By Mohamed Jaward Nyallay
The controversy over the sale of a certain 30% of government shares in Sierra Rutile Ltd took a fresh twist on Monday when defence lawyer, Ady Macauley presented a document that was written by Illuka Resources, denying the reported sale.
The Commission of Inquiry’s investigation in to the minerals and mines sector last week suddenly refocused the spotlight on the thorny issue of how the Sierra Leone government parted with its shares in the rutile miner. It was a topical issue during the 2018 general elections, and that is because one of the front runners in the presidential bidi back then, Dr Samura Kamara, was accused of executing the decision while he served as Finance Minister in the Ernest Bai Koroma administration.
Illuka Resources, an Australian company which is registered with the UK-based London Stock Exchange, took over Sierra Rutile Ltd in 2016.
According to the document that Lawyer Macauley read at the commission hearing on Monday, Illuka did not have any records of government owning 30% shares in Sierra Rutile, nor selling a share.
“[Some] 7.08% of shares were transferred to the government but the deal that was signed states that up to 30% of the shares could be transferred,” Macauley noted in a statement he read during the hearing.
Arguments in this inquiry have revealed that Sierra Rutile Ltd owed the government some huge amount of money in taxes. The company, the argument goes, could not repay the debt so they decided to get in to a special arrangement with the government which allowed the company to transfer 7.08% of shares to government. This arrangement was reportedly done in 2004, when John Oponjo Benjamin was the minister of Finance under the then SLPP administration of Ahmad Tejan Kabba.
Lawyer Macauley tried to submit the original agreement that was made then, but the State contested it, saying it is outside the remit of the Commission’s mandate.
The Commission of Inquiry’s instrument gave it power to investigate in to issues from 2008 to 2018.
According to Macauley, the letter he read in court was written by Illuka on the 7th of July 2018 and addressed to the Chief Minister, Professor David Francis who was the head of the governance transition team.
Macauley submitted the letter as evidence whiles cross examining the Financial Secretary at Ministry of Finance, Sahr Jusu.
Mr Jusu had testified earlier on Thursday that the sales of the shares did happen. He also presented a document from the Central Bank which appeared to have confirmed the sales.
More details from that Central Bank transaction note shows that USD 12 million dollars was paid in to the consolidated revenue fund through the Mineral Resource Treasury.
However, Macauley asked Jusu whether he could confirm any mention of the shares of the sales in the transaction note that was given to him by the Bank of Sierra Leone.
“There was nothing that indicates that the US12 million transactions were connected to the sales of the 30% shares,” Jusu replied.
Monday’s proceeding saw the Executive Secretary of the National Asset and Government Property Commission, Frank Lawson, also take to the stand on the same issue.
The Asset Commission has been established since 1990. As part of its mandate it takes stock of government properties and monitors their use. This includes physical properties and stocks, interests or shares government may have in businesses.
In Lawson’s testimony, he said the commission wrote to the mining company to confirm rumours that they had sold government shares.
“We had the belief based on information that the government had 30% share at Sierra Rutile Ltd. We wrote to Sierra Rutile Ltd to explain to us if they had deposed the 30% shares of the government,” he said.
Lawson further explained that they received two responses from the company lawyers. One of the responses was received on July 21st 2018 and the other was received on the 10th of August 2018.
The response dates fit the timeline when the Government’s Transition Team (GTT) report was being prepared. The GTT document highlighted the sales of the 30% of the government’s share in the company. The Defence say that must have been the source of the State’s “phantom” idea of a 30% shares in Sierra Rutile Ltd.
Lawson read one of the responses from the lawyers of the Sierra Rutile Ltd, now Illuka Resources.
“The government of Sierra Leone is not and has never been a shareholder in Sierra Rutile,” the letter reads.
Monday’s proceeding saw heightened security in the Special Court precinct, in anticipation of the attendance of Dr Samura Kamara.
However, the former opposition presidential aspirant did not turn up and Justice Biobele Georgewwill, who is presiding over the Commission hearing the matter, said Dr Kamara wasn’t under obligation to do so.
“I was only inviting him to listen, since the testimony here will touch on his former office. But I have said it, no one is obliged to attend this proceeding,” the judge said.
This issue is far from ending. Justice Biobele said he will allow the Defense to get people from the National Minerals Agency so they will tender the original agreement between Sierra Rutile Ltd and the government of Sierra Leone through them.
© 2019 Politico Online
