The Democratic Republic of Congo (DRC) is facing colossal financial losses caused by the opacity that surrounds the process of awarding and negotiating oil and gas blocks. Selected companies may not be able to exploit these resources, resulting in title withdrawals and damages payments of up to US$1 million.
These losses were revealed during the press conference of the Congo is not for sale (CNPAV) coalition. Lewis Yola, an expert in downstream oil and in the negotiation of oil contracts and member of the CNPAV, revealed that the oil company Perenco Rep was causing the Republic to lose at least 40 million USD due to the non-payment of two tax headings.
The poor management of the DRC’s oil sector also poses problems. The signing of the 9th amendment for Onshore production, carried out according to the old system, causes considerable damage with regard to, for example, superficial tax and royalties. Businesses are not required to pay superficial tax, resulting in a loss of approximately USD 35 million per year.
Faced with these revelations, it is urgent that the President of the Republic take measures to improve the financial situation of the DRC. In-depth studies, before any effective exploitation of oil resources, are necessary to allow better management of this sector.
In short, the DRC’s financial situation is compromised by the opacity surrounding the allocation and negotiation of oil and gas blocks. The non-payment of tax headings only aggravates this financial crisis. The President of the Republic must take immediate measures to raise the bar