Supreme Court backs Senate-for ratification of BAO CHICO deal

By Ethel A Tweh

The Supreme Court of Liberia has ruled that the Liberian Senate is not in violation of Article 34d(i) of the 1986 Constitution in ratifying the BAO CHICO mineral development agreement. 

Article 34d(i) of the Constitution states: “all revenue bills, whether subsidies, charges, imports, and other financial bills, shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other bills…”

The Supreme Court in its ruling indicated that said Bill is a financial bill and not a revenue bill, as being contested by members of the House of Representatives. 

It may be recalled that the Liberian Senate took the House of Representatives to the Supreme Court for the “wrongful” interpretation of Article 34d (i), of the Liberian Constitution of 1986.  

The Senate’s decision was prompted by a communication from the House of Representatives that the process leading to ratification of the BAO CHICO Mineral Development Agreement violated said Article. 

The BAO CHICO agreement is for the extraction of iron ore, to be operated under a Class A mining license for an initial term of twenty-five years within a total area of 87.4km2 in Gbarpolu County.  

The company’s investment is in the tune of US$500 million, aimed at improving the country’s economy, creating job opportunities and scholarships for citizens as part of its support to the Government’s Pro-Poor Agenda for Prosperity and Development. 

According to the Government of Liberia, the BAO CHICO deal is expected to bring in an annual social contribution of US$300,000 and, after five years, escalate to US$500,000 until the end of the term.

Therefore, an additional US$10,000 is expected for Gbarpolu County as General Education Funding, while US$50,000 will be provided annually as Scientific Reserves Fund.https://thenewdawnliberia.com/supreme-court-reserves-ruling-in-bao-chico-case/ Editing by Jonathan Browne