Mining and Voting in the Congo

Elections in the DRC have come to be marked by a fire sale of state assets. A recent report by the UK parliament estimates that the government may have lost up to $5.5 b due to undervaluation of these state assets before sale.

No prizes for guessing where part of the difference in these sales go.

The whole situation is pretty stinky:

The IMF has asked the government to clarify several obscure contracts signed by Gécamines, which suggests that state assets have been sold for absurdly low prices…….. This would put the loss to the state at $870 mn.

The Chief Executive of Gécamines, Albert Yuma Mulimbi, has refused all requests, from the Mines Ministry to the IMF and others, to publish the controversial contracts, claiming that as a private company it is not obliged to, even though the state owns all its shares. The government has instructed Yuma, we understand, not to provide the information.

More on this here and here.

Advertisements

One thought on “Mining and Voting in the Congo

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s