Lubumbashi, March 20, 2023. IRDH is deeply concerned about the standoff between Chinese-owned mining companies and the Congolese state. The fight that is taking place within Tenke Fungurume Mining (TFM) and Sino-Congolaise des Mines (SICOMINES), should focus on the protection of the social rights of employees and the national economy.
Indeed, in its letter of March 5, personally addressed to HE Felix-Antoine Tshisekedi Tshilombo, President of the Republic, the Union of Chinese Capital Mining Companies (USMCC) denounces the illegal practices of the Ad Hoc Commission of the mining sector of the Presidency, the General Directorate of Customs and Excise (DGDA), the General Directorate of Taxes (DGI), the Central Bank of Congo (BCC) and the General Inspectorate of Finance (IGF).
USMCC was created in 2017. It is perceived as an opaque nebula of Chinese companies controlling the mining sector and their subcontractors, on the sidelines of the Federation of Congolese Companies (FEC). This strategy allows the 25 mining exploitation and production companies to subcontract their services to a Chinese network of 25 companies. Thus sidelined, the State, the FEC and the Congolese subcontractors cannot know either the content of the products explored and exploited, or the actual quantities exported. Consequently, the tax authorities cannot calculate the actual tax contribution.
Some examples of mafia-like practices of USMCC members: China Molybdenum Co is accused of keeping shadow accounts in its partnership with Gécamines at TFM; the management of COMINIERE is accused of undervaluing its shares in favor of the Chinese company DATHCOM Mining; and the Société des Péages du Congo (SOPECO) and the Société de Gestion Routière (SGR) are unable to trace toll revenues collected since 2010 on the Kinshasa – Matadi, Kasumbalesa – Lubumbashi-Kolwezi roads. Contrary to the negative perception of the USMCC, his letter signed by Mr. GONG QINGGUO calls into question the report of the General Inspectorate of Finance (IGF) of February 15, 2023. It is “deeply shocking, regrettable and contains false accusations baseless against Chinese companies”.
According to the above letter, the win-win cooperation agreements, signed in different forms, individually, by Chinese companies with their Congolese partners, constitute what is known to the public as the “Chinese Contract”. “The members of the USMCC do not understand why the Congolese party is asking to renegotiate the Chinese Contract. From now on, they collectively doubt, in a serious way, if the Congolese Government continues to respect the spirit of the Contract, to guarantee the coherence of its policies and to fulfill the responsibilities and obligations defined by the agreements.. In addition, USMCC also accuses the Ad Hoc Commission of the Presidency of the mining sector of imposing “the extreme pressure on TFM, making all mining companies worried, even scared”. This would have required TFM to pay billions of US dollars, “as royalties from additional reserves, depending on the volume of the minerals”. Said commission disturbs the daily activities of the company, by exerting pressure on CMOC, majority shareholder of TFM, and appointing a provisional administrator, via a local court. At the same time, the Chinese Mining Union denounces the practices of the General Directorate of Customs and Excise (DGDA), the suspension of mineral exports, “without any official notice”, thus causing “the disruption of cash flow” and the imminent shutdown of production. In short, USMCC denounces the harassment against its members which borders on the Congolese mafia, first: “mining authorities, tax authorities, customs and even Parliament, without reason or proof of violation, impose fines of astronomical amounts”. Secondly, “The tax authorities never calculate taxes, under Congolese law. They impose immense costs of ‘tax adjustment’ or ‘administrative fines’ which are unfounded and unjustified”. Thirdly, public service agents, in particular the DGI, the DGDA and the BCC abuse the power of the State with impunity. They expose companies to enormous financial losses, by creating operational difficulties from scratch. They can freeze bank accounts, suspend import and export licenses, or order improper seizures and arbitrary transfers of company properties”. In view of the mutual accusations, the IRDH considers legitimate and commendable the promise of the USMCC to remain resolute in supporting its members, in particular TFM and SICOMINES.
In addition, the Institute supports the resolution of disputes through “of a friendly consultation, with a maximum of sincerity and goodwill”. Similarly, IRDH welcomes the USMCC’s promise to educate its members about “remain willing to support the governance of the Congolese Government, respect the laws and regulations of the Republic, actively assume their societal responsibilities, contribute to the recovery of the mining sector and the industrial modernization of the DRC”.
To members of the USMCC or the Chinese Mining Union, the IRDH strongly recommends joining the Federation of Congo Enterprises, so as not to position itself as a colonialist institution, recalling the Belgian Mining Union established in the Haut -Katanga at 20e century. To the President of the Republic, the IRDH recommends to instruct the opening of an urgent investigation, in order to verify and punish the agents in the services dependent mainly on his Cabinet, presumed authors of the serious facts placed at his personal disposal by the USMCC.
–
Contact: Maître Hubert Tshiswaka Masoka
Telephone: +243851103409
Email: tshiswaka@hotmail.com
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %