Signing of a Memorandum of Understanding (MoU) between Leone Rock Metals and CTC Mining, whilst the contract signed between the Government and people of Sierra Leone (owners of the property) and Kingho Rail and Port company, which had been terminated, has is being seen my many well-meaning Sierra Leoneans and friends of the country as a deliberate flout of rules and procedures of the sector, as well as a demonstration of total disrespect for Government order and the laws of Sierra Leone.
Such act is also in contravention of the laws of the land and defiance of Government’s directives. It is in the direction that Government recently communicated to the Chief Executive Officer (CEO) of the Kingho Group, notifying him of the termination of his company’s operations of Kingho Rail and Port.
As by law, investors seeking business opportunities or already operating a legitimate business in the country, are obliged to function within the legal framework of the laws of Sierra Leone with full compliance.
That the agreement with Kingho had been terminated, clearly implies that the Government of Sierra Leone had taken over the operations of the Kingho Rail and Port company, and the facility had long been officially handed over to another company with shared developmental agenda and aspirations of the Government of Sierra Leone.
The new contract entered between the Government of Sierra Leone and ARISE IIP, has among other benefits, enhancement of trade, commerce and multiple investment folders between Sierra Leone and the sister Republic of Guinea. The venture is also aimed at enhancing of cross-border trade, commerce through real time transportation of goods and services, citizens from both countries at cost-effective rates, in furtherance to easing the challenges of transportation of agricultural produces from that part of the country to the city.
The move will effectively reduce burden of high cost of living, especially at such trying times, and boost the national economy of Sierra Leone. The good news about the ARISE IIP investment venture is that it is aimed at expanding and transforming the railway into an ultramodern service to and from Guinea as well as the port.
It could be recalled that according to the agreement between the Government of Sierra Leone and Kingho, a subsidiary of Leone Rock Metals company, a caveat existed, where the Government, after two years of operation, has the right to review the said contract and to terminate or invite other players / reliable investors. Thus, after two years of operation, since October 2020 to date, the Government decided to terminate the contract with Kingho, as it was not satisfied with the company’s poor performance which precipitated issuance of a notice of termination to the company, informing it of its desire to contract ARISE IIP to manage the rail and port.
Kingho, in a letter addressed to the Government of Sierra Leone indicated its reservations over the termination and furthered that it will take legal action against the Government.
Unfortunately, up to the time of the signing of the agreement with CTC Mining company, no legal document had been provided by any court to stop the government from going ahead with its engagement with ARISE IIP.
As a result, the termination of the said contract still stands. With the above in mind, Leone Rock Metals, a subsidiary of Kingho Rail and Port, is in complete violation of the directive of the government’s termination of the contract it had with Kingho and should not in any way be going into any contract or agreement with any company in respect of the use of the rail and port without the expressed consent and permission of the Government of Sierra Leone.
This action by Leone Rock has therefore been seen as a complete disrespect for the authority of the government and people of Sierra Leone, and anyone signing such agreement with it will be doing so at its own risk.
