According to recently unsealed court records, in January 2015, the Royal Canadian Mounted Police (RCMP) raided the offices of MagIndustries Corp., a Toronto-based mining and forestry firm. The RCMP first began investigating the company in October 2013, when a Canadian whistleblower reported to the Canadian embassy in the Democratic Republic of the Congo that he had been fired for refusing to approve an allegedly improper “black money” payment. After conducting an internal investigation, the company confirmed that its subsidiary based in the Republic of the Congo, Eucalyptus Fibre Congo, made approximately $76,500 in illegal payments to Congolese officials in 2012 in order to obtain unfair business advantages for its mining projects.
MagIndustries began but did not complete an investigation into further allegations of misconduct, including those described in the recently released search warrant documentation.The payments at the center of the investigation are alleged to have been approved by top executives at MagIndustries, including Director and CEO Longbo Chen and Vice President of Mining Development Fuliang Wang. As a result of the investigation, MagIndustries could be delisted from the Toronto Stock Exchange (TSX). TSX has given MagIndustries 30 days to comply with the conditions of its listing. MagIndustries suspended its investigation into this matter due to the resignation of the three directors who led the special investigative committee, as well as for a lack of funds. The company’s auditor has since resigned.