SLPP Govt takes Another Misguided Decision
Despite concerns raised over the legal implications, and the integrity of the country in the international eyes, with respect to the termination of the Pepel Rail and Port facility agreement entered into between the government and ARISE IIP earlier this year, the government of President Bio ignored all reasoning and went ahead and terminated the contract and gave it to Kingho, from whom it has also earlier terminated the same contract.
Well, ARISE IIP did not take the decision lightly, and had got its British Lawyers, Linklaters to write the government of Sierra Leone on the said termination, which the government of Sierra Leone in a Press Conference had confirmed.
“In the Press Conference, GOSL stated that the Lease Agreement was now terminated and that a new lease agreement has been negotiated with, and will be granted to, Kingho. GOSL’s representatives stated that the reason for termination of the Lease Agreement was that Arise purportedly did not take any steps to complete the CPs (or waive them), as required by the Lease Agreement,” the letter, which was dated Tuesday 1st November from Linklaters, stated
The lawyers stated that such position adopted by the Government of Sierra Leone is wrong, as the date for CPs has not passed and that there is an agreement between GOSL and their client (ARISE) to defer the CPs.
They revealed that any attempt by the government to rely upon the CPs to terminate the Lease Agreement would be an improper attempt to rely upon its own wrongdoing, noting that ARISE has repeatedly indicated its intention to perform work under the Lease Agreement and invited the government to complete the CPs, as provided for in Section 1.3 of the Lease Agreement.
The lawyers noted that they have been instructed that should Government of Sierra Leone continue with the course of action it has set out in the Press Conference, they will initiate legal action against the Government of Sierra Leone.
“However, our client wishes to continue its relationship with the GOSL. To that end, our client requests GOSL to confirm, by By Today Friday 3rd November 2023, that it will not take any further steps with Kingho, which will result in a breach of the Lease Agreement; and it will take all steps to comply with the CPs and implement the Lease Agreement,” they cautioned
They noted that failing to do the above will force ARISE IIP to start legal action against the Government of Sierra Leone, including and not limited to injunctions, arbitral claims for interim relief and claims for damages, requesting an urgent response on this issue as soon as possible, by no later than 2 November 2023.
It could be recalled that the government and people of Sierra Leone suffered huge embarrassment over the so-called termination of the SL Mining agreement, for which the government of Sierra Leone was defeated in International Court in 2021.
The Government ended up licking its wound with an out of court settlement, which had already dented the image of Sierra Leone.
Credible sources within the government disclosed that the government spent over Le30 billion on legal fees to settle the litigation with SL Mining lawyers. If this current matter is allowed to go to the Courts, it is not only going to be a huge embarrassment for the government and the country, but is going to cost the country dearly in terms of finance and reputation, and has the proclivity to scare away potential investors.