An assessment of state gold mining enterprise in the Democratic Republic of the Congo : a case study of Kilo-Moto

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.