The Regulatory Authority for Subcontracting in the Private Sector (ARSP) in the Democratic Republic of Congo (DRC) recently published a list of 1,200 companies deregistered from the subcontracting market. This decision follows inspections carried out by judicial police officers, which revealed that these companies were operating illegally in the subcontracting sector.
According to Miguel Kashal, general director of ARSP, these companies were operating illegally and most of them received their payments abroad, thus evading tax obligations and the repatriation of capital to the country. He also pointed out that some of these companies did not comply with the law regarding the composition of their shareholders, with majority stakes held by foreigners, in violation of the rules of subcontracting.
The ARSP also uncovered cases of fraud where fictitious associates were used to circumvent the law. All these companies will be notified by September 25, 2023. According to ARSP, these violations of the subcontracting law result in an annual loss of approximately $8 billion for the DRC.
This decision to deregister illegal companies in the subcontracting sector is an important measure to ensure compliance with the laws and promote a healthy business environment in the DRC. By protecting the country’s interests, this action will help strengthen the national economy and avoid significant financial losses caused by illegal activities.
It is essential that the authorities continue to closely monitor the outsourcing sector and take strict action against any violations of the law. This will create a fair and transparent market, thus promoting economic growth and the development of industry in the DRC.
However, it is important to emphasize that this delisting should not be seen as an attack on the entire subcontracting sector in the DRC. Many legitimate and legally compliant businesses continue to contribute significantly to the economy and job creation in the country. It is therefore essential to clearly differentiate illegal actors from legitimate actors and to support the latter in their development.
In conclusion, the deregistration of these 1,200 illegal companies in the subcontracting sector in the DRC is a necessary measure to preserve the integrity of the market and protect national interests. It is essential that authorities continue to monitor and take strict measures to combat illegal activities and promote a healthy business environment.