Stakeholders review extractive sector

A national integrity institution, Integrity Watch Liberia, thinks it is time for Liberia to benefit from its extractive resources that would improve citizens’ lives.

By Lewis S Teh 

Monrovia, Thursday, March 21, 2024-Integrity Watch Liberia (IWL) has held a one-day validation session on findings of incentives offered to multinational corporations within Liberia’s extractive sector.

The findings, which covered Montserrado and Margibi counties, were released here on Tuesday, March 19, 2024, at RLJ Keneja Resort in Paynesville, outside Monrovia.

With support from Tax Justice Network Africa, Integrity Watch Liberia commissioned three important studies last year, two of which the institution shared findings on during the validation session. 

It covered the potential of the sand mining and quarry sector for domestic resource mobilization and tax incentives offered to multinational companies operating in Liberia’s extractive sector. 

The extraction and mining of natural resources play a significant role in the country’s economic development. 

Quarrying and sand mining have played crucial roles in Liberia’s construction industry, supplying essential materials for various types of infrastructure projects, including residential and commercial development.

Despite the significant contributions of quarrying and sand mining to the construction sector and the broader economy, Liberia’s full revenue potential remains largely untapped. 

One of the primary reasons is the lack of comprehensive data and analysis on revenue generated by these industries.

 Limited understanding of the scale of operations, production volumes, and financial performance hinders the assessment of their true revenue-generating capacity. 

Besides, environmental concerns, such as habitat destruction, soil erosion, and water population, often arise due to inadequate environmental management practices.

 Worse still, lack of effective regulation and enforcement mechanisms to mitigate these environmental impacts further exacerbates the challenges.

Providing a brief overview and objective of the validation session, Integrity Watch Liberia Executive Director Harold Aidoo noted that the findings revealed tax incentives offered by multinational corporations within Liberia’s extractive sector. 

The report interrogated the period 2007 to 2023 to find the dollar value of the money given to multinational corporations, which, Integrity Watch notes, is interesting in optimizing domestic resource mobilization.

As an organization and with the circumstances surrounding domestic resource mobilization, Director Aidoo said their interest is how Integrity Watch, as a Civil Society group, can help the government to optimize domestic resources.

According to him, opportunities to focus on the potential of the sand mining and quarry sector for domestic resource mobilization were among them, including stakeholders’ perspectives and experiences and strategy perspectives and experiences.

“As many of you are aware, these are two critical areas that the government and the country can leverage to optimize domestic resources. This research paper could inform policy advocacy going forward. We believe that in the absence of resources, the government will not be able to finance development,” he said.

Making remarks, Liberia Extractive Industry Transparency Initiative (LEITI) Head of Secretariat Jeffery N. Yates stressed the need to review the documentation of extractive corporations to determine their legitimate acquisition and contracts awarded to them, taking into consideration the communities in which they operate. 

“We have to have a comprehensive contract review of concession companies operating in the sector, taking into account the benefits to the communities. We are happy that we have a civil society taking the extractive industry at the height of their work”, he said and added that as a country, it’s time to spotlight conversations around the sector.

Athelia Grasco Korvah, Assistant Commissioner, Natural Resources Tax Division at the Liberia Revenue Authority (LRA), thanked Integrity Watch for the report, which, she said, will provide a significant help to the work of the LRA 

The event brought together the Ministry of Lands and Mines, the Liberia Revenue Authority, the Ministry of Finance and Development Planning, Tax Justice Network Africa, CSOs, internal partners, and organizations. Editing by Jonathan Browne