Identifier
Created
Classification
Origin
07KINSHASA660
2007-06-13 16:00:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kinshasa
how-toVZCZCXYZ0011 RR RUEHWEB DE RUEHKI #0660/01 1641600 ZNR UUUUU ZZH R 131600Z JUN 07 FM AMEMBASSY KINSHASA TO SECSTATE WASHDC 6306
UNCLAS KINSHASA 000660
SIPDIS
SENSITIVE
SIPDIS
DEPT PASS TO EEB/ESC/IEC MAUEL, EEB/ESC/IEC HAENDLER, AND
EEB/ESC/IEC/ENR HAYMOND
E.O. 12958: N/A
TAGS: ECON EMIN EAID ENRG EPET CG
SUBJECT: EITI DEMARCHE
REF: A. SECSTATE 75118
B. 05 KINSHASA 880
C. 05 KINSHASA 2070
D. KINSHASA 160
E. KINSHASA 533
UNCLAS KINSHASA 000660
SIPDIS
SENSITIVE
SIPDIS
DEPT PASS TO EEB/ESC/IEC MAUEL, EEB/ESC/IEC HAENDLER, AND
EEB/ESC/IEC/ENR HAYMOND
E.O. 12958: N/A
TAGS: ECON EMIN EAID ENRG EPET CG
SUBJECT: EITI DEMARCHE
REF: A. SECSTATE 75118
B. 05 KINSHASA 880
C. 05 KINSHASA 2070
D. KINSHASA 160
E. KINSHASA 533
1. (U) Post submits the following in response to reftel A,
regarding the Extractive Industries Transparency Initiative
(EITI).
GDRC'S RESPONSE
--------------
2. (U) The GDRC has not yet responded to the EITI letter
mentioned in reftel A. DFID delivered the letters to DRC
officials on June 5.
GDRC COMMITMENT AND CAPACITY
--------------
3. (SBU) The current government has publicly stated it is
committed to increasing transparency in the extractive
industries (reftel D),but it has not demonstrated it has the
capacity, resources or political will to implement the EITI
on its own or in partnership with civil society or industry.
In 2005, then-Vice President Jean-Pierre Bemba announced the
DRC's participation in the EITI; the Ministry of Plan oversaw
the creation of a commission, but plans have not meaningfully
advanced further (reftels B and C). In May 2007 the GDRC's
Minister of Plan replaced the coordinator of the DRC's EITI
commission, which is composed of civil society, GDRC and
industry representatives. Several commission members
objected to the action, and the U.K. Embassy has informed the
GDRC it views this event as a step backwards in
implementation of the EITI and general transparency
principles.
ORGANIZATION OF EXTRACTIVE INDUSTRY
--------------
4. (U) The GDRC is in the early stages of reform of the
extractive industry sector, which already generates well over
one-half of the GDRC export revenue (reftel D) and an
increasing amount of investment. The GDRC's control and
organization over extractive industries varies widely,
depending upon the sector and region of the country.
Artisanal mining, the influence of armed elements and lack of
government control in some regions are among the factors that
reduce the sector's organization. Hundreds of thousands of
artisanal miners are estimated to work in the DRC, and in
sectors such as diamond mining these diggers produce the
majority of the DRC's output. In portions of Eastern Congo,
especially Ituri District and the Kivu provinces, the central
government has little or limited control over production and
export, while armed elements often exercise substantial
control.
REVENUE REPORTING
--------------
5. (U) There are no government or organized industry efforts
to report revenues under the EITI. The GDRC is, however, a
member in good standing of the Kimberley Process
Certification Scheme. Select copper mining companies in the
DRC are working with a USG-supported Extractive Industries
Alliance program (EIA),discussed below, to support
transparency generally.
CIVIL SOCIETY CAPACITY
--------------
6. (SBU) Civil society's capacity to urge the implementation
of the EITI is limited. Both domestic and international NGOs
advocate in favor of implementation, but their efforts have
minimal impact. (Comment: Some NGOs, including Global Witness
and RAID, are perceived as representing increasingly extreme
positions on sector reform, undermining their credibility in
the donor and GDRC communities. End comment.) Many domestic
NGOs lack necessary personnel or financial resources,
although a number of interested Congolese NGOs have formed a
DRC chapter of the international Publish What you Pay
coalition, and in April this group held a seminar.
