News: ARSP sanctions on subcontracting companies in the private sector
The Regulatory Authority for Subcontracting in the Private Sector (ARSP) has recently taken sanction measures against numerous subcontracting companies. These measures aim to ensure compliance with the provisions of the Law in force in the area of subcontracting.
According to Miguel Kashal Katemb, Director General of ARSP, a grace period of 30 working days was granted to the companies concerned to comply with the Law. After this period, all contracts already signed with these companies will be automatically canceled, as provided for in article 28 of the Law on Subcontracting in the Private Sector.
The aim of this measure is to combat disguised subcontracting practices, where many main companies are in reality subcontractors themselves. The law stipulates that 51% of the shares of a subcontracting company must be held by Congolese, while the remaining 49% can be held by expatriates.
It is important to emphasize that these sanctioned companies do not appear on the official list of subcontractors and that they had already benefited from a period of 10 months to comply with the ARSP.
This action by the ARSP aims to guarantee greater transparency in the subcontracting sector, by promoting the participation of the Congolese and avoiding fraudulent practices. It is part of a broader context of strengthening regulations and controls in the Congolese economy.
Strict application of the Law on subcontracting in the private sector will help create a more equitable economic environment and encourage the development of Congolese entrepreneurship. The sanctions taken by the ARSP send a clear message: companies must respect the laws in force and contribute to the country’s economic growth in a transparent manner.
However, it is also essential that the ARSP ensures rigorous monitoring of the application of these sanctions and ensures that subcontracting companies that comply are provided with adequate support to develop and contribute significantly. positive for the Congolese economy.
In conclusion, the ARSP sanctions on subcontracting companies in the private sector are an important step towards transparency and economic fairness in the DRC. It now remains to ensure rigorous application of the Law and appropriate support for businesses that comply with the new requirements. This will strengthen the Congolese economy and promote the development of local businesses.