From Reuters via Business Report

Democratic Republic of Congo (DRC) is owed an estimated $3.7 billion in unpaid customs duties and fines by companies operating in its copper-rich Katanga province between 2008 and last year, according to an unpublished report commissioned by the public prosecutor’s office.

The report, seen by Reuters and dated November last year, is part of an ongoing government probe into suspected malpractice by customs agents and companies in the vast southeastern province. It accused companies there of under-declaring the value of imports and exports, and sometimes avoiding tax altogether, often with the collusion of customs officials.

Some companies named in the report questioned the accuracy of its findings. The head of the customs agency in Katanga also said proper consultations had not been held with the companies and the report’s findings were exaggerated.

Public Prosecutor Flory Kabange Numbi declined to comment directly on the report. In a letter to local rights group seen by Reuters, he said that it was too early to draw conclusions about the outcome of the overall investigation, which was continuing.

DRC’s mining production has been limited by energy and infrastructure problems, and the government is under pressure to maximise revenues from the sector if it is to stand a chance of hauling its 65 million people out of poverty.

Two government ministers backed the broader investigation, saying it must be completed and cash owed by firms must be paid to the government.

The report, compiled by a team that undertook a 10-day mission to Katanga, led by DRC Attorney General Simon Nyandu Shabandu, examined 25 cases of alleged customs infractions. It found that 11 companies were liable for $741 million in unpaid taxes and fines, including Mutanda Mining, a copper miner 69 percent-owned by Glencore Xstrata.

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