The Native Consortium & Research Centre has raised serious concern over the Government of Sierra Leone’s ratification of an agreement for the construction of a 70,000 metric ton storage facility for all petroleum products.
The Consortium aired their concern in a position paper on Thursday November 19, 2020 over the ratification and adoption of the Agreement between the Government of Sierra Leone (GoSL) which granted the concession to a new company.
Concession Agreement was between the Government of Sierra Leone represented by the Ministry of Trade and Industry and Ministry of Finance, and All Petroleum Products SL for the Rehabilitation and Refurbishment of the Kissy Storage Tanks Project
The Native Consortium expressed dissatisfaction with the Trade and Finance Ministry for not consulting CSOs and the public before tabling the drafted agreement in the well of Parliament, “in spite of the fact that the document is very laudable and had been central to the advocacy of the Consortium on petroleum over the past 15 yrs”.
The Consortium agreed with objection raised by Hon. Kandeh Yumkella on the huge tax concession and on the profile of the Company. They recommended for the Ministries of Trade and Finance to adjust the agreement, to defer the tax instead of tax waiver and/or Grant Concession and possibly reduce the tax rate.
Another recommendation the Consortium proffered is for the GoSL to crystalize the (Grant) waivers into share-holdings, which will in effect make the deal a Public Private Partnership (PPP).
“We also want to inform the Parliamentarians that the existing structures/storages were owned by Government with the exception of the new storage facility built by ADDAX. Those facilities were built during the Second World War and the Oil Marketers have had some unscrupulous politicians and civil servants to dupe government with unfavorable agreements on leasehold,” the release says.
The Consortium went on to urge the GoSL to urgently look into the lease agreements of all storage facilities owned by the Oil Marketing Companies from 1988 to date.
They noted that storage facilities, like in other countries for example Guinea, should be centralized with government owning the lion’s share to avoid monopoly or exploitation by the oil Mafia cartel.
“What we have seen over the years is Oil Marketers taking the GoSL and citizens hostage to cower the GoSL to unwanted price hiking demands,” they complained.
According to the Consortium they had expected that that the size of the facility to be built for storing petroleum would have been up to at least one hundred thousand (100,000) metric tons to liberalize the market, and open more space for new players and promote competition. They however added that seventy thousand (70,000) metric tons is a sound start to dilute the cartel, and hoped that the Ministry of Finance had supported the venture.
“We also want the Members of Parliament to consult their constituencies or sessions inviting some Think Tanks CSOs and interested stakeholders to edify and make inputs that will scale up the debate for the best interest of the nation before passing/ratifying such sensitive financial instruments that has to do with our bread and butter. We must remember Sierra Leone and by extension Africa is poor because of its bad deals that affect generations. So we have to make it right,” Release concluded.
By Desmond Tunde Coker
23/11/2020. ISSUE NO: 7955