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DRC: Glencore has been forced to cancel a “fictional” defense debt from KCC
[FLASH-BACK] – Glencore was forced by Gécamines to cancel a “fictional debt” defense of Kamoto Copper Company (KCC). Thus, the cancellation of 1.4 billion US dollars will not have been at all a gift to the Congolese government. It intervened following the signing of the transactional agreement on June 12, 2018. The latter put an end to the dispute between the two partners, namely: Gécamines (owner of 25% of the shares) and Katanga Mining, a subsidiary of Glencore in the DRC (owner of the 75% stake) in this joint venture.
The fact that Glencore’s CEO, Ivan Glasenberg, equates the cancellation of this “fictitious” debt with a “gift” to the Congolese state obscures a page of history and discredits the national executive. the DRC. Voices rise to denounce a real position of defense of this manager vis-à-vis its partners in the General Assembly.
If not, analyze some, he should show evidence that this money would have been used for the corruption of the Congolese authorities. At this sulphurous statement, Glencore, for its part, said that its activities were strictly above all advice and that it had taken measures to strengthen its corporate governance.
“The company claims that the cancellation of the debt by Katanga Mining was not a bribe. It was a debt reduction; no individual took advantage of it, it was transparent. And in all transparency, it has been approved by our listeners, “said a spokesman for Glencore.
Back to the origin of the cancellation
In fact, the over-indebtedness and the non-reconstitution of the capital of the joint venture were the two reasons for a deaf dialogue that had taken place between the two partners. This led Gecamines to solicit from the Commercial Court of Kolwezi, dated April 20, 2018, the dissolution of KCC.
Katanga Mining, a subsidiary of Glencore in the DRC, was criticized by Gécamines for having, through a series of intragroup financial and commercial agreements, implemented a policy that resulted in the cash and wealth being extracted for its sole profit. from KCC. And this, for more than ten years.
#RDC Le patron de Glencore, Ivan Glasenberg, considère l’annulation de la DETTE de 1,4 milliard USD de #KCC comme un CADEAU au gouvernement congolais. @Gecamines, détentrice de 25% de parts dans #KCC, est appelée à RETABLIR LA VÉRITÉ. https://t.co/mw3eE3gNUo
— Eric Tshikuma (@erictshikuma) May 15, 2019
“Based solely on the last four fiscal years, the financial debt has increased from USD 3,233,736,880 to USD 4,572,497,908 and the commercial debt from USD 1,967,255,847 to USD 4,473,525,056. At the end of 2017, the company was indebted to the Glencore Group for 9 billion USD, all bearing annual interest rates of up to 14%, far from the conditions that the parent company borrows, and then lend to the joint venture. It is thus several hundreds of millions of dollars of interest which are each year due by KCC to the group of majority shareholders “, revealed the Gécamines in an official update.
READ (ALSO): Did Glencore really roll Gécamines?
Despite being surprised to see its minority partner launch legal proceedings unilaterally, the Glencore subsidiary considered this negative equity situation as an accounting problem that resulted from KCC’s historical losses following the rehabilitation of the old infrastructure that it had inherited. at the time of the acquisition of the Kolwezi mining complex.
“KCC and its shareholders in Katanga have made numerous attempts to engage in constructive negotiations with Gécamines to remedy this situation and will continue to attempt to engage in these negotiations. KCC and its shareholders in Katanga Mining will take all necessary measures to remedy this situation and ensure the consolidation and continuation of its operations, “said KCC in an official statement.
RE (READ OUT): settled KCC litigation, Gécamines and Katanga mining sign an agreement!
The adjournment of the 8 May 2018 hearing at the Kolwezi Commercial Court paved the way for an amicable settlement process that will end one month later, on June 12, 2018, with the signing of ‘an agreement at the end of which, Glencore has agreed the cancellation of its debt that Gécamines considered “fictitious”.
