Democratic Republic of Congo Debate
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Lord Chidgey
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Democratic Republic of Congo
Lord Chidgey Excerpts(12 years ago)
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Lord Chidgey
To ask Her Majesty’s Government what has been their response to reports that state-owned mining assets in the Democratic Republic of the Congo have been sold over the last two years to offshore companies for less than one-twentieth of their commercial value.
The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)
My Lords, we share the concerns about the DRC mining sector and the mis-selling of state-owned assets. We continue to press the DRC Government to improve governance in this area. The Secretary of State for International Development raised this with President Kabila when they met in March. The UK is funding the PROMINES programme, which aims to strengthen transparency in the mining sector. We also support the international efforts to set standards for all extractive industries.
Lord Chidgey
My Lords, I thank the Minister for that reply. Does he share the widespread concern over the legitimacy of transactions that involve companies quoted on the London Stock Exchange and UK Overseas Territories such as the BVI? The Chancellor has turned his attention to these with regard to stemming personal tax avoidance but does not appear to have looked yet at corporate tax avoidance. Will the Government support the call by the DRC opposition parties for a full inquiry into the extent of what appears to be very widespread corruption in this field?
Lord Howell of Guildford
We share the concern about corruption and the need for major companies to observe the highest possible standards in their performance. The instruments through which this should be done are the EU transparency directive and the work of the Extractive Industries Transparency Initiative, which is excellently chaired by Clare Short and is currently planning to set up a strategic working group to look at extending EITI standards to require a much closer look at issues of the kind that my noble friend has raised.