$600m Lonrho-Atuabo Freeport Illegality Exposed

The exclusive and monopoly rights controversially granted to Lonrho Ports Limited and Atuabo Freeport Ghana Limited to build and operate an estimated $600 million Freeport in the Western region, Takoradi oil and gas enclave with tax exemption for 25 years and additional rights for extension, has been described as illegal by five lawmakers. The majority National Democratic Congress (NDC) in Parliament approved the controversial agreement on July 17, 2014 despite spirited opposition by members of the minority New Patriotic Party (NPP) that some provisions of the deal were in contravention of the laws of Ghana. Worried about the implications of the project on the laws of the land, the five legislators have dragged the state to the Takoradi High Court on the issue, attaching the Auabo Freeport Ghana Limited as an interested party. The plaintiffs including Kwaku Kwarteng, MP for Obuasi West;, Kwabena Okyere Darko-Mensah, MP for Takoradi; Joseph Cudjoe, MP for Efia; Mavis Hawa Koomson, MP for Awutu-Senya East and Kofi Brako, MP for Tema Central, are praying the court to stop the investors from going ahead with the US$600million project until the country�s laws are strictly adhered to. They are seeking a declaration that Clause 7 of the "Ghana Oil and Gas Freeport Project Commercial Agreement" approved by Parliament, was �inconsistent with Section 5 of the Ghana Ports and Harbours Authority Act, 1986 (PNDCL 160), and to that extent unlawful and, therefore, null, void and of no legal effect.� Clause 7 states in part that �The GoG (Government of Ghana) shall not, and shall procure that no Relevant Authority shall, grant any concession agreement or other agreement similar to this Agreement, or any Consent or rights containing the same or similar rights as the Development Rights to any third party in respect of the Western Region at any time between the Signing Date and the expiry of the Initial Debt Tenor of the proposed project financing of the Project: (i) without the express written consent of the Developer, (ii) unless there is an urgent commercial need for additional port facilities to support the hydrocarbon industry of Ghana and the developer has refused to expand the Freeport Project to fulfil the market demand. The five lawmakers are challenging the legality of this provision as it contravenes section 5 of the Ghana Ports and Harbours Authority Act, 1986 (PNDCL 160), which mandates the Authority to rather determine who builds ports in any part of the country. MDU Fights On Meanwhile, the Maritime and Dockworkers Union (MDU) is expected to file an independent lawsuit to challenge the controversial agreement. The MDU General Secretary, Mr. Daniel Owusu Koranteng had hinted on an Accra-based radio station, Peace FM that the Union had referred the agreement and other necessary documents to its lawyers for the appropriate legal action to be taken. This move would further destabilize the activities of the unseen hands, seeking to perpetuate impunity under the country�s democratic culture. It would also strengthen Ghanaians� belief in the rule of law and the Constitutional process for remedies without resorting to violence. On May 1 during the May Day celebrations, Mr. Kofi Asamoah, the Secretary General of the TUC devoted a greater part of his speech to condemn the attempt by government to abuse the rules in the country and allow the passage of the agreement to Parliament for subsequent approval. He cautioned the government to seek the greater good of the country and respect our Laws. TNF vindicated It would be recalled that The National Forum had in its lead story of captioned �Bombshell! Ghana for sale�, had revealed that the contentious agreement was in Parliament awaiting approval after it had been sanctioned by President John Dramani Mahama, blatantly disregarding the sections of the deal which are an affront to the National Constitution and usurpation of the powers of the Ghana Ports and Harbour Authority (GPHA). Notwithstanding the paper�s warnings, several other calls from the Trades Union Congress (TUC) and its Maritime and Dockworkers Union (MDU) as well as Civil Society Organizations, the Parliament of Ghana ratified the contract with all the illegalities and breaches of the constitution contained in it. The TUC had joined the fight against the decision by the Mahama�s administration to grant an exclusive right to a foreign entity, Lonrho Ports Ltd, to develop and operate a free port in the Western Region, in contravention of the laws of the nation, insisting that the project will undermine national sovereignty and security. Mills� opposition The project was said to have been stopped by the late President John Evans Atta Mills when the deal was presented to him because of its illegality; only to receive even exceptional impetus on the assumption of office by President Mahama. The Concession Agreement relating to the project was approved by President Mahama and his Cabinet, snubbing expert advice from the management and board of the Ghana Ports and Harbours Authority which had mounted a spirited opposition to the proposal. The project, which would be situated at Atuabo in the Western Region, is expected to be fully operational in 2016 to meet the logistics and support requirements of Ghana's Oil and Gas industry. It involves the construction of a harbour protected by a rock breakwater to the west and a rock groyne to the east, a dredged approach channel, a turning circle, berth pockets and quays. The project would deliver an airstrip and a helipad to facilitate aircraft and helicopter transportation, as well as other infrastructure like power generation, boreholes, accommodation, offices, a naval base, hydrocarbon fuel storage area and roads. Other components include service facilities to be located in the port along the quays to provide support services to the off-shore oil and gas industry, including rig repair, waste treatment and management, fabrication and supply facilities.