DRC: the “Makuta ya Maendeleo” consortium notes inconsistencies in 2018-2020 EITI report on mining royalties
The Makuta ya Maendeleo Consortium, which works for the good governance of revenues for local communities, has published its analysis of the relaxed EITI i report, published in late March 2021, covering fiscal years 2018-2019 and the first half of 2020. This report covers a wide range of more up-to-date information including that relating to the mining royalty intended for sub-national levels.
The analysis carried out by Makuta ya Maendeleo consisted of evaluating the completeness and quality of the declarations as well as identifying the problems and challenges related to the collection and distribution of the mining royalty between the central power, the provinces and the Decentralized Territorial Entities (ETD).
From this analysis, it emerges that the Relaxed Report in its chapter on mining royalties does not provide exhaustive and detailed information. This affects the efforts of transparency in the management of this one. Specifically, Makuta ya Maendeleo notes the following weaknesses:
“- Systematic inconsistencies between payments declared by companies and income declared by ETDs; – Incomplete declaration of mining royalties paid and received by ETDs; – Significant gaps in the royalties intended for the Mining Fund (“FOMIN”); – No systematic disaggregation of payments and receipts, neither by ETD nor by mining project; – Huge discrepancies between the figures appearing on the debit notes of the mining divisions and in the Relaxed Report; – Lack of detailed information on the impact of Covid19 on the extractive sector and its implication on the revenues of local entities ”, indicates the analysis made by Makuta Ya Maendeleo.
“The Makuta consortium notes that the declarations of the mining royalty included in the EITI report under analysis are incomplete, inconsistent and less credible.”
This platform finds that the recent EITI report does not promote transparency efforts in the country.
“These shortcomings undermine transparency efforts and guarantee the opportunity for a real public debate on the management of mining royalties, a matter which is nevertheless very crucial in the context of the DRC where the decentralized territorial entities (ETD) directly receive a portion revenues from mining companies’ mining royalties in application of the provisions of the revised mining code of 2018 but which, at the same time, face rumors of misappropriation for other purposes ”, indicates the analysis of the Makuta Consortium.
Considering all these shortcomings, the Makuta Consortium recommends to the Multiparty Group the publication of an additional report likely, on the one hand, to meet the requirements of completeness and certification of data, but also priorities of the DRC in terms of data management. the fee allocated to ETDs.
The consortium aims to improve the management of revenues intended for local communities in mining regions in the Democratic Republic of Congo. It is made up of 5 members, namely:
Action for the Defense of Human Rights (ADDH), Civil Society Consultation Framework on Natural Resources in Ituri (CdC / Ituri), Good Governance and Human Rights Initiative (IBGDH), Justice For All (JPT) and The Carter Resource Center.
