Representative Foday E. Fahnbulleh of Bong County District #7, Liberia, has reiterated his unwavering commitment to holding the China Union Mining Company accountable for its corporate social responsibilities and ensuring its adherence to the concession agreement signed with the Liberian government. His oversight, as Chair of the House Committee on Investment, Concession and Compliance, stems from a history of neglect by concession companies operating in Liberia, with China Union identified as a particularly egregious offender. Rep. Fahnbulleh’s campaign promise in 2023 centered on securing accountability and equitable benefits from the nation’s natural resources for the Liberian people, a pledge he remains steadfast in fulfilling.
The crux of the issue lies in a 2009 agreement between Liberia and China Union, a monumental US$2.6 billion deal granting the company mining rights to iron ore in Bong Mines, Fuamah District. Initially hailed as a pivotal foreign investment in Liberia’s post-war recovery, the agreement has become a source of contention due to China Union’s alleged failure to meet its obligations. These unmet obligations encompass crucial areas such as infrastructure development, community benefits, and timely payments to the government. Years of perceived inaction and unfulfilled promises have fueled public frustration and prompted Rep. Fahnbulleh’s intensified scrutiny.
Upon assuming office, Rep. Fahnbulleh initiated a comprehensive review of China Union’s compliance with the agreement. This review, he claims, revealed significant breaches of contract, including the long-term neglect of the vital Bong Mines Handii road, insufficient support for local schools and hospitals, and the non-implementation of promised social contributions. These findings underscore the disconnect between the initial optimism surrounding the agreement and the realities experienced by the affected communities. The neglected road, in particular, symbolizes the broken promises and highlights the socio-economic impact of the company’s alleged inaction.
However, Rep. Fahnbulleh has reported some progress following sustained legislative pressure. The Bong Mines Handii road, abandoned for over a decade, has finally undergone rehabilitation. Furthermore, China Union has introduced a US$30,000 annual scholarship program for students from impacted communities, offering educational opportunities to hundreds of young people. The company has also provided some support to local schools and partially renovated the district’s hospital. While acknowledging these positive developments, Rep. Fahnbulleh emphasizes that they represent only a fraction of China Union’s overall commitments and that substantial work remains to ensure full compliance.
Beyond infrastructural and social development commitments, the financial aspects of the agreement have also come under scrutiny. Rep. Fahnbulleh disclosed discrepancies in past budget reports, which listed millions of dollars as revenue from China Union despite the absence of corresponding payments to the government. He has condemned this practice as unacceptable and vowed to pursue full financial accountability. As a result of ongoing negotiations, China Union has made an initial payment of US$1 million to the Liberian government. The Liberia Revenue Authority (LRA) and the Ministry of Finance are currently auditing China Union’s accounts to determine the full extent of outstanding arrears.
While welcoming the initial payment as a step in the right direction, Rep. Fahnbulleh insists that Liberia is entitled to the full benefits outlined in the 2009 agreement. He stressed that the years of perceived neglect must end and that the sustained oversight will continue until China Union fulfills all its obligations to both the government and the people of Liberia. His message to his constituents and to all concession companies operating in Liberia is clear: accountability will be enforced, and commitments must be honored. He aims to set a precedent for future dealings with concession companies, ensuring that agreements benefit the Liberian people and contribute to the country’s development.
