DRC PLEDGES ADVANCES IN MINING TRANSPARENCY

C O N F I D E N T I A L KINSHASA 000880

SIPDIS

DEPT. PASS TO USTR

E.O. 12958: DECL: 05/22/2015
TAGS: ECON EMIN EPET EFIN CG
SUBJECT: DRC PLEDGES ADVANCES IN MINING TRANSPARENCY

Classified By: W. Brafman for reasons 1.4 b/d.


1. (C) Summary. Vice - President Jean-Pierre Bemba has
inaugurated the DRC's participation in an international
effort to promote transparency in extractive industries.
Bemba claims real commitment to promoting mining industry
transparency, but his actions may be merely politically
motivated. Several countries and the World Bank support the
DRC's participation in the initiative. However, the Ministry
of Mines questions Bemba's motivation for EITI participation.
End Summary.


2. (U) Bemba launched the DRC's participation in the
Extractive Industries Transparency Initiative (EITI) at a
World Bank-funded conference in Kinshasa on May 11 and 12.
EITI, an initiative that UK PM Tony Blair announced in
September 2002, aims to increase transparency in transactions
between government and extractive companies to improve
governance and reduce conflict, corruption and poverty.
Corruption and other illegal activity, such as smuggling,
have permeated the DRC's mining industry since independence.
Bemba announced at the May conference that a temporary
working group will form within fifteen days to select
representatives of private and public enterprises,
government, and civil society who will comprise a permanent
working group. The permanent working group will develop a
plan to implement the EITI measures. EITI measures include
the industries' publishing their payments to government and
government's publishing its actual receipts. Both the
payments and revenues are then subject to an independent
audit.


3. (C) A DFID economist who is a liaison with EITI told
Econoff on May 20 that Bemba's commitment to EITI and his
motivation for launching it are uncertain. The DFID economist
also said that U.S. support and involvement will be sought,
although he did not yet know of specific requests. He said
that other diplomatic missions, including France, Belgium and
Canada, have expressed support for DRC's participation. He
noted that the World Bank has expressed interest in further
supporting the initiative, at least by supplying consultative
experts, if the DRC demonstrates commitment to the process.


4. (C) Minister of Mines Ingele Ifoto told Econoff on May 16
that the GDRC is not ready to participate in this initiative
and that it should originate as a grassroots,
non-governmental initiative. Beyond that, Ifoto questioned
Bemba's commitment to the initiative.


5. (C) Comment: Ifoto belongs to a different political
faction than Bemba and is often at loggerheads with the
Vice-President; thus, his comments are unsurprising. That
said, Bemba is indeed likely to be more interested in trying
to garner credibility and political support, particularly
within the international community, than in promoting
transparency. Nonetheless, Bemba's commitment to this
initiative provides a useful lever to obtain greater
transparency in the DRC's traditionally murky mining industry
transactions. End Comment.
MEECE