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Viewing cable 07KINSHASA660, EITI DEMARCHE

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Reference ID Created Released Classification Origin
07KINSHASA660 2007-06-13 16:00 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kinshasa
VZCZCXYZ0011
RR RUEHWEB

DE RUEHKI #0660/01 1641600
ZNR UUUUU ZZH
R 131600Z JUN 07
FM AMEMBASSY KINSHASA
TO SECSTATE WASHDC 6306
UNCLAS KINSHASA 000660 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO EEB/ESC/IEC MAUEL, EEB/ESC/IEC HAENDLER, AND 
EEB/ESC/IEC/ENR HAYMOND 
 
E.O. 12958: N/A 
TAGS: ECON EMIN EAID ENRG EPET CG
SUBJECT: EITI DEMARCHE 
 
REF: A. SECSTATE 75118 
     B. 05 KINSHASA 880 
     C. 05 KINSHASA 2070 
     D. KINSHASA 160 
     E. KINSHASA 533 
 
1. (U) Post submits the following in response to reftel A, 
regarding the Extractive Industries Transparency Initiative 
(EITI). 
 
GDRC'S RESPONSE 
--------------- 
 
2. (U) The GDRC has not yet responded to the EITI letter 
mentioned in reftel A. DFID delivered the letters to DRC 
officials on June 5. 
 
GDRC COMMITMENT AND CAPACITY 
---------------------------- 
 
3. (SBU) The current government has publicly stated it is 
committed to increasing transparency in the extractive 
industries (reftel D), but it has not demonstrated it has the 
capacity, resources or political will to implement the EITI 
on its own or in partnership with civil society or industry. 
In 2005, then-Vice President Jean-Pierre Bemba announced the 
DRC's participation in the EITI; the Ministry of Plan oversaw 
the creation of a commission, but plans have not meaningfully 
advanced further (reftels B and C). In May 2007 the GDRC's 
Minister of Plan replaced the coordinator of the DRC's EITI 
commission, which is composed of civil society, GDRC and 
industry representatives.  Several commission members 
objected to the action, and the U.K. Embassy has informed the 
GDRC it views this event as a step backwards in 
implementation of the EITI and general transparency 
principles. 
 
ORGANIZATION OF EXTRACTIVE INDUSTRY 
----------------------------------- 
 
4. (U) The GDRC is in the early stages of reform of the 
extractive industry sector, which already generates well over 
one-half of the GDRC export revenue (reftel D) and an 
increasing amount of investment.  The GDRC's control and 
organization over extractive industries varies widely, 
depending upon the sector and region of the country. 
Artisanal mining, the influence of armed elements and lack of 
government control in some regions are among the factors that 
reduce the sector's organization.  Hundreds of thousands of 
artisanal miners are estimated to work in the DRC, and in 
sectors such as diamond mining these diggers produce the 
majority of the DRC's output.  In portions of Eastern Congo, 
especially Ituri District and the Kivu provinces, the central 
government has little or limited control over production and 
export, while armed elements often exercise substantial 
control. 
 
REVENUE REPORTING 
----------------- 
 
5. (U) There are no government or organized industry efforts 
to report revenues under the EITI.  The GDRC is, however, a 
member in good standing of the Kimberley Process 
Certification Scheme.  Select copper mining companies in the 
DRC are working with a USG-supported Extractive Industries 
Alliance program (EIA), discussed below, to support 
transparency generally. 
 
CIVIL SOCIETY CAPACITY 
---------------------- 
 
6. (SBU) Civil society's capacity to urge the implementation 
of the EITI is limited. Both domestic and international NGOs 
advocate in favor of implementation, but their efforts have 
minimal impact. (Comment: Some NGOs, including Global Witness 
and RAID, are perceived as representing increasingly extreme 
positions on sector reform, undermining their credibility in 
the donor and GDRC communities. End comment.) Many domestic 
NGOs lack necessary personnel or financial resources, 
although a number of interested Congolese NGOs have formed a 
DRC chapter of the international Publish What you Pay 
coalition, and in April this group held a seminar. 
 
DONOR SUPPORT 
------------- 
 
7. (SBU) As mentioned in paragraph five, the USG (through 
USAID Kinshasa), is developing an Extractive Industries 
Alliance (EIA).  Thus far, the USG has committed USD 3.5 
million over 28 months for implementation of this Global 
Development Alliance program. Select mining companies and 
DFID are also contributing funds. The program's main goals 
are to collaborate with mining companies to create 
sustainable social development and a framework of revenue 
transparency and good governance (reftel E). According to a 
DFID official, the World Bank (WB) is planning to fund EITI 
implementation, but has delayed doing so until the GDRC 
satisfactorily responds to the WB's concerns about the 
replacement of the commission's coordinator, an action 
discussed above. 
MEECE