The March 2022 Framework Agreement, affecting Liberia, is currently under legal scrutiny due to HPX’s coercive tactics and the potential payment of US$37 million under flawed terms. The agreement lacks proper legislative approval, raising questions about its legality and implications for national sovereignty. Legislative oversight is urgently needed to protect Liberia’s interests and ensure transparent governance, as HPX’s demands threaten established practices and the effectiveness of local operators.
Recent developments have uncovered significant legal irregularities regarding the March 2022 Framework Agreement utilized by HPX, which poses a threat to the Government of Liberia. This agreement is under scrutiny due to procedural deficiencies and HPX’s subsequent threats. According to a letter from Ivanhoe dated January 24, 2025, HPX threatens to enforce a default clause unless an Access Agreement is signed before February 15, 2025, potentially obliging Liberia to repay US$37 million at an annual interest rate of 10%. Such a claim is fundamentally flawed, as the $37 million was not an investment requiring repayment but a predatory loan, not ratified under Liberian Law.
The Framework Agreement, informally referred to as the “Weah agreement,” was executed without proper legislative ratification. This omission undermines the democratic process and raises concerns regarding national sovereignty. The lack of parliamentary approval renders the agreement questionable within the framework of national law, creating legal risks if HPX chooses to invoke the default clause.
HPX’s threats extend beyond punitive contract enforcement; they represent an aggressive maneuver to compel the Government of Liberia to consent to an unreasonable rail capacity of 30 mtpa, even though that capacity remains unverified. Moreover, HPX’s demand for the dismissal of ArcelorMittal, a reliable operator for over 15 years, raises questions about their intentions to prioritize Guinean iron ore transit at the expense of established practices in Liberia.
In light of these critical issues, it is essential for Liberia’s National Legislature to engage proactively. The Legislature must convene public hearings to examine the legality of the Framework Agreement, considering its implications for national sovereignty and economic policy. Such hearings would offer a platform for civil society, industry experts, and other stakeholders to express concerns and call for transparency.
The urgency of the situation requires the National Legislature to assert its role in conducting oversight. A public hearing is vital to ensure that all aspects of the Framework Agreement are thoroughly assessed for compliance with legal standards. This oversight is crucial for the protection of Liberia’s interests against external pressures and for fostering transparency in future agreements.
Given the current climate of HPX’s threats and the dubious legality of the Framework Agreement, decisive action is imperative. The Legislature must demand that HPX either substantiate its claims through appropriate arbitration or withdraw its menacing stance. Only through rigorous legislative oversight can Liberia defend its national interests and promote sustainable development.
The examination of the Framework Agreement reveals significant legal flaws and threatens Liberia’s sovereignty. HPX’s coercive tactics highlight the necessity for legislative oversight to protect national interests. The National Legislature must take immediate action to scrutinize the agreement through public hearings, seeking to uphold transparency and legal compliance in governance. The time for decisive intervention is now to safeguard Liberia’s future and ensure equitable treatment in international agreements.
Original Source: thenewdawnliberia.com
