Balala gets support of lawyers for revoking mining licences

Mining Cabinet Secretary Najib Balala (left) with Law Society of Kenya Chairman Eric Mutua during this year’s Africa forum for American Bar Association Section that is deliberating legal frameworks on extractive industries in Nairobi, on June 4, 2015. DIANA NGILA | 

In Summary

• Mr Balala, who was speaking during the opening session of the American Bar Association 2015 Africa forum, said he would continue cancelling non-compliant licences.
• Mr Balala also reiterated a call made last week by seven countries who met in Nairobi for the formation of a parallel transparency organ for mining in Africa.
• The ministers said transparency should be home-grown to rid the continent of multinationals that hold contracts in their favour and consign African countries to workers rather than beneficiaries.

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The Law Society of Kenya has supported Mining Cabinet Secretary Najib Balala’s decision to cancel 65 licences.

LSK Chairman Eric Mutua has said that lawyers will back Mr Balala as long as he gives the companies a fair hearing.

Mr Mutua said that most of the licences were being held by agents and intermediaries targeting potential investors and they were only interested in transferring the assets once speculation set in. He added that some of the permits were acquired through corruption.

“Intermediaries are known to be corrupt and obtain licences to sell or transfer to investors, we support the cancellation so that the country can start afresh,” said Mr Mutua.

Mr Balala, who was speaking during the opening session of the American Bar Association 2015 Africa forum, said he would continue cancelling non-compliant licences.

He stated that all the companies were given 30 days to respond to notices of cancellation by proving their financial capabilities and verifying their work on the ground.

Already, Mid Migori and Red Rock Resources PLC, have sought a court order barring the CS from revoking their licence before their case is heard and determined.

TRANSPARENCY

Mr Balala also reiterated a call made last week by seven countries who met in Nairobi for the formation of a parallel transparency organ for mining in Africa.

Ministers and ambassadors from Kenya, Angola, Ethiopia, Uganda, Tanzania, Sudan, Comoros and Mozambique called for Africa to form an alternative to the Norway-based Extractive Industries Transparency Initiative (EITI).

EITI is a global organisation that maintains standards and assesses the levels of transparency on countries’ mineral resources.

“We are calling for a local transparency body under the African Union, which will also look into contracts with multinationals to determine if they are fair,” he said.

The forum criticised EITI for being one-sided and auditing governments instead of following up with multinationals, which are accused of engineering agreements that do not benefit locals.

The ministers said transparency should be home-grown to rid the continent of multinationals that hold contracts in their favour and consign African countries to workers rather than beneficiaries.

Mr Balala, who was stepping down as the chairman for Southern and East African Mineral Centre for his Ethiopian counterpart Gebreaziabher Tewdoros, called for African countries to eliminate ‘lopsided agreements’.

The 25th governing council of the eight-member Southern and East African Mineral Centre changed the entity’s name to Africa Mineral and Geoscience Centre.