Wednesday 21 March 2012

Missing Millions (2)

Kabila’s right hand man, Augustin Katumba was killed in a plane crash on the 12th February. When I say right hand man I use the term almost literally. He had no public office, but without going through him it was impossible to see the President. All the big mining deals and international agreements were managed by him, and like the clever courtier of old, who would whisper in the ears of the monarch, he allegedly had Kabila totally under his thumb. Not that Kabila suffered as a result of this: Katumba was clever enough share the proceeds of his deals with his boss.

Stories about him are rife. The most dramatic was the case of first Quantum Mining company which having invested $750,000 dollars in starting a huge mine had the mine confiscated by the state on the grounds that some paperwork had not been properly completed or approved. The mine was then sold to an Israeli businessman, Dan Gertler, for $5 million. This is one of several such deals with the same businessman, and it goes without saying that Mr Gertler would reward those in power in return for the favour.

The lucrative airline route between Kinshasa and Lubumbashi has suffered similar tricks. South African Airways established a company, Congo Express, which ran an excellent service between the two cities. But before long, their operations were being continuously blocked by demands for ever more absurd compliance requirements and, of course, concomitant payments. It was rumoured that behind this harassment was George Forrest, an elderly Belgian who has immense business interests and who has typically, by hook or by crook, managed to get massive insider deals in the Congo. About two years ago Mr Forrest managed to persuade Brussels Airlines to go into partnership with him to operate the route. So with Congo Express out of the way it seemed like plain sailing to launch their airline. There were several announcements in Brussels about the forthcoming launch and planes with the livery were even seen at Brussels. A hanger with the new logo was built at Lubumbashi. As time dragged on Mr Forrest complained vociferously that there was undue interference in the matter, which was delaying the registration of the airline unfairly.

Two weeks after the death of Mr Katumba – guess what? They got their final authorisation to operate.

The big-time corruption for which this country is renowned has also hit the Alliance Française. This noble organisation had established 26 different teaching centres throughout the DRC. A few years ago they decided that the time had come to end expatriate management, and to hand over to a Congolese. Before long things started to go wrong. Their facilities looked increasingly drab and dilapidated. Even the flagship centre here in Kinshasa had broken windows, filthy classrooms and unreliable opening hours. Of course the French had not given up any responsibility, and raised their concerns with the Congolese manager. There had been no apparent reduction in the number of students, so where was the money going? Their questions were treated as the opening salvo in a war. No one was going to tell him how to run his business. It was racist to ask such questions – would they do that if a Frenchman was in charge? Etc etc. Even annual audits were resisted, by fair means and foul. What is more, the responses became ever more aggressive. He would go to the President and have the man responsible for oversight declared persona non grata. He knew where the man lived. No one could abuse a respectable (and respected) member of the community by demanding an audit and get away with it.

So what could they do? There was no doubt that the mismanagement of the Alliance reflected badly on France and French interests, but the man they had so trustingly installed in the job had powerful friends – of that there was no doubt. There was no other choice: close it. So the Alliance Française will no longer operate in the DRC. The man whose job it had been to oversee that Alliance in the Congo will be on the plane to Paris in May breathing a huge sigh of relief, but also full of regrets that no other solution could be found.

About a month after this decision was made the British Council made a similar announcement, in what could be interpreted as a domino effect. They operated very differently, and had experienced none of the corruption or political pressure. But “reluctantly,” they said, “the risks of operating in the DRC are too great: we should close before we get too involved.”

Sad, isn’t it?

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