Capitol Hill — Bomi County Senator, Edwin Melvin Snowe, who played a pivotal role in renegotiating the operations of Western Cluster Liberia Limited, has backpedaled on his previous endorsement of the company to transport iron ores via the roads in a Memorandum of Understanding (MOU) it signed with the Government of Liberia (GOL).
In 2011, Western Cluster signed a Mineral Development Agreement (MDA) with the government of former Liberian President Ellen Johnson-Sirleaf for the exploration and mining of iron ores at the Bomi Hills Iron Ore Project.
It was denied a Class A license for its failure to live up to the MDA signed with the government. Western Cluster departed Liberia prior to the outbreak of the Ebola Virus Disease in 2014, leaving behind unpaid taxes amounting to US$23m.
But the Coalition for Democratic Change (CDC)-led government of ex-President George Manneh Weah renegotiated and signed a Memorandum of Understanding (MOU) with the company to resume its operations in Liberia. The MOU was signed on behalf of the government by the then Ministers of Justice, Finance and Development Planning, Mines and Energy and the head of the National Investment Commission (NIC).
Senator Snowe was among a few members of the Executive branch, including the former Minister of Mines and Energy Gesler Murray, who flew to India to meet with executives of Western Cluster to renegotiate its return to the country to operate under the MOU, instead of the 2011 MDA signed with the government.
Amongst other things, a road user permit issued in line with the MOU, calls for the company to recommence its operations and transport iron ores via the route leading from its operational areas to the Freeport of Monrovia.
But on May 8 this year, the road user permit of the company was immediately suspended due to the violations of its terms by the company, following the visit of President Joseph Nyuma Boakai to the county.
Under the permit, the company was mandated to transport iron ores from 7PM to 6AM between the Bomi Hills to Freeport-Monrovia corridors. But the government observed that Western Cluster was trucking iron ores throughout the day and night, contrary to the limitation stipulated in their permit.
However, the government somersaulted over its previous decision by restoring the company's Road User Permit after it (Western Cluster) provided the amount of US$200,000 for the rehabilitation and expansion works on several parts of the road being used few weeks later.
Against the restoration
But the restoration of the company's road permit by the government does not seem to be going down well with Senator Snowe, who was one of the negotiators for the return of the company to the country.
Though he previously endorsed the transporting of the company's iron ores via road and supported its operations based on an MOU, Senator Snowe claimed that the company is violating the MDA it signed with the government in 2011.
His claims were contained in a communique addressed to the Plenary of the Liberian Senate and dated June 11, 2024.
"I present my compliments and herewith write to bring to your esteemed attention the unhealthy decision from the Ministry of Public Works to restore the Road User Permit (RUP - 220620-004) of Western Cluster Limited to transport iron ore from the Bomi Hill Mines to the Freeport of Monrovia, amidst continued violations of terms and conditions enshrined within the Mineral Development Agreement with the Government of Liberia," Senator Snowe wrote.
In addition to the restoration of the Road User Permit, he observed that the Ministry of Public Works has instructed Western Cluster Liberia Limited to increase its fleet of trucks from 50 to 125, making double trips each, resulting in 250 trips per night.
Senator Snowe said it is "totally unacceptable" for the government to continue to allow the company to transport iron ores, noting that, "the allowable gross load has increased from 30 to 45 tons per truck using damaged bridges along the road corridor."
As a result of this, Senator Snowe maintained that these grave violations are not only adding damages to the already dire conditions of the St. Paul Bridge to Bomi Hills road corridors, but imposing a serious safety hazard for pedestrians plying the road.
He called on the Senate Plenary to "take seize of these concerns and mandate its relevant committee to probe an investigation to ensure the safety of our people."
Snowe's previous stance
Senator Snowe has been heavily criticized by some citizens for not prioritizing their interest when he formed part of a team from the executive branch to negotiate the company's operations in Bomi, Grand Cape and Gbarpolu counties.
He has also been accused of receiving a portion of the US$3m the company allegedly provided to the executive as "signature fee" for the resumption of its operations under the MOU.
However, he denied the claims, along with the executive. Senator Snowe has consistently vindicated that his role in the renegotiation process was intended to provide job opportunities and help improve economic activities in his county.
