Trade finance news

UK mineral company found fuelling DRC conflict

Last Updated August 29, 2008

A minerals company failed to ensure its activities did not support armed conflict and forced labour in Democratic Republic of Congo (DRC), according to a British government investigation.

Afrimex sourced minerals from an area in the east of the DRC occupied by rebel troops in 2003. The firm has now been criticised for failing to make sure its trading activities were not contributing to conflict and human rights abuses.

The investigation revealed that rebel soldiers had managed to extract money from the firm’s supply chain, which had helped fund their campaign. Through lack of diligence, the company also failed to help stop the use of child and forced labour.

A complaint made by a campaign organisation Global Witness, against Afrimex’s activities between 1998 and 2007, prompted an investigation by the UK National Contact Point (NCP).

In an official final statement on the investigation released on August 28, the NCP concluded: “Afrimex initiated the demand for minerals sourced from a conflict zone. Afrimex sourced these minerals from an associated company SOCOMI, and two independent comptoirs who paid taxes and mineral licences to RCD-Goma when they occupied the area. These payments contributed to the ongoing conflict.” 

Following the announcement of these findings, trade minister Gareth Thomas comments: "We are determined to promote the highest ethical standards and companies trading in conflict areas should take all possible steps to meet them.

"By operating ethically, British firms investing in developing countries will contribute to peace and prosperity - not to war and human rights abuses."

The NCP issued four recommendations following its investigation. They are: the British government expects all UK businesses to be able to prove they meet OECD guidelines; UK companies should use their influence over DRC trading partners to ensure due diligence is applied to the supply chain; Afrimex should create a corporate responsibility document based on an assessment of its supply chain’s impact on human rights; and the company should use the OECD’s risk awareness tool for multinational enterprises in weak governance zones to help them stay within these rules.

Commenting on the NCP’s verdict, Patrick Alley, director of Global Witness, says: “We welcome the government’s important ruling on this case. The final statement sets clearer guidelines for companies operating or trading in conflict zones.”  



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