Congo China Relation

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global witness

global witness

China and Congo : Friends in Need
A report by Global Witness on the Democratic Republic of Congo, March 2011

Global Witness investigates and campaigns to prevent natural resource-related conflict and corruption and associated environmental and human rights abuses. Our investigations and lobbying have played a key role in the establishment of the major international initiatives addressing these issues, including the Kimberley Process and the Extractive Industries Transparency Initiative. Global Witness has had a campaign for better governance in the Democratic Republic of Congo since 2001. We have published numerous reports on the problems surrounding the natural resource sectors including, for example, the artisanal mining sector in Katanga province and the links between the mineral trade and conflict in North and South Kivu, including the role of Western-based companies. See www.globalwitness.org for more information.

Cover photograph © Frederic J. Brown/AFP

MARCH 2011 | China and Congo : Friends in need



Contents
1. Summary ..................................................................................................................................................4 2. recommendationS ..............................................................................................................................8 To the Congolese government and its Chinese state partners .................................................................8 To the Congolese government and Congolese state companies ..............................................................8 To the Chinese government ....................................................................................................................8 To the Group of Chinese Enterprises .......................................................................................................8 3. introduction ........................................................................................................................................9 4. Backgroundtocongo’S‘dealofthecentury’ ..............................................................11 Congo and China: from Enmity to Amity ..............................................................................................12 5. theagreementindetail ..............................................................................................................14 Map showing mine sites and infrastructure planned under the Congo-China deal, April 2008 ............15 The negotiations ..................................................................................................................................17 Box: Katumba Mwanke – political kingpin ...........................................................................................18 Box: How much is at stake ...................................................................................................................19 The IMF push for renegotiation ............................................................................................................19 6. howtomakeSureit’S‘win-win’................................................................................................21 Provide basic information on the deal’s terms and pricing to build ‘friendly public support’ ..............21 Provide for clear safeguards to prevent corruption and theft...............................................................22 Disclose signature bonuses and ensure they make it to the treasury ...................................................23 Implement the recommendations from Congo’s parliament to improve the deal and its oversight .........25 Box: Lessons from the Extractive Industries Transparency Initiative? ...................................................26 7. addreSSingtaxationandaccountinguncertaintieS................................................27 8. improvinginfraStructure...
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