Chrome sector: Investigation by BIANCO into USD 35 Million entry fee in the exploitation of the Brieville

The Independent Anti-Corruption Bureau (BIANCO) has uncovered a suspicious financial arrangement within the context of negotiations related to the exploitation of the Brieville chrome deposit, involving the state-owned company KRAOMITA Malagasy S.A. (KRAOMA) and the foreign company DANA MINERALS CORPORATION in 2023.

Following the termination of the contract between KRAOMA and the company previously responsible for the exploitation of the Brieville chrome, negotiations were later initiated with senior government officials to grant exploitation rights to Dana Minerals Corporation. According to the elements gathered during the investigation, this decision would have been taken at the level of the Council of Administration of Kraomita Malagasy.

Modus operandi

The investigations conducted have revealed that an amount of USD 35 million was allegedly requested from Dana Minerals Corporation through the intermediary of a Malagasy economic operator identified during the investigation. This amount was reportedly presented both as an “entry fee” conditioning the awarding of the exploitation contract and as compensation for the previous investor. Within this framework, a first tranche amounting to USD 5 million was allegedly transferred to an offshore bank account domiciled in Mauritius and linked to the said economic operator, rather than to the official accounts of Kraomita Malagasy.The elements collected also indicate that the selection of Dana Minerals Corporation, as well as the requirement of such an entry fee, may not comply with the rules governing public procurement procedures. Furthermore, the investigation revealed that the company that received the financial transfer shares the same registered address as another company linked to the intermediary involved in the case.

Chrome stocks seized

As part of this case, a precautionary seizure of 27,990 tonnes of chrome products, with an estimated value exceeding 140 billion ariary, was carried out on stocks stored within the premises of the Port of Toamasina.The case was subsequently referred to the  Anti-Corruption Unit  of Antananarivo, which issued a ruling confirming the seizure measure. Following this judicial decision, the products concerned were placed under the custody of the Agency for the Recovery of Illicit Assets (Agence de Recouvrement des Avoirs Illicites – ARAI)   for the purpose of recovering suspected illicit assets.

 The investigations conducted uncovered evidence of potential offenses including abuse of power, influence peddling, corruption, and money laundering, involving five individuals and four companies. Presented before the Anti-Corruption Unit in Antananarivo on March 5, 2026, three suspects were placed in pretrial detention at the Antanimora Central Prison, while two other individuals involved are currently believed to be abroad. Furthermore, an international arrest warrant has been issued for the businessman currently detained in Mauritius

The BIANCO reaffirms its commitment to combating all forms of corruption and economic crimes affecting the management of natural resources and strategic national sectors.