By Marcus A. Bangura, Monday, 30th January 2023
As the Minister of Mines, Timothy Kabbah, stands accused of double dipping over the management of the Pepel Railway, eyebrows have been raised and ugly fingers pointed at him in recent days and weeks for the right reasons, and this has attracted the attention of the public from afar, to the distaste of mining companies, who are worried about the impact it will bring to their investments and operations, which seems to be hanging on a thin thread and if precautionary measures are not taken, things will go bad and a huge loss to the state.
From the aforesaid, it now begs the question as to what might have precipitated the action of the Minister to enter into a deal that has been heavily frowned upon, and why he is under fire, giving rise to a Parliamentary probe. And, what are the papers saying in the past days and weeks, and why are mining companies worried about the impact? Above all, what is held by the Court of Public Opinion, whose aggregate of views is not unconnected with the allegation of double dipping over the management of the Pepel Railway agreement between the Government of Sierra Leone and the ARISE Integrated Industrial Platforms Ltd?
Many are of the view that the Minister, Timothy Kabbah, entered into a preposterous agreement with a third party, ARISE Integrated Industrial Platforms Ltd, on the management of the Pepel Railway at the expense of Kingho Mining Company, which took over the management of the railway from Africa Minerals Ltd, through the transfer of possession. By all legit means, the management of the railway has been indisputably and exclusively in the hands of Kingho Mining Company, until the minister allegedly breached the agreement, which has been signed for years, and brought in a third party, ARISE Integrated Industrial Platforms Ltd, to manage the railway operations, without reaching terms with Kingho Mining Company. The action of the Minister to despise Kingho could be attributed to a breach, and it would be detrimental to the country, as it contravenes international best practices, for which Kingho is threatening a legal suit. Could this be another tussle between a mining company, in this case; Kingho, and the Government of Sierra Leone, reminding us of the legal tussle that ensued between the Government and SL Mining that caused the country huge financial loss?
According to angry managers of mining companies, the taking of monies from two different sources to do the same work is double dipping, and such a move by the government is embarrassing and disingenuous and has the potential to discourage investors and deepen suspicion and distrust, and also heighten fears that government would use its whims and caprices to breach contracts entered into at random. There is also the view that brown envelopes might have been passed and received without thinking of the adverse effect this will have on the extractive sector and the economy, as it tends to close businesses, affect employment and deflate the economy, at a time when our economy is on life support.
The agreement between the Minister of Mines and ARISE Integrated Industrial Platforms Ltd has given way to tongue-wagging, as Sierra Leoneans raise eyebrows at the agreement; as it has reached a point where ‘OL TIN DON ROTTEN’, and like the saying goes, where there is smoke there is fire. The fire has revealed itself, as the alleged shady deal entered into has been exposed to an extent that it has attracted Mining experts, and investors, who have described the action of the minister as disingenuous and diabolical, arguing that the desperate action of the government to enter into a third party is unspeakable and full of frustrations, especially when the company in question is said to be inexperience.
The deal entered into at the expense of Kingho will not only frustrate the mining companies but will impose an extra burden on such mining companies, who are currently reliant on Pepel Railway to move products from their operational sites to the Pepel port for export abroad. The said deal will add salt to injury by way of its tendency to twist a whole lot of fresh problems for mining companies in a tax rise, increase in payment for labor, cut in their CSR performance, increase in payment for the use of the railway among other negative issues.
In all of the aforementioned impediments, it begs the question of whether the government will stand aloof and allow just one man to scare away investors who may want to invest in the country.
An investigation undertaken by this media has it that ARISE Integrated Industrial Platforms Ltd. has no experience in managing railway facilities, nor do they have a track record of working anywhere on the globe and leaving a footprint on the sand of history.
Investigations have further revealed that managers in these mining concessions have heavily frowned at the agreement between the government and ARISE Integrated Industrial Platforms Ltd, and have described it as very one-sided because it benefits the latter without taking into consideration the fact that it has great impediments and negative consequences to the other mining companies, who are over-reliant on the use of the railway to haul their products to the Pepel Port. The burdensome nature of the management of the railway will adversely affect all other aspects of its operations.
Mining companies have left no stone unturned to raise eyebrows on the management of the railway with ARISE Integrated Industrial Platforms Ltd, whom they see as exploitative and making profit at the expense of the real, hard-working mining companies that are ensuring that they perform their corporate social responsibilities and improve the livelihoods of the community people in their areas of operations.
In conclusion, it is incontrovertible that the railway is very important in the transportation process of mineral products in the northern part of the country. It enables the transportation of mineral products from the sites of their operations to Pepel Port for shipment abroad. However, the government should tread consciously to attract much support from the affected mining companies to ensure a win-win situation for the enhancement of easy import and export of minerals and equipment that will boost Sierra Leone’s sleeping economy.
The government is therefore being urged to rethink its deal with ARISE Integrated Industrial Platforms Ltd, for the overall good of the community people and Sierra Leone as a whole.
