China Union Adheres to Social Responsibilities but Lawmaker Accuses Them of Secretly Flipping Ownership
ADNEWS- Bong: China Union, the Chinese company that admitted to abandoning nearly all of its responsibilities under its Mineral Development Agreement (MDA) in Liberia, is attempting to repair its image in Bong County by making contributions to local education and healthcare.
Last week, the company presented a $25,000 cheque to the Fuamah Scholarship Committee to support deserving students in advancing their education. Additionally, China Union donated $1,000 worth of school materials and provided over $2,000 in medical supplies to the Fuamah Hospital.
By Wremongar Joe & Joseph Tumbey
These actions come after a specialized House Joint Committee found China Union in gross violation of its commitments under the MDA. Following the committee’s investigation, the Liberian House of Representatives imposed fines and mandated the company to contribute $40,000 in school supplies and drugs within six months. In response, China Union has moved quickly to rehabilitate the Bong Mines-Handii Road as part of its efforts to comply with the House’s directives.
China Union has also paid $150,000 to the National Social Security and Welfare Corporation, fulfilling a long-overdue social security contribution for its employees.
To verify China Union’s interventions and understand how the district plans to equitably distribute the scholarship funds, our reporter traveled to Fuamah.
The “Fuamah District Scholarship Fund Account” is managed by Massaquoi Shine Shilling, Chairman of the Scholarship Committee and Principal of Children of Africa School System in Bong Mines; Hampton B. Giddings, Commissioner of Fuamah District; and Frederick G. David, Chairman of the Fuamah District Citizens Association.
Hampton B Commissioner Giddings, Commissioner of Fuamah District
Commissioner Giddings expressed his mixed emotions about the community finally receiving some benefits from China Union, a company that has extracted iron ore for years without contributing to the local area. “We want to thank our new lawmaker, Hon. Foday E. Fahnbulleh, for making this possible. Without him, we wouldn’t be talking about money from China Union today,” Giddings said. “For me, it is God working through him to help the poor people of our land who lack the power and voice to make change happen.”
Massaquoi Shine Shilling, Chairman of the Fuamah Scholarship Committee, noted that this is the first time China Union has made a direct payment to the host community in all the years it has operated in the district. “We want to thank our District #7 lawmaker. We have been here year in and year out, and to know that China Union can give this kind of money for the young people in our district, especially for education, is still surprising to some of us,” Shilling remarked. He assured that the funds would be used to support the education of “deserving youths” in Fuamah, with full accountability by the committee.
Massaquoi Shine Shilling, Chairman of the Fuamah Scholarship Committee
Representative Foday E. Fahnbulleh of District #7 in Bong County posted a copy of the scholarship funding cheque on Facebook and sent a letter of appreciation to China Union Investment Company. He thanked the company for complying with its social responsibilities under the MDA and for providing the first installment of $25,000 out of the agreed $50,000 for scholarship support. Fahnbulleh also expressed hope for the remaining $25,000 to fully implement the scholarship program.
When asked if he was satisfied with China Union’s recent commitments, Rep. Fahnbulleh stated that while he was hopeful the scholarship scheme would positively impact the youth, his satisfaction would depend more on his constituents’ perception of the company’s operations than on any monetary contribution. He also raised serious accusations against China Union, alleging that the company had secretly flipped ownership to another entity without informing the Liberian government.
“If they changed ownership and are now owned and operated by another state-owned company, they should have informed us. We, as a nation, have the right to know,” Fahnbulleh asserted.
Our investigation found that China Union, which operates the iron ore mining concession in Bong County, is currently owned by China Baowu Steel Group, a Chinese state-owned enterprise. This ownership change occurred after China Union (Hong Kong) Mining Co., Ltd. went bankrupt in 2015. China Baowu, one of the largest steel producers globally, has since taken over the operations and is actively involved in shipping iron ore from Liberia. This marks a significant shift from the original ownership by China Union (Hong Kong) Mining Co., Ltd., the initial investor in the Bong Mines project.
Despite these developments, China Union, known for its tight-lipped approach to public matters, has not commented on the latest accusations regarding its ownership
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