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Final report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of DR Congo

S/2002/1146

Letter dated 15 October 2002 from the Secretary-General addressed to the President of the Security Council

I have the honour to refer to the statement by the President of the Security Council dated 19 December 2001 (S/PRST/2001/39), whereby the Security Council renewed for a period of six months the mandate of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo. The Council requested the Panel to submit to it an interim report after three months, followed by a final report at the end of its mandate. I refer also to the letter dated 12 July 2002 from the President (S/2002/763), by which the Security Council extended the mandate of the Panel until 31 October 2002.

I have the honour to transmit to you the final report of the Panel, which was submitted to me by its Chairman, Mr. Mahmoud Kassem. This independent report comprises an evaluation of the situation on the ground and the Panel's observations on the illegal exploitation of the natural resources of the Democratic Republic of the Congo. I should be grateful if you would bring the report to the attention of the members of the Security Council.

(Signed) Kofi A. Annan

Annex. Letter dated 8 October 2002 from the Chairman of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo addressed to the Secretary-General

[Original: English]

In accordance with the statement of the President of the Security Council (S/PRST/2001/39) dated 19 December 2001 and the letter dated 12 July 2002 addressed to you by the President of the Council, the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo is pleased to submit its report for transmission to the President of the Security Council.

(Signed) Mahmoud Kassem
Chairman
Panel of Experts on the Democratic Republic of the Congo


Final report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo
 
(...)

IV. Rwanda-controlled area

65. The claims of Rwanda concerning its security have justified the continuing presence of its armed forces, whose real long-term purpose is, to use the term employed by the Congo Desk of the Rwandan Patriotic Army, to "secure property". Rwanda's leaders have succeeded in persuading the international community that their military presence in the eastern Democratic Republic of the Congo protects the country against hostile groups in the Democratic Republic of the Congo, who, they claim, are actively mounting an invasion against them.

66. The Panel has extensive evidence to the contrary. For example, the Panel is in possession of a letter, dated 26 May 2000, from Jean-Pierre Ondekane, First Vice-President and Chief of the Military High Command for RCD-Goma, urging all army units to maintain good relations "with our Interahamwe and Mayi-Mayi brothers", and further, "if necessary to let them exploit the sub-soil for their survival".

67. Prominent members of a Congolese Hutu group, Benemugabohumwe, recently began to encourage Hutus living in the Democratic Republic of the Congo, some of them opposition groups, to work instead for the cause of Rwanda in the country. Eugene Serufuli, RCD-Goma Governor of North Kivu Province and reportedly himself a Hutu, has promoted a non-governmental organization, Tous pour la paix et la démocratie, aiming to conscript Hutus of all political persuasions to throw in their lot with the Rwandans. Their purpose, as described by the Nord Kivu Reveil in a circular dated 16 April 2002, has been to "express allegiance to Rwanda by joining its efforts to control the eastern Democratic Republic of the Congo".

68. A 30-year-old Interahamwe combatant living in the area of Bukavu described the situation in a taped interview with a United Nations officer in early 2002.

We haven't fought much with the RPA in the last two years. We think they are tired of this war, like we are. In any case, they aren't here in the Congo to chase us, like they pretend. I have seen the gold and coltan mining they do here, we see how they rob the population. These are the reasons for their being here. The RPA come and shoot in the air and raid the villagers' houses but they don't attack us any more. If you are lucky, and you have a big brother in the RPA, he might be able to get you some food and ammunition.

69. On the basis of its analysis of considerable documentation and oral testimony, the Panel holds the view that the rationale for Rwanda's presence is to increase the numbers of Rwandans in the eastern Democratic Republic of the Congo and to encourage those settled there to act in unison to support its exercise of economic control. The recent departure of troops should not be interpreted as a sign of Rwanda's willingness to reduce its considerable involvement in the evacuation of valuable resources, to reduce the level of armed conflict or to diminish the humanitarian crisis in the region. Economic exploitation in its various forms will continue, relying on a less conspicuous armed force and alternative strategies for carrying out the exploitative activities.

The elite network

70. The elite network's operations in the eastern Democratic Republic of the Congo are managed centrally from the RPA Congo Desk, which serves to link the commercial and military activities of RPA. The Panel has described this function in some detail in previous reports. The Panel continues to receive documentation on ways in which the proceeds of the RPA commercial wing finance an armed presence. As an illustration, the Panel has recently acquired documents showing coltan sales being negotiated by ranking Congo Desk officials. The Panel has copies of faxes sent from the office of RPA Major Dan Munyuza on behalf of Maniema Mining Company and another fax sent from the office of RPA Chief of Staff General James Kaberebe.

71. While revenues and expenditure in the Congo Desk are considerable, they are kept strictly separate from Rwanda's national budget. A reliable source associated with the Congo Desk has calculated that income to the Desk provided 80 per cent of all RPA expenditure in 1999. The official Rwandan budget for 1999 allocated $80 million to the military. If this official budget allocation of $80 million represents the 20 per cent referred to by the Panel's source as the portion of military expenditure not covered by the Congo Desk, then the total military budget from all sources would approximate $400 million. This comes to 20 per cent of GNP for 1999 and approximately 150 per cent of recurring budget expenditure for that year. The Congo Desk's contribution to Rwanda's military expenses would therefore have been in the order of $320 million. The activities funded by revenues generated by the Congo Desk strongly shape Rwanda's foreign policy and directly influence national decision-making in a number of domains. These transactions are, however, hidden from the scrutiny of international organizations.

72. The elite network maintains close commercial ties with transnational criminal networks, including those of Victor Bout, Sanjivan Ruprah and Richard Muamba Nozi. Victor Bout's aircraft are utilized for a number of purposes including transport of coltan and cassiterite, the transport of supplies into mining sites, and the transport of military troops and equipment. During the last major military campaign in Pweto, Democratic Republic of the Congo, Victor Bout's aircraft were used to transport RPA personnel to the area.

73. While Sanjivan Ruprah has frequently worked within Victor Bout's criminal organization, he maintains an independent affiliation with the Congo Desk in Kigali. On 7 February 2002, Mr. Ruprah was arrested in Belgium on suspicion of planning to provide 6 million new zaire banknotes - still valid in the eastern Democratic Republic of the Congo - to RCD-Goma with financing by diamond dealers based in Belgium. The President of RCD-Goma, Adolphe Onusumba, who has kinship and business ties with Mr. Ruprah, played a key role in this counterfeit operation. Another group, the Muamba Nozi counterfeiting operation, also provides counterfeit Congolese francs to RCD-Goma. Its regional base of operations is located at Nairobi, where they print and distribute to the eastern Democratic Republic of the Congo large quantities of counterfeit Congolese francs. Officials in the Central Bank of Kinshasa have informed the Panel that Mr. Muamba Nozi's counterfeit activities are politically motivated and designed to deliberately destabilize the present regime by weakening the currency.

Strategies and sources of revenue

Coltan

74. The end of the SOMIGL coltan monopoly in April 2001 was less a consequence of the falling price of coltan and more a consequence of Rwanda's determination to capture more of the revenue that was being taken in taxes by the RCD-Goma rebel administration. The termination of the agreement with SOMIGL made it possible for RPA to frustrate the efforts of RCD-Goma to raise revenue for its own purposes.

75. The bulk of coltan exported from the eastern Democratic Republic of the Congo, as much as 60 to 70 per cent, has been mined under the direct surveillance of RPA mining détachés and evacuated by aircraft from airstrips near mining sites directly to Kigali or Cyangugu. No taxes are paid. Rwandan military aircraft, Victor Bout's aircraft and small airline companies are used in the evacuation of the coltan. RPA has maintained control over most of the coltan sites where rich deposits are found, where the percentage of tantalum is high, and where local airstrips are accessible. A variety of forced labour regimes are found at sites that have been managed by RPA mining détachés, some for coltan collection, some for transport, others for domestic services. Many accounts report the widespread use of prisoners imported from Rwanda who work as indentured labour.

76. A smaller portion, perhaps 15 to 25 per cent of the total coltan exported, is purchased by comptoirs owned by Rwandans who buy from local négotiants at remote coltan sites or from the agents of local defence groups. More typically these comptoirs, owned by Rwandan army officers or those closely linked to the Government of Rwanda, such as MHI comptoir, Eagle Wings or Rwanda Metals, have obtained their own mining sites and conscript their own workers to exploit the sites under severe conditions.

77. The smallest portion of coltan is purchased by the few remaining Congolese-owned comptoirs at one of the large number of coltan sites in remote areas. Most of the Congolese comptoirs have found it impossible to compete with the RPA or Rwanda-owned comptoirs.

