Damaging contracts in Congo under threat

Congo, home to the world’s second largest tropical forest, has launched a review of all timber contracts in an effort to clean up a business rife with corruption and to recoup millions of dollars in lost taxes, according to a report by Environmental News Network (ENN). The World Bank-sponsored initiative will look at 156 deals, most of which were signed during a 1998-2003 war and under a subsequent interim government that was accused of awarding numerous dubious logging and mining contracts.In 2002, with the country partially under the control of rebels, the Democratic Republic of Congo issued a five-year moratorium on new logging contracts as part of efforts to stem rampant deforestation aggravated by the conflict, the ENN reported.

However, the measure was inaffective and companies continued to sign new deals.

“Logging and land clearance for farming are eating away the Congo Basin, home to more than a quarter of the world’s tropical forest, at the rate of more than 800,000 ha a year,” the report said.

“Many contracts are expected to be cancelled outright by a review panel made up of government officials and independent experts.”

Environment Minister Jose Endundu: “What I’m hoping for is fewer concessions. What I’m hoping for is more revenues for the state. What I’m hoping for is better management of the forestry sector.”

He said he wanted to reduce land attributed to logging companies to 15 Mha from 20 Mha.

Amongst the biggest timber firms operating in Congo are Siforco, which is a subsidiary of Germany’s Danzer Group, and Portuguese-owned Sodefor, a unit of holding company NST.