* Admissibility date reflects the date the case was officially registered. All other dates pertain to the date in which a stage was completed.
Case Description
Complaint
In June 2013, Christian Aid, a development organisation in London, complained against the Banks’ refusal to publish the report and conclusions of the investigation it had announced in May 2011 into allegations that Mopani Copper Mines plc. evaded tax in Zambia. The Bank’s services had informed the complainant in October and in November 2012 that the EIB ”does not publish its reports regarding specific investigations carried out by the Bank’s Inspectorate General” and that ”contrary to what you indicate to have heard, the Bank does not intend to publish this particular report”.
Background
The EIB financed project, which was appraised in 2003/04 and for which a Finance Contract was signed in 2005, concerns the first phase of the rebuilding and modernization of the Mufulira copper smelter part of Mopani's operations, to be implemented by Mopani Copper Mines plc., Zambia (MCM), owned 73% by Glencore International, Switzerland.
Based on information revealed by a report that was leaked and had appeared on the internet in February 2011 the Bank's services confronted Mopani/Glencore with allegations regarding irregularities on operational costs, revenues, transfer pricing and other costs. Mopani/Glencore, however, strongly contested the allegations from the leaked report stating that lithe leaked report is merely a draft of an incomplete version of the conclusions". Thus, in the summer of 2011 the EIB's Fraud investigation Division(IG/IN) decided to undertake an independent review, with an on-site investigation that was carried out in August 2011 and that was finalised in November 2011.
Conclusions and Recommendations
In line with the applicable regulatory framework, it is recommended that the EIB IG-IN report on the Mopani Copper Mines project is disclosed to the complainant, following a review of the parts of this document which fall within the policy-based exceptions, in consultation with the stakeholders concerned. Such parts should be blanked and the exceptions applied should be explained.
The EIB-CM expresses its preference to disclose a redacted version of the Fraud Investigations Report; however it is the Bank's Management Committee choice to decide whether to do so or not. Should the Management Committee decide not to disclose such report, the EIB-CM invites the Management Committee to submit a management response to be attached to the CM Conclusions Report or to be sent to the complainant under the signature of Secretary General, whereby it justifies its decision of nondisclosure.
Response from the Management Committee/Secretary General
The Management of the EIB is of the opinion that there are sufficient arguments not to disclose the Fraud investigation report at stake. Taking into account nevertheless the legitimate interest on behalf of the public to be informed, in the present case, about the outcome of the EIB Inspectorate General investigation, the EIB Management has instructed the EIB services to update the information relating to the case under consideration published on the EIB website.