DAGONTE AND LICEMCO AGREEMENTS WILL STRANGULATE CEMENCO

DAGONTE AND LICEMCO AGREEMENTS WILL STRANGULATE CEMENCO:

Atty. Meo Beyan Warns Legislature

By Frontier Staff Writer

An Australian trained lawyer is calling on the National Legislature not to ratify the Dagonte Agreement and the LICEMCO Agreement as they have been presented to that august body because ‘the agreements are not in Liberia’s national interest.

According to Atty. Meo Debbah Beyan, J.D., LL.M, ‘while investment incentives are necessary to attract foreign investment to Liberia, investment incentives should be ear-marked for essential industries which could bring economic benefits to Liberia’.  He argues that ‘Investment incentives should not be given to investors whose only intention is to force another investor out of Liberia and simultaneously siphon away revenues that could otherwise revamp the economy and stimulate development as the Dagonte Agreement and LICEMCO Agreement appear to be doing’.

Atty. Beyan opined that ‘investment incentives should never be used to dispossess the Liberian Government, Liberian entities and ordinary Liberians out of their equity participations in existing companies or to obstruct or undermine the Liberianization Policy and destroy business opportunities for Liberia as the Dagonte and LICEMCO Agreements appear to be doing in the trucking industry’. The lawyer believes that ‘CEMENCO’s current capacity is good for Liberia for the next ten (10) years’.

According to reliable information, ‘CEMENCO is developing a business plan and an expression of interest (“EOI”) to make an additional investment of US$20 million to expand its current plant. Such new investment of US$20 million will cover any demand that Liberia might have for the next 20 years’. Therefore ‘Liberia does not need a LICEMCO or Dagonte investment in a cement factory because the country already has a cement factory which meets the current market demand and the foreseeable market demand’. If LICEMCO and Dagonte must get investment incentives to open factories in Liberia, the lawyer argues that ‘then the same investment incentives should be given to CEMENCO so that there will be open competition on a level playing field’

In his view, ‘these two (2) new investment incentives agreements will force CEMENCO out of business and this will be inimical to Liberia and its economic development policy and growth’.

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