Jinchuan Group International Resources has uncovered an alleged $145 million fraud scheme tied to its copper and cobalt operations in the Democratic Republic of the Congo.
Jinchuan Group International Resources has uncovered an alleged $145 million fraud scheme tied to its copper and cobalt operations in the Democratic Republic of the Congo, following an independent investigation that revealed years of questionable procurement transactions, fabricated invoices, and suspicious cash payments.
The investigation focused on the company’s Ruashi Mine operations, where former local employees were accused of exploiting weak internal oversight between 2019 and 2024 to divert company funds through suppliers and intermediaries that investigators said had “no apparent business purpose.”
According to a filing released late Friday, investigators identified approximately $137.4 million in payments to 12 suppliers linked to the alleged scheme, along with an additional $7.1 million transferred to the personal bank account of a former employee, Bloomberg reported.
The company also disclosed that investigators reviewed $66.8 million in expenditures connected to what it described as “government-related affairs” in Congo. These included payments routed through a third-party intermediary hired to negotiate tax disputes and penalties with local authorities.
