Monrovia – In a unified stance, lawmakers from Liberia’s western region have declared a vote of no confidence in the operations of Western Cluster Liberia Limited (WCLL), citing the company’s failure to meet its financial and development obligations under its Mineral Development Agreement (MDA).
By Obediah Johnson, obediah.johnson@frontpageafriconline.com
The lawmakers have also vowed to withhold any legislative support for the renewal or amendment of the company’s MDA, calling for immediate government intervention.
The Western Region Legislative Caucus (WRLC), which includes representatives and senators from Bomi, Grand Cape Mount, and Gbarpolu counties — areas where Western Cluster holds mining operations —announced the resolution during the Liberian Senate’s regular session on Tuesday, May 27.
Comprising Senators Alex Tyler, Dabah M. Varpilah, Amara M. Konneh, Edwin M. Snowe Jr., Botoe Kanneh, and Simeon Taylor, along with Representatives Sam P. Jallah, Mohammed Dosii, Mustapha Waratay, Gbessie Sonii Feika, Bintu Massalay, and Obediah Varney, the caucus pointed to repeated violations of the MDA by Western Cluster.
The company resumed operations in Liberia in June 2022 under a controversial Memorandum of Understanding (MOU) with the Liberian government, after having halted activities in 2011 due to the Ebola outbreak and a collapse in global iron ore prices.
Upon its return, Western Cluster agreed to pay $10 million of a $23 million tax debt and was allowed to operate temporarily under the MOU instead of the original MDA ratified in 2011.
However, lawmakers say that since resuming operations, the company has failed to honor its obligations under the MDA, including payments of Social Development Funds and Corporate Development Funds owed to the three affected counties.
“The Western Cluster has a MDA that is being reviewed by the Liberian government. We don’t want to wait when it gets here we start to speak against it. They owe a lot of money and they are saying that they have some issues and they are not going to resume,” said Senator Alex Tyler, who chairs the Western Region Legislative Caucus.
“I am sure that you have heard a lot about the Western Cluster over the last few years. This is the time that we act as a Legislature. As a caucus, we need your assistance to help us act.”
Senator Tyler added that the company’s behavior shows a lack of seriousness and respect for the communities. “Since they came back nothing has happened and now, things are getting worse. We want you to help join us to push them to pay our social and corporate developments to the counties. Even if they are leaving, let they just meet up with their commitments.”
In the resolution, the WRLC stated that Western Cluster Liberia Limited has violated multiple provisions of its MDA, which was executed with the Government of Liberia and ratified by the National Legislature. The MDA, the lawmakers emphasized, mandates WCLL to remit development funds for the benefit of the counties and their citizens.
“Through multiple sittings and engagements, we have documented repeated failures by WCLL to honor these obligations fully and in a timely manner,” the caucus stated. “Such alleged failures have eroded public confidence, undermined local development efforts, and contravened both the spirit and the letter of the MDA.”
The resolution calls on President Joseph Boakai to compel the company to immediately pay all arrears owed to the counties. It further mandates that Western Cluster deposit the full outstanding Social and Corporate Development Funds into designated county development accounts within 30 days, accompanied by a clear payment schedule and supporting documentation.
“Failure by WCLL to comply with Section 1 and Section 2 of this Resolution shall leave the WRLC no alternative but to withhold its legislative support for any renewal, amendment, or extension of WCLL’s Mineral Development Agreement upon its expiration,” the resolution read.
“The Western Region Legislative Caucus hereby records its loss of confidence in the operational conduct of Western Cluster Liberia Limited, citing persistent breaches of the MDA and disregard for local residents and community development commitments.”
The lawmakers further instructed their Secretariat to work in coordination with the Ministries of Finance & Development Planning and Mines & Energy, as well as local county authorities, to monitor the company’s compliance and report findings to the caucus within 45 days. Certified copies of the resolution are also to be delivered to the Office of the President.
The resolution marks a dramatic shift in tone and policy for some members of the caucus, including Senator Edwin Melvin Snowe Jr., who had previously served on a government negotiation team that traveled to India to facilitate Western Cluster’s return to Liberia during the administration of former President George Weah.
Senator Snowe’s involvement in the deal drew criticism from residents who felt excluded from the negotiation process and voiced concern over the lack of tangible community benefits since the company resumed operations.
Citizens of Bomi, Grand Cape Mount, and Gbarpolu counties have long expressed frustration over the company’s operations. Issues have ranged from the alleged nonpayment of community funds to the poor condition of roads and ongoing disputes over the trucking of iron ore.
Many feel their local leaders failed to consult them adequately before allowing the company to resume operations under an MOU, instead of pushing for full compliance with the original MDA.
The WRLC’s resolution has now been forwarded to the Senate’s Joint Committee on Judiciary and Concessions and Investment, which has been tasked with conducting a full investigation and reporting back within two weeks.
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