DRC: ARSP Transfers Chinese Executives Linked to Fraud at TFM and KISANFU
A clear case of fraud has been uncovered by the senior management of the Authority for Regulation of Private Sector Subcontracting (ARSP) in the Democratic Republic of Congo (DRC).
The Chinese executives of the company CCECAS are accused of using their driver as a nominee shareholder to disguise their operations under a partnership agreement signed with Tenke Fungurume Mining (TFM) and Kisanfu, both subsidiaries of the CMOC Group.
Following investigations carried out by the Judicial Police Officers of the ARSP and subsequent working sessions chaired by the Director General, Miguel Kashal Katemb, it has come to light that out of a sum of 27 million US dollars paid to the subcontracting company, the Chinese shareholders have handed over a meager amount of 680,000 Congolese Francs to their Congolese co-shareholder.
As a result, the ARSP’s Directorate General has decided to transfer the implicated Chinese subjects, involved in the nominee system scheme, to the Prosecution.
“We, the national shareholders, asked the Chinese to hold a general assembly to discuss the financial statements and their allocations.
It’s from there that the problems started, because the Chinese were not willing. Perhaps they wanted to use nominee names to claim it’s their company, while on the other hand, they considered us as Congolese, saying we couldn’t have what we desired.
Knowing that we have a number with the ARSP, we went there to make things right. In the end, we are personally pleased because there has been regularization.
And if we have to consider the three contracts, we’re dealing with a 63 million dollar affair. Even if you’re acting in bad faith, how can you say that such a contract didn’t generate profits or yield anything to us, the Congolese shareholders, who hold the majority with 51%, and you even deny us the benefits?” complained Mr. Toussaint Katako.
The Director of Inspection and Control at the ARSP, Mr. Guillaume Feruzi, has asserted that the offenses of breach of trust are indeed established in this case.
“In the case of Mr. Fuu, who is the CEO of this company, the Judicial Police Officers have established offenses of breach of trust, forgery and use of forgery, as the company produced false documents by portraying Mr. Fuu’s driver as a company associate, whereas after investigation by the ARSP’s Judicial Police Officers, it was revealed that Mr. Mupalanga is a nominee with a fraudulently obtained certificate.
The Director General of the ARSP will take administrative decisions regarding this document. Additionally, the third offense is money laundering, as there are no traces in the country’s banks of payment for the market amounts, the advance payment made by TFM in local banks here in Congo.
Based on the evidence we have, the payment seems to have been made from abroad. Following the instructions of the Director General of the ARSP, we detected this case, and therefore we are transferring the case to the Prosecution with the accused, so that a criminal investigation can be opened in relation to these offenses, and the Prosecution will make decisions regarding these offenses,” he emphasized.
According to sources close to the ARSP, this initial crackdown is intended to serve as an example for all economic operators involved in fraud.
