Monrovia – The House of Representatives has controversially concurred with the Liberian Senate in the ratification of the mineral development agreement (MDA) between the Government of Liberia and Hummingbird Resources. The deal is estimated at US$250 million.
Report By: Gerald C. Koinyeneh / gerald.koinyeneh@frontpageafricaonline.com
The House took the decision on Tuesday, March 5, following a motion filed by Rep. Johnson Gwaikolo (Nimba County District #9) asking the House to concurred without delay since the agreement was once reviewed by the House in 2018, but vetoed by the President.
Rep. Gwaikolo’s motion was based on the communication from the Liberian Senate seeking the House’s timely concurrence; noting that when ratified, the mineral development agreement will boost the economy and create jobs.
However, the House’s decision came while the MDA is still under review in a committee room. It can be recalled that the Hummingbird deal was part of a series of concession and loan agreements sent to the Legislature by President George Weah for ratification.
The plenary of the House, acting on a motion proffered by Rep. Acarous Gray (Montserrado District #8) overwhelmingly voted on February 25 to send the communications to relevant committees for review.
The Hummingbird deal was forwarded to the Committees on Ways, Means, Finance and Development Planning and the Committee on Investment and Concession to report within two weeks.
However, in the absence of the committee’s report, plenary opted to concur with the Senate, which had earlier passed the agreement to the annoyance of some senators.
Several Senators including Gbleh-bo Brown (Maryland County), Oscar Cooper (Margibi), Sando Johnson (Bomi) and Prince Johnson (Nimba) were visibly outraged over what they termed as the somewhat unusual and surreptitious urge to vote to ratify the agreement, was earlier submitted to the 53rd Legislature by ex-President Ellen Johnson Sirleaf in 2016 and ratified by both Houses.
Maryland County Sen. Gbleh-bo Brown argued that the report authorizing the passage was given to Senators a day before it was passed, adding that it was the day coincided with ongoing impeachment hearing against Associate Justice Kabineh Ja’neh and as such many senators did not have the opportunity to read it.
He complained that there was no time to go through the report for a debate. The Maryland County Senator further contended that the Senate’s rules require that a report should be brought during the second hearing for debate before senators can decide on passing it or not.
He lamented that they were denied the opportunity to debate the issue on the floor, expressing his disappointment in the process and those that even signed the report.RELATED POSTS
Sen. Brown complained that the Mineral Development Agreement (MDA) is for 25 years and it’s not something that can be passed so fast without debating it.
Also giving reasons for his walkout, Bomi Senator Sando Johnson noted the Senate was proceeding wrongly as the agreement was passed hastily.
“I’m worried that the country is going to suffer because passing laws of such is worrisome. We can see people are now in the street demonstrating. We should be making laws to stop all these,” Sen. Johnson continues.
He noted that whenever reports are sent to their various offices, they should be brought on the floor for discussion so that the public can be informed of what they are discussing.
It can be recalled that the agreement was vetoed by President Weah in June 2018. In a communication dated July 3, 2018, President Weah said following a careful review by the Special Presidential Concession Review Committee, it was derived at an overall conclusion that while the agreement is appreciably conscious of the need for a fair business agreement, few critical aspects needed reconsideration in order to bring a protracted benefit with mutual balance for each of the comparing parties.
Among other things, the President added that he vetoed the bill because the periodic corporate social development funds that should have been paid by the company were far less.
“These periodic payments are commendable but are not appreciable in amounts for such and undertaken of this nature; the amounts should be substantial to ensure that communities are impacted as support to government pro-poor policy,” he contended
What’s in the Agreement?
According to the agreement, the United Kingdom-based mining company will extract gold in the Southeastern region of the country, specifically Sinoe County, but will also cover part of Maryland, Grand Kru and River Gee County.
As per the deal, Hummingbird Resources is expected to pay a signature fee of US$3 million to the Government of Liberia, with US$1.5 million to be paid within 15 days of the effective date.US$1.5 million will be paid to obtain the license. Under the agreement, is expected to retain 3 percent of revenue generated from the gold found. The agreement further allows 10 percent shares for Liberians.
Hummingbird is expected to pay all other taxes and duties as set out in a fiscal agreement.
The key benefits in the Hummingbird Agreement include jobs which comprise over 1,000 direct jobs and around 2,500 indirect jobs that are to be provided.
The Agreement will now be forwarded to the President for signature to take effect.
