After the results of the control carried out in the subcontracting sector in Kinshasa, the regulatory authority for subcontracting in the private sector (ARSP) took strict measures to fight against irregular subcontracting companies. Following this inspection, the ARSP published on its website the list of 1,200 subcontracting companies now prohibited from operating. These companies were deemed illegal and contributed to a loss estimated at 8 billion US dollars per year for the Congolese state.
Among the deregistered companies, some did not respect the law with regard to the constitution of their statutes, in particular with foreign shareholders holding more than 51% of the shares, in violation of the regulations in force on subcontracting. Additionally, ARSP uncovered several cases of fraud, including the use of nominees to mask the true ownership of companies.
Faced with these irregularities, the ARSP plans to notify the main companies of the deregistered subcontracting companies. Lead companies that continue to work with these companies will also be punished. This measure aims to support the policy of the President of the Republic Felix Tshisekedi, who wishes to allow the Congolese to access subcontracting markets.
However, the ARSP emphasizes that the deregistered companies represent only a part of the non-compliant companies. To combat this problem on a national scale, the ARSP plans to expand its controls to provinces with high economic activity, such as Katanga, the two Kivus, Kasai and the North-East of the DRC.
It is essential that stakeholders regularly consult the ARSP website in order to comply with the law and avoid sanctions. The next stage of ARSP control will be Katanga.
This action by the ARSP marks an important step in the regulation of the subcontracting sector in the DRC and illustrates the government’s desire to fight against illegal practices and promote a more transparent and equitable economy. By eliminating non-compliant businesses, the authority seeks to encourage the emergence of competent local businesses that can contribute to the country’s economic development.
It is essential that economic actors and businesses comply with current regulations and operate legally. This will promote a healthy environment conducive to investments and will strengthen the confidence of national and international partners in the Congolese economy. The fight against illegal practices in the subcontracting sector is an important step towards sustainable and equitable economic development in the DRC.