Mining magnate Gertler denies skirting U.S. sanctions in Congo

Israeli billionaire mining investor Dan Gertler denied on Thursday that he had tried to evade U.S. sanctions after watchdogs said he appeared to have funnelled millions of dollars through a bank in the Democratic Republic of Congo.

Gertler's statement to Reuters followed a report published on Thursday by the Platform to Protect Whistleblowers in Africa (PPLAAF) and campaign group Global Witness citing evidence indicating that Gertler had moved the money through Afriland First Bank's branch in Congo in order to dodge sanctions. Their report pointed to leaked bank documents allegedly showing millions of dollars moving in and out of Afriland accounts opened by people with ties to Gertler after he was first sanctioned in 2017.

"This scheme would allow Gertler to continue reaping the vast financial benefits of his business deals in DRC," Global Witness said on Thursday. Reuters did not see the evidence and was not able to independently confirm it.

Gertler said the allegations were false. "I have no relationship whatsoever with numerous individuals supposedly identified in this story and the cash deposits referred to are fictitious or have nothing to do with me, or anyone on my behalf," Gertler said in the statement.

In a statement issued by its lawyer, Afriland First Bank denied any wrongdoing. Afriland filed a criminal complaint with prosecutors in Paris on Wednesday, accusing PPLAAF and Global Witness of, among other things, bribing Congolese officials and blackmailing sources during their investigation.

PPLAAF and Global Witness said the accusations "constitute unjustified attempts to intimidate us into not publishing these important allegations". The U.S. Treasury sanctioned Gertler and more than 30 of his businesses in December 2017 and June 2018, accusing him of using his friendship with former Congo President Joseph Kabila to secure sweetheart mining deals worth more than a billion dollars. Gertler denied any wrongdoing.

The sanctions prevented Gertler from doing business with U.S. citizens, companies or banks, effectively barring him from doing transactions in dollars. Asked on Thursday about the latest developments, the U.S. embassy in Kinshasa declined to comment.

According to a 2013 report by the Swiss-based foundation Africa Progress Panel, which was headed by former U.N. Secretary-General Kofi Annan, Congo lost out on $1.36 billion in potential revenue between 2010 and 2012 in five mining deals involving state-owned Gecamines mining company and Gertler. At the time Gertler's Fleurette company said the Panel’s criticism failed to take into account a series of other factors having an impact on the value of an asset, or simply stated the wrong value of the transaction.

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