The Caucus of the Liberian chapter of the African Parliamentarian Network Against Illicit Financial Flows and Support for Progressive Taxation (APNIFFT) has sharply criticized Hummingbird Resources Liberia, operating under Paso Fino Gold Limited, for allegedly defaulting on financial obligations amounting to about US$3.485 million.
In a statement issued under the chairmanship of Senator Francis Saidy Dopoh II of River Gee County, the caucus said the company has failed since 2019 to honor concession fees, social development contributions, and other payments required under the 2000 Minerals and Mining Law and its Mineral Development Agreement (MDA).
"This is an affront to the rule of law and a direct compromise of the national interest, particularly for citizens of the Southeastern region whose lands and livelihoods are being exploited without the promised social and economic benefits," the statement noted.
The lawmakers cited provisions of the Minerals and Mining Law which authorize the revocation of a mineral right if payments are not settled within 60 days of notice. They warned that government inaction could set a "dangerous precedent" where foreign multinationals exploit Liberia's resources while ordinary citizens face penalties for tax defaults.
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APNIFFT's Demands
The caucus outlined a series of demands, including:
Immediate Enforcement: The Liberia Revenue Authority (LRA) must collect all arrears, including penalties and interest, within seven business days.
License Suspension: The Ministry of Mines and Energy should issue a statutory notice of default and suspend Hummingbird's license if payments remain unsettled within the 60-day legal timeframe.
Legislative Oversight: Lawmakers must resist any lenient settlements and ensure Liberia's resources are not "free for extraction without accountability."
Transparency: The LRA, MME, and LEITI should publish a reconciliation of all arrears within 21 days.
Community Protection: Safeguards must be put in place to protect local communities and workers if the company's license is revoked.
Stronger Future Agreements: New MDAs should include automatic termination and "Use-It-or-Lose-It" clauses to prevent prolonged defaults or speculative holding of mineral rights.
The caucus emphasized that tolerating noncompliance undermines Liberia's commitments under the African Union's declaration on illicit financial flows, the Addis Tax Initiative, and the Extractive Industries Transparency Initiative (EITI).
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"Failure to act firmly in this matter transforms our government into a toothless bulldog, and worse still, raises legitimate concerns about collusion, corruption, and systemic exploitation of our country's wealth by external interests, enabled by internal actors," the statement concluded.
The lawmakers reiterated that no corporation should be above the law and vowed to continue pushing for accountability in the management of Liberia's natural resources.
