By Kemo Cham
The Chinese mining company, Shandong, successor of the defunct African Minerals Limited (AML), has been ordered in a landmark ruling to pay the sum of Le1.6 billion in end of service benefits to a former employee.
The ruling on 9 July by a Freetown High Court judge will serve as a major morale booster to hundreds of former employees of AML and Shandong who have been seeking to receive their severance benefits. This case was filed by Musa Alie Bangura, who served AML between 2004 and October 2013.
The case, presided over by Justice Miatta Samba, was first filed in 2017/2018, through Musa Sahid Bangura as counsel for the plaintiff. The court documents show that the plaintiff was seeking Le1, 606, 499, 607. 26 from Shandong, AML, Tonkolili Iron Ore (SL) Limited, and
African Railway and Ports Services (SL) Limited as 1st, 2nd, 3rd and 4th defendants, respectively.
The plaintiff was also seeking to have the defendants pay an interest rate of 25 percent of the total amount per annum. He also requested for the court to order the defendants to bear the cost of the case.
Justice Samba, in her ruling, granted the plaintiff’s request for payment of Le 1.6 billion by the first defendant. The judge also ordered the first defendant to pay an interest at the rate of 10 percent per annum from November 1, 2005 until payment is made. The defendants were also ordered to pay the cost of the legal process of Le50million.
This case is the latest in a series of legal challenges faced by Shandong since it assumed the Tonkolili Iron Ore investment from AML in 2016.
AML, which was issued a mining license in 2010, was at the heart of Sierra Leone's landmark comeback in the mining sector following its eleven years’ civil war that halted mining activities. The company became the first to export iron ore from the country after over two decades.
Between 2011, when the first consignment of ore was shipped out, and 2014, Sierra Leone's economy recorded a very high growth, largely attributed to the ore export.
Shandong, the recipient of most of that consignment, at the time controlled a 25 percent stake in the company. However, the effect of the [2014-2016] Ebola epidemic, coupled with
fall in prices of iron ore at the international market, forced AML to go into administration, and it was subsequently taken over by the Chinese company in a US$1.5billion deal.
Among others, Shandong, inherited a huge liability, including payment of severance benefits.
© 2019 Politico Online
