“The only exclusivity provided in the amendment is what was already stipulated in the company’s 2008 Concession Agreement with the Government of Liberia”
Liberia’s largest rubber plantation, Firestone has dismissed recent reports in some local news media about amendment to the Amended and Restated 2008 Concession Agreement with the Government of Liberia, Firestone Liberia, Inc. (FSLB).
In a press release issued on Wednesday, May 29, 2019, the company “vehemently condemns these reports, which are simply wrong.”
Firestone says “they are erroneous and inflammatory in nature and do not reflect the reality of the company’s agreement with the GoL.”
According to the release, FSLB began negotiating the amendment in good faith with the Government of Liberia approximately four years ago, and throughout this process, FSLB has worked closely, openly, and in keeping with proper concession procedures with the Government to arrive at an amendment that would provide critical support of its Liberia-based operation, due to continued and unsustainable major financial losses.
The Firestone company’s management says it has worked and collaborated closely with the Office of the President, the National Investment Commission, the Ministry of Agriculture, the Ministry of Finance and Development Planning, the Liberian Revenue Authority, various Liberian and foreign Government legal advisors, the Inter-Ministerial Concessions Committee (“IMCC”), among other stakeholders.
The reasons for the amendment were clearly communicated to the Government and other stakeholders, and previously reported by other media, during the protracted negotiations over the past four years.
According to the Firestone release, the primary objective of amending the Concession Agreement is to provide critical financial assistance to FSLB by extending certain Rehabilitation Term benefits included in the 2008 Concession Agreement, and lapsed December 31, 2015, for an additional 60 months after the date the amendment becomes effective. The Rehabilitation Term provided for certain duty and tax relief as Firestone Liberia rebuilt its operations and business after the end of the Liberian civil conflicts. The only exclusivity provided in the amendment is what was already stipulated in the company’s 2008 Concession Agreement with the Government of Liberia – the ability to exclusively engage in production in the production area of Firestone Liberia.
While this amendment by itself will not solve the current financial issues facing the company, FSLB believes it is a critical show of support by the Government of Liberia for private sector employment, FSLB employees and their dependents, the Liberian natural rubber industry, and the long-term viability of the largest private employer in Liberia.