As a reminder, Gécamines is engaged in a process of legal and economic rebalancing of its partnerships with mining investors. Objective: to allow its Jointe Ventures to produce wealth not only for itself, but also for the state.
Eric TSHIKUMA
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DRC: a joint commission soon to be set up to relaunch the biometric driving licence production process
The Government of the Democratic Republic of the Congo (DRC) intends to put an end to a kingdom of unqualified vehicle drivers.
To this end, the government has just announced the imminent creation of a commission to work on the production of the biometric driving license, a process interrupted in 2017.
The Minister of Transport, Jean-Pierre Bemba Gombo, announced, during the Council of Ministers meeting of November 1, 2024, the formation of a joint commission for this purpose.
In the minutes of the Council of Ministers, the Government states that the commission in question will bring together representatives of the Office National de l’Identification de la Population (ONIP), the Direction Générale des Recettes Administratives, Judiciaires, Domaniales et de Participations (DGRAD), and a specialist service provider. The aim was to develop and analyze a process for producing and issuing driving licenses.
During the discussions, Jean-Pierre Bemba reported that the project aims to modernize and secure the process of obtaining a driver’s license.
The introduction of biometric features, reassured the Government, will enable us to combat fraud and forged documents more effectively, enhance road safety and improve the management of driver data.
The finalization of the partnership with the service provider before the implementation of the project seems to be the last turn initiated by the national executive before the issuance of secure driving licenses.
Olivier KAFORO
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DRC: Eric Tshikuma calls for an annual grant to support UNPC reforms
National deputy Eric Tshikuma defended certain needs that he considers to be priorities and which must be included in the draft budget for fiscal year 2025. This was during the general debate that led to the admissibility of the 2025 Finance Bill by the National Assembly.
Among the priorities mentioned by this elected representative of Funa are the UNPC subsidy, the urgent needs of his Funa constituency, and the need to mobilize the resources required to provide the police with adequate equipment.
In short, he is sticking to a budget that will provide real solutions to the day-to-day challenges faced by the Congolese people.
Firstly, a subsidy for the UNPC
As a journalist and media manager, Eric Tshikuma recalls the importance of the recommendations of the États généraux de la Communication et des Médias in 2022.
At that time, the President of the Republic invited the Government to support the reform process of the Union Nationale de la Presse du Congo (UNPC) following its Congress.
National deputy Eric Tshikuma believes that this structure needs an annual subsidy, to ensure its smooth running and the implementation of reforms to clean up the media landscape.
Secondly, the priority needs of his constituency of Funa in Kinshasa.
Concerned about his base, he points out that in
a budget of 49,846.8 billion CDF, up 21.6% on the previous year, it’s only natural to think about strengthening public security.
National deputy Eric Tshikuma highlights the specific and urgent issues facing the people of Kinshasa, and particularly those of Funa, his electoral district. These concerns include issues of public safety, the lack of equipment and means of mobility for the police, and the shortage of staff in police stations and sub-stations. In addition, he insists on the fight against erosion heads, the cleaning up of rivers – notably Ndjili, Kalamu and Makelele – and the drainage of gutters.
Thirdly, mobilize the necessary resources to provide the police with equipment.
Against the backdrop of a significant increase in investment appropriations in this draft budget, rising from 15.1% in 2024 to 48.4% in 2025, and a 25.2% rise in security spending, Eric Tshikuma notes the need for the Government to mobilize the necessary resources to provide the police with equipment and mobility. This will solve the problem of understaffing and improve working conditions for officers in police stations and sub-stations, including his base in Funa. He also recommends the allocation of funds to local security committees to ensure their proper functioning.
As far as erosion control is concerned, the elected representative of Funa is calling for sufficient funding to enable the relevant departments – such as OVD and OR – to become fully involved.
“The central government must provide financial support to provinces such as Kinshasa, which has more than 300 erosion sites, a large proportion of which are in Funa (notably Selembao and Makala)”, he insists.
