Liberia: Who Authorized Liberia’s Equity Reduction in AML?
The House of Representatives Joint Committee on Compliance and Concessions Review has sharply criticized ArcelorMittal Liberia (AML) for its failure to justify the controversial reduction of Liberia’s equity stake in the company and for not submitting audited financial statements as requested.
The Committee, which includes members from the Committees on Investment & Concessions, Lands, Mines & Energy, Natural Resources & Environment, and Labor, expressed serious concerns during a hearing held at the Capitol Building on Monday, July 7, 2025.
Lawmakers were particularly alarmed that AML could not provide a clear explanation for how Liberia’s equity share was reduced from 30 percent to 15 percent–a move that, according to the Committee, has far-reaching implications for national ownership and benefit in the country’s largest mining operation.
“This is not a minor issue,” said Hon. Foday E. Fahnbulleh, Chairman of the Joint Committee. “Liberia’s equity stake in ArcelorMittal Liberia is a matter of sovereignty and national interest. We will not allow it to be reduced without due process and full transparency.”
AML, which initially failed to appear before the Committee during an earlier session, formally apologized at the start of the hearing. The Committee accepted the apology and allowed the proceedings to move forward. However, tensions quickly resurfaced when AML submitted what it described as a “financial gains report”–a document the Committee flatly rejected.
“What was presented to us today is not an audited financial statement,” said Co-chairman Hon. Jeremiah Sokan. “It’s unacceptable for a multinational company operating in our country to treat financial accountability so lightly.”
The Committee emphasized that AML’s submission lacked the credibility and rigor of a formal financial report and failed to meet basic compliance standards. In particular, lawmakers demanded to see documentation that explains how and why the government’s equity stake was cut in half.
“The people of Liberia deserve answers. Who authorized this equity reduction? Where is the board resolution? What financial rationale was used?” Hon. Fahnbulleh asked pointedly during the hearing.
In response to these deficiencies, the Committee adjourned the hearing to Tuesday, July 15, 2025, and issued a directive for AML to return with audited financial statements, a board resolution authorizing the reduction of Liberia’s equity from 30% to 15%, a comprehensive list of Corporate Social Responsibility (CSR) initiatives AML has implemented, a copy of the contract between ArcelorMittal Liberia and the University of Liberia, and a current company organogram.
Lawmakers underscored that these documents are essential not only for transparency but also to evaluate whether AML is complying with the terms of its amended mineral development agreement (MDA) and national laws.
“We’re not against investment,” said Hon. Sokan. “But investment must go hand-in-hand with accountability and respect for Liberia’s laws. The era of companies hiding behind technical jargon and vague reports is over.”
Adding to the growing scrutiny, Senator Nya D. Twayen of Nimba County issued a strong public statement via social media shortly after the hearing.
“Today as seen attached, the House of Representatives held a hearing with Mittal today and they couldn’t pass the first question as to why their shareholders reduced Liberia’s share from 30% to 15% without legislative approval and also failed to provide a comprehensive financial report thereby advancing another hearing for next Tuesday; meanwhile, ArcelorMittal is to also appear before the Senate on this Thursday to answer questions about overstatement of their investment and violations of the MDA–depriving the people of Nimba and Liberia of opportunities and incentives. We will not rest until we get the best for our people and country,” Senator Twayen indicated.
Chairman Fahnbulleh concluded the session with a strong reminder that the Legislature will not shy away from invoking its oversight authority to ensure that concession agreements benefit the country. “We will pursue this matter until it is fully resolved. Liberia’s interest comes first,” he declared.
The hearing comes amid growing public demand for accountability from major concessionaires and mounting calls for equitable resource governance. The next session is expected to determine whether AML will comply with the Committee’s demands or face further legislative action, even as the company now prepares to face similar questioning from the Liberian Senate.
By Liberian Observer.
