called to clarify the embezzlement of USD 70 million involving an administrator of the Cominière
CONTINUOUS

DRC: The Minister of Mines called to clarify the embezzlement of USD 70 million involving an administrator of the Cominière​

MinesPublished May 12, 2024

The Cominière company is at the center of a scandal of proven corruption and embezzlement of about US$70 million. According to the Coalition Congo N'est à Vendre (CNVAP), this is an endowment that would have been carried out by Zijin Mining for the benefit of a non-governmental organization (NGO) led by Mr. Jean E'ngazi, who is also a member of the board of directors of this company in the state portfolio.

Reminder of the factsDaniel Bawuna
According to the CNPAV coalition, this observation is only the most recent of a succession of worrying information on the opaque management of lithium assets of the country by the Cominière - a company in the state portfolio. To do this, this anti-corruption platform requires a formal investigation and that senior officials involved in the mismanagement of the country's resources be held liable.

In particular, the Minister of Mines, Antoinette N'Samba is called upon to clarify the embezzlement of this sum of USD 70 million involving an administrator of the Cominiere.

"The funds for social interventions granted on the sidelines of the conclusion of a strategic mining contract should be managed by the Congolese State and not by a private entity. Worse, the transfer of $70 million to a non-profit organisation whose president is a member of the Cominière board of directors who participated in the discussions for access to this mining permit, could constitute an act of corruption, "revealed the CNPAV coalition.

Further on, this platform, which campaigns against anti-values, considered that these payments could create conflicts of interest through an illicit enrichment of the members of the board of directors of the Cominière and indeed constitutes a misappropriation of funds to the detriment of the Congolese population who live in extreme poverty.

"This practice is contrary to the code of conduct for career officers and public administration. The members of the Cominière Board of Directors are responsible for important decisions concerning the valuable mining assets of the DRC, decisions that could clearly be influenced by significant payments to the private organizations of the members of the board of directors by an investor, "denounced the CNPAV coalition.

Faced with the above, the Congo is for sale calls on the Minister of Mines to take urgent measures to shed light on this case and punish those responsible for this embezzlement.

The CNPAV calls on the Government of the Republic and the control institutions to launch an official investigation into the mismanagement by the Cominière and the Ministries of Mines and the Portfolio of the Kitotolo-Manono lithium deposit;
In the same vein, the Congo Is Not for Sale coalition has made some recommendations, including:

• Register this issue with the Council of Ministers and invite the Minister of Mines before the press as part of the government's accountability;
• Invite the Minister of Mines before parliament to ask her an oral question with debate on the Cominière file.

Reminder of the facts​

The Democratic Republic of the Congo (DRC) has one of the most strategic lithium deposits in the world, including the Kitotolo-Manono deposit in Tanganyika. In the context of the energy transition, this ore is highly coveted because of its use in electric vehicle batteries. The Manono lithium deposit has enormous potential to help the DRC develop economically. However, he has been at the center of many accusations, including corruption and mismanagement.

This deposit was the subject of strong competition between investors and belonged until 2022 to Dathcom, a joint venture controlled by an Australian company AVZ Minerals. In April 2022, the ministry requested the retrocession of the northeast part of the deposit, and then cancelled the permit for Kitotolo-Manono completely in February 2023. Given the strong interest of investors in the site, the government should have organized a call for tenders to negotiate an agreement in a position of strength. Instead, the ministry seems to have allowed La Cominière to negotiate by mutual agreement with Zijin Mining that remains unpublished until today.

In October 2023, the Cominière signed a new joint venture contract with Zijin Mining effectively giving it control of the northeast section of the Manono deposit by creating a joint venture called Manono Lithium SAS. It was announced that under this agreement, Manono Lithium would make a donation of $70 million to support humanitarian efforts in the East and Northeast of the DRC On April 19, 2024, Africa Intelligence reported that Zijin Mining had made this donation to a relatively unknown NGO called "Le Bouclier", and that the president of this NGO is Jean David E'Ngazi, member of the board of directors of La Cominière.

Daniel Bawuna​

RDC: La Ministre des mines appelée à clarifier le détournement de 70 millions USD impliquant un administrateur de la Cominière - MINES.CD - Premier média congolais du secteur minier

La société Cominière est au centre d’un scandale de corruption avérée et détournement d’environ 70 millions de dollars américains. D’après la Coalition Congo N’est à Vendre (CNVAP), il s’agit d’une dotation qui aurait été effectuée par Zijin Mining au profit d’une organisation non...

mines.cd

 

[Dave Evans]

13/05/2024

DRC: Congo Is Not For Sale requests an investigation into the controversial management of the Manono lithium deposit by Cominière​

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Lithium samples at the Manono development site, operated by a subsidiary of the Australian AVZ Minerals. © AVZMINERALS

ECONOMY
Saturday May 11, 2024 - 09:55

In a statement on Friday, May 10, the Congo Coalition is Not for Sale (CNPAV) demands an official investigation into the management of the Kitotolo-Manono lithium deposit by the Cominière, a public mining company in the Democratic Republic of the Congo (DRC), which reportedly received $70 million from Zijin Mining, a Chinese company headed by Jean David E'ngazi, at the same time also a member of the Cominière's board of directors.

According to Congo is not for sale, this "donation" was made as part of a joint venture agreement for the exploitation of the Kitotolo-Manono lithium deposit in Tanganyika, which has enormous potential to help the DRC develop economically, in view of its role in the context of the "energy transition" and the high lust to which it is subject because of its use in the batteries of electric vehicles. This Manono lithium deposit, regrets the CNPAV, is the subject of many accusations, including corruption and mismanagement.

For the CNPAV, the required investigation must be extended to the Ministries of Mines and the Portfolio, which have an active look at mining management in the DRC.

"The CNPAV also calls for disciplinary action against the members of the board of directors involved in the transaction to the NGO Le Bouclier, to proceed to the return of funds to the public treasury and to initiate an independent audit of the funds already received and spent by Le Bouclier, to use the results of the IGF investigation for legal actions against the persons involved in the file,... invite the Minister of Mines before parliament to prepare an oral question with debate on the Cominière file and ensure the publication of the Manono Lithium SAS contract in accordance with the requirements of the Mining Code", can be read in the press release.
Click to expand...

The Cominière has already been accused by the General Inspectorate of Finance (IGF) of "selling" the State's assets and "squandering" profits. The allocation of the Manono deposit to AVZ Minerals in 2016 has also been the subject of controversy.

For Congo is not for sale, the Congolese government should have organized a call for tenders to negotiate an agreement in a position of strength, because "this deposit was the subject of strong competition between investors and belonged until 2022 to Dathcom, a joint venture controlled by an Australian company AVZ Minerals". This structure regrets that instead, the government has allowed the Cominière to negotiate an agreement with Zijin Mining by mutual agreement.

Bruno Nsaka

RDC : Congo N'est Pas à Vendre demande une enquête sur la gestion controversée du gisement de lithium de Manono par Cominière​

Dans un communiqué ce vendredi 10 mai, la coalition le Congo N’est Pas à Vendre (CNPAV) exige une enquête officielle sur la gestion du gisement de lithium de Kitotolo-Manono par la Cominière, une société minière publique en République démocratiq
actualite.cd