With regard to the cleaning of rivers – Ndjili, Kalamu, and Makelele – and the drainage of gutters in Kinshasa, including in Funa, MP Tshikuma felt that the funds provided for in the draft 2025 budget remain symbolic and largely insufficient to cover a regular annual cleaning plan.
“We recommended an increase in funding to enable government services to intervene upstream, and thus avoid the floods that are hitting the people of Kinshasa,” he explains.
Still in line with the day-to-day needs of the Congolese people, he turned his attention to the question of degraded routes and roads.
“We have suggested that certain impassable routes be included among the government’s priorities. These include the RN3 (Bukavu-Walikale- Kisangani), Avenue de Libération (Bambole-Prison centrale de Makala-Marché de Selembao), and Avenue du Tourisme/Nzela ya mayi (Mimosas-Mont Ngaliema) in Kinshasa”, he declares.
National deputy Eric Tshikuma reassures us that he and his colleagues will be monitoring the progress of projects linked to the funds generated by the renegotiation of the Chinese contract.
In his capacity as a member of the Ecofin and Budgetary Control Commission, Eric Tshikuma intends to work actively with his colleagues to examine the 2025 Finance Bill in depth, with a view to making judicious improvements.
The Finance Bill 2025 was presented by Prime Minister Judith Suminwa. It is balanced in revenue and expenditure at 49,846.8 billion Congolese francs (CDF), an increase of 21.6% on the 2024 budget.
Nadine FULA
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DRC: total public securities outstanding amounted to CDF 2,624.8 billion at October 24, 2024
The Congolese government’s total outstanding public debt reached 2,624.8 billion Congolese francs (CDF) on October 24, 2024, reflecting improved public debt management in the Democratic Republic of Congo.
This figure reflects the Government’s commitment to mobilizing financial resources to support its development projects, while effectively managing its obligations.
The results of the October 22, 2024 auction show that the Treasury raised USD 55 million out of an expected USD 50 million for two-year Treasury Bonds. This success is the result of strong demand, with bids reaching USD 75 million. This indicates growing investor interest in Congolese government securities.
At the same time, the Government raised all the bids received for the Obligations indexées du Trésor, totalling 5 billion Congolese francs (CDF), whereas the amount announced was 50 billion Congolese francs (CDF). This underperformance can be explained by the instability of the Congolese franc against the US dollar in recent years.
In terms of repayments, the Treasury repaid a total of 2,469.6 billion Congolese francs (CDF), including 1,532.3 billion CDF in Treasury Bills and 937.3 billion CDF in Treasury Bonds. These repayments are essential to maintain investor confidence and ensure liquidity on the market.
The total outstanding amount of government securities is a key indicator of the country’s financial health.
Year-on-year, it reflects the Government’s efforts to diversify its sources of financing and reduce its dependence on traditional tax revenues. This is particularly important in an uncertain global economic climate.
The economic situation in the DRC remains complex, with challenges linked to budget management and inflation. The country’s authorities must navigate between the need to invest in development and the prudent management of public debt.
Increasing the stock of government securities could be seen as a strategy to attract more foreign investment.
In the future, the Congolese government should continue to strengthen its public debt issuance strategy. This includes not only improved issuance conditions, but also transparency in the management of the funds raised. Clear communication with investors will be essential to maintain their confidence.
Transparency in the management of public securities is crucial to avoid problems of corruption and ensure that funds are used efficiently. In addition, the Government must put in place robust mechanisms to monitor the use of resources and report back to citizens.
The DRC government should also consider organizing regular forums with investors to discuss the opportunities and challenges associated with public securities. This could help strengthen relations between the public and private sectors and foster a positive investment climate.
The overall stock of public securities in the DRC reflects the Government’s increasing commitment to improving its financial management and attracting investment. However, it is imperative that these efforts are accompanied by increased transparency and effective communication with stakeholders.
The road to sustainable financial management is still long, but these recent developments represent a step in the right direction.
Mitterrand MASAMUNA
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