The contract signed on March 1 between the State, majority shareholder, 80% of the shares, and the Chinese shareholder B with a third firm called “Centre-ville”, is so shady that it seems more like an April fool’s joke (April 1), a public farce in bad taste. However, it is a sad reality that weighs down the nation.
At the end of January 2024, the DGA of MIBA, Hubert Kazadi Mabika, appointed in mid-June 2023 by presidential order, was dismissed from his position in favor of the Chinese Niu Haoran. The President of the Republic therefore rebuffed by signing another order n°23/216 dated December 10, 2023. However, Charles Okoto Lolakombe remains PCA and André Kabanda Kana, DG on behalf of the State, majority shareholder . The Chinese minority shareholder, SIBEKA(?) has, in fact, succeeded in winning the Centre-ville company, not otherwise identified, the exclusive purchase of all the production of the Bakwanga Mining Company.
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Expert opinion, the deal took place on the black market and not over the counter as the MIBA Board of Directors wants to believe, as reported by the press. The direct or private agreement in no way excludes the notice of non-objection from the General Directorate of Public Procurement Control (DGCMP) and the publication of the said contract on the website of the Public Procurement Regulatory Authority (ARMP). ). Clearly, the MIBA/Centre-ville deal is, mutatis mutandis, the copy and paste of the one concluded between MIBA and Idi Diamonds of Dan Getler, from the Laurent-Désiré Kabila era. The contract was justified by the war effort in the face of Rwanda’s second war of aggression camouflaged in the RCD rebellion. Could Paul Kagame’s third war of aggression under the cover of the M23 and the puppets of the Congo River Alliance (AFC) led by Corneille Naanga also serve as an alibi for the Tshisekedi administration? It remains that the common human denominator of these two deals is Charles Okoto Lolakombe, PAD under LDK, PCA during the Fatshi de la Minière era.
In addition to Idi Diamonds, Charles Okoto was behind another joint venture with vague outlines like Centre-ville, Sengamines. When asked about the constitution of capital during the presentation of Sengamines, Charles Okoto made it clear that shareholding was a state secret. Questioned by the local press on the contours of the “City Center” contract, the company representative was rather tongue-in-cheek, evasive and confused even about the start of the execution of the contract. And regarding the financial arrangement, the delegate of Downtown, which he presented as a company under American law, directs the press at the PCA of the MIBA, Okoto Lolakombe.
What future for MIBA?
A year ago, on the sidelines of the fortieth World Diamond Congress held at the end of March 2023 in Tel Aviv, Israel, it was announced that the DRC had been relegated to 4th place among world producers of rough diamonds. in volume. The country no longer has reliable statistics on diamond production, which has nevertheless spread almost everywhere in the territory. For the 2023 financial year, according to the Mines Directorate and the Center for Expertise, Evaluation and Certification of Mineral, Precious and Semi-Precious Substances (CEEC), artisanal diamond production stood at 6 463,868 carats expected to bring in 325,621,490,600 CDF or a little more than 161 million US$. On the industrial side, on the Bakwanga Mining, MIBA, nothing to report. No dividends expected for the State, majority shareholder (80% of shares) when artisanal operators should pay to the customs service (DGDA) for the release of the gems, at least US$1.6 million, the financial statements of MIBA are in the red, according to the latest Thematic Report on strengthening disclosures by public companies in the extractive sector. While in Kinshasa, huge subsidies for the benefit of Mining are reported, the MIBA books for the period do not mention the existence of any subsidies received from the State.
However, the review of the equity accounts reveals an investment subsidy for which no explanation was provided to the EITI/DRC service. The amount of this subsidy only amounts to US$196,207 and US$189,825 respectively at the end of 2019 and the end of 2020. We are therefore too far from the 10.20 million announced by the government since the Kabila years. La Minière obtained a loan of US$5 million from Gécamines. But the money never landed in the Minière’s coffers.
Mwana Africa, les Chinois enchaînent Kalaa Mpinga
The company Mwana Africa, a minority shareholder, which had bought the 20% of the Belgians’ shares in Sibeka for US$55 million, was bought by Chinese interests following a hostile takeover bid, and its boss, Kalaa Mpinga, was ousted. . Son of Mpinga Kasende, Kalaa remained persona non grata in the DRC for a long time because, according to Western media, he tried unsuccessfully to be knighted in Harare (Zimbabwe) by Robert Mugabe, as successor to Laurent-Désiré Kabila, the following day of his assassination in January 2001. All negotiations with the Minister of Portfolio, Marie-Louise Munga, took place with an intermediary. In her report, the minister will write, in essence, that the State could not negotiate with a gun at its throat. However, Kalaa Mpinga had the idea of listing MIBA on the stock exchange with a view to bringing in fresh capital on the condition that he occupied a position of first choice. The Mpinga son will be wrong to ally himself with the Chinese who had ramifications with the regime of Joseph Kabila. He lost his business.