78. As mining profits to the Congo Desk have increased, the share of RCD-Goma has declined. The Congo Desk has perennially deprived its junior partner, RCD-Goma, of any significant share in resources and prerogatives, and RCD-Goma has perennially complained. RCD-Goma administrators have frequently pointed out that they were unable to manage their army without sufficient revenue. Lacking financial support, the ANC brigades have turned to pillaging villagers throughout the eastern Democratic Republic of the Congo. The third Brigade has stolen a large number of cattle around Kalemie, and the first Brigade has taken diamonds from Opala. The Panel possesses extensive documentation on these activities. Most of these rebel forces are under the command of RPA officers. They have little hesitation, when so directed, in attacking local self-defence groups who obstruct their commercial operations, to eliminate specific enemies, to provide security around gold, coltan and diamond rich areas, to provide police services in urban areas and occasionally to keep a force present along the front lines. Since ANC troops are neither paid nor disciplined, they use their weapons to prey on the population, frequently burning whole villages to acquire property and food.

Case study of a commercial chain involving coltan

79. Eagle Wings Resources International, a coltan comptoir in Bukavu, is a subsidiary of Trinitech International Inc., based in Ohio, United States. Eagle Wings has offices in Rwanda, Burundi and the Democratic Republic of the Congo. The manager of Eagle Wings in Kigali has close ties to the Rwandan regime. Consequently, Eagle Wings operates in the Democratic Republic of the Congo as a Rwanda-controlled comptoir with all the privileges derived from this connection. Eagle Wings is not obliged to fulfil its full responsibilities to the public treasury managed by the RCD-Goma administration. Like other Rwanda-controlled coltan comptoirs, Eagle Wings collaborates with RPA to receive privileged access to coltan sites and captive labour.

80. Approximately 25 per cent of Eagle Wings coltan is shipped from Kigali to the Ulba Metallurgical Plant of NAC Kazatomprom, in Kazakhstan. Another 25 per cent is sold to the parent company of Eagle Wings, Trinitech International Inc. in the United States, which arranges for sales to both Ulba and to the Chinese processing facility at Ningxia Non-Ferrous Metals Smeltery (NNMS). H. C. Starck, based in Germany and a subsidiary of the transnational corporation Bayer AG, purchases about 15 per cent of Eagle Wings coltan. H. C. Starck has denied on numerous occasions obtaining coltan originating from Central Africa. In a press statement issued on 24 May 2002, H. C. Starck reiterated that the company had purchased no material originating in Central Africa since August 2001. The Panel possesses documents showing the contrary. In the same press release, H. C. Starck claimed that its coltan originates from "peasant suppliers" and not from rebel groups. In fact, no coltan exits from the eastern Democratic Republic of the Congo without benefiting either the rebel group or foreign armies.

81. In one instance on which the Panel has documentation, Mozambique Gemstone Company provided false documents establishing Mozambique as the origin of a shipment of coltan originating in Rwanda and transiting through South Africa. Mozambique Gemstone Company then sold the consignment to AMC African Trading and Consulting Company Ltd., based in South Africa, which subsequently sold the consignment to H. C. Starck Ltd. in Rayong, Thailand, on 21 September 2001. H. C. Starck sent a letter of credit for this consignment on 9 May 2002 to Chemie Pharmacie Holland, which oversaw the transaction, and which is a commercial partner of Eagle Wings providing logistical and financial services. Eagle Wings is the only coltan source for Chemie Pharmacie. Eagle Wings has no operations in Mozambique.

82. The Panel has also had direct contacts with the Chinese processing facility, NNMS, to determine whether they use coltan originating in the eastern Democratic Republic of the Congo. NNMS categorically denied doing business with "any individual or any entity that represents somebody or some entity in the Democratic Republic of the Congo." In fact, a number of brokers trading in coltan originating from the eastern Democratic Republic of the Congo have informed the Panel of their sales to NNMS. A publicity presentation prepared by NNMS itself has stated that the reason that they are able to provide low prices for their output is that NNMS buys significant amounts of cheap raw material from Central Africa. One NNMS report notes that 50 per cent of all coltan purchased for processing originates in Central Africa. Frequent follow-up Panel enquiries with NNMS were ignored.

Diamonds

83. The diamond market was the prize Rwanda fought Uganda to have for its own. After the last clash in Kisangani in June 2000, RPA worked through the RCD-Goma administration to funnel all the diamonds in Kisangani through the Congo Desk control. The technique was to oblige all local diamond traders to sell to one principal comptoir holding exclusive export rights.

84. The Congo Desk gave Aziz Nassour the first monopoly. Aziz Nassour fell out of favour with the Congo Desk and was replaced by an Israeli diamond dealer, Philippe Surowicz. Diamond traders in Kisangani remember the Surowicz period as a "reign of terror". Diamond sellers frequently reported entering "Monsieur Philippe's" comptoir only to be confronted with RPA military who named a derisory price and took the diamonds. The Congo Desk replaced Mr. Surowicz in October 2001 with a Lebanese, Hamad Khalil, who worked through the Bakayoko comptoir in Kisangani.

85. In mid-November 2001, the Department of Lands, Mines and Energy of RCD-Goma conducted a study of Hamad Khalil's performance in the first month of his tenure. His quota had been set at a minimum of $500,000 per month. Mr. Khalil met his quota exporting diamonds valued at $576,380 over a period of 27 days. The performance was adequate, but it was far below the Kisangani sales potential of up to $2 million per month. His poor performance raised the suspicion that the Congo Desk was using Mr. Khalil to divert revenues that might otherwise accrue to the RCD-Goma administration. A similar inspection of diamond production in the Sankuru and Lodja areas of Northern Kasai the week before had also revealed that RPA officers were clandestinely taking large quantities of diamonds out of Northern Kasai directly to the Congo Desk in Kigali. RCD-Goma determined that Mr. Khalil was undervaluing the diamonds, and the consequence was a reduction in taxes payable to RCD-Goma's public treasury as well as a greater margin of profit for Mr. Khalil and the Congo Desk. The study concludes that "The public treasury would have four times the present revenue from diamonds were it not for fraudulent practices and the under-valuation of diamonds".

Imports, taxation and requisition by the public sector

86. The controversial "conflict" diamonds from Kisangani are marketed by criminal networks. Proceeds from these criminal sales are laundered by the purchase of large quantities of household goods in Dubai - sugar, soap, cloth and medicines - which are then imported to the Democratic Republic of the Congo and offered to local sellers at attractive prices. The Rwandan wholesalers use the profits in Congolese francs to buy dollars and, to close the trade circuit, to purchase diamonds.

87. The interest of the RPA commercial wing in selling consumables at attractive prices is not only to launder money from criminal diamond sales, but also to place the once-thriving Kisangani economy under Rwanda's control. The cloths that were once manufactured at the Kisangani Sotexki factory and renowned for their quality no longer compete with the cheaper imports, and the result is that the Sotexki labour force, once 2,000, now stands at 100. The palm oil once produced locally at the Unilever-owned plant can no longer compete with the imported oil that is sold in Kisangani at a third of the price of locally produced oil. The Unilever-owned palm oil plants in Kisangani are practically at a standstill. Weakening local production not only undermines the local manufacturing economy and makes the Kisangani population captive consumers, it also shifts Kisangani's manufacturing economy to Kigali.

88. Another strategy for raising revenue is to use RCD-Goma's public sector facade to requisition funds from public enterprises. On 21 November 2001, the Secretary General of RCD-Goma requisitioned by decree all revenues generated by public utilities and parastatals. On the following day the Secretary General annulled all existing collective agreements for workers in those enterprises. The decrees were applicable to all public enterprises, including the water utility, the airport authorities, the electricity utility, the road and transport authority among others. RCD-Goma declared the requisitions to be in the public interest. Within a month, the water utility lacked sufficient funds to purchase water purification chemicals in Kisangani and Bukavu and power stations stopped functioning for lack of necessary repairs. The International Committee of the Red Cross has stepped in to provide 60 tons of chemicals for water purification and has financed costly repairs at Tshopo power station to avert a discontinuation of water supply in Kisangani and avert a cholera outbreak. The parastatal transport company ceased to function, and the airport authorities appealed to RCD-Goma to restore a portion of the requisitioned funds since no salaries had been paid for six months.

89. Following a decree on 15 March 2002, new taxes were introduced and all existing tax rates have been increased. Over an 18-month period, since the previous tax decree of September 2000, taxes on electrical consumption have increased by 200 per cent. Licences for trading in agricultural products increased fourfold. Most licensing fees for operating a business were doubled or tripled. The number of different taxes collected in the area under RCD-Goma administration has increased four times since 1998. None of the tax revenue is used to provide public services.

