By Amin Kef (Ranger)
Dr. Samura Kamara, the leader of the main opposition All People’s Congress (APC), has issued a cautionary message to the Government of Sierra Leone regarding the controversial Pepel Rail and Port Contract. The warning comes amidst growing criticisms following the Government’s decision to award the contract to Kingho Mining Company, instead of the previously signed agreement with ARISE IIP, a reputable company, for the development, expansion, and management of the Pepel Rail and Port facilities.
Critics from the media and civil society organizations have expressed concerns that allowing Kingho Mining Company, already engaged in large-scale iron ore mining, to control the rail and port facilities used for transportation of their produce could grant them an undue advantage over other mining companies in the region. They argue that the Government should have heeded to IMF’s advice to involve an independent player, a role that ARISE IIP could have fulfilled. Additionally, they find the reasons given for terminating the lease agreement unconvincing.
In an unfolding event, ARISE IIP has taken legal action by engaging a UK-based legal firm to address the matter, further intensifying the dispute. In that regard, Dr. Samura Kamara, a respected figure in national economic management and nation-building, took to Twitter on November 2, 2023, to advise a more discreet approach. He emphasized the need for all involved parties to handle the situation thoughtfully to avoid potential embarrassment for the State, especially given the lukewarm investor appetite for Sierra Leone. He recommended bringing both companies to the table for a resolution to prevent any impending legal complications.
Notably, ARISE IIP’s legal representatives, LinkLaters, have issued a “Letter Before Action” dated November 1, 2023, to the Sierra Leonean Minister of Mines and Mineral Resources. This letter warns the Government against proceeding with the plans announced during a press conference on October 27, 2023, which pertains to the new lease agreement with Kingho Railway and Port Company Limited for the Pepel Railway and Port.
The legal notice from LinkLaters includes a clear threat of legal action against the Sierra Leonean Government if they proceed with the proposed actions. The lawyers have set a deadline of November 3, 2023, for the Government to confirm in writing that they will not proceed with the announced plans. Failure to comply may lead to legal proceedings against the government, including seeking injunctions, pursuing arbitral claims, and filing for damages.
As of the time of this report, the response from the Sierra Leonean Government remains uncertain, and the situation continues to be investigated, with further developments expected.
