Audit reveals 17bn revenue underreporting in Congo’s mining firms

Audit Reveals Underreported Mining Revenue in the Democratic Republic of Congo

A state audit has identified that mining companies in the Democratic Republic of Congo failed to report approximately $16.8 billion in revenue between 2018 and 2023. This underreporting may have resulted in the loss of crucial funds for development projects.

The Court of Auditors conducted an audit in June, published in October, which indicated that companies declared $81.4 billion for a community development fund but only reported $98.2 billion to tax authorities. This discrepancy led to an estimated $50.4 million shortfall in contributions.

According to the 2018 mining code, firms are mandated to allocate 0.3% of their annual revenue to local development funds. These funds are intended to support infrastructure projects such as schools, clinics, and water systems.

The report identified several major cobalt and copper producers as having underreported earnings by a total of $10 billion. These producers include subsidiaries of companies like Glencore and CMOC. Glencore's Kamoto Copper Company cited a "differing interpretation" of the law’s effective date as the reason for the discrepancy. CMOC did not provide a response.

Authorities in the Democratic Republic of Congo are calling for action. Attorney General Jean Chris Mubanga Musuyu noted that nearly 70% of companies failed to comply with the regulation, leading to a significant loss of revenue. The Court of Auditors recommended suspending non-compliant companies and initiating legal proceedings.

Civil society groups support these measures, emphasizing the importance of the community levy in transforming mining into a means of local development, thereby improving living conditions in a nation with an average annual income of $580.

Based on reporting by Africanews.