"The politics surrounding this is so discouraging and disheartening, but we are leaders for our people. We take the responsibility. We need Western Clusters to do more for our people, but you cannot classify us to be criminals for what we did for our people. I refuse it because we did an excellent job," he said.
Speaking when he appeared as a guest on the OK Morning Rush on January 10 last year, Senator Snowe justified the need for Western Cluster to transport iron ore via the road.
He claimed that citizens of the county were informed that the company could not construct the railway now and as such, iron ores being mined will be transported by road.
"For the safety of our people, we told them that the ores will be transported at night after 7PM and it will be monitored. Besides that, they will have a road permit drawn up by the Ministry of Public Works or the law enforcement agencies on the safety regulations and how to proceed. For me, I want this deal as a win-win for my people and Bomi County," he said.
He further claimed that the MDA signed by the UP government and Western Cluster calls for the transporting of iron ores by the company via road for a three-year period taking into consideration the environmental impact assessment and the construction of a new port between Grand Cape Mount and Bomi.
"It is not this government that is allowing Western Cluster to truck the ores; it's in the MDA. How can you hold me responsible for something that I did not sign? I did not sign the MDA. I only went to talk about the interest of Bomi, Grand Cape Mount and Gbarpolu counties for our social money to be paid. How can we be wicked to each other? Where this politics is coming from is that we negotiated a bad deal-only God knows," he added.
Senator Snowe disclosed that the decision taken by the government along with the caucus to ensure that Western Cluster transport iron ore via road is intended to help address the numerous challenges citizens of the region are faced with.
He said it is prudent for the company to continue to abide by all of the safety regulations while transporting iron ore, following the completion of the construction of a railway.
He also justified that though Western Cluster has a MDA with the government, the MOU signed for its return was intended to "put time-bound for them to recommence."
It remains unclear why Senator Snowe who previously endorsed the transporting of iron ores would now somersault over his previous decision, by now raising alarm over the restoration of the company's road user permit especially at a time the company has provided the amount of US$200,000 to the government for the road rehabilitation works.
There are reports that the once flourishing relationship between him and Board members and executives of the company has been shock-socketed.
Senator Snowe's role played towards renegotiating the return of the company to Liberia occasioned by its poor performance by outsourcing many of its operations, is said to be diminishing his popularity among his constituents.
The US$5M wahala
Citizens have questioned the rationale behind the waiver of US$23m by the then government for the acceptance of a "pitiful" US$10m that is being paid in two installments by Western Cluster; a company they claimed is depleting their natural resources.
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During the renegotiation of the return of Western Cluster, the company agreed to pay the amount of US$10M to the Liberian government, instead of the US$23M it owed in line with the MDA.
From the first amount allotted, the government appropriated US$1.5M towards the elevation of the Bomi County Community College to a university status for the western region, US$1m for additional road works, and US$1M for Bomi County sitting.
The amount of US$750,000 each was also allotted to Grand Cape Mount and Gbarpolu counties from the initial US$5m.
However, locals have been calling for the full implementation of the 2011 MDA Western Cluster signed with the government in keeping with Article 34 D (i) of the Liberian constitution which states that: "all revenue bills, whether subsidies, charges, import duties or taxes and other financial bills shall originate from the House of Representatives."
They, along with some lawmakers and policymakers, continue to echo that the current MOU being used by Western Cluster to operate is illegal.
Under the MDA, affected communities are to benefit from the company.
It also mandates Western Cluster to construct TVET skills training programs for young people in the three counties and make meaningful contributions to the Geology Department at the state-owned University of Liberia.
The amount of US$4.5m was to also be set aside by the company for the rehabilitation of the road from Po River to the Freeport of Monrovia, in addition to the US$1.9m for the road from Po River to Tubmanburg.
However, the company only provided US$200,000 to the Unity Party (UP) led-government of President Joseph Nyuma Boakai for the rehabilitation works.
The company previously provided US1.5m to the past administration for the rehabilitation of the road.
The latest communication from Senator Snowe, somersaulting over his previous justification of Western Cluster hauling iron ore via the Bomi Hills to Freeport corridors, has been sent to the relevant committee of the Liberian Senate for investigation.
