Abstract:
A major challenge of State Owned Enterprises in the Democratic Republic of Congo
is lack of leadership and good managerial skills. Office des mines d’or de Kilo-Moto (OKIMO) is one of the state’s gold mining enterprises which demonstrate
managerial failure in gold production. This situation is not only found amongst the
state mining companies, but also in different public enterprises. The reason for this
is bad governance and political interference by Congolese politicians, especially
those in positions of power. Before the country became independent on 30 June
1960, most of the mining organisations were well-managed, but this government
tried to control the entire production of the mining industry across the country.
The production of state mining companies declined in the entire sector. It has been
claimed that nepotism during the second era of independence is one of the major
causes of OKIMO’s bankruptcy. Instead of changing the corporate governance
of the company, the government has remained in this position of stasis until the
present day.
The company has completely collapsed and solicits a strong recommendation
that the senior management and the board members should develop good culture
to manage a state gold mining company. It means the objectives of chief executive
must be accepted by the board member and all the staff within the company. Senior
managers need a strategic plan to increase the production of gold in the company
and this will have an impact on the financial viability of the SOE.