Armed conflict and its consequences

90. Medical practitioners, church workers, and non-governmental organizations in northern Katanga all attest to rapidly escalating disorder in Kalemie and an increased use of arms by a wide range of groups, some affiliated with RCD-Goma and others not. Fighting between RPA and FAC has been limited to Rwanda's seizure of northern Katanga in November 1998 and a government counter-offensive in October 2000. These confrontations resulted in considerable displacement of populations in the path of troop movements. However, it was the aftermath of those confrontations that resulted in the most severe armed conflict. Rwandan troops seized material for their campaigns. The RCD-Goma third ANC Brigade, following Rwanda's example in their own random fashion, seized food and other property. Armed movements arose among local populations for self-defence, and occasionally these local militias banded together with other local militias to create larger armed groups. The Panel has received extensive documentation from local lawyers, Catholic and Protestant churches, the Fédération des Entreprises au Congo and others detailing thefts of cattle valued at more than $15 million, thefts of over $1 million worth of retail goods and the destruction or fraudulent sale of equipment from the Société nationale de chemin de fer du Congo.

91. The Catholic Church in the eastern Democratic Republic of the Congo has spoken out boldly about the thefts, killings, torture, extortions, rapes and piracy on Lake Tanganyika perpetrated originally by RPA and continued by ANC, the RCD-Goma police and the Banyamulenge militia. The Church, and most notably the Bishop of Kalemie-Kirungu, recently headed a campaign to expose these abuses. Directors of RCD-Goma's Department of Security and Information responded by threatening to kill prominent church leaders. The Catholic Diocese published a list of those threats on 15 May 2002.

92. The multiplication of armed forces and fighting in the interior have all but destroyed farm production on the rich plateau in the interior of northern Katanga. Excesses by RPA in requisitioning resources for the "war effort" set a standard for behaviour by the far less disciplined ANC rebel forces, who have ravaged the countryside. Growers are reluctant to invest in crops when they are so likely to be stolen. Large numbers of persons have been displaced from their homes and have abandoned their lands out of fear. The Office for the Coordination of Humanitarian Affairs has estimated that, in the northern Katanga area alone, 350,000 displaced persons are living away from their homes, with neighbours, in the cities or in the bush.

93. Armed conflict along the Masisi-Walikale-Goma axis arises from tensions between the large numbers of RPA in place to manage mining operations and Hutus who may be resident, but who are also imported or conscripted by Rwandan forces to carry out mining under forced labour conditions. Separate Rwanda-owned comptoirs have quarrelled among themselves for access to sites. RPA forces have attacked and burned villages to seize coltan mined by some Hutu groups or local villagers. The Panel has taken testimony from villagers who have been forced to leave their villages following attacks. With minor exceptions, the objective of military activity is to secure access to mining sites or ensure a supply of captive labour.

94. Population displacement is the outcome of frequent armed conflict, with the predictable consequences of food insecurity, malnutrition and high mortality rates for both the displaced and host populations. The Office for the Coordination of Humanitarian Affairs estimated that 1.5 million persons were displaced in March 2001 in the areas occupied by Rwanda in North and South Kivu, Maniema and Katanga, nearly 14 per cent of the population. More than three quarters of families living in the rural areas have probably been forced to move at least once in the last five years. This degree of armed conflict undermines local authority and encourages an abusive social environment. Public infrastructure is destroyed. School enrolment in Shabunda has dropped 56 per cent since 1998. Men are led to abuse women on a surprising scale throughout the eastern Democratic Republic of the Congo. International non-governmental organizations have provided comprehensive reports about groups of women being taken hostage and submitted to long periods of sexual abuse. Children become instruments of war, forced to work in the mines and conscripted into armed forces. United Nations officials have suggested that the number of child soldiers in the rebel armies is much higher than reported by the rebel administrations, and that 50 per cent of local defence and Mayi-Mayi groups are children.

Malnutrition and mortality

95. Malnutrition studies carried out by non-governmental organizations in both northern Katanga and the Kivus have shown that, in some places, as many as 25 to 30 per cent of all children under 5 years are malnourished. In most cases, this is due to the large numbers of displaced persons who have been forced to leave their own agricultural production and have taken refuge in nearby host villages. A number of studies have shown the close link between elevated malnutrition levels and mortality rates in this region.

96. The most commonly quoted conclusion from the International Rescue Committee's surveys is that 2.5 million more people died since the beginning of the war than would have died had the war not occurred. While the study is directly relevant to the sample population of 1.3 million, the International Rescue Committee has assumed that conditions are sufficiently similar throughout all five provinces of the eastern Democratic Republic of the Congo to justify applying the mortality rates found in the sampled population to the larger population in all five provinces. The study covered the period from August 1998 to April 2001. If one assumes mortality to have continued at the same rate, this would mean that more than 3.5 million excess deaths would have occurred from the beginning of the war up to September 2002. These deaths are a direct result of the occupation by Rwanda and Uganda. Extensive mortality, especially mortality among children, is the consequence of a cycle of aggression, the multiplication of armed forces, a high frequency of conflict and its consequences, especially displacement. One should not be surprised to find, in areas most affected by the conflict, a mortality rate for children under 5 years of 35 per cent.

V. Uganda-controlled area

See http://groups.yahoo.com/group/uRwanda_rwacu/message/288

VIII. Observations

149. The illegal exploitation of natural resources, gross violations of human rights and a dire humanitarian situation are some of the consequences of four years of war and the lack of a central government in the Democratic Republic of the Congo with the authority and capacity to protect its citizens and resources.

150. The withdrawal of foreign forces is an important step towards ending the illegal exploitation of natural resources. Yet the necessary networks have already become deeply embedded to ensure that the illegal exploitation continues, independent of the physical presence of the foreign armies.

151. Another step towards halting the exploitation of natural resources will be the early establishment of an all-inclusive transitional government in the Democratic Republic of the Congo, which would ensure that central government control is reinstated and that viable local administrations are empowered to protect and regulate the exploitation activities to the benefit of the populace. However, it is clear that, even with the establishment of an all-inclusive government, exercising effective control over territory and natural resources would require time and would be possible only within the context of a broader framework of sound institution-building. In the interim, it is the view of the Panel that continued monitoring and reporting on the illegal exploitation of resources will at least serve to deter these activities.

152. The most important element in effectively halting the illegal exploitation of resources in the Democratic Republic of the Congo relates to the political will of those who support, protect and benefit from the networks. This may pose a great challenge, given the intricate relationships they have forged and the dependency they have developed on the profits from these activities. The war economy controlled by the three elite networks operating in the Democratic Republic of the Congo dominates the economic activities of much of the Great Lakes region. Yet the Lusaka, Pretoria and Luanda Agreements do not address this all-important economic component of the conflict.

153. Armed groups, whether foreign or Congolese, who are benefiting from these exploitation activities, should also be taken into account in efforts to halt the exploitation. Years of lawlessness and a Government incapable of protecting its citizens have allowed the armed groups to loot and plunder the country's resources with impunity. While some hide behind a political agenda, all are pursuing illegal economic activities as a matter of survival. It is hoped that progress in the peace process, together with an effective and responsive programme of disarmament, demobilization, rehabilitation, reintegration and resettlement, would provide better alternatives to the armed groups. This would require the necessary funding for reintegration programmes and security assurances for those who are not wanted for war crimes or acts of genocide. The international community must, therefore, provide the assistance to these programmes, invest in publicizing them and encourage the armed groups to participate.

154. The Panel is hoping that this report will contribute to a shift in policies - in the light of the recent encouraging political and military developments on the ground - that will bring the exploitation of resources back to a legally acceptable level.

IX. Conclusions

155. An embargo or a moratorium banning the export of raw materials originating in the Democratic Republic of the Congo does not seem to be a viable means of helping to improve the situation of the country's Government, citizens or natural environment. Massive technical and financial assistance for the population would be required to offset the humanitarian impact of such restrictive measures. At the same time, if the Panel in its report does not recommend any punitive measures to curb the illegal exploitation and trade originating in the Democratic Republic of the Congo, this will only encourage a continuation of the exploitation by different criminal organizations. This could easily lead to an increase in these activities. There must be sustained efforts to deter illicit and illegal exploitation.

156. Restrictive measures nevertheless need to be taken vis-à-vis the role of companies and individuals involved in arms supply and resource plundering. The international and multinational dimension of these illegal activities is very important. Ethical and transparent business practices are needed to combat these illegal activities.

157. The establishment of a transitional government in Kinshasa should be accompanied by four elements, namely, the disarmament of all rebel groups in the Democratic Republic of the Congo; phased withdrawal of foreign troops; measures to drastically curb the illegal exploitation and encourage legal exploitation; and the application of serious leverage through multilateral pressures and incentives. To these elements must be added a dynamic monitoring process. All must be phased, interlinked and ongoing. This dynamic package would not only advance the peace process in the Democratic Republic of the Congo, but would also lead to a peaceful and final settlement of the exploitation issue, ensuring that legal modes of resource exploitation prevail. The first two elements seem to be finding their way to an interlinked and phased implementation as a result of the recent agreements signed in Pretoria and Luanda. The third element is intrinsically linked with the fourth, namely applying leverage through incentives and disincentives.

