The state-owned mining company Gecamines in the Democratic Republic of Congo says it paid more than 400 million dollars in advanced taxes and loans to the state Treasury that it now cannot be traced, according to a report by the government's public finance watchdog.
Gecamines, a state-owned mining company, has minority stakes in several of the world's largest copper and cobalt projects, including Glencore's Kamoto and Luoyang Molybdenum's Tenke Fungurume.
Gecamines has long been dogged by allegations of corruption by ngos and opposition politicians. But Gecamines has always denied all allegations of wrongdoing.
Gecamines submitted accounts to auditors at the Office of the Inspector General of Finance (IGF) showing more than $591 million in tax advances and loans to the Congolese state, but only $178 million can be traced to accounts at the Ministry of Finance, according to an IGF audit seen by Reuters.
The report, dated May 31 but not publicly released, said the missing $413 million was believed to have been misappropriated and that auditors would continue to investigate.
The statement did not specify when the advances and loans were made.
Another $175 million paid to Gecamines as a signing bonus for a copper-cobalt project also couldn't be traced to the Treasury, the report said, accusing Gecamines of failing to independently assess the level of mineral reserves in its joint venture with foreign investors.
Gecamines produced nearly half a million tonnes of copper a year in its 1980s heyday, but has since piled on debt and sold its majority stake in its main mines.
Congo is Africa's largest copper producer and the world's largest producer of cobalt. Cobalt is used in electric car batteries.
Since taking office in 2019, President Tshisekedi has overhauled Gecamines' leadership, replacing the executives most closely associated with previous corruption allegations.
