Mugabe ally loses EU sanctions compensation case

74      Next, the Council and the Commission rely on the reports of 8 October 2002 and 15 October 2003 (see paragraphs 57 and 59 above).

75      It is apparent from the report of 8 October 2002 that, notwithstanding a diminishing in the intensity of the conflicts involving seven African armies within the Democratic Republic of the Congo, certain groups linked to the armed forces of the Republic of Rwanda, the Republic of Uganda and the Republic of Zimbabwe exercised economic control over certain areas of the Democratic Republic of the Congo and appropriated revenue from the extraction of diamonds, cobalt, copper and germanium under the pretext, for example, in the case of the Republic of Zimbabwe, of payment for security services provided by that State’s armed forces to the Government of the Democratic Republic of the Congo. That exploitation network, which, according to the report, involves Congolese and Zimbabwean politicians and government officials and businessmen, succeeded in transferring from the Congolese public sector ownership in mineral deposits with a value of at least 5 million US dollars (USD) over a period of three years. In that context, according to the report, the first applicant had the right to exploit, via Tremalt Ltd, a company he represents, rights in deposits held as concessionaire by Générale des carrières et des mines (Gécamines), a Congolese public company. Those deposits comprised 2 700 000 t of copper and 325 000 t of cobalt and the right to exploit them was granted for 25 years. The value of those deposits is estimated at more than USD 1 billion, the first applicant having paid to the Democratic Republic of the Congo only USD 400 000 for those rights. Tremalt participated in the operation in question through a joint venture with Kababankola Mining Company Sprl, in which Tremalt had an 80% share to Gécamine’s 20%, though the latter derived no tangible benefit from that operation. The Panel of Experts states that it has in its possession the confidential tripartite profit sharing agreement relating to the operation in question. Under that agreement, Tremalt retained 32% of the net profits, the remaining 68% being shared equally by the Democratic Republic of the Congo and the Republic of Zimbabwe. Under that agreement, which was the subject of a memorandum from the Zimbabwe Defence Minister to President Mugabe in August 2002, Tremalt undertook to supply the armed forces of the Democratic Republic of the Congo and the Republic of Zimbabwe with motor vehicles, trucks, buses and cash payments as necessary, the cost of so doing being deducted from the two countries’ profit share. Furthermore, Tremalt and the armed forces of the Republic of Zimbabwe established a forum ‘to look after the interests of the Zimbabweans’, consisting of a Zimbabwean General, Brigadier and Air Commodore, the first applicant and two other members of the Board of Kababankola Mining Company. The Panel of Experts refers to certain information relating to the exploitation of the deposits in question prior to the transfer to Tremalt. It also refers to the view of mining industry experts that Tremalt’s claim that it suffered significant losses between February 2001 and July 2002 lacks credibility.

76      Furthermore, according to the report of 8 October 2002, through his companies Aviation Consultancy Services and Raceview Enterprises, the first applicant was a major supplier of spare parts for military aircraft, camouflage cloth, batteries, fuels and lubricating oils, boots and rations to the Zimbabwean armed forces.

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