Mining companies operating in DRC underreported $16.8 billion in revenue

Mining companies operating in the Democratic Republic of Congo underreported $16.8 billion in revenue between 2018 and 2023, a state audit found, potentially reducing funds for the government and local communities.

Under DR Congo’s 2018 mining code, firms must contribute 0.3% of annual revenue to community development funds that typically support schools, clinics and water systems.

A June financial audit by the country’s Court of Auditors, seen by Reuters on October 5, found that companies declared $81.4 billion to the development funds, but reported $98.2 billion to tax authorities.

DR Congo is a top cobalt and copper producer, both critical for battery production.

Proposal made to suspend, prosecute non-compliant companies

The discrepancy resulted in $50.4 million in lost contributions to development funds, the report said.

“Practically, 70% of the companies did not respect this regulation … and it’s an enormous loss of earnings for the Congolese state,” said attorney general Jean Chris Mubanga Musuyu in response to questions about the report’s findings.

The Court of Auditors recommended that the government suspend non-compliant firms and pursue prosecutions, mandate revenue audits and enforce stricter oversight.

Average annual income in DR Congo, which also has vast reserves of lithium, uranium and other minerals, is about $580 per person.

Source: Reuters