When the Leone Rock Metals company, a subsidiary of Kingho Rail and Port company, signed a memorandum of understanding between it and CTC Mining, a bauxite mining company in Sierra Leone, for the use of the rail and port facilities at Pepel, many Sierra Leoneans feel that it is a violation of the right of Sierra Leoneans to own property, as the said agreement entered into between Kingho Rail and Port company was undertaken by the Government on behalf of the people of Sierra Leone, as all lands and minerals in the country are held in trust by the Government on behalf of the people of this country.
According to concerned citizens, the fact that Leone Rock Metals company, a subsidiary of Kingho Rail and Port company, entered into an agreement with a third party after the Government had issued a notice terminating the contact it had with Kingho on the management and use of the rail and port, has been seen by many as depriving Sierra Leone of the ownership and use of its land. It should be noted that the Pepel port and railway are both owned by the Government and people of Sierra Leone, and it has the sole right, in accordance with stipulated contract provisions with any company, to have full use of the facilities and to enter into any contract with any party within the ambit of the law.
It could be recalled that the Government entered into a contract with Kingho Rail and Port company in October 2020 to refurbish and manage the rail and port facility at Pepel for six years, with a caveat for review after two years of operation, during which period the Government has the right to contract a third party. These were all part of the contract provisions signed with Kingho in October 2020.
Unfortunately, after two years of operation, the Government, not being satisfied with the operations of Kingho, terminated the said rail and port contract with a notice of termination issued to the company, as well as information that the Government is entering into another contract with Arise IPP for the refurbishing and running of the rail and port services, as well as expansion of same to as far as the Republic of Guinea. This move, according to the Government, will bring onboard other players in the sector, and also give access to citizens of both countries to trade freely, as the rail service will facilitate transportation of goods and services between the two countries, as well as enable farmers along the route to convey their products to other parts of the country, including the capital, Freetown, thereby reducing the cost of transportation and eventually the cost of those goods. It will also see more revenue generation for the Government through increase in royalties paid by the companies that will be using the service, as their profit margins will increase, due to a marked reduction in the cost of transportation of their products from their respective mines to the port, and also more taxes paid, as trade is enhanced through these services.
It is against this backdrop that the illegal action of Leone Rock to enter into an agreement with CTC Mining, when it is very clear that the contract with their subsidiary had been terminated, has been seen as an infringement on the right of the Government and people of Sierra Leone to their property.