158. In order to readjust the present process of illegal exploitation and encourage legal exploitation, which could contribute to the economic stability of all parties, there is a need to apply forceful disincentives and incentives. These should be monitored through a proactive monitoring body. Until now, all the parties involved in the illegal exploitation have had no strong incentive to alter the economic status quo. It is necessary, therefore, to find measures that address their fears of losing revenues. Such measures will however be effective only if a political process is undertaken simultaneously.

159. Reconstructing and reorienting the region's economies are essential to peacemaking and peace-building. The Panel believes that a peace dividend in the form of economic incentives should be emphasized by the international community in order to promote the parties' adherence to the peace agreements and encourage confidence-building. The Panel also proposes in its recommendations that a set of disincentives be enacted to apply pressure in the case of non-compliance with the agreements.

160. Many of the Panel's conclusions about the economic roots and consequences of the conflict have been echoed in ideas associated with the proposals for an international conference on peace, security, democracy and sustainable development in the Great Lakes region. Recently signed agreements may signal that the time for organizing this conference is approaching. Such a conference would be an ideal forum to address the need to reorient the regional trading system to post-conflict imperatives and for negotiating the framework of a multilateral agreement to carry this out. This reorientation will require providing the incentives and means to promote regional economic integration, which would marginalize criminal and military-driven trade in favour of legitimate commercial development that is transparent and growth-oriented. Supporting regional economic integration could help to gradually draw the countries involved in the conflict closer and act as a barrier to future outbreaks of armed conflict.

X. Recommendations

Peace dividend

161. In the light of the new dynamic and progress created by the signing of the political and military agreements in Sun City, Pretoria and Luanda, the Panel believes that a set of agreements or initiatives on reconstruction and sustainable development are needed to address the economic dimension of the Lusaka peace process and provide incentives for continuing progress. The first set of initiatives could be for quick-disbursing aid for the Democratic Republic of the Congo and the other Great Lakes countries involved in the conflict, for reconstruction and rehabilitation programmes, aimed at creating jobs, rebuilding infrastructure and improving conditions for local populations, notably in the areas of education, health, water and sanitation.

162. Regional economic integration and trade could be the focus of an agreement or set of agreements that could emerge from discussions regionally, including at the international conference on peace, security and sustainable development. The international community, in particular the United Nations and the developed countries that have actively supported the signing of the recent agreements, can take a leading role in convening this conference.

Institutional reforms

Capacity-building for the State institutions

163. Reconstructing and reforming the State institutions of the Democratic Republic of the Congo, particularly the State's capacity to secure its territory and borders, is the counterpoint to the withdrawal of the foreign troops. The main purpose should be to enable the legitimate transitional government to control the country's natural resources and borders without foreign intervention.

164. A fast-track programme is needed to retrain and professionalize the entire national security apparatus, including military and intelligence, law enforcement and regulatory bodies, such as customs, revenue authority, immigration and natural resources agencies. This process will require extensive international aid and careful monitoring of progress over a sustained period. There is a need for multilateral and bilateral donors, together with international organizations, to coordinate their efforts, draw on best practices developed during other post-conflict transitions and encourage the participation of all sectors of Congolese society.

165. The priority areas for reform and the strengthening of national or central institutions would include:

  • Combating the widespread criminalization in the Democratic Republic of the Congo

  • Enhancing scrutiny and transparency

  • Increasing accountability and ending the impunity enjoyed by high-ranking officials and various levels of civil servants

  • Building regulatory capacity and controls

  • Professionalizing institutions and their personnel, including ensuring their independence and neutrality

  • Reforming customs and revenue administrations, such as the Office des douanes et accises and the Direction générale des recettes administratives, judiciaires, domaniales et de participations

  • Building the capacity of ministries and specialized agencies related to natural resources such as the Centre d'évaluation, d'expertise et de certification des matières précieuses and the Institut congolais pour la conservation de la nature.

Promoting legitimate and accountable civil administrations in the eastern Democratic Republic of the Congo

166. The Panel recommends that a comprehensive economic and social development programme in the eastern Democratic Republic of the Congo be set up to assist a transition to a legitimate civilian administration with a capable security and law-enforcement apparatus. Such a programme may be partially financed from the substantial assistance commitments pledged by the European Union, the World Bank and the International Monetary Fund for post-conflict reconstruction in the Democratic Republic of the Congo.

Good governance in the Democratic Republic of the Congo and its compliance with peace agreements

167. The Panel regards the quick disbursal of development assistance as essential to addressing the pressing social and economic needs of the Democratic Republic of the Congo. However, it also recommends that disbursal should be contingent on the adherence of the Government to the peace agreements it has signed with Rwanda and Uganda, its commitment to democratization and its progress in curbing the illegal exploitation of its natural resources.

Reform of natural resource sectors

168. Reforms of the mining and the forestry sectors should include the review of all concessions and contracts signed during both wars. The resolution adopted during the inter-Congolese dialogue, establishing a special commission to examine the validity of economic and financial agreements, could serve as the framework for this process. On the basis of the Panel's findings, this could also target all informal agreements on the awarding of concessions and the implementation of contracts. The international community, including the World Bank, the International Finance Corporation and UNDP, could collaborate closely with this commission and provide the support necessary for it to carry out its work in a thorough and objective manner. This could include expert advice and technical assistance, part of which could be focused on raising long-term international investment for the rehabilitation of the mining and forestry sectors and sustainable revenue generation.

Financial and technical measures

169. In the event of non-compliance with the recently signed agreements, and the continuing illicit and illegal exploitation of the natural resources of the Democratic Republic of the Congo, the Panel recommends that a series of measures be taken against the concerned parties.

Role of Governments

170. The Governments of the countries where the individuals, companies and financial institutions that are systematically and actively involved in these activities are based should assume their share of the responsibility. The Governments have the power to regulate and sanction those individuals and entities. They could adapt their national legislation as needed to effectively investigate and prosecute the illegal traffickers. In addition, the OECD Guidelines offer a mechanism for bringing violations of them by business enterprises to the attention of home Governments, that is, Governments of the countries where the enterprises are registered. Governments with jurisdiction over these enterprises are complicit themselves when they do not take remedial measures.

Reducing official development assistance

171. The Panel's exchange of views with bilateral and multilateral organizations, as well as a review of applicable agreements such as the Cotonou Convention, indicates that there is ample justification for donors to respond to a Security Council resolution - which might be necessary - which would propose certain reductions in official aid to promote peace and good governance.

172. Measures should also be aimed at making aid disbursements to Burundi, Rwanda, Uganda and Zimbabwe conditional on their compliance with the relevant agreements in the Lusaka peace process and on verifiable measures taken to halt the illegal and illicit exploitation of the resources of the Democratic Republic of the Congo which can help to achieve multiple objectives. Non-compliance would automatically trigger a review and reduction of assistance programmes for those countries. It should be stipulated that reductions of aid disbursements are to be applied to institutional budget support, stabilization lending or project lending and not sector-specific allocations.

173. Implementation would proceed in three stages:

(a) A brief grace period to permit the verification of the compliance of all the parties to the conflict;

(b) An initial period when aid disbursements are reduced by a modest percentage if the countries involved have not met withdrawal targets;

(c) A subsequent period during which the aid is proportionately reduced at regular increases at regular intervals unless troop withdrawals and compliance with the peace agreements meet the required standards.

Restrictions on business enterprises and individuals

174. The Panel has compiled an extensive list of business enterprises and individuals whose involvement in the commercial activities of the three elite networks active in the Democratic Republic of the Congo is well documented. At this time it is however, focusing its recommendations regarding restrictive measures on only a small number of enterprises (annex I) and individuals (annex II) - many of them cited in this report - as a result of the wealth of information and documentary evidence gathered on them by the Panel.

175. By contributing to the revenues of the elite networks, directly or indirectly, those companies and individuals contribute to the ongoing conflict and to human rights abuses. More specifically, those business enterprises are in violation of the OECD Guidelines for Multinational Enterprises. Therefore, the Panel recommends that the Security Council consider imposing certain restrictions on a selected number of business enterprises and individuals involved in criminal and illicit exploitation that are identified in this report. The list emphasizes the implication of foreign enterprises as well as nationals of the Democratic Republic of the Congo in the economic exploitation.

176. There could be a short grace period of four to five months before the restrictions set out below are applied, during which the targeted entities and individuals would have the opportunity to prove that they have ceased all involvement in the exploitation activities. The restrictive measures could include:

(a) Travel bans on selected individuals identified by the Panel;

(b) Freezing of the personal assets of persons involved in illegal exploitation;

(c) Barring selected companies and individuals from accessing banking facilities and other financial institutions and from receiving funding or establishing a partnership or other commercial relations with international financial institutions.

