The construction of National Road No. 1 linking the towns of Mbuji-Mayi to Kananga in the Democratic Republic of Congo (DRC) is at the heart of a controversy. The Center for Research in Public Finance and Local Development (CREFDL) recently invited the General Inspectorate of Finance (IGF) to dissociate itself from the influence of certain members of the Congolese government who seek to obtain the forfeiture of the contract concluded with the company SAMCRETE responsible for the construction works.
In a press release dated October 27, 2023, CREFDL questions the IGF’s rapid conclusions regarding an alleged misappropriation of funds allocated to the road construction project. According to the IGF, only $3 million has been used so far, while $24 million is believed to have been misappropriated. The IGF thus refuses to validate a new payment of 29 million dollars to the company SAMCRETE.
The CREFDL considers that these conclusions are hasty and are not based on solid accounting elements. According to the organization, they are motivated by a campaign orchestrated by public authorities who are deprived of access to sources of financing for the project.
It is important to emphasize that the construction of this road was entrusted to SAMCRETE following the signing of a contract between the company and the FPI (Infrastructure Promotion Fund). This contract provides for the construction of a paved road over a 188 km section for an amount of $302.8 million. The REIT has already made a payment of 9% of the total contract amount, or $27 million.
SAMCRETE has provided a bank guarantee of $63 million and is awaiting disbursement of the remaining funds to accelerate field work. The CREFDL warns of the potentially serious consequences of withdrawing from the project, both contractually and diplomatically. The DRC would risk having to face arbitration procedures and potential damage to diplomatic and commercial relations with Egypt.
Faced with this situation, CREFDL recommends to the President of the Republic, Félix Tshisekedi, to intervene and ask the IGF to respect the clauses of the contract signed between SAMCRETE and the FPI.
It is therefore essential that all parties involved work together to find a fair and transparent solution. The construction of National Road No. 1 is of great importance for the development and accessibility of the regions concerned in the DRC. It is essential to ensure that the funds allocated for this project are used efficiently and responsibly, in the interest of the country and its citizens.