To Mr. P. WOLFOWITZ

President of the World Bank

Dear Mr. President,

Subject: Mine exploitation and corruption in the Democratic Republic of Congo. How the State is being destroyed.

Mining in Katanga was started in 1906 by the Belgian company Union Minière. For almost a century the resources of copper, cobalt, zinc, uranium, cadmium, germanium, selenium, gold and silver mainly benefited private western shareholders.

I have made a career in the mines of Katanga and, during the seventies and eighties, I have assisted ZAIRE, technically and at the republic’s highest level, in raising the output to its highest historical level, i.e. 470.000 tons of copper and 17.000 tons of cobalt. I have reached that target thanks to the efficient cooperation, at that time, of the World Bank (André GUE, Marianne HAUG, Lou BREFORT) and of the United States (the ambassadors R. OAKLEY, D.H. SIMPSON and L. WIESNER).

As a former Executive President of GECAMINES, it is my duty to draw the attention of the President of the World Bank quite emphatically to the dramatic consequences of the errors in management, as well as the implementation of erroneous advice made to the Presidency of the Republic, which have led to the selling-off of among the most important reserves of non-ferrous metals in the world, some of them of strategic value. A set of corrective measures is urgently needed to save a moribund State and to preserve a world mineral heritage. Priority action needs to be initiated by and under the aegis of the World Bank, together with its partners and the States concerned.

It should be reminded that corruption was the main, if not the only, element of decision in the case of the recent allocation of mining polygons and metallurgic installations (Tenke-Fungurume and Kamoto mines, and other deposits and plants).
Meanwhile, the Katangese deposits are being looted by adventurers, while the management of GECAMINES remains marginal.
It is most regrettable that the terms of reference of the interim management programme, which is financed by the Bank, have not been observed.

The fragmentation has the following consequences:
- the destruction of the mineral deposits of the world’s heritage;
- the alienation of the Republic’s main mining resources;
- the discredit of the Republic;
- the bankruptcy of the State;
- the destruction of the Congolese populations.

I refuse to believe that the experts of the Bank can condone such industrial and social disaster.

In view of the alarming situation I have reported to:
- the authorities of the DRC;
- the Belgian authorities;
- the NGOs that are active in Central Africa;
- the Congolese press.

In these reports and messages I have suggested a number of corrective measures, namely:
- the termination (suspension) of all current or signed mining contracts and/or conventions;
- the survey and audit of those contracts and/or conventions, as well as of their terms of application, on the technical, commercial and financial level, in view of their possible renewal or termination;
- the formalisation of a transitional management at GECAMINES, with the possible cooperation of the current operators, according to terms yet to be determined, but under a competent and strict technical and financial control.
- the drafting of contract conditions for the privatisation of GECAMINES and an international call for tenders;
- the establishment of export controls per product, both as far as volumes and grades are concerned, the payment of various rights and the repatriation of a share of the receipts;
- the identification of commercial circuits in order to determine the possible involvement of users, consumers and processing companies;
- the organisation of a traditional mining workforce to avoid a major employment crisis and to grant a status to the workforce of craftsmen.

This enumeration is not exhaustive and the solutions to the problems mentioned are far from utopian.

I would like to end on a positive note by stressing that, despite the pillages, the Democratic Republic of the Congo has substantial mineral reserves at its disposal that should guarantee the revival of the national economy and of the foreign investments.

Only the World Bank and its institutional and private partners can initiate the reforms proposed. I hope that my warning message will be heard.

Yours sincerely,

Robert Crem

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