DONOR SUPPORT
--------------
7. (SBU) As mentioned in paragraph five, the USG (through
USAID Kinshasa),is developing an Extractive Industries
Alliance (EIA). Thus far, the USG has committed USD 3.5
million over 28 months for implementation of this Global
Development Alliance program. Select mining companies and
DFID are also contributing funds. The program's main goals
are to collaborate with mining companies to create
sustainable social development and a framework of revenue
transparency and good governance (reftel E). According to a
DFID official, the World Bank (WB) is planning to fund EITI
implementation, but has delayed doing so until the GDRC
satisfactorily responds to the WB's concerns about the
replacement of the commission's coordinator, an action
discussed above.
MEECE
SIPDIS
SENSITIVE
SIPDIS
DEPT PASS TO EEB/ESC/IEC MAUEL, EEB/ESC/IEC HAENDLER, AND
EEB/ESC/IEC/ENR HAYMOND
E.O. 12958: N/A
TAGS: ECON EMIN EAID ENRG EPET CG
SUBJECT: EITI DEMARCHE
REF: A. SECSTATE 75118
B. 05 KINSHASA 880
C. 05 KINSHASA 2070
D. KINSHASA 160
E. KINSHASA 533
1. (U) Post submits the following in response to reftel A,
regarding the Extractive Industries Transparency Initiative
(EITI).
GDRC'S RESPONSE
--------------
2. (U) The GDRC has not yet responded to the EITI letter
mentioned in reftel A. DFID delivered the letters to DRC
officials on June 5.
GDRC COMMITMENT AND CAPACITY
--------------
3. (SBU) The current government has publicly stated it is
committed to increasing transparency in the extractive
industries (reftel D),but it has not demonstrated it has the
capacity, resources or political will to implement the EITI
on its own or in partnership with civil society or industry.
In 2005, then-Vice President Jean-Pierre Bemba announced the
DRC's participation in the EITI; the Ministry of Plan oversaw
the creation of a commission, but plans have not meaningfully
advanced further (reftels B and C). In May 2007 the GDRC's
Minister of Plan replaced the coordinator of the DRC's EITI
commission, which is composed of civil society, GDRC and
industry representatives. Several commission members
objected to the action, and the U.K. Embassy has informed the
GDRC it views this event as a step backwards in
implementation of the EITI and general transparency
principles.
ORGANIZATION OF EXTRACTIVE INDUSTRY
--------------
4. (U) The GDRC is in the early stages of reform of the
extractive industry sector, which already generates well over
one-half of the GDRC export revenue (reftel D) and an
increasing amount of investment. The GDRC's control and
organization over extractive industries varies widely,
depending upon the sector and region of the country.
Artisanal mining, the influence of armed elements and lack of
government control in some regions are among the factors that
reduce the sector's organization. Hundreds of thousands of
artisanal miners are estimated to work in the DRC, and in
sectors such as diamond mining these diggers produce the
majority of the DRC's output. In portions of Eastern Congo,
especially Ituri District and the Kivu provinces, the central
government has little or limited control over production and
export, while armed elements often exercise substantial
control.
REVENUE REPORTING
--------------
5. (U) There are no government or organized industry efforts
to report revenues under the EITI. The GDRC is, however, a
member in good standing of the Kimberley Process
Certification Scheme. Select copper mining companies in the
DRC are working with a USG-supported Extractive Industries
Alliance program (EIA),discussed below, to support
transparency generally.
CIVIL SOCIETY CAPACITY
--------------
6. (SBU) Civil society's capacity to urge the implementation
of the EITI is limited. Both domestic and international NGOs
advocate in favor of implementation, but their efforts have
minimal impact. (Comment: Some NGOs, including Global Witness
and RAID, are perceived as representing increasingly extreme
positions on sector reform, undermining their credibility in
the donor and GDRC communities. End comment.) Many domestic
NGOs lack necessary personnel or financial resources,
although a number of interested Congolese NGOs have formed a
DRC chapter of the international Publish What you Pay
coalition, and in April this group held a seminar.
DONOR SUPPORT
--------------
7. (SBU) As mentioned in paragraph five, the USG (through
USAID Kinshasa),is developing an Extractive Industries
Alliance (EIA). Thus far, the USG has committed USD 3.5
million over 28 months for implementation of this Global
Development Alliance program. Select mining companies and
DFID are also contributing funds. The program's main goals
are to collaborate with mining companies to create
sustainable social development and a framework of revenue
transparency and good governance (reftel E). According to a
DFID official, the World Bank (WB) is planning to fund EITI
implementation, but has delayed doing so until the GDRC
satisfactorily responds to the WB's concerns about the
replacement of the commission's coordinator, an action
discussed above.
MEECE