After the recent results of an inspection in the subcontracting sector in Kinshasa, the Regulatory Authority for Subcontracting in the Private Sector (ARSP) has taken strong measures. Indeed, the ARSP has published on its website (www.arsp.cd) a list of 1,200 subcontracting companies now prohibited from operating. A decision motivated by the observation of irregularities and illegal practices within numerous companies, thus depriving the Congolese state of several billion US dollars each year.
The Director General of the ARSP, Miguel Kashal Katemb, specified that officers from the judicial police were sent to the field to carry out this check. Following this, the subcontracting companies deemed ineligible were deregistered. It turns out that many of these companies were operating illegally, getting paid abroad and thus evading tax administration and the repatriation of capital into the country.
Among the motivations for the deregistration of these subcontracting companies, the ARSP noted violations of the law concerning the composition of shareholders. Indeed, several of them had foreign shareholders holding more than 51% of the shares, which goes against the rules set by the Law on Subcontracting and the regulatory acts in force.
By investigating further, the ARSP also discovered numerous cases of fraud against the law, particularly through the use of nominees. This phenomenon consists of promoting fictitious partners who actually have no share in the company. A practice that allows the rules to be circumvented and the true ownership of subcontracting companies to be hidden.
Faced with this situation, the ARSP intends to take additional measures to sanction the main companies which work with deregistered companies. Therefore, any collaboration with a deregistered company will result in immediate sanctions for the main company. This approach is part of the President of the Republic’s desire to promote Congolese access to subcontracting markets.
However, it is important to emphasize that deregistered companies represent only a portion of non-compliant companies. The ARSP wishes to extend its actions to provinces with high economic activity, such as Katanga, the two Kivus, Kasai and the North-East of the DRC.
In the interest of transparency and information, the General Management of the ARSP asks all stakeholders to consult its website to avoid the consequences of the law.
This ARSP initiative aims to clean up the subcontracting sector by putting an end to illegal practices and promoting the emergence of competitive and legitimate Congolese companies. It is a step towards greater economic transparency and better protection of the interests of the Congolese state.. Let us hope that these measures will boost the Congolese economy and guarantee a fair distribution of income generated by subcontracting.