Government recovers US $2 million from timber firms

The Central African Republic (CAR) has recovered US $2 million owed the government by 11 timber companies, the director of the cabinet in the prime minister's office, Marcel Djimasse, told IRIN on Thursday. He said the companies were asked to pay up before they could become eligible for provisional licences to exploit the country's forests. At the same time, the government has suspended the felling and sales of timber. The forest cover in the CAR is estimated at three million hectares. Djimasse said companies belonging to former President Ange-Felix Patasse had been exploiting one-third of the forests. Patasse was ousted in a coup on 15 March by the former CAR army chief of staff, Francois Bozize. "These forests will be considered state property until other investors request to exploit them," Djimasse said. He added that experts from the Ministry of Forestry, Fishing and Hunting were investigating the fiscal situation of the companies before issuing them with "definitive" licences. In addition to a $2.5-million donation from the government of China, Djimasse said, the government used the money recovered from the timber companies to pay the April salaries of civil servants, who are already owed about 34 months' salary arrears. As a sign of acknowledgement, thousands of CAR civil servants marched during Labour Day celebrations, watched by Bozize. Such a march has not taken place for a decade. Bozize's administration has promised to pay salaries monthly, and to pay the arrears when the economic situation improves. Djimasse said the government, with the support of the UN Development Programme, was carrying out a census to establish the exact number of civil servants, saying that many irregularities had been pointed out, thereby increasing salary expenses. "When this work is completed, we will be able to save 500-600 million francs CFA [about $1 million] on salary expenses each month," he said. In the meantime, the government has begun paying pension arrears, after receiving an 850 million francs CFA donation from the EU. The donation had been pledged during Patasse's administration. Djimasse said pension arrears had not been not paid, because the first 42 million francs CFA were misappropriated. "The government refunded the 42 million francs and the EU resumed its payment," he said. Djimasse said the CAR was eligible for a post-conflict aid programme, and that Prime Minister Abel Goumba was on Sunday scheduled to begin a tour of a number of African countries and the US "to explain the country’s current situation". He was also expected to meet officials of the IMF and the World Bank.