KGHM's Congo venture investigated by Security Office

The State Security Office (UOP) asserts the $10 million commission paid by the copper mining conglomerate KGHM Polska Miedz S.A. to Virgin Island-based Colmet International for its intermediary role in securing KGHM a contract to explore copper and cobalt reserves in the Democratic Republic of Congo, is unjustifiable. UOP is investigating allegations that Colmet and KGHM could have conspired to deliberately undertake an unfeasible venture that consequently cost KGHM, and the state, due to an ill prepared contract by members of the previous KGHM board. A motion on the same issue has been filed with the prosecutor's office in Legnicy. KGHM on the other hand, insists the failure of the Congo venture was a result of inadequate technology and infrastructure in the country [Congo] to process the mined mineral. The previous board had even announced they would continue with further investments in Congo. (Rzeczpospolita, page A1, A3) S.M.