After analyzing the appointment of the Chairman of the Board of Directors (PCA) of the General Careers and Mines (Gécamines), the Public Expenditure Observatory (ODEP) notes on the merits that the leadership of Albert Yuma n ‘ did not allow the recovery of this public company. Because his previous term at Gécamines has excelled in an unprecedented financial scandal depriving the Treasury of huge public revenues to the detriment of the DRC’s reputation vis-à-vis external partners like the Bank. World Bank and the International Monetary Fund (IMF).
In addition, the ODEP recalls that the outgoing Chairman of the Board of Gécamines whose name circulated as likely Prime Minister has been challenged from all sides. “How to interpret his confirmation where his governance was the worst for the public finances of this state enterprise,” wonders the ODEP who believes that this appointment contradicts the political vision of the late Etienne Tshisekedi, President of the UDPS and resumed by President FATSHI: “The people first”.
From the point of view of form, the ODEP notes that by the hasty appointment of the Gécamines PCA, the head of state’s staff pushed him to violate article 81 of the constitution, which states: “Without prejudice to other provisions of the constitution, the President of the Republic appoints, removes from their functions and, if necessary, revokes, on proposal of the Government deliberated in the Council of Ministers: [i] the senior officials of the public administration; [ii] managers of public services and institutions; [iii] State agents in public enterprises and bodies, except auditors, etc. The orders of the President of the Republic intervened in this matter are countersigned by the Prime Minister “.
Therefore, the Head of State, guarantor of the constitution can reconsider its decision, the opportunity of the cancellation of this order designating the members of the Board of Directors of Gecamines. Therefore, it can order a global audit of this portfolio company for its recovery and contribute more to the national budget.
The ODEP met on 4-5 June 2019 to analyze the impact of the presidential ordinance, published on 03/06/2019 designating the members of the Board of Gécamines and its Management Committee. At the end of the discussions, it was noted that despite the efforts made by various partners for the recovery of this state enterprise, the data collected by the ODEP at the level of the Central Bank of Congo (BCC) and the Ministry of the Budget show that the Gécamines Budget reaches an average of 239.769.000 USD per year. Its contribution to the national budget is barely $ 250 million a year. However, in 2009 for example, the first half of the SICOMINES gateway is cashed for a value of $ 175 million. In 2010, the company collects the Kolwezi Rejection premium and a series of renegotiated door steps for a total of $ 120 million. In 2011, Gécamines sells the Mutanda and Kansuki projects for at least $ 189 million. In 2012, the second half of the signing bonus is paid by the Chinese for $ 175 million.
For ODEP, it is completely opaque that Gécamines has transferred its most valuable licenses to joint ventures in which it retains a minority stake. Thus, in 2012, the International Monetary Fund (IMF) decided to put an early end to the plan of 560 million dollars concluded in 2009, following the lack of the Observatory of public expenditure control citizen of public finances of the Democratic Republic of Congo transparency in the agreement by which Gécamines, has sold its 25% stake in the Congolese Mines and Development (COMIDE Sprl) to Straker International, a US-based mining company based in the Virgin Islands. A contract that has never been published by the Ministry of Mines and Finance, and remains secret until these days.
A lack of transparency that led the African Development Bank (AfDB) to suspend the disbursement of US $ 87 million in support to the DRC as a budget deficit nation. Even worse, the data provided by the Extractive Industries Transparency Initiative (EITI) -RDC shows that out of the $ 1.5 billion in revenue that Gécamines collected from its partnerships between 2009 and 2014, less than 5% were transferred to the Treasury as taxes and dividends.
Also, it is still a report center carter dated 2017 has informed that in 2014, the production of Gécamines has fallen back to the pre-reform. Rather than making the company more transparent and accountable, the transformation of Gécamines into a commercial enterprise has resulted in more limited government and public oversight. This lack of control paves the way for many anomalies in the accounting of Gécamines. According to Gécamines ‘records, nearly 750 million dollars expected to come from Gécamines’ joint venture partnerships between 2011 and 2014 would never have been registered as such on the partnership’s registers.
Similarly, data collected by the ODEP from the financial authorities reveals that between November 2015 and June 2016, Gécamines made several obscure transfers denominated “tax advances” worth $ 93,270,000 to the BCC via Rawbank and BGFIBANK. Transfers made without the involvement of the Directorate General of Taxes (DGI), responsible for collecting these taxes and in violation of the Tax Code. For ODEP, if these public revenues were channeled, they would have facilitated the construction of 6,908 schools across the country and funded the National Agricultural Investment Plan (PNIA) to fight against hunger.
Gecamines engages in numerous partnership operations with foreign companies that are not transparent. This is, says ODEP, the fact that the selection procedures and the legal and fiscal clauses of the contracts whose ultimate beneficiaries of these concessions are not disclosed; the rules governing budget transfers between the company and the government that are not entirely transparent. The ODEP notes, for example, special rules applying to income from sales of assets of public enterprises, according to which these revenues are paid to a special fund which is not part of the public treasury; little information on Gécamines’ payments to the public treasury available to the public and that the company would be at the heart of governance issues in the mining sector. Also, it is still that Gécamines is classified as a failing company, in terms of governance.