By KENNEDY SENELWA
In Summary
- While the tin, tantalum and tungsten (3Ts) mined in eastern DRC are subjected to due diligence, which includes tracing and auditing of the supply chain from the mining site onward, gold is not covered.
- A group of experts appointed by the United Nations Security Council to investigate illegal mining of gold in the DRC believe that the gold that finds its way into Dubai is either smuggled through Kampala and Bujumbura or is undeclared when transiting through Rwanda.
- The group notes the large discrepancy between official gold export statistics of DRC, Burundi,
International regulations have failed to prevent the
delivery of illegally mined gold from conflict-ridden Central African
countries into the global supply chain.
Gold is being traded to facilitate illegal financial flows for
individuals and firms operating in eastern Democratic Republic of Congo.
While the tin, tantalum and tungsten (3Ts) mined in eastern DRC
are subjected to due diligence, which includes tracing and auditing of
the supply chain from the mining site onward, gold is not covered. Some
322 mining sites of 3Ts were covered by December 2015, up from 260 in
2014.
A group of experts appointed by the United Nations Security
Council to investigate illegal mining of gold in the DRC believe that
the gold that finds its way into Dubai is either smuggled through
Kampala and Bujumbura or is undeclared when transiting through Rwanda.
“Gold from non-validated mining sites, and therefore possibly
benefiting armed groups, is laundered into the legitimate supply chain
and, subsequently, into the international market,” said the group of
experts in a report to the UN Security Council.
The experts said exporters based in DRC regularly buy gold
without knowing its actual origin and some exporters under-declare the
volumes.
Investigations focusing on gold, which provides financial
support to armed groups also found that some soldiers in the
government’s Armed Forces of Democratic Republic of Congo (FARDC) were
involved in illegal exploitation of natural resources, especially
through taxation of miners.
“Given that gold is the most lucrative of the natural resources
for exploitation by armed groups and some FARDC soldiers, this is a
cause for concern,” says the experts’ report.
They said a secure traceability or chain of custody system from
the point of production to the point of export is urgently needed to
prevent the leakage of gold that is not conflict-free into the
legitimate supply chain.
According to DRC government statistics, artisanal and
small-scale mines (ASMs) produced 548.43 kilogrammes of gold officially
in 2015. Armed groups either control non-validated mines or levy taxes
on miners.
ASM activities are widespread in Ituri, North Kivu and South
Kivu Provinces as most of the sites operate without government approval.
The gold is traded and exported illegally, depriving the DRC of
significant tax revenue.
Exporters take advantage of weaknesses in governance in DRC to
aggregate gold from multiple sites some of which are not validated, and
massively under declare exports to national and provincial authorities.
The group of experts co-ordinator Gaston Gramajo said under-
declaration involves falsification of official the DRC and regional
documents for export of gold.
“This allows them to pay no taxes or only a fraction of what
would otherwise be payable, thus generating considerable profits at the
expense of the government and upstream mining communities,” he said.
Two gold brokers in Kampala told the Group that they facilitated
gold sales between Butembo-based gold smugglers and consignees in
Kampala.
Mr Gramajo said the group sent official letters to Uganda
requesting export statistics along with measures taken to implement the
Security Council’s decision to sanction Kampala-based gold trading
firms.
Five dredge owners operating on Lubero River in North Kivu
Province told the UN experts that members of rebel Democratic Forces for
Liberation of Rwanda (FDLR) levied a monthly tax of 5 grammes of gold,
valued about $205.
In South Kivu, FARDC control parts of the gold trade in Misisi
area. Soldiers operating a barrier between mining and processing areas
collect about $0.52 from each digger entering the mine.
The extractives sector in eastern DRC faces problem of lack of
information from member states of the International Conference on Great
Lakes Region who do not share import and export data to stop smuggling.
The group obtained documents showing an individual declared to
Rwanda Customs authorities exports of 79kg of gold and 61kg in January
and February respectively from DRC.
The report said both shipments were in transit and in November
2015, another company declared export from Democratic Republic of Congo
of 270kg of gold to Rwanda.
“This is more than total volume of gold officially exported from
South Kivu by all exporters in 2014 and 2015 combined. On DRC side,
official government statistics show no declarations that month,” the
report added.
Mining authorities in Bukavu and Uvira in DRC told the experts
that gold from South Kivu continued to be smuggled to Bujumbura for
export, which is consistent with the group’s findings in previous
reports.
The Ministry of Mines of Burundi in March this year, informed
the group that five gold exporters had been operating in the country
since the beginning of 2015, exporting a total of 411 kg of gold. Two
mineral traders in Bujumbura, a civil society organisation and two gold
brokers in Bukavu told the group that the firm buys the commodity from
traders based in the DRC.
“The same sources told the group that, contrary to former
practice, Bukavu smugglers were coming less often to Bujumbura to avoid
suspicion. They transfer the gold at or near the border with Burundi,”
said the experts.
The group notes the large discrepancy between official gold
export statistics of DRC, Burundi, and Uganda with the actual amounts
that were imported into Dubai from the three countries
No comments :
Post a Comment