Adherence of business enterprises to the OECD Guidelines

177. The Panel has drafted another list of business enterprises (annex III) which, in the view of the Panel, are in violation of the OECD Guidelines for Multinational Enterprises. Countries which are signatories to those Guidelines and other countries are morally obliged to ensure that their business enterprises adhere to and act on the Guidelines.

178. The OECD Guidelines outline a procedure for bringing violations of the Guidelines to the attention of the Governments of the States where the business enterprises are registered. Home Governments have the obligation to ensure that enterprises in their jurisdiction do not abuse principles of conduct that they have adopted as a matter of law. They are complicit when they do not take remedial measures. The monitoring body, as described below, will contribute to implementing these procedures by verifying and updating its list of business enterprises in violation of the OECD Guidelines and transmitting evidence of those violations to the OECD National Contact Points in the home Governments of the enterprises.

Transit trade and regional organizations

179. To promote post-conflict peace-building programmes, the Panel recommends that the international community support the following confidence-building measures:

(a) Encouraging the East African Community, composed of Kenya, Uganda and the United Republic of Tanzania, to include Rwanda and Burundi in its membership;

(b) Helping to re-establish historical and legal trading patterns, for example by reopening the Northern Corridor transit route to legal trade among the Democratic Republic of the Congo, Burundi, Rwanda, Uganda and Kenya;

(c) Assisting the relevant African regional trade organizations to improve their customs and trade monitoring mechanisms. These might include juxtaposed border control facilities, harmonization of controls to promote the system and use of certificates of origin and destination, and assistance in developing national legislation for monitoring financial flows related to trade;

(d) Improving air traffic control services in the Great Lakes region. The Technical Cooperation Programme of ICAO can provide assistance to States in the region that need to improve their air traffic control service.

Regulating commodity trade from conflict areas

180. Specialized industry organizations such as the Tantalum Niobium International Study Centre, the International Gold Council and the International Coffee Federation could be requested, in cooperation with the United Nations Conference on Trade and Development, to monitor trade in commodities from conflict areas. This would result in a reliable body of data that includes information relating to the evacuation of commodities, transit routes through neighbouring countries and information on end-users and their operations. The data produced could be the basis of industry policing of those individuals, companies and financial institutions that trade in commodities from conflict areas. The data could also serve in the event that a moratorium is called for on the illegal trade in commodities originating in the Democratic Republic of the Congo, such as coltan.

Kimberley Process

181. All Member States where trade in rough diamonds is being carried out should join the Kimberley Process. Universal participation will make the Kimberley Process a more effective instrument.

182. Diamond-producing countries should apply internal controls from extraction to exportation. Consideration should be given to establishing a set of internationally agreed upon standards for this process. A specialized enforcement organization within each member country needs to be formed that has the authority, knowledge and specialized training necessary to ensure the effectiveness of the Kimberley Process.

183. A permanently staffed secretariat should be created with the responsibility of coordinating the implementation of the Kimberley Process.

Protecting timber and forestry products

184. The Panel recommends that Member States actively support the efforts by intergovernmental and non-governmental organizations at both the international and regional levels to halt illegal logging and to develop an international definition of "conflict timber".

Trade in endangered species

185. Trade involving endangered species of wild fauna and flora taken from protected areas of the eastern Democratic Republic of the Congo is another activity in which elements of the criminal networks are engaged. Member States are asked to support the Task Force established under the Lusaka Agreement on Cooperative Enforcement Operations Directed at Illegal Trade in Wild Fauna and Flora by (a) strengthening their national legislation to reinforce the powers of investigation and prosecution of the Task Force's personnel and (b) ensuring that their National Bureaus, established under that Agreement, intensify their investigations into the criminal traffic in endangered species of wild animals and plants as outlined by CITES.

Monitoring process

186. There is a need for a monitoring process that continues to scrutinize the situation in the Great Lakes region to ensure that exploitation activities are significantly curbed. A monitoring body, which the Security Council may consider establishing, could report to the Security Council on a regular basis on its findings, including recommendations about further action to halt activities that violate the Council's decisions. The Panel's expertise could be helpful in this regard.

187. The monitoring body could report to the Security Council on any State or company that might be involved in the illegal exploitation of natural resources. The monitoring body could recommend to the Council that major multilateral institutions and bilateral donors review and reduce the financial assistance programmes of any State found to be involved in these illegal activities. It could recommend to the Council that any company found to be implicated in the illegal economic exploitation be added to or kept on the list of those enterprises subject to financial and travel restrictions. In addition, the monitoring body could collaborate closely with national officials, including from the Central Bank of the Democratic Republic of the Congo, the Office des douanes et accises (customs administration) and the Direction générale des recettes administratives, judiciaires, domaniales et de participations (revenue administration), the Ministry of Mines and Hyrdocarbons, the State mining enterprises and private mining and mineral companies, in order to update information on how capacity-building and reforms are affecting the exploitation activities. In carrying out these tasks, the monitoring body could coordinate with the international financial institutions, the African Union, and the Economic Commission for Africa.

188. The Panel would also recommend that the monitoring body, with the adequate expertise and resources, track the following:

(a) Possible reductions in the level of illegal exploitation;

(b) The implementation of possible travel bans and the freezing of assets;

(c) Ongoing investigations into the illicit commerce in minerals, timber and endangered species of fauna and flora. The monitoring body could also collaborate further on some of these investigations;

(d) The sectors of the economy that have been affected by the exploitation activities;

(e) The impact on the humanitarian situation in the Democratic Republic of the Congo and the region;

(f) The reduction in violent conflict and the maintenance of civil order in the eastern Democratic Republic of the Congo, as well as the viability of local administrations and institutions related to the mandate of the monitoring body which might be adopted by the Council.

(Signed) Mahmoud Kassem
Chairman

(Signed) Jim Freedman

(Signed) Mel Holt

(Signed) Bruno Schiemsky

(Signed) Moustapha Tall

(Signed) Patrick Smith

Annex I. Companies on which the Panel recommends the placing of financial restrictions


Name

Address

Business

Principal officers

Comment
1 AHMAD DIAMOND CORPORATION ANTWERP BELGIUM Diamond trading Mr. AHMAD Imad
2 ASA DIAM ANTWERP BELGIUM Diamond trading Mr. AHMAD Ali Said
3 BUKAVU AVIATION TRANSPORT DRC Airline company Mr. BOUT Victor
4 BUSINESS AIR SERVICE DRC Airline company Mr. BOUT Victor
5 COMIEX-CONGO KINSHASA DRC Mr. KABASELE TSHINEU Frederic
6 CONGO HOLDING DEVELOPMENT COMPANY DRC Trading and exploitation of natural resources DRC Mr. Félicien RUCHACHA BIKUMU

Mrs. Gertrude KITEMBO

7 CONMET UGANDA and DRC Coltan trading Mr. Salim Saleh

Mr. and Mrs. PISKUNOV

8 COSLEG ZIM and DRC Joint-venture COMIEX and OSLEG Mr. KABASELE TSHINEU Frédéric

ZVINAVASHE Gava MUSUNGWA Vitalis

9 EAGLE WINGS RESOURCES INTERNATIONAL PO BOX 6355

Kigali, Rwanda

Exploitation coltan from the DRC Mr. Alfred RWIGEMA

Mr. Anthony MARINUS

Mr. Ronald S. SMIERCIAK

Tel: +250.51.17.25
10 ENTERPRISE GENERAL MALTA FORREST Exploitation Cobalt, Copper in DRC Mr. George FORREST
11 EXACO Exploitation Cobalt, Copper in the DRC
12 GREAT LAKES GENERAL TRADE BP 3737

KIGALI, RWANDA

Mineral trading Maj Dan MUNYUZA

Mr. E. GATETE

Mr. Steven K. AKHIMANZI

Tel/Fax: +250.78.792
13 GREAT LAKES METALS Kigali, Rwanda Mineral trading
14 GROUP GEORGE FORREST Exploitation Cobalt and Copper Mr. George FORREST
15 MINERALS BUSINESS COMPANY Boulevard Du 30 Juin, Immeuble ex-SCIBE, Kinshasa, DRC Mineral trading Mr. KABASELE TSHINEU Frederic

Lt General ZVINAVASHE Gava Musungwa Vitalis

Mr. Charles DAURAMANZI

16 OKAPI AIR

ODESSA AIR

Uganda Airline company Mr. BOUT Victor
17 OPERATION SOVEREIGN LEGITIMACY (OSLEG) Pvt Ltd Harare, Zimbabwe Commercial interests ZIM in DRC Lt General ZVINAVASHE Gava Musungwa Vitalis
18 ORYX NATURAL RESOURCES DRC Diamond exploitation in the DRC Mr. AL-SHANFARI Thamer Said Ahmed
19 RWANDA ALLIED PARTNERS Kigali, Rwanda Mineral trading Mr. Hadji OMARI

