The Plenary of the senate has mandated its joint committee on Concession and investment, public Works, including Public Accounts and Audit to examine ArcelorMittal’s US$1.4 billion Investment deal in the old Yekepa Mining Town, Nimba County.
Plenary decision resulted from a communication submitted to the body by Nimba County Senator, Nya D. Twayen, Jr., requesting his colleagues to investigate the actual cost of ArcelorMittal-Liberia’s Iron Ore Processing Plant recently constructed in the old mining town.
According to Twayen, AML Public disclosure and cooperate submission of its estimated US$1.4 billion investment for the period of four years is approximately US$350 million per annum directly recorded as an expense on their profit and loss account with estimated annual loss of US$1.23 million in potential government tax revenue.
Twayen disclosed that the constant operating losses by Accelor Mittal over the years are “alarming as AML stands to avoid paying Cooperate Income tax (CTI) of 35 percent, and as such, its newly declared capital investment will deepened the trend of reported losses, which will further reduce any future profit upon which CTI could be assessed.”
He added that said tactics by AML will shift the financial benefits away from the Liberian people, especially Nimba County hosting the resources with fear that the country will have no meaningful revenue before the end of the concession period.
Grand Kru County Senator Albert Chie, in a motion endorsed by plenary, mandates the relevant committee to probe said matter and report in two weeks for further actions.