By Festus Poquie
Liberian President Joseph Boakai has become chief critic of global steel giant ArcelorMittal, sending firm warning to multinational corporations operating in the West African nation over exploitive business practices and lack of corporate social initiatives.
Until his current visit to the United States, attending the US- Africa Business Summit, the 79-year-old leader has been very receptive of ArcelorMittal Liberia activities in the country from his days as Johnson Sirleaf deputy and as opposition leader and his first 100 days in office.
Past and current investors have been operating in Liberia with no contribution to infrastructure development, the President said, calling out Mittal for holding on to the country’s only railroad and refusing multi-user system.
Boakai’s government aims to create a more transparent and inclusive investment environment that encourages shared benefit for all stakeholders. He told the summit he will end the rail line monopoly as his administration opens the country of 5.5 million people to the global market with a new business tenet.
“We want to appeal to all potential investors and current investors that this is not going to be business as usual. Liberia will have to insist on making sure that we get the benefit of investment,” he said.
“I heard about ArcelorMittal and talks about the use of a multi railway. If you build a railway just to serve your purpose then what do we do with it when you leave? We are not going to continue to do what you did.
“We are going to ensure that that railway is going to benefit the country. A multi-use must have defined roles, responsibilities and governing principles. When it is multi-use then it must be a multi-use in a way that all persons benefit. The purpose of my involvement is to create an enabling environment.
At the crux of ArcelorMittal’s stalled third amendment to its mineral development agreement is the state of the railway, which a presidential panel commissioned b by Boakai’s predecessor described as poorly managed. The proposed agreement places the Liberian government as the owner and final authority that determines railway usage.
ArcelorMital does not want this and counter proposed three-year window to end its absolute control of the railway. This brings into conflict the Liberian authorities and US partners push to strip its monopoly.
Former President George Weah on October 17, 2022, signed an executive order directing the establishment of a National Railway Authority, which would appoint an independent rail operator and ensure multiple eligible user rail access.
The Americans have explicit economic interest in the rail. Then Ambassador Michael McCarthy, was determined that the railroad’s management be entrusted to an independent and American operator.
He convinced the Weah government to use the services of a consulting firm, R.L. Banks & Associates, to carry out preparatory studies. The US embassy was also pushing for rail investment and project management company Railroad Development Corporation (RDC) to be given the railway operator contract.
Weah officials like former Finance and Development Planning Minister Samuel Tweah and then Monrovia Mayor Jefferson Koijee suspected of supporting Mittal and influencing government’s decisions eventual faced sanctions by United States Treasury departments on accusations of corruption.
The Committee advised Weah not to sign the agreement highlighting the company’s failure to increase production at the Yekepa iron ore and suspicion that Mittal may have violated the Investment Incentive Code’s debt ratio, causing Liberia a loss of several million dollars in revenue.
While McCarthy is no longer posted in Monrovia, US Ambassador to the United Nations Linda Thomas Greenfield could well be playing that role as she finds comfort with the Boakai administration. She’s the lone known influentially positioned ally of the new President in the international sphere.
The veteran diplomat is noted for pushing US economic and energy interest with success despite circumstances.
According to Pro Publica Ambassador Thomas-Greenfield celebrated Chevron’s bribe tainted deal in a Jan. 25, 2011, cable with the subject “Outreach and Commercial Success.” Thomas-Greenfield wrote that “Embassy intervention and advocacy ensured a level, open ‘playing field’ … that resulted in Chevron signing a 10.7 billion [sic] contract…this constitutes the largest concession in Liberian history.”
