Liberia: China Union Threatened Over U.S.$11m Social Development Fund to Bong County

The Chairman of the Bong County Legislative Caucus Senator Prince Kermue Moye has disclosed that the county is poised to take tough actions against China Union for its alleged failure to pay over US$11million owed Bong in Social Development Funds (SDF).

Lawmaker Moye is also the Chairman of the Senate Committee on Ways, Means, Finance and Budget.

According to him, China Union, which holds one of the largest concessions in Liberia, is under obligation to give US$1.5million to Bong annually as its share of the US$3.5million set aside as social development fund for counties in its operational areas.

However, he added that a recent investigation conducted by a Joint Committee setup by the Liberian Senate has unearthed that the company remains one of the impediments strangulating the development of Bong.

Senator Moye made these assertions during a regular session in the Chambers of the Liberian Senate on Tuesday, October 14.

He pointed out that since its operations, Bong is yet to receive US$5million from the operations of the concession in the county for more than a decade.

"From 2015 up to 2025 we put our (Bong) contribution from the China Union at US$15million. In 2014, China Union decided to close for some reasons best known to her. Since then, our social development remittance has not been forthcoming."

Senator Moye noted that the company's terminal which hosts about 25,000 metric tons of petroleum products has been given out to a private operator.

He claimed that the volume of petroleum products stored at the terminal from 2015 to present is a little over 142million gallons.

Senator Moye said the storage fee for this storage amounts to about US$42million from 2015 to 2025.

"The county (Bong) now is preparing a very strong action against the China Union to remit the over US$11million that she has for Bong County. Margibi and Montserrado are not included."

He said the county would also take the matter to the Legislature to ensure that the company remit Bong share of the Social Development Fund (SDF) to affected communities in its operational areas.

China Union signed a Mineral Development Agreement (MDA) with the Government of Liberia (GOL) in 2009. The value of the project was estimated at US$2.6 billion.

Read the original article on FrontPageAfrica.