The Democratic Republic of Congo and the Republic of Congo are losing at least $12m annually in tax avoidance by logging companies, Greenpeace says.
The environmental group says it has evidence showing how firms like German-owned Danzer group have set up "elaborate profit-laundering schemes". In its report, Conning the Congo, Greenpeace alleges the amount of tax lost each year is 50 times the DR Congo's Ministry of Environment's annual operating budget.Greenpeace says it has documents showing that Danzer's Swiss subsidiary company (Interholco AG) buys timber from its African sister companies (Siforco and IFO) at below the market price and then makes up the shortfall by depositing money in offshore bank accounts. In so doing, the group evades paying big corporate tax and export duties.
Environment Minister Jose Endundo told the BBC's Focus on Africa programme."What I can say about forestry, is that the commission in charge of setting the minimum export prices for timber has not met since 2000. So the logging companies took advantage of the situation to export timber at a price under its real value. It means that the Congolese government has suffered losses in terms of foreign currency earnings and taxes."
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Showing posts with label logging. Show all posts
Showing posts with label logging. Show all posts
Thursday, July 31, 2008
Thursday, January 24, 2008
Forestry is for profits not people
Not only has the World Bank been ignoring the rights of the indigenous peoples of the Democratic Republic of Congo forests - the Pygmies - in its promotion of the logging industry , the World Bank has failed to demonstrate any benefits for the local inhabitants . Who says so ? The World Banks itself says so .
"Unless strong measures are taken to ensure that the benefits reach local people, the concession system will not make the expected contribution to poverty alleviation of the local people," it noted.
A report, compiled by the bank's inspection panel, followed complaints by indigenous pygmy groups that the reforms had disregarded the rights of millions of forest-dependent people and ignored the existence of between 250,000 and 600,000 pygmies whose lives depend on the forests. According to the World Bank report, the benefits from the industrial harvesting of trees, at the core of the policy and administrative reform, are not going to the people living in and around the forest. Promised benefits to the communities from the concessions such as schools, clinics and other facilities, have also not materialised. The bank's forest projects promoted the interests of asset-stripping logging companies over indigenous groups who are dependent on the forests .
"Bank forest economists admit that they cannot point to a single example of industrial logging in the tropics alleviating poverty or delivering durable economic benefit..." said Patrick Alley, Global Witness Director
"Unless strong measures are taken to ensure that the benefits reach local people, the concession system will not make the expected contribution to poverty alleviation of the local people," it noted.
A report, compiled by the bank's inspection panel, followed complaints by indigenous pygmy groups that the reforms had disregarded the rights of millions of forest-dependent people and ignored the existence of between 250,000 and 600,000 pygmies whose lives depend on the forests. According to the World Bank report, the benefits from the industrial harvesting of trees, at the core of the policy and administrative reform, are not going to the people living in and around the forest. Promised benefits to the communities from the concessions such as schools, clinics and other facilities, have also not materialised. The bank's forest projects promoted the interests of asset-stripping logging companies over indigenous groups who are dependent on the forests .
"Bank forest economists admit that they cannot point to a single example of industrial logging in the tropics alleviating poverty or delivering durable economic benefit..." said Patrick Alley, Global Witness Director
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