Representative Foday E. Fahnbulleh of District #7 in Bong County has raised serious accusations against China Union, alleging that the company had secretly flipped ownership to another entity without informing the Liberian Government.
China Union is the Chinese company that admitted to abandoning nearly all of its responsibilities under its Mineral Development Agreement (MDA) in Liberia, is attempting to repair its image in Bong County by making contributions to local education and healthcare.
The lawmaker’s concern is coming shortly after the company began disbursement of social corporate responsibility funds to operations areas in Bong County, as was mandated by the House of Representative after an investigative report found the company liable for abandoning its duties to the people of the county.
“If they changed ownership and are now owned and operated by another state-owned company, they should have informed us. We, as a nation, have the right to know,” Fahnbulleh asserted. An investigation found that China Union, which operates the iron ore mining concession in Bong County, is owned by China Baowu Steel Group, a Chinese state-owned enterprise.
This ownership change occurred after China Union (Hong Kong) Mining Co., Ltd. went bankrupt in 2015. China Baowu, one of the largest steel producers globally, has since taken over the operations and is actively shipping iron ore from Liberia.
This marks a significant shift from the original ownership by China Union (Hong Kong) Mining Co., Ltd., the initial investor in the Bong Mines project. However, representative Fahnbulleh thanked the company for complying with its social responsibilities under the MDA and for providing the first installment of $25,000 out of the agreed $50,000 for scholarship support.
Fahnbulleh also expressed hope for the remaining $25,000 to fully implement the scholarship program. When asked if he was satisfied with China Union’s recent commitments, Rep. Fahnbulleh stated that while he was hopeful the scholarship scheme would positively impact the youth, his satisfaction would depend more on his constituents’ perception of the company’s operations than on any monetary contribution.
Despite these developments, China Union, known for its tight-lipped approach to public matters, has not commented on the latest accusations regarding its ownership Last week, the company presented a $25,000 cheque to the Fuamah Scholarship Committee to support deserving students in advancing their education. Additionally, China Union donated $1,000 worth of school materials and provided over $2,000 in medical supplies to the Fuamah Hospital.
These actions come after a specialized House Joint Committee found China Union in gross violation of its commitments under the MDA. Following the committee’s investigation, the Liberian House of Representatives imposed fines and mandated the company to contribute $40,000 in school supplies and drugs within six months. China Union has also paid $150,000 to the National Social Security and Welfare Corporation, fulfilling a long-overdue social security contribution for its employees.
