FINANCES IN JEOPARDY

Press, Volume CII, Issue 30029, 14 January 1963, Page 11

FINANCES IN JEOPARDY

Huge Sum Missing From Katanga

(N.Z. Press Assoctattoi*—Copyright; WASHINGTON, January 12. Between 10,000,000 and 20,000,000 dollars is missing from the National Bank of Katanga in the Congo, authoritative sources said today.

They said the loss—in Congo and Katanga francs from the bank in Elisabethville—had jeopardised the country’s monetary system, United Press International reported. One source called it “the great Katanga bank robbery.”

There was speculation, but no authoritative confirmation, that the money might be in Kolwezi, the last Katangese stronghold. The Premier of Katanga (Mr Tshombe) left Ndola, Northern Rhodesia, today, reportedly for Kolwezi. The discovery that the cash was missing from the bank vault prompted a search in both Africa and Europe, an attempt to locate the Euro-pean-baaed printing facilities for the Katanga francs, and a speed up in previouslyscheduled efforts to integrate the currency of secessionist Katanga and the central Congolese Government, UP J. said.

Officiate were known to be concerned about the possibility of inflation if the money is not located. Although the sources referred to it as a “robbery,” they said it was conceivable there might be another explanation.

“The money is supposed to be in the vault, according to books of the bank,” one source said. “The money may turn up some other place, but ft certainly is not in the bank where it is supposed to be” UN. Audit When the United Nations earlier took over the bank an audit showed that 1000 million Congolese francs and a large amount of Katanga francs were missing One source said “hundreds of thousands" of the latter were unaccounted for.

The official rate of exchange is 63 Congo francs to a United States dollar. but the unofficial rate is as high as 200 to a dollar.

As an initial step toward gradual integration of all Congolese currency under the United Nations plan to unify the Congo, the Congolese Government on Wednesday declared a rate of exchange of one Congolese franc for one Katanga franc.

Western Governments were informed on the night of January 10 that the money was missing. On January 11. sources said, discussions were held on means of staving off financial instability.

One source said there was “enormous concern that a whole nation's stability might be at stake.” They said it was possible that the francs already had been converted into another currency.

The Congolese francs bad been in the Katanga Bank ever since Mr Tshombe declared his secession after the Congo’s independence in July. 1960. and established his own currency. Tshombe Leaves Ndola Mr Tshombe slipped out of the rear entrance of his hotel in Ndola after conferring for several hours in his room with five of his Ministers. Ob-

servers said that when he left he looked tired. In mid-afternoon, Mr Tshombe took off for Solwezi, a Northern Rhodesian frontier post 100 miles west of Ndola. saying he intended to return to Katanga, the Associated Press reported. Solwezi is well oft any route he might take back to Elisabethville. Feared Arrest Mr Tshombe told reporters he had fled from Elisabethville to Northern Rhodesia because he still feared arrest in spite of United Nations guarantees of his safety. United Press International reported. Mr Tshombe said he planned to go to his stronghold town of Kolwezi on Monday and would return to his capital “shortly.”

Mr Tshombe’* arrival in Ndola came as United Nations forces moved unopposed into Sakania, 137 miles south-east of Elisabethville, on the Northern Rhodesian border. Reuter said.

The take-over of the town completed the United Nations operation to re-open communications between Northern Rhodesia and Elisabethville.

Congo Troops Arrive The British United Press reported from New York that according to diplomatic reports Mr Tshombe fled from Elisabethville when he learned that central Government troops had arrived in the city. He also found out, it was said, that Mr Isaak Kalonji and Mr Bertin Moamba, presidents of the Lower and Upper Houses of the central Congolese Parliament, had arrived unannounced in Elisabethville.

They were enemies of Mr Tshombe and had made it deer they were seeking a hasty meeting of the Katangan Provincial Assembly to unseat Mr Tshombe. Mr Tshombe believed they intended to arrest him and extradite him to Leopoldville

Diplomatic sburces at the United Nations headquarters in New York said Mr Tshombe was sitting down with the Belgian and British Consuls in his palace last night and preparing to issue a statement turning over Kolwezl to the United Nations Command when the Leopoldville men arrived.

A United Nations spokesman in New York said Mr Tshombe had not forfeited hia position as Provincial Premier by bis latest flight, United Press International reported. The spokesman said Mr Tshombe had been given no firm deadline by the United Nations to take his secessionist Province back into the Congo, an indication he still had time to make his peace with the United Nations Adsol* Warn* Tshombe In Leopoldville the central Congolese Prime Minister (Mr Adoula) has warned Mr Tshombe he will be held personally responsible for any

sabotage of the Kolwezi mining installations. The British Consul in Elisabethville (Mr Derek Dodson) was still in the Katangese capital late last night in spite of the Congolese expulsion order against him. U Thant was reported to have stepped into a mushrooming quarrel over the expulsion of the Belgian and British Consuls from Elisabethville. It threatened to complicate his efforts to restore peace and unity in the Congo, United Press International said.

Reliable diplomatic sources said U Thant was urging Mr Adouta to rescind his blunt request that Belgium’s Colonel Frederick van der Walle and Mr Dodson leave by nightfall yesterday.