Mr. Simba MANASE

20 RWANDA METALS Kigali, Rwanda Mineral trading
21 SARACEN UGANDA Ltd Uganda Security Company Lt General (Rtd) Salim Saleh

Mr. Heckie HORN

22 SIERRA GEM DIAMONDS ANTWERP

BELGIUM

Diamond trading Mr. AHMAD Said Ali

Mr. AHMAD Hassan

Mr. AHMAD Nazem

23 TANDAN GROUP SOUTH AFRICA Holding Mr. Niko SHEFER
24 THORNTREE INDUSTRIES (Pvt) Ltd Provides capital to MBC Mr. Niko SHEFER
25 TREMALT Ltd Exploitation cobalt and copper Mr. John Arnold BREDENKAMP
26 TRINITY INVESTMENT GROUP DRC and UGANDA Exploitation resources and tax fraud Mr. NGOLA Sam

General KAZINI

27 TRIPLE A DIAMONDS ANTWERP BELGIUM Diamond trading Mr. AHMAD Moussa Ahmad

Mr. AHMAD Ahmad Ali

28 TRISTAR Kigali, Rwanda Holding FPR
29 VICTORIA GROUP DRC and UGANDA Exploitation resources and tax fraud Lt General (Rtd) Salim Saleh

Mr. KHANAFER Nahim

Annex II. Persons for whom the Panel recommends a travel ban and financial restrictions


Last name

First name

Alias

Date of birth

Passport number

Designation
1 AHMAD Ali Said 01.03.1959 Businessman
2 AHMAD Ahmad Ali 01.01.1929
3 AHMAD Imad Businessman
4 AHMAD Said Ali 09.04.1935 Businessman
5 AHMAD Hassan 21.05.1957 Businessman
6 AHMAD Moussa Ahmad
7 AHMAD Nazem 05.01.1965 Businessman
8 AKHIMANZA Steven K. Businessman
9 AL-SHANFARI Thamer Said Ahmed 03.01.1968 00000999 (Oman) Chairman & Managing Director ORYX Group and ORYX Natural Resources
10 BOUT Victor Anatoljevitch BUTT, BONT, BUTTE, BOUTOV, SERGITOV Vitali 13.01.1967
or
???
21N0532664
29N0006765
21N0532664
21N0557148
44N3570350
Dealer and transporter of weapons and minerals
11 BREDENKAMP John Arnold 11.08.1940 Businessman
12 BURUNDI Colonel UPDF
13 DAURAMANZI Charles Shareholder MBC
14 ENGOLA Sam Businessman
15 FORREST George A. Businessman
16 GATETE Edward Officer RPA; Operation Congo Desk
17 HORN Heckie Manager Saracen Uganda Ltd
18 KABANDA Emmanuel Officer RPA; Operation Congo Desk
19 KABAREBE James Chief of Staff RPA; Former Chief of Staff DRC; in charge of Congo Desk
20 KABASELE TSHINEU Frédéric Manager COMIEX, representative of COSLEG
21 KALUME NUMBI Denis General, shareholder SENGA SENGA
22 KARIM Peter Officer UPDF
23 KATUMBA MWANKE Augustin Minister of Presidency, DRC
24 KAZADI NYEMBWE Didier Director Agence National de Renseignements DRC
25 KAZINI James Chief of Staff, Maj. General UPDF
26 KHANAFER Nahim Businessman
27 KIBASSA MALIBA Politician, former Minister of Mines, shareholder SENGA SENGA
28 KITEMBO Gertrude Businesswoman
29 KONGOLO Mwenze Minister DRC, shareholder SENGA SENGA
30 MANASE SIMBA Businessman
31 MAWAPANGA Mwana Nanga Ambassador DRC in Harare
32 MAYOMBO Nobel Chief Military Intelligence (CMI) in Uganda
33 MNANGAGWA DAMBUDZO
Emmerson
Speaker of Parliament ZIMBABWE
34
MOYO
Mike Wing Commander ZDF
35 MOYO Sibusio Bd-Gen (Rtd) ZDF
36 MUAMBA NOZI Richard MWAMBA NOZY Congolese diamond trader; Counterfeiter
37 MUNYUZA Dan Colonel RPA; In charge of security DRC (96-98)
38 MWENZE KONGOLO Minister National Security, DRC
39 NUMBI KALUME Denis Minister of Planning and Reconstruction DRC
40 NZIZA Jack Officer RPA
41 OKOTO LOLAKOMBE Jean-Charles PDG MIBA
42 OMARI HADJI Businessman
43 OTAFIRE KAHINDA Colonel UPDF
44 MARINUS Anthony Manager Eagle Wings
45 PISKUNOV Anatol Businessman
46 PISKUNOVA Valentina Businesswoman
47 RUCHACHA BIKUMU Felicien Businessman
48 RUPRAH Sanjivan Samir Nasr
Medhi Khan
09.08.1966 D-001829-00 Businessman
49 RWIGEMA Alfred Manager Eagle Wings
50 SALIM SALEH AKANDWANAHO Caleb Lt General (Ret.) UPDF
51 SHEFER Niko Nico 25.12.1950 7616225 (Israel) 6651101 (Israel) Businessman
52 SMIERCIAK Ronald S. Manager Eagle Wings
53 YUMBA MONGA Manager GECAMINES
54 ZVINAVASHE GAVA MUSUNGWA Vitalis Lt General ZDF, Rep. of COSLEG, shareholder MBC

Annex III. Business enterprises considered by the Panel to be in violation of the OECD Guidelines for Multinational Enterprises


Name of company

Business

Country

Country signatory of OECD Guidelines
1 AFRICAN TRADING CORPORATION Sarl Trading of natural resources from DRC SOUTH AFRICA NO
2 AFRIMEX Coltan trading UK YES
3 AHMAD DIAMOND CORPORATION Diamond trading BELGIUM YES
4 A.H. PONG & Sons Import-Export SOUTH AFRICA NO
5 A. KNIGHT INTERNATIONAL Ltd Assaying UK YES
6 A & M MINERALS and METALS Ltd Trading minerals UK YES
7 ALEX STEWART (Assayers) Ltd Assaying UK YES
8 AMALGAMATED METAL CORPORATION Plc Trading coltan UK YES
9 AMERICA MINERAL FIELDS (AMFI) Mining USA YES
10 ANGLO AMERICAN Plc Mining UK YES
11 ANGLOVAAL MINING Ltd Mining SOUTH AFRICA NO
12 ARCTIC INVESTMENT Investment UK YES
13 ASA DIAM Diamond trading BELGIUM YES
14 ASA INTERNATIONAL BELGIUM YES
15 ASHANTI GOLDFIELDS Mining GHANA NO
16 AVIENT AIR Private military company ZIMBABWE NO
17 BANRO CORPORATION Mining SOUTH AFRICA NO
18 BARCLAYS BANK Banking UK YES
19 BAYER A.G. Chemical industry GERMANY YES
20 B.B.L. Banking BELGIUM YES
21 BELGOLAISE Banking BELGIUM YES
22 CABOT CORPORATION Tantalum processing USA YES
23 CARSON PRODUCTS Commercialization of resources of the DRC SOUTH AFRICA NO
24 CHEMIE PHARMACIE HOLLAND Financial and logistical support to EWRI NETHERLANDS YES
25 COGECOM Coltan trading BELGIUM YES
26 C. STEINWEG NV Freight Forwarders BELGIUM YES
27 DARA FOREST Timber exploitation THAILAND NO
28 DAS AIR Airline company UK YES
29 DE BEERS Diamond mining and trading UK YES
30 DIAGEM BVBA Diamond trading BELGIUM YES
31 EAGLE WINGS RESOURCES INTERNATIONAL Exploitation coltan from the DRC USA YES
32 ECHOGEM Diamond trading BELGIUM YES
33 EGIMEX BELGIUM YES
34 ENTREPRISE GENERALE MALTA FORREST Construction, Mining, Trading DRC NO
35 EUROMET Coltan trading UK YES
36 FINCONCORD SA Coltan trading from DRC SWITZERLAND YES
37 FINMINING Coltan trading from DRC SAINT KITTS NO
38 FIRST QUANTUM MINERALS Mining CANADA YES
39 FLASHES OF COLOR Diamond trading USA YES
40 FORTIS Banking BELGIUM YES
41 GEORGE FORREST INTERNATIONAL AFRIQUE Management DRC NO
42 HARAMBEE MINING CORPORATION Mining CANADA YES
43 H.C. STARCK GmbH & Co KG Processing coltan GERMANY YES
44 IBRYV AND ASSOCIATES LLC Diamond trading SWITZERLAND YES
45 INTERNATIONAL PANORAMA RESOURCES Corp Mining CANADA YES
46 ISCOR Mining SOUTH AFRICA NO
47 JEWEL IMPEX Bvba Diamond trading BELGIUM YES
48 KABABANKOLA MINING COMPANY Mining ZIMBABWE NO
49 KEMET ELECTRONICS CORPORATION Capacitor manufacture USA YES
50 KHA International AG Minerals trading and exploitation GERMANY YES
51 KINROSS GOLD CORPORATION Mining USA YES
52 K & N Project development BELGIUM YES
53 KOMAL GEMS NV Diamond trading BELGIUM YES
54 LUNDIN GROUP Mining BERMUDA NO
55 MALAYSIAN SMELTING CORPORATION Coltan processing MALAYSIA NO
56 MASINGIRO GmbH Minerals trading GERMANY YES
57 MELKIOR RESOURCES Inc Mining CANADA YES
58 MERCANTILLE CC Trading in natural resources from DRC SOUTH AFRICA NO
59 MINERAL AFRIKA Limited Trading in natural resources from DRC UK YES
60 NAC KAZATOMPROM Tantalum processing KAZAKHSTAN NO
61 NAMI GEMS Diamond trader BELGIUM YES
62 NINGXIA NON-FERROUS METALS SMELTER Tantalum processing CHINA NO
63 OM GROUP Inc Mining USA

