Liberia: Much to Do When Legislature Returns

The Legislature is still in recess but is expected to formally return for the Third Quarter of the Fifth Session on Tuesday, October 18.

Members of the Senate and House of Representatives, upon their return to Capitol Hill, will have a tremendous amount of work to do, including passing funding for the government for the calendar year January 1 to December 31, 2023.

The current year’s budget is expected, for the first time, to hit over US$825 million, tackling the issues of presidential  and legislative elections; subsidizing rice and other “political goods” as well as recurrent expenditure — salary arrears, goods, and services, servicing public debts, amongst others.

In February 2022, the 54th Legislature passed the National Budget in the amount of US$786.587 million, with public administration, security and rule of law, health and education topping the list.

Five months later, in July, the Legislature approved a US$806.5 million recast budget for the fiscal year 2022, which reflected a net upward adjustment of US$20 million, or 2.9 percent, in order to reprioritize existing programs through identifying additional resources, including the World Bank loan of US$15 million and that the remaining US$5 million would come from the mining sector.

However, besides the FY 2023 Budget, the return of the lawmakers next week will see them re-scrutinizing the updated third amendment of the ArcelorMittal Liberia concession agreement, which was earlier rejected by the  House of Representatives following their refusal to agree with the Senate’s version of the bill, despite the latter proposing a conference as a means of resolving all of their recommendations before forwarding the agreement to President Weah for his signature.

Accordingly, the US$800 AML Deal, which would be one of the largest mining projects in West Africa — is expected  to be one of which the government may depend on to maintain the rebound momentum of the Liberian economy.

In June, it was reported that the Liberian economy appeared to be on course — achieving the target of 4.5 percent in 2022, up from 4.2 percent experienced in 2021 — and is expected to be driven mostly by increased activities in both mining and the non-mining (agriculture, manufacturing, and services) sectors.

It may be recalled that the Acting Presiding Officer of the House of Representatives, Cllr. J. Fonati  Koffa, during Extraordinary Session, told journalists of his optimism that the Third Amendment to the ArcelorMittal Liberia (AML) Mineral Development Agreement (MDA) will be ratified by the Legislature, describing the company as a major investor and stakeholder that has done more positive things in Liberia.

But the Deputy Speaker said it would be prudent if the executive, during the negotiation process, focused on a performance audit of the AML’s current MDA, to ascertain the company’s level of compliance, amidst claims and counterclaims by its stakeholders.

“Remember this, it’s a ‘catch-22’. ArcelorMittal is a major investor in the country — a major stakeholder. If I were to rate them between the good and bad, they have done more positive things than negative. "

Deputy Speaker Koffa attributed the House of Representatives’ action of rejecting the amended AML MDA to a slip by the Executive branch of government in the negotiation process.

“What the House was looking for was the executive to do a little more accountability, given the noise surrounding what Mittal has done or not done. When you give us that report, then, we will be able to put ourselves in a better position to explain to our citizens the process of ratification and our mindset in ratification,” he added.

The Deputy Speaker, however, recognized ArcelorMittal Liberia’s contributions as a major investor and stakeholder in Liberia, adding that the company has done better for the country.

ArcelorMittal Liberia’s third MDA amendment, when ratified, would see the company invest an additional amount of more than USD 1 billion, making it the largest foreign direct investment under President George Weah’s administration. 

Rep. P. Mike Jurry of District #1, Maryland County, said in an exclusive interview on Sunday that upon their return,  the 2023 budget will prioritize the agenda. 

Montserrado  County District # 11 Representative Richard Koon told the Daily Observer that the Ministry of Finance is expected, prior to or along with the 2023 budget, to submit all necessary financial documents for the 2022 budget and supporting financial documents for the 2023 budget.

Rep. Jurry, who chairs the House Committee on Labor, said there will also be a follow-up on the Census and the National Election Commission biometric registration.

Meanwhile, Rep. Clarence Massaquoi of Lofa County told the Daily Observer that key on the agenda will be the consideration of the second to last budget before the 2023 election.

"Also, as Chairman of the Statutory Committee on Investment and Concessions, we are very much concerned about the general performance of concessions in our country.”

He added: “While we will be considering performance, the Speaker and the leadership have assured me of looking at our laws, especially the ones governing concessions and agreements in the extractive industry, should be changed.

He indicated: “I personally think we should revisit our laws on concessions, including mining." I am beginning to think we should get prepared to move to ‘Production Sharing Contracts’ rather than the regular concession regime we currently have."

Furthermore, Rep. Massaquoi said: “Strengthening our laws, some of which are more than 20 years old, will help our country benefit from giving away our natural resources.”