CREFDL calls for Suspension of Negotiations on $500M promised by Sicomines in DRC amidst Chinese Contracts
After the Sino-congolaise des mines (Sicomines) – a company created as a joint venture between the Democratic Republic of Congo (DRC) and a group of Chinese companies – agreed to disburse 500 million US dollars in favor of the Congolese party , voices are raised to denounce an irregular situation.
The latest to step up is the Center for Research in Public Finance and Local Development (CREFDL).
In a press release published on Monday March 6, 2023, CREFDL asks the Government to postpone the negotiations relating to the disbursement of these 500 million USD.
Based on a report published by the General Inspectorate of Finance (IGF) published at the end of February 2022, CREFDL points out that “of the 12 billion dollars already generated by the exploitation of DRC minerals by Chinese companies , the DRC only benefited from 822 million dollars in terms of infrastructure against 11 billion USD for Chinese companies and banks”.
While welcoming the work produced by the IGF experts, CREFDL believes that this contributes to improving the governance of public finances in the Democratic Republic of Congo.
As for the list of infrastructures made public by the IGF, CREFDL points out that this is included in the Agreement signed in 2008 and revised in 2010, following pressure exerted by the International Monetary Fund (IMF).
“Currently, the Convention is no longer in its original form agreed with China. Unfortunately, the new list is not available.
Information gathered from the Ministry of Infrastructure shows that the two parties (DRC and GEC1) had undertaken to produce statements of annual needs, together with an operational budget.
Nevertheless, CREFDL managed to identify the list of 40 infrastructures, rehabilitated or built within the framework of the said agreement, valued at 824.5 million USD”, notes CREFDL.
Based on information received from the Ministry of Infrastructure and Public Works, CREFDL considers the budgets of these infrastructure projects to be irrational.
“We also have doubts about the effectiveness of the implementation of the works of the works declared by the Congolese Agency for Major Works (ACGT) and about the quality of the infrastructures delivered to the government”, indicates the press release from CREFDL signed by its president, Valéry Madianga.
CREFDL invites the IGF and the Court of Auditors to begin, as soon as possible, the audit of the list of 40 infrastructures and to propose to the Government a manual of project management procedures within the framework of the Sino-Congolese Convention.
Remember that in 2008, the DRC and a group of Chinese companies signed an agreement for the exploitation of minerals across the country. In return, the Chinese companies had to offer the infrastructures to the country of Lumumba.
The Convention was presented as a “contract of the century”, which was to allow the DRC to benefit from basic infrastructure in exchange for the exploitation of its resources.
In a report produced by the IGF, it is reported a huge loss recorded by the Congolese party, moreover cheated by the group of Chinese companies. For the IGF, the shortfall recorded by the DRC must be paid without any other form of trial.
