Statement by TS Gbenda – Chairman AJME at the launching of Mining Watch Magazine
June 1, 2012 – Mr. Chairman, members of the high table, representatives of international non-governmental organizations including GIZ, PAGE and IBIS, distinguished ladies and gentlemen, I greet you well. (Photo: Chairman Theophilus Sahr Gbenda)
We are gathered here today to witness the launching of the 3rd edition of Mining Watch Sierra Leone, the official mouthpiece of the Association of Journalists on Mining and Extractives (AJME).
We want to thank PAGE and the Network Movement for Justice and Development for making it possible, because without their financial and technical support, we would not been able to achieve this accomplishment.
AJME is a specialized media outlet that looks at issues of just mining in the country, and is currently comprised of 45 print and electronic journalists from the four corners of the country.
The main objective of the association which is an affiliate body of the Sierra Leone Association of Journalists (SLAJ), is to use the media as an effective tool for sensitizing the public on the mining and extractive industry with a view of effecting required changes in the industry for the benefit of all Sierra Leoneans and more especially the host communities affected by the activities of the actors in the sector.
In pursuance of this challenging objective, AJME, since inception some six years ago, has been in the forefront of exposing the odds characterizing the performance of the mining and extractive industry and the factors responsible for our country not benefiting from its tremendous mineral wealth.
Our intervention in the drive to sanitize the mining sector which by all indications is nothing good to write home about, stemmed from the realization that the sector played a critical role in fueling the decade-long civil war in the country that left over 50,000 people killed, thousands mutilated and made disabled, and thousands more rendered either physically or psychologically displaced.
Given the continued poor management of our country’s natural resources, it goes without saying that the sector remains as dangerous and vulnerable as it were before and during the war.
This is so because there is growing discontent in mining communities across the country, as evident by the spate of protest actions against the excesses of mining companies.
Neither mining community residents, nor the bulk of the employees of mining companies are celebrating.
While mining community residents feel strongly that mining in their localities has only worsened their poverty situation, local mining company workers especially at the labour level, complain of mistreatment in the mines and extremely low wages.
The country on the other hand keeps sliding on a downward path insofar as ensuring beneficiation is concerned, thereby leaving the vast majority of the citizenry to wallow in unabated poverty and even making them feel ashamed that their country is on record as being a resource-rich country.
AJME appreciates the steps being taken by the current government to right the wrongs that are holding at bay the quest for beneficiation.
We welcome the establishment of a cadastre system that is designed to be a transparency mechanism, the establishment of much awaited Extractive Industry Transparency Initiative (EITI) secretariat, the establishment of the Environmental Protection Agency (EPA), the setting up of the National Minerals Agency that is designed to assist the Ministry of Mineral Resources in the area of policy implementation, not forgetting the passing into law of the much talked about 2009 Mines and Minerals Act.
We have noticed that while putting these structures in place is extremely laudable, enforcement remains a daunting task.
In our view, the lack of enforcement capacity on the part of the government is currently the major reason why the country continues to lose huge amounts of money on a yearly basis.
While the law on the ground prescribes that mining companies are to pay a flat royalty rate of 37.5%, our government is allowing the companies to illegally negotiate or dictate their own preferred tax regime. One such company negotiated its task regime to as low as 3% and was granted, in open breach of what the law provides.
We want to laud government’s move to review all mining agreements previously signed, and do here categorically state that we are perturbed by the slow pace at which the review process is progressing and the fact that it is shrouded in secrecy.
There is no way the country will make the most of its vast mineral wealth under the terms of the existing mining contracts, which is why we think the government should treat the review process with the seriousness it deserves and make it as transparent as possible so as to create space for inputs from the real owners of the resource wealth.
In this context, the people of Sierra Leone are the real owners of the resources, and no one has the authority to deprive them from enjoying the benefits.
AJME is concerned about the way and manner in which mining companies are taking advantage of the loopholes in the governance of our natural resources, and equally concerned about the undue tax concessions being granted to mining companies.
It makes no sense to give away millions of dollars to multi billion dollar companies in the name of making the investment climate relaxing, and yet go cap in hand begging the international community to subsidize the country’s national budget.
We think this is a reap off, and we therefore call on the government to take appropriate steps to lay premium on robust local revenue generation and entering full scale into the mining business.
This was what Botswana did to jump the poverty and under-development lines, and is today perceived by many including yours truly, as a major success story when it comes to the judicious use of mineral wealth.
Sierra Leone can also reach that height, but it takes determination and openness, and of course without the demonstration of political will and the application of due diligence, the country will continue to wallow in abject poverty in the midst of qualitative and quantitative mineral wealth spread throughout its length and breadth.
As it is right now, the future of mining in the country remains bleak, and the people of Sierra Leone have every reason to be worried especially now that oil and gas are coming into the picture.
It is no news to state that the country has already entered into the oil and gas industry with a mistake, as evident by the rushing of a petroleum bill to the House of Parliament with a certificate of emergency.
We condemn the seeming marriage between the Parliamentary Committee on Mineral Resources and mining companies, and equally so condemn the manipulative tactics being applied by mining companies to influence the local media using commercial advertisements as the bait.
Let me end by saying bravo to the membership of the association that has stood firmly behind me over the years, and I must confess that it has been more than challenging.
In this vain, we want to say bravo to organizations such as the Network Movement for Justice and Development (NMJD), Promoting Agriculture Governance and the Environment (PAGE), GIZ, IBIS and the Sierra Leone Association of Journalists (SLAJ), for their key roles in keeping the spirit of AJME alive.
We however require much more support and collaboration if only to sustain the gains we are making and to avoid being neutralized by rogue mining companies who are desperate to have the entire local media under their whims and caprices.
Let me finally end by recognizing the efforts of Madam Kadie Sesay of Premier Media Publications (please stand up) for being so committed in designing all our newsletter editions, including the current one we are about to launch.
Having said all these, I now wish to step by, while thanking you for your attention.
Jah bless!
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