Liberian Senate Warned Over Prioritizing Guinean Company Over AML On Port and Rail’s Exclusive Rights
Every country’s economic viability is heavily reliant on the purchasing power of its population. This means that the government would take use of the current opportunity while also exploring new opportunities, but with the goal of ensuring that the pursuit of such new opportunities does not jeopardize the national interest or the interests of the population. Government would capitalize on its comparative advantage, especially if it borders on economic growth, and establishes an ecosystem in which individuals’ abilities are harnessed and developed. In lieu of this assertion, it is a conventional assumptionthat functioning government that genuinely cares about the welfare of its people would seek to prioritize existing institutions that have demonstrated a track record of meeting their commitments over time rather than providing extra leverage and a premium to a foreign company over ones that have long been operating in Liberia and contributing to the country’s economic development.
The ratification of ArcelorMittal’s deal suffered a setback at the hands of the Legislature over the last couple of months, with speculations linking some elements within the circle of government to a planned agenda which, when not properly taken with caution or exercising judicial prudence, would hamper the economic progress of the country that AML has made over the years all in royalties, taxes, and social corporate responsibility, largely due to some undercover maneuverings by some ranking members of that body advocating and lobbying for the introduction of a foreign company, at the expense of a suffering people who are being helped to escape poverty through AML’s billion-dollar investment over the years. Although this foreign company has not had any socio-economic impact on Liberia’s growth as AML has done since its operational activities in 2005, it is speculated that this company will pay no royalties and taxes to the Liberian government—it will only pay for the rail and port—which will be far more infinitesimal or less than even 50% than what AML is contributing to national development. However, the hidden hands seeking to oust AML’s concession ratification are rather bent on personal greed and self-gratification. This has resulted not only in public concerns over ratification.
Recent headlines about the ratification of the ArcelorMittal Liberia (AML) concession agreement have inflamed the media, with evidence of some officials of government attempting to dampen the chances of the extension of AML deal. As a result, some reliable sources claim that the Legislature has overlooked certain crucial elements of the concession. The recent tinkering with the AML extended arrangement by the House of Representatives in no small ways accidentally favors a foreign company, HPX of Guinea, disallowing and dampening the chances of an existing company which is already having a meaningful impact.
In an article co-authored by James B. Kollie and Julius T. Jaesen II, the writers said, “It is instructive to note that, while it is true we are advocating the importance of multi-rail use, which allows other companies to use our railroad, we must however guarantee full rail access and usage to companies that are within our country with huge investment and that are already contributing to our economic development in a big way.
“It is noteworthy to indicate that AML has not only hugely invested in the socio-economic development of Liberia but has also invested US$500 million in the construction and rehabilitation of rail and port, to make commercial and operational accessibility, which no company has done since the history of Liberia.
“The HPX Guinea has for some time now been on smear PR campaign, using some hired newspapers, online news websites and radio stations, as well as some elements in the circle of government fronting for a Guinean company that may not even contribute 15 percent of what AML is currently contributing. At current, AML provides US$45 million in direct budgetary support to the Liberian government, aside from its US$3 million corporate social responsibility to affected communities, public institutions not limited to hospital, schools, etc.”
According to Kollie and Jaeson, “In recent time the media has been polarized with stories regarding the ratification of the ArcelorMittal Liberia (AML) concession deal. Accordingly, it is reported by some credible sources that the Legislature has omitted certain essential components of the concession and as well went to address the exclusivity in terms of the management of the rail.
“It is somewhat foolhardy to aspire to give exclusive rights to a foreign company that has absolutely no contribution to the national economic development, while AML, which has contributed in a big way to Liberia since 2005, is given inhumane treatment. It is evident that the current maneuverings seeking to place AML deal under the carpet is not only sponsored by the Guinean company through a bad PR, but HPX has allegedly bribed some officials of the current government, more particularly the Legislature, for the sole purpose of obtaining exclusive access to Nimba and Zagota, as well as placing AML in a disadvantageous position. However, this is something that completely violates the concession.
“Based on the immeasurable socio-economic impacts, couple with the human capacity development AML has made as an integral part of its concession agreement, we urge the Legislature, particularly the Senate, to exercise judicial wisdom in the speedy ratification and passage of the AML deal. In addition to this passage, the Senate is urged to critically and scrupulously not only pass the ratification of the AML deal, but advised to refrain from any form of alteration in the interest of a Guinean company, which would have absolutely no economic dividend in the transformational drive of Liberia, but rather be bent on exploiting Liberia’s natural resource while using its exclusive rights to advance the Guinean economy.”