Mining: Ebonyi Govt Warns Against Mismanagement of Community Development Funds
From Nabob Ogbonna, Abakaliki
The Ebonyi State Government has warned host mining communities against the diversion and mismanagement of funds earmarked for community development and the empowerment of indigenes in areas where mining activities are taking place.
The warning followed the government’s observation of alleged sharp practices in the implementation of social responsibility obligations by mining companies towards their host communities, particularly in Ameka Autonomous Community, Ezza South Local Government Area of the state, where lead mining is ongoing.
The Commissioner for Solid Minerals Development, Chief Chinedu Nkah, issued the warning on Thursday during the formal presentation of funds, scholarships and other support to members of the Ameka community by First Patriots Limited, a mining company operating in the area.
Nkah, who noted that protests had erupted among some indigenes of the community over the handling of benefits accruing from mining activities, insisted that all benefits provided under Community Development Agreements (CDAs) must be transparently accounted for and delivered to their intended beneficiaries.
The commissioner said the state government would no longer tolerate a situation in which mining companies made payments or provided benefits to a handful of community leaders without disclosing the amounts involved, the purposes for which the funds were intended or how they would be distributed among the wider community.
He explained that the administration of Governor Francis Nwifuru had introduced stricter measures to promote harmonious relationships between host communities and mining companies, while ensuring that the benefits of mineral exploitation were equitably distributed.
According to him, the Community Development Agreement framework was introduced to address longstanding complaints by mining communities that they had been deprived of the benefits accruing from the exploitation of mineral resources in their areas.
“In the past, mining communities were cheated and ripped off. We want communities in Ebonyi State to begin to benefit from companies mining in their areas. That is the essence of the CDA,” Nkah explained.
He added that the Ministry of Solid Minerals Development had directed mining companies to notify the state government before making financial or material presentations to their host communities, stressing that such transactions must be conducted transparently, properly documented and brought to the knowledge of the people concerned.
“Under my watch as Commissioner for Solid Minerals, I have told all the mining companies that, before you make any presentation, we must be aware. The community must be aware. It is no longer business as usual,” he said.
Nkah, however, cautioned the leaders of Ameka community against announcing scholarship beneficiaries or making commitments without complying with the prescribed verification and approval procedures.
He disclosed that the ministry had not received the list of proposed scholarship beneficiaries before the presentation ceremony and, consequently, would not validate the number of beneficiaries announced or proposed until the necessary consultations and verification exercises had been completed.
The commissioner stressed the need for due process in the selection of beneficiaries to ensure that scholarship funds and other forms of assistance reached the deserving members of the community rather than being allocated arbitrarily.
At the presentation ceremony, First Patriots Limited committed ₦20 million to scholarships, ₦10 million to apprenticeship programmes and skills acquisition, and ₦5 million to support the August meeting of Ameka women. The company also provided 10 motorcycles for the community’s security outfit.
The interventions were presented as part of the company’s obligations and support to its host community under the Community Development Agreement framework.
Speaking at the event, the Chairman of the Ameka Community Development Agreement Implementation Committee, Mr Chibueze Uguru, said the committee had been working to promote peaceful mining operations and ensure compliance with the agreement reached between the community and the company.
Uguru said the committee remained committed to fostering a peaceful working relationship between the host community and the mining company, while ensuring that the provisions of the agreement were implemented for the benefit of the people.