Not a cent of dividend
Since then, it has been a shambles at MIBA, with the State changing representatives almost every six months! The Chinese from Mwana Africa or Sibeka, it depends, have obviously decided to close their eyes and not put their hands in their pockets. A strategy which benefits the competing firm SACIM, Anhui Congo Mining Investment Company which has, in fact, taken over the mining assets of Sengamines including the famous Tshibwe deposit, in the territory of Miabi, 45 km to the west of Mbuji-Mayi, one of the richest reserves in MIBA. Its share capital is US$8,400,000 made up of 1000 shares divided equally between the Congolese State and the Chinese partner AFECC.
SACIM, Chinese bridgehead in Kasai
For the 2023 financial year, the Ministry of the Portfolio only hoped to receive approximately US$1.5 million in dividends. Ridiculous. Since there is no picture between the crumbs that SACIM pays to the State after six years of exemption regime for its activities on the ground. SACIM carries out, in fact, both for itself and on behalf of third parties, the operations of studies, prospecting, research and mining of diamonds, copper, cobalt, tin and all substances concessionable and recoverable minerals as well as all operations of concentration and metallurgical and chemical treatment, transformation, marketing, export of these substances and their derivatives, mining engineering and all operations likely to promote the achievement of its social object. According to a recent report from the EITI/DRC Executive Secretariat, SACIM does not have a website. Which sufficiently proves that the Sino-Congolese diamond company does not want to communicate anything. And if it wants to communicate on the Web, SACIM makes no mention of its financial statements. The rare data available on the mixed economy company is the result of excavations by the Executive Secretariat of the EITI/DRC. SACIM thus achieved a turnover, in 2019, of US$67.21 million and in 2020, of US$43.26 million. Its 2019 balance sheet total amounts to US$111.49 million compared to US$211.14 million in 2020. And the 2019 net profit is US$8.72 million, and in 2020, US$3.78 million. US$.
Over the two financial years, the State, reduced to a sleeping partner as in the infamous Sicomines joint venture, did not receive a single cent in terms of dividend. Éric Ngalula, national deputy for Kasaï Oriental, had asked the Prime Minister, Sylvestre Ilunga Ilunkamba, to reassess the SACIM partnership which is particularly notable in tax fraud. However, under Law No. 08/007 of July 7, 2008 relating to general provisions relating to the transformation of public enterprises and Law No. 08/008 of July 7 relating to general provisions relating to the disengagement of the State from public enterprises. portfolio, SACIM is a company subject, in matters of financial transfers with the State, to the rules of common law in tax matters, that is to say that it pays to the State as a taxpayer or liable for taxes , taxes and other rights due and the mining code and the rules provided for by the revised uniform act relating to the law of commercial companies and economic interest groups. Alas! Concerning the profit, a levy of at least 5% is planned for the formation of the reserve fund. This levy will cease to be obligatory when the reserve has reached one tenth of the share capital. But, although SACIM provided non-detailed financial statements, the EITI/DRC noted that all profits from 2019 and 2020 were shared.
At SACIM, daily management is carried out by the college of managers who reports to the general assembly of partners. In addition to a fixed allowance to be allocated to general costs, this college of managers is authorized to grant itself special allowances, and the remuneration of its members was US$12,580 in 2020. While the DGRAD certifies that the State does not received nothing in dividends in 2018, SACIM reported that the entire profit, i.e. US$5,147,864, was distributed between partners. The Executive Secretariat of the EITI/DRC then requested the minutes of the general meetings relating to this distribution of the entire 2018 profit, i.e. US$5,147,864. “According to the response provided by SACIM, we understand that due to the failure to hold general meetings, the management of SACIM, through its letters n°117/2020 and 248/2021, had requested and obtained the agreement of the Minister of the Portfolio, the allocation of the results for the 2019 and 2020 financial years. These allocations were confirmed by the general meeting held in Maputo on November 26, 2022.
Analysts find it curious and suspicious that a company in which the State has 50% of the shares, operating and having its headquarters in the DRC, prefers to hold its general meeting in Mozambique! Already on the production side, SACIM blows hot and cold. In Tshibwe, not far from Mbuji-Mayi where SACIM, MP Éric Ngalula was told that the company just produced less than 400,000 carats of diamonds but at the General Secretariat of the EITI/DRC, SACIM announced a production 3,965,179 carats, i.e. 132% achievement compared to forecasts. And the production achieved in 2020 is 4,400,212 carats of the diamond, an increase of 11% compared to the year 2019. The carat – equivalent to 20 cg – of the diamond was traded between 22 and 25 dollars. While SACIM’s production is increasing, everything is plummeting at MIBA. The Head of State’s last visit to Kasai should be an opportunity for public opinion to restore MIBA’s rights and put an end to the Chinese of SACIM. The idea of sacking the “Sicomines du Kasaï” was already haunting people’s minds. Félix Tshisekedi tempered popular discontent with firm promises to revive the “economic lung” of the Kasai area.
Of course, the pay of Mining agents is ensured by the Ministry of Finance. But the Charles Okoto and the Chinese option frustrates the decried practices of yesteryear, which have scandalously come to the surface.
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2024-03-13 14:38:49
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