Corruption in the natural resource sector is a very high risk for companies operating in the CAR. Clientelism, racketeering, and bribery have especially high risks for companies operating in the logging sector (Global Witness, Jul. 2015). Logging companies commonly provide gifts to new political leaders when government changes occur, reportedly these include freezers or envelopes with cash of CFA five to 10 million (Global Witness, Jul. 2015). In return, the officials protect or defend companies at ministerial meetings (Global Witness, Jul. 2015). Companies routinely receive officials on weekends and give them drinks and bribes of around CFA 100,000 to 130,00 (EUR 150-200), in order to ensure relevant documents are signed, and official papers are up-to-date (Global Witness, Jul. 2015). Logging permits are often obtained per collusion with officials.
In the absence of government control, public funds are frequently misappropriated; the special forest tax fund CAS-DF is known to be used by ministers to cover their travels abroad (Global Witness, Jul. 2015). Logging goes largely unchecked, and inspections are often paid for by the logging companies themselves (Global Witness, Jul. 2015). On occasion, companies have gone into business with those in power. SEFCA was in business with Ange-Félix Patassé, president between 1993 and 2003, by managing a concession of 652,000 hectares held by his logging company, La Colombe Forêt SN (Global Witness, Jul. 2015). Today, SEFCA employs as its legal representative, Nicolas Tiangaye, Prime Minister under Séléka President Michel Djotodia, and also a potential candidate in the next presidential elections (Global Witness, Jul. 2015).
The government has no control over territory in the South West of the country, and armed groups engage in illegal logging activities (Global Witness, Jul. 2015). Apart from logging, poaching is a high risk in the CAR (The New Yorker, May 2015). Especially during the civil war, wild animals were poached, sometimes in collusion with state officials (BTI 2016). Diamonds make up around 50 percent of the country’s export earnings, but largely circumvents official channels (FitW 2015).