Recent revelations about the activities of the mining company Kibali Gold Mine in the Democratic Republic of Congo (DRC) have sparked controversy and threaten the closure of the mining site. Indeed, the South African mining giant Barrick and its subsidiary Kibali Gold Mine have been accused of fraudulent practices linked to subcontracting.
According to the Congolese authorities, Kibali Gold Mine entrusted 90% of its subcontracting contracts to a Belgian-Indian company, which in return demanded commissions from the subcontracting Congolese companies. However, Congolese legislation stipulates that subcontracting companies must be 51% owned by Congolese and only 49% by foreigners. Kibali Gold Mine’s activities therefore contravene this law.
The consequences of these fraudulent practices are significant. Millions of dollars are thus escaping from the Congolese financial circuit, depriving the country of precious resources. Faced with this situation, the authorities have taken firm measures. Miguel Katemb Kashal, director general of the Subcontracting Regulatory Authority in the DRC, asked Kibali Gold Mine to deregister the Belgian-Indian company and free up markets for the benefit of Congolese entrepreneurs.
This case highlights a broader problem in the mining sector in the DRC. The country loses more than $8 billion each year in financial leakages linked to subcontracting. These fraudulent practices compromise the economic development of the country and the stability of the mining sector.
To avoid serious consequences, the multinational Barrick, of which Kibali Gold Mine is a part, agreed to increase the volume of markets for the benefit of Congolese companies. However, the company also stressed the importance of a moratorium to abruptly revoke the outsourcing company in question, so as not to disrupt mining operations and gold production.
This case highlights the need for strict regulation and increased supervision in the mining sector in the DRC. It is crucial to put an end to fraudulent practices and promote transparent and fair subcontracting, in order to guarantee sustainable and equitable development for the country and its inhabitants.
In conclusion, recent revelations about fraudulent subcontracting practices at Kibali Gold Mine in the DRC are worrying and could potentially lead to the closure of the mining site. It is essential that the authorities take strict measures to end these practices and promote transparent and fair subcontracting in the country’s mining sector.