Bomi County – On the verge of packing up and leaving Liberia, the management of Sime Darby Plantation is hoping that the George Weah-led government can spark one last effort to help curb the rising wave of violence on the concessionaire’s operations in Liberia.
Report by Rodney D. Sieh,
Last week, the company’s CEO and Executives held talks with President Weah, urging the government to live up to her commitment in the concession agreement to provide more land and protection from illegal oil mills within 60 kilometers of the plantation.
Mr. Tan Sri Dato Seri Mohd Bakke Salleh, Executive Deputy Chairman and Managing Director of Sime Darby Plantation explained in the meeting with President Weah that to date the company has spent more than US$200 million but has failed to break even while spending every month but failing to make profit.
Among the many challenges the company is facing, are crops theft, construction of illegal mills closes to the factory, unnecessary demands from local communities, among others.
Expressing shock that he was not informed, President Weah promised to assist SDPL in curbing the attacks.
As part of the agreement with Liberia, there should be no mills within 60 kilometers of the plantation. But in recent years, however, there have been a lot of people crossing over to do illegal harvesting in the areas designated for SDPL.
The latest involved Harry Pewee, a security guard who was attacked by illegal harvesters who used machetes to cause him bodily harm.
A Wave of Recent Attacks
One eyewitness told FrontPageAfrica Monday that a group of illegal harvesters came into the plantation to steal palm but when the security went after them, they used machetes to chase them causing serious injuries.
Last October, a similar attack saw another security guard, Joseph K. Gissi fallen prey to illicit harvesters who severely wounded him.
Gissi met this untimely situation after he and others arrested a lady in the plantation hauling Fresh Fruits Branch (FFB). The group of illicit harvesters angered by the arrest of their member went on the rampage by beating Patrolman Gissi and forcibly taking him to a nearby town, Bessao Town where he was turned over to the chairlady. He was later released by the chairlady after already suffering severe beating which left bruises to his eye and other parts of his part.
Similarly, last August Preston Nunuh, another Sime Darby Plantation security officer in Madina, was shot at and wounded on the leg with single barrel gun.
The brutalizing of Patrolman Gissi, Preston and now Pewee follows several in recent years.
Despite a buffer zone between Sime Darby and surrounding towns and villages, incidents like these are frequent. The latest comes just days after top Sime Darby executives met with President Weah. “It is very frustrating; the government must live up to their side. This is our last chance we are giving government to do something as we contemplate leaving over the constant attacks and harassment,” said a source with the company speaking on condition of anonymity.
Sime Darby is the smallest of all the plantations in Liberia but has the most problems. One source told FPA that due to the constant attacks, the company has been struggling to meet with salary commitments to employees, mostly relying from its corporate headquarters to chip in.
Sime Darby Plantation’s operations in Liberia is managed by Sime Darby Plantation (Liberia) Inc. The company has a 63-year concession agreement with the Government of Liberia to develop 220,000 ha of land in Grand Cape Mount, Bomi, Gbarpolu and Bong into oil palm and rubber plantations. To date, 10,508 ha has been planted in 5 estates, namely Matambo, Grand Cape Mount, Zodua, Bomi and Lofa estates. Out of the total planted area of 10,508 Ha, 10,401 Ha is planted with oil palm and 107 Ha is planted with rubber.
Pres. Weah: ‘We Cannot Afford to Lose SDPL’
Amid growing challenges some major Liberian concessionaires face, threatening insolvency and possible collapse, President George Manneh Weah has assured the biggest palm oil company in the country of his Government’s support and cooperation to ensure its return to better business.
“We cannot afford to lose the opportunity of the continued stay of a major investment like Sime Darby in our economy,” the President said Wednesday, February 13, 2019 when he and other sector leaders met the management team of the company.
But company executives tell FPA that if things do not improve between now and June, they will pack up and leave.
In meeting with the Executives last week, President Weah said his government remains committed to doing everything possible to ensure that the oil palm investment remains in Liberia. “It is sad to hear that you will invest and not make any profit. No company will like that. Your shareholders will not be happy. That is not good. Whatever we can do will be done consistent with Government’s win-win deal with your company to ensure that this investment remains here,” the President said.
During that meeting, also attended by key sector leaders, including National Investment Commission, National Bureau of Concession (NBC), Ministers of Justice, Commerce, States for Presidential Affairs as well as the Economic Advisor to President Weah, the Liberian leader said his government would do what is required to ensure Sime Darby succeeds.
The President asked the visiting Sime Darby Management team to inform the company’s shareholders and board that his government would help the company make its rightful profits, emphasizing “We will start to help you make profit.”
The President declared that he was setting up a technical team to work on the way forward as soon as possible,” the President added. “We will call on key local and international NGOs in this sector to be part of the team so that they can work with the team to ensure all the international laws are followed.”
Despite repeated assurances, company executives say they have been unimpressed with the current situation and are pushing for some level of commitment from the government on their investment.
Datuk Franki Anthony Dass, Chief Advisor and Value Officer has said company managers were under pressure from the Board to think about possible reconsideration of the Liberia’s investment, the smallest of all Sime Darby operations since they are not getting any returns from for the investment now.
FrontPageAfrica recently reported that Sime Darby had put up its oil plantation in Liberia on sale after failing to acquire all 220,000 hectares of land the government promised it as stated in a concession agreement signed about a decade ago.
Sime Darby on Trading Block
The company is listed as SIME.KL on the Kuala Lumpur stock exchange and has several investments across the world including palm oil plantation in Liberia.
The move to sell out its investment in Liberia has created pessimism about the Malaysian trading conglomerate profitability in the west Africa nation. The country is also struggling to recover from its economic woes since the end of the Ebola outbreak.
Insiders within the company say the decision is based on the Liberian government’s failure to meet “a very important side of the bargain”.
The concession, as per the agreement signed with the Government of Liberia in July 2009, is for a period of 65 years. The gross concession area consists of 220,000 hectares of land for the concession area and an additional 44,000 hectares of land for the implementation of the out growers’ program.
Nearly 10 years have gone since the concession agreement was signed but the company is still struggling to operate.