FINLAND

YES (USA)

YES (FINLAND)

64 OPERATION SOVEREIGN LEGITIMACY (OSLEG) Pvt Ltd Commercial interests ZIMBABWE in the DRC ZIMBABWE NO
65 ORION MINING Inc Mining SOUTH AFRICA NO
66 PACIFIC ORES METALS AND CHEMICALS Ltd Coltan trading HONG KONG NO
67 RAREMET Ltd Coltan trading from DRC SAINT KITTS NO
68 SARACEN Security company SOUTH AFRICA NO
69 SDV TRANSINTRA Transport FRANCE YES
70 SIERRA GEM DIAMONDS Diamond trading BELGIUM YES
71 SLC GERMANY GmbH Coltan transport GERMANY YES
72 SOGEM Coltan trading BELGIUM YES
73 SPECIALITY METALS COMPANY SA Coltan trading BELGIUM YES
74 STANDARD CHARTERED BANK Banking U.A.E. NO
75 SWANEPOEL Construction SOUTH AFRICA NO
76 TENKE MINING CORPORATION Mining CANADA YES
77 THORNTREE INDUSTRIES (Pvt) Ltd Provides capital to MBC ZIMBABWE NO
78 TRACK STAR TRADING 151 (Pty) Ltd Exploitation and trading minerals DRC SOUTH AFRICA NO
79 TRADEMET SA Coltan trading BELGIUM YES
80 TREMALT Ltd Mining British Virgin Islands NO
81 TRINITECH INTERNATIONAL Inc Coltan trading and exploitation USA YES
82 TRIPLE A DIAMONDS Diamond trading BELGIUM YES
83 UMICORE International Metals and Materials Group BELGIUM YES
84 VISHAY SPRAGUE Capacitor manufacture USA and ISRAEL YES (USA)

NO (ISRAEL)

85 ZINCOR Mining SOUTH AFRICA NO

Annex IV. Countries visited and representatives of Governments and organizations interviewed

The Panel wishes to express its deep appreciation to the Government officials, diplomats, United Nations agencies, donor institutions, non-governmental organizations, civil society groups, journalists, commercial operators and others with whom it met and who have assisted in making possible the present report.

The Panel also wishes to extend special thanks to the United Nations Organization Mission in the Democratic Republic of the Congo. In addition, the Panel would like to thank the United Nations Office in Burundi and the UNDP offices in Bangui, Brazzaville, Bujumbura, Kampala, Kigali, Kinshasa, Pretoria and Yaounde for their assistance and support.

Austria

International organizations

United Nations Office for Drug Control and Crime Prevention

Belgium

Government officials

Inter-Ministerial Ad Hoc Working Group on the Illegal Exploitation of the Natural Resources of the Democratic Republic of the Congo

Parliamentary Inquiry Commission on the Illegal Exploitation of the Natural Resources of the Democratic Republic of the Congo

State representatives

European Union Commission

Others

Arslanian Frères

International Peace Information Service

Sibeca

Sogem mineral trading company (division of Umicore)

Tantalum Niobium International Study Center

Vrije Universiteit Brussel

Burundi

Government officials

Minister of Defence

Minister of Energy and Mines

Minister of Finance

Minister of Foreign Affairs

Department of Customs (Ministry of Finance)

State representatives

Embassy of Belgium

Embassy of France

International organizations

Acting Special Representative of the Secretary-General in Burundi

Office for the Coordination of Humanitarian Affairs

UNDP

UNHCR

UNICEF

Office of the United Nations High Commissioner for Human Rights in Burundi

Others

Affimet

ASYST mineral trading company

Comptoir minier des exploitations du Burundi (COMEBU)

HAMZA mineral trading company

Central African Republic

Government officials

Ministry of Economy

Ministry of Equipment, Transport and Settlement

Ministry of Finance and Budget

Minister of Mines, Energy and Hydraulics

Minister of Trade and Industry

Department of Customs

State representatives

Embassy of the Democratic Republic of the Congo

Embassy of France

European Union

International organizations

Representative of the Secretary-General in the Central African Republic

ASECNA

UNHCR

UNDP

Democratic Republic of the Congo

Government officials

Minister of Defence

Minister of Foreign Affairs

Minister of Land Affairs, Environment and Tourism

Minister of Planning and Reconstruction

Vice-Minister of Foreign Affairs

Vice-Minister of Mines

Deputy Chief of Staff of the FAC

Governor of the Central Bank

Governor of Equateur Province

Governor of Katanga

Governor of Mbuji Mayi

Vice-Governor, in charge of the Economy, Finance and Development, Equateur Province

Centre d'évaluation, d'expertise et de certification

Comité interministériel de "Small Scale Mining"

Générale des carrières et des mines (Gécamines)

Office national des transports

Régie des voies aériennes

Société minière de Bakwanga (MIBA)

State representatives

Ambassador of Angola

Ambassador of Belgium

Ambassador of Canada

Ambassador of Germany

Ambassador of the United Kingdom of Great Britain and Northern Ireland

Ambassador of the United States of America

Belgian Consul

Embassy of Denmark

Embassy of France

European Union

International organizations

Special Representative of the Secretary-General in the Democratic Republic of the Congo

European Commission's Humanitarian Aid Office (ECHO)

FAO

GTZ

MONUC

Office for the Coordination of Humanitarian Affairs

UNDP

UNHCR

UNICEF

World Bank

World Food Programme

World Health Organization

MLC

President

Secretary-General

RCD-Goma

Vice President

Commissioner of the Interior

Governor of Kalemie

Department of Mines and Energy

Vice-Governor of Kisangani

Customs officials

RCD-K/ML

Second Vice-President

Minister of Interior

Acting Chief of Staff for the APC

Governor of Bunia

Governor of Ituri Province

Mayor of Butembo

Others

Action contre la faim

ADETE

Agro Action Allemand

Associazione per la Cooperazione Internationale e l'Ainto Umanitario

Anglican Church

Ashanti Goldfield

Association africaine des droits de l'homme (ASADHO)

Banque internationale de commerce

BEP Productique (BEPROD)

Conseil african et malgache pour l'enseignement supérieur (CAMES)

Caritas

Centre d'information et d'animation missionnaire (CIAM)

Centre d'études national sur le développement populaire (CENADEP)

Centre de formation, recherches en conservation forestière

Centre national d'appui au développement et à la participation populaire (CENADEP)

Church of Christ of the Congo

Comité provincial des diamantaires (CPD)

Commissions diocésaines Justice et Paix (CDPJ)

Conseil apostolique des laïques catholiques au Congo (CALCC)

Conference on Central Africa Moist Forest Ecosystems participants

Confédération de petites et moyennes enterprises du Congo (COPEMECO)

COSLEG (joint venture of COMIEX Congo and OSLEG)

Dara Forêt

Exploitation forestière, sciérie raffinage de la papaine (ENRA)

Fédération des entreprises du Congo (FEC - Kinshasa, Kisangani, Mbandaka, Beni, Goma, Gémena, Bukavu)

Fédération nationale des parents d'élèves du Congo (FNPEC)

Fédération des ONG laïques à vocation économique au Congo (FOLECO)

Forces novatrices pour l'union et la solidarité (FONUS)

Groupe de recherches et d'échanges technologiques (in Kabinda)

Groupe Lotus

Groupe musulman des droits de l'homme

GST (Gécamines labour union)

Héritiers de la justice

International Human Rights Law Group

International Rescue Committee

Inter Press Service (IPS)

