Leone Rock Metals Illegally Signs MoU With CTC Mining
Leone Rock Metals Illegally Signs MoU With CTC Mining
Leone Rock Metals Illegally Signs MoU With CTC Mining
Recent signing of a memorandum of understanding between the Leone Rock Metals Group, a subsidiary of Kingho Rail and Port company, and CTC Mining company, even after the government had issued a notice terminating the contract between the government and Kingho on the management of the rail and port, has been seen as an affront to the government and an illegal act on the part of Leone Rock Metals.
According to concerned citizens, the government is the owner and Landlord of the Rail and Port at Pepel, Northern Sierra Leone, and has the right to do whatever pleases it, as long as it is within the ambit of the law.
The contract entered into between the government and Kingho Rail and Port in October 2020, was for 6 years, with provision for review after 2 years. After 2 years, the government did a review, with the view to expanding the service to other mining companies, as well as passengers along the area of operations of the rail, which would eventually reduce the transportation cost of traders and business people along the rail areas.
A new contract was signed with Arise IPP to manage the rail, make it accessible to other players in the sector, and business people along the rail route, as the new company will expand the rail facility to as far as Guinea, thereby enhancing trade between the two countries, bringing in more revenue and reducing the burden of traders and business people in transporting their goods from that country into Sierra Leone.
By this action, the government envisages opening the space to other users of the rail and remove any monopoly of the service. Thus, after the first two years, the government then issued a notice of termination of the Kingho Contract, informing them that it had contracted another party to manage the rail and port. This was vehemently opposed by Kingho, who purported that they had full authority to manage the rail and port, and objected to the new agreement signed with Arise IIP.
Kingho failed deliberately to understand the caveat in the contract with the government that stipulated two years review by the government, and threatened to take Court Action against the government, but, unfortunately their proposed Court Action has not materialized, as a result, the government’s decision to terminate their contract still stands, and to enter into any agreement with any other company for use of the rail and port is illegal, and could be interpreted as an affront to the authority of the government.
It is therefore in the above light that the recent signing of a Memorandum of Understanding between Leone Rock Metals, a subsidiary of Kingho Rail and Port Company that was charged with the responsibility to manage the Rail and Port, which contract has been cancelled, is seen as illegal, null and void.
