2 January 2013

Congo-Kinshasa: Latest Coverage On Controversial ENRC Activities & $550 Million Congo Deal

press release

One story that will be sure to develop in 2013 is the controversy around ENRC’s activities in Congo. For the background for this, a good place to start is the Global Witness statement of 23 December: “ENRC shareholders should reject $550 million deal.”

For the latest developments on that story see the Guardian story that went online on 28 December, quoting Global Witness on the deal that was approved at an ENRC General Meeting that day. Global Witness told shareholders at the meeting: "You are laying yourself open to the gravest of corruption risks with this, which you've already outlined in your prospectus. And whatever the legalities of it, it is completely morally wrong to rip off one of the poorest countries in the world in such a blatant fashion."

On 24 December, the Daily Telegraph also reported that the UK Listing Authority was inquiring into ENRC Congo-related deals.

The UK Listing Authority’s inquiries were referred to in Global Witness’s statement of 23 December, which provided other important information, including the details of a “nondisparagement covenant” entered into by ENRC and its key partner Dan Gertler. Under this agreement ENRC promised not to make adverse statements about Mr Gertler or his companies.

The Guardian reported on 27 December that ENRC’s three founder shareholders and others are to be sued by their former corporate finance adviser. The Daily Mail has also continued to report prominently on the ENRC story, putting it at the top of its business section in its Christmas Eve edition. The piece highlights the inconvenient timing of the vote on the Congo deal, which was held between Christmas and New Year’s Day.

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