JAMS

Journalistes en danger

Justice et Paix

Ligue des avocats pour les droits de l'homme

Kababankola Mining Company

Kotinne Plantation

Jardin botanique d'Eala

Maintenance, Assistance, Technique and Design

Mayi-Mayi representatives

Médecins sans Frontières (of Belgium and France)

Mennonite Church

Mouvement nationale congolais Lumumba (MNCL)

Mouvement des pionniers de l'indépendence

Mouvement populaire de la révolution (MPR)

National Commission of Experts on the illegal exploitation of the natural resources and other forms of wealth of the Democratic Republic of the Congo

National Congolese Railway Society (SNCC)

National Council of Development NGOs (CNONGD)

Nganga Plantation

Norwegian Refugee Council (NRC)

Organisation concertée des ecologistes et amis de la nature (OCEAN)

OKIMO

Oxfam

Parti démocrate et social chrétien (PDSC )

Parti lumumbiste unifié (PALU)

Pharmakina

Pole Institute

Promotion de la femme rural (PROFER)

Programme d'appui aux femmes victimes des conflits et des catastrophes

Radio Okapi

Regional Committee of Development NGOs (CRONGD)

Religious community representatives

Radio Télé Debout Kasaï (RTDK)

Save the Children

Sengamines

Shenimed Coltan Comptoir

Syndicat des exploitants alluvionnaires du diamant (APLOKA)

SOCEBO

Société civile du Congo (SOCICO)

Société de renforcement de communauté de base (SERACOB)

Solidarités

TOFEN-CONGO

TRAFCO Freight Company

UDPS representatives

UPDF Sector Commander in Bunia

UPDF Battalion Commander in Butembo

UPDF Colonel Peter Karim

Union des banques congolaises

Voix du handicape pour les droits de l'homme (VHDH)

Wildlife Conservation Society

France

Government officials

Ministry of Economy and Finance

Ministry of Foreign Affairs

Others

Air France Cargo

Germany

Government officials

Ministry of Foreign Affairs

Others

H. C. Starck

Karl-Heinz Albers Mining and Minerals Processing

Kenya

Government officials

Minister of Foreign Affairs and International Cooperation

Ministry of Defence

Ministry of Finance

Ministry of Trade and Industry

Ministry of Transport and Communications

Kenya Revenue Authority

State representatives

Ambassador of Belgium

High Commissioner of the Republic of South Africa

Ambassador of Rwanda

High Commissioner of Uganda

Belgian Ministry of Defence

German Embassy

Belgian Parliamentary Inquiry Commission

Embassy of the Democratic Republic of the Congo

Democratic Republic of the Congo National Parks representatives

Institut congolais de conservation de la nature (Ministry of Environment, Democratic Republic of the Congo)

International organizations

Special Representative of the Secretary-General for the Great Lakes Region

Special Adviser to the Special Representative of the Secretary-General for the Democratic Republic of the Congo

World Customs Organization

World Wildlife Fund

Others

Association of Cargo Airliners

Congolese Commission of National Experts

Dian Fossey Gorilla Fund

International Crisis Group

Kababankola Mining Company/Tremalt Ltd.

Kencargo

Lusaka Agreement Task Force

Martin Air

Oryx Natural Resources

Oxfam

World Vision

Republic of the Congo

Government officials

Minister of Environment

Ministry of Transport

Department of Customs (Ministry of Finance)

State representatives

Embassy of Belgium

Embassy of the Democratic Republic of the Congo

European Union

International organizations

UNDP

Rwanda

Government officials

Special Envoy of the President for the Democratic Republic of the Congo and Burundi

Office of the President of Rwanda

Minister of Foreign Affairs

Ministry of Commerce, Industry and Tourism

Customs Commission

State representatives

Ambassador of Belgium

Ambassador of France

Ambassador of the United Kingdom of Great Britain and Northern Ireland

Ambassador of the United States of America

European Union

International organizations

MONUC

UNICEF

World Bank

Others

President of RCD-Goma

Eagle Wings Resources

SDV Transintra

SOGERMI mineral trading company

South Africa

Government officials

Acting Director-General for Foreign Affairs

Department of Foreign Affairs

Department of Defence

Department of Home Affairs

Department of Minerals and Energy

Financial Intelligence Centre

National Intelligence Agency

National Intelligence Coordinating Committee

National Prosecuting Authority

National Treasury

Secretariat for Safety and Security

South African Diamond Board

South African Police

South African Revenue Service

State representatives

Ambassador of Belgium

Ambassador of France

Ambassador of the United States

High Commission of the United Kingdom of Great Britain and Northern Ireland

Others

Banro

Bateman Minerals and Metals

Centre for the Study of Economic Crime

Cobalt Metals Company

Compliance Institute

De Beers Group

DiamondWorks

Executive Outcomes

Fluxmans Attorneys

Grove Family Trust

International Institute of Security Studies

Kimberley Process Secretariat

Money Laundering Forum

Overseas Security Services

PricewaterhouseCoopers Forensic Services Division

Rand Afrikaans University

Rand Merchant Bank

SaferAfrica

STK Consulting

Tandan Holdings

Trans Hex

Ware Associates

University of South Africa at Pretoria

University of Witwatersrand/South African Institute for International Affairs

Uganda

Government officials

First Deputy Prime Minister

Acting Minister of Foreign Affairs

Minister of Defence

Chief of Staff of UPDF

Ministry of Tourism, Trade and Industry

Bank of Uganda

Department of Geological Survey and Mines

Uganda Bureau of Statistics

Uganda Civil Aviation Authority

Uganda Coffee Development Authority

Uganda Revenue Authority

State representatives

Ambassador of Belgium

Ambassador of Denmark

Ambassador of France

High Commissioner of the United Kingdom of Great Britain and Northern Ireland

Ambassador of the United States of America

Head of the Delegation of the European Union

International organizations

UNDP

UNICEF

World Bank

Others

Amnesty International

Judicial Commission of Inquiry

Saracen Uganda Ltd.

Uganda Debt Network

United Kingdom of Great Britain and Northern Ireland

Government officials

Ministry of Foreign Affairs

United States of America

Government officials

Department of Justice

State representatives

Belgian Deputy Minister of Foreign Affairs

Permanent Representatives to the United Nations, Security Council members and other Member States

International organizations

International Monetary Fund

Office of the Special Representative of the Secretary-General for Children and Armed Conflict

UNDP

Forum on Forests

Office for the Coordination of Humanitarian Affairs

World Bank

Others

Human Rights Watch

Oxfam

Winston Strawn and Partners

Zambia

Others

Non-governmental organizations

Zimbabwe

Government officials

Ministry of Mines

State representatives

British High Commission

Others

Renaissance Bank

Dozer Parts

Annex V. Abbreviations

ADB African Development Bank

ANC Armée nationale congolaise (army of RCD-G movement)

APC Armée patriotique congolaise (army of the RCD-ML rebel group

ASECNA Agence pour la sécurité de la navigation aérienne en Afrique et à Madagascar

CIDA Canadian International Development Agency

CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora

coltan columbo-tantalite

COMIEX Compagnie mixte d'import-export

COSLEG COMIEX-OSLEG joint venture

FAC Forces armées congolaises

ex-FAR former Forces armées rwandaises

GATT General Agreement on Tariffs and Trade

Gécamines Générale des carrières et des mines

GTZ Deutsche Gesellschafte für Technische Zusammenarbeit (German Government agency for technical cooperation)

ICAO International Civil Aviation Organization

IMF International Monetary Fund

KMC Kababankola Mining Company

MIBA Société minière de Bakwanga

MLC Mouvement de libération congolais

MONUC United Nations Organization Mission in the Democratic Republic of the Congo

OECD Organization for Economic Cooperation and Development

OKIMO Office des Mines de Kilo-Moto

OSLEG Operation Sovereign Legitimacy

RCD Rassemblement congolais pour la démocratie (Rally for Congolese Democracy)

RCD-Congo Rassemblement congolais pour la démocratie (newly formed rebel group made up of MLC and RCD-Goma dissidents)

RCD-Goma Rassemblement congolais pour la démocratie, based in Goma

RCD-K/ML Rassemblement congolais pour la démocratie - Mouvement de libération, initially based in Kisangani, now headquartered in Bunia

RCD-N Rassemblement congolais pour la démocratie-National

RPA Rwandan Patriotic Army

SADC Southern African Development Community

SIDA Swedish International Development Agency

SOMIGL Société minière des Grands Lacs

SOCEBO Société congolaise d'exploitation du bois

UDPS Union pour la démocratie et le progrès social

UNDP United Nations Development Programme

UNHCR Office of the United Nations High Commissioner for Refugees

UNICEF United Nations Children's Fund

UPDF Uganda People's Defence Forces

USAID United States Agency for International Development

WCO World Customs Organization

ZDF Zimbabwe Defence Forces 

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