According to a report by accountancy firm Crowe, in collaboration with the Centre for Cybercrime and Economic Crime at the University of Portsmouth, fraud accounts for an average of 6.4% of expenditure in the global mining sector, rising to 8% for procurement operations.
In the Democratic Republic of Congo (DRC), where natural resources are abundant, corruption has devastating economic consequences.
Corruption costs the global economy an estimated $2.6 billion a year, representing 5% of GDP.
In the Democratic Republic of Congo, these losses undermine essential government revenues, particularly taxes and royalties.
Fraudulent practices, such as the delivery of substandard goods and the creation of fictitious employees, exacerbate the situation. In addition, bribes to obtain mining permits undermine confidence in institutions.
To combat this corruption, the report recommends preventive measures that could reduce losses by up to 40% in one year. These include rigorous control systems and regular audits. Such an approach can not only improve corporate profitability, but also enhance transparency in a sector vital to the national economy.
By strengthening governance and reducing corruption, the DRC can transform its mining potential into a genuine engine of sustainable growth for the country and its communities.
Flory Musiswa