Liberia: Can the gold industry save the Liberian economy?

Samuel W. Thompson – Liberian economist believes that good management of the sector can do business

Liberia is facing an economic crisis that is seriously affecting the capacity of the economy most Liberians make ends meet. President Weah, in response to the economic crisis, announced that his government is developing policies and strategies to deal with the current economic malaise that it will announce in the not too distant future. The ideas and suggestions put forward by various people do not lack recommendations that, if implemented, could provide solutions to problems.

Samuel Wonwi Thompson, former vice-governor of the Central Bank of Liberia, proposed solutions. , which claims that the crippling effects of the economic downturn can be mitigated if the government can regulate and rigorously manage the extractive industry, especially the gold industry.

At a press conference in Monrovia yesterday, Mr. Thompson called on President George Weah and his lieutenants to put in place strict measures to properly regulate the sector, which he said will help fill the current balance of payments deficits facing Liberia.

Many economic experts agree that the Liberian economy could be better off if the country can add value and increase the volume of its exports, mainly processed or semi-processed products. According to experts, the current decline in the export value of Liberia's traditional exports, mainly natural rubber and iron ore, could be reversed if the value added to the main exports. In addition, they believe that more stringent regulatory measures should be applied particularly to the gold that, according to Thompson, is transported by helicopter to the outside of the country in the form of gold bullion by the Bea Mountain Mining and the Millennium Gold Corporation

. Thompson, who is also a former executive director of the National Housing Authority (NHA), however, noted that the gold industry could be that magic wand that could help stabilize the economy by bringing in The currencies needed for the moment to strengthen He said that Avesoro or Bea Mountain Mining Corporation (formerly Aureus Mining) and MNG gold mining companies produce and steal significant amounts of greenhouse gases. gold bullion out of Liberia every week by helicopter as our currency continues to depreciate.

Mr. Thompson feels something sinister about the operations of these gold mining companies in the country whose Liberian people do not receive any significant benefits. "The very secretive way in which this has been done in Liberia suggests that we, the Liberian people, are deprived of significant foreign-exchange benefits from our God-given inheritance by some greedy and corrupt people. ", he said. "God blessed us with several great gold deposits, but we learned from Panama Papers about the alleged use of" bearer shares "by some officials and their pals, to hide their property from the past. shares of gold mining companies plus other illegal payments in offshore However, on the basis of a combined investment of at least $ 500 million, the IMF believes that the The value of gold exports will average US $ 200-300 million each year in Liberian gold mines, excluding the Hummingbird gold concession in southeastern Liberia, which was recently rejected. by President Weah

"These are foreign currencies [opportunities] that could help strengthen our economy.This gold is exported and we do not know what will come back It's frustrating for a country and its people who would have benefited immensely from our resources n If our leaders are so selfish and greedy – and want everything for themselves. "

called on President Weah to closely monitor the sector so that the country can begin to benefit from what is due to it so that the mbades can be relieved of the current deteriorating economic situation." He cited as an example , the Hummingbird Resources whose financial statements show that its Dugbe operations in southeastern Liberia are capable of producing at least 125,000 ounces of gold each year while reserves are valued at $ 4.2 million. In addition, according to Hummingbird, gold will generate export earnings of 163 million US dollars each year, while deposits have a value of at least 5.5 billion US dollars.

Thompson congratulated the president for his clever and timely decision to reject the case.

But he wants the president to make efforts to overthrow these big mining companies. "Gold (Avesoro and the MNG Group) to reveal the names of past and present officials" In addition, all of these equity percentages identified by the investigation should be attached and transferred from these economic criminals to name of the government of Liberia, "he said. The World Bank Group is considered a shareholder through the IFC and wants this global body to badist any investigation that may be commissioned by the President.

"A wise use of our national heritage will go a long way towards improving the exchange of reserves and strengthening our national currency," he said. Mr. Thompson also noted that the country's leadership needs to be wiser and more transparent in how it uses precious resources like gold, to significantly improve the country's foreign exchange reserves and strengthen its currency, citing the Example of Botswana that derives at least

Weah must sue the perpetrators of economic crimes

M. Thompson also called on President Weah to investigate and prosecute those who may have been found stealing the country. He said that would give potential investors the confidence to come and invest their money here.

"To improve the climate of foreign investment and the country's economic situation, it is urgent to put an end to the culture of economic impunity." He called on the president to create a responsible body. economic crimes in order to promptly investigate and prosecute Liberians who betrayed their country and liberated Liberians.This mandate, he said, should extend to all other major economic crimes and should include concerted efforts to recover and repatriate the illicit wealth of all those who have been found guilty. [19659005] As an additional measure to end the culture of impunity and corruption in the award of extractive and other concessions in Liberia, the government should outlaw the use of bearer shares in the capital structure of all companies operating in Liberia.

Thompson noted that the restruc closing the Hummingbird Agreement into a transparent PPP to produce gold in the Dugbe region would help gradually improve and maintain Liberia's foreign exchange reserves.

He also called on the US government to help eradicate the culture of corruption and impunity by prosecuting Liberian economic criminals.