Why an Israeli billionaire is getting away with corruption in the DRC, and how the U.S. is behind that
If one looks for a name that connects the corruption in the mining business in the DRC, a shadowy figure coming from Israel and the political and economic interests of Washington, one can find all that in Dan Gertler.
No one could sway so much power in DRC’s mining industry as he did over the last 20 years, determining which multinational companies would be able to mine the country's reserves of cobalt, copper, cobalt, diamonds, gold and tin.
Then, in 2017 the US Treasury sanctioned Gertler over his dealings for they, the department accused him, were massively corrupted. And that includes a murky relationship with former president Joseph Kabila. That meant that U.S. citizens could face up to 20 years in prison if they do business with the Israeli. Also, U.S. banks were required to block and report every transaction, including non-U.S. banks, involving the businessman or his companies.
But now that’s about to change.
A deal brokered between Washington and Kinshasa – which was proposed by the latter in 2022 in a letter wrote by Congolese President Félix Tshisekedi to his U.S. counterpart Joe Biden – is set to lift some of the restriction on Gertler if he sells his remaining mining interests in the country.
“Under the US proposal, the Treasury would provide Gertler with ‘special’ licenses to sell the three royalty streams back to the Congolese government and would eventually grant him a ‘general’ license to regain access to the US financial system”, writes the Financial Times.
And what does the U.S. have to gain with that? Easier access for its companies to DRC’s minerals – which are now dominated by Chinese companies – vital for their buildout of clean energy infrastructure.
If the deal goes through, Gertler would receive something around $300 millions of dollars. Which, in essence, means a reward for a billionaire that enriched himself by exploring the resources that belonged to the Congolese people, infringing human rights and causing environmental damage along the way.
A financial investigation from 2021 by the anti-corruption coalition, Congo is Not for Sale, revealed that between 2003 and 2021, the DRC state lost $1.95 billion in revenue from suspect mining deals from Gertler. A further $1.76 billion in future royalty payments to Gertler’s companies could be lost between until 2039 – even with the sanctions in place.
That’s a great message that both Kinshasa and Washington are sending to companies and individuals on where they stand on corruption, defense of human rights and protection of the environment.
