Mining titles sold to Metalkol by Gécamines for 60 million USD caused 2.6 billion USD in losses to the Public Treasury
The Public Treasury of the Democratic Republic of Congo (DRC) recorded losses estimated at 2.630 billion US dollars following transactions around mining titles that the Société Générale des Carrières et des Mines (Gécamines) sold to Metalkol for a amount of 60 million US dollars (USD).
In its report entitled “ Gécamines, what does over-the-counter hide? “, the Coalition for the Governance of Public Enterprises (COGEP) notes several irregularities, practices of financial embezzlement, corruption and mismanagement that have characterized the partnership relations between Gécamines and its two private partners within two joint ventures. formed namely Metalkol and Évelyne investstment SA.
According to the COGEP, the consequences of the repeated violations of the laws were not only on the legal level. They led to huge losses of revenue for Gécamines and the state budget.
“ After the termination of the contract with KMT, Gécamines sold the mining titles to Metalkol for 60 million dollars of no door to Highwind Group affiliated with Dan Gertler. However, according to “Congo is not for sale” quoting Numis Securities, the fair market value of FQM’s stake was 65% in Kingamyambo representing 2.498 billion dollars. Which means that 100% of these assets would be worth $3.84 billion, and therefore the total market value of 70% acquired by the Highwind Group is worth $2.69
billion. “, we read in this report.
For this non-governmental organization, Gécamines sold these mining titles at 60 million USD while their real market value is estimated at 2.690 billion US dollars (USD). “This amounts to saying that the Congolese State has lost 2.630 billion US dollars”, denounces the COGEP.
To the public officials and political leaders concerned by the file in question, COGEP makes the following observations:
• The fact that the assets are transferred in flagrant violation of the legal and regulatory provisions which impose the use of a call for tenders and the approval of the Government in the Council of Ministers
constitutes, on the one hand, criminal offenses for reason legal obligations, and on the other hand, mismanagement due to the squandering of mining assets;
• The illegalities and the opacity that characterized the transactions are similar to financial embezzlement. At no time were major transactions involving Gécamines in 2017 discussed in the General Assembly, the report notes.
Moreover, says the same report, the Ministers of Portfolio and Mines and the successive Heads of Government have assumed their individual responsibilities.
Indeed, despite the serious indications described above, no precautionary measure or investigation has been ordered.
