Liberia Loses USD 15million To Sand Miners Annually -Integrity Watch Findings Reveal; Proposes Frame

By: Anthony Q. Jiffan, Jr.

MONROVIA: Most recent findings of Integrity Watch Liberia have revealed that a total of over US$15 million is generated annually by seven of the several sand mining and quarrying industries at the detriment of the country without substantive benefits to the citizens.

Integrity Watch Liberia is the Secretariat of the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), chaired by River Gee County Senator, Francis Dopoe.

Presenting the findings along with recommendations to the APNIFFT recently at the Capitol Building in Monrovia, the Executive Director for IWL, Harold Aidoo, said the latest findings show his institution’s comprehensive study on the sand mining and quarrying industry, but proposed that policymakers should consider implementing measures to stabilize revenue streams, such as improving regulatory frameworks, promoting sustainable practices, and diversifying market channels.

“By addressing these underlying factors, the industry can enhance its contribution to domestic revenue mobilization and economic development, enhancing equitable growth and sustainable resource management,” he noted.

Reading the findings of studiers for four years spanning over 2020 to 2o23, Aidoo averred that the the study shed light on the diverse financial landscape within the sector, and added that analysis of revenue data in the sector spans multiple companies through fiscal years.

Mr. Aidoo further stressed that the study highlights significant variations in operational scales and market impacts, stating that in the findings shows that Ever Bright Sand Mining Beach raises average revenue of US$3,809.09 and US$1,146,536.36 million per year, while Fengshou Quarry earns US$8,738.18 daily and US$2,630,192.73 million per annum.

The findings of which copies are in possession of this media entity further shows that Grass Field River Sand Mining Corporation makes US$815 and US$245,315 daily and annually respectively, while High Investment Incorporated generates US$4,370 daily and US$1,315,370 million yearly on the average.

In furtherance, the IWL disclosed that Leeche Investment Incorporated earns US$7,895.45 per day and US$2,376,531.42 per year as Light Investment Incorporated makes US$5,512.50 and US$1,659,262.50 daily and annually respectively.

The findings also highlight Z&C Rock Crusher generating US$19,643 daily and US$5,912,543 per year.

Elaborating further on the table containing the average revenue generation of those companies, Harold Aidoo maintained that the values in the spectrum of daily revenues spans from as modest as US$815 for Grass Field River Sand Mining Corporation to a remarkable US$19,643 for Rock Crusher.

He asserted this indicates a diverse range of operational scales and market impacts within the industry, emphasizing that such disparities are mirrored in the annual figures, with the former generating US$245,315 and the latter a significant US$5,912,543; something Mr. Aidoo said underscores considers the vast differences in economic advantages throughout among the companies.

Speaking more on the data, the Executive Director of Integrity Watch Liberia indicated that larger companies like Z&C Rock Crusher stands out with substantial revenue figures, demonstrating the significant market impact and operational scale, noting that smaller entities operate at more modest levels, contributing to local employment and meeting regional demand.

In addition to company-specific data, Harold Aidoo intimated that the study also examines broader trends in revenue generation within the industry, indicating that over a four-year period from 2020 to 2003, revenues from sand mining and quarrying activities in Montserrado and Margibi Counties exhibited fluctuations.

“Despite an initial increase from US$108,986.21 in 2020 to US$202,885.53 in 2021, there was a slight decline in 2022 to US$189,842.22, followed by another increase to US$210,294.44 in 2023,” the findings said.

Harold Aidoo also stressed that the findings underscore the importance of the sand mining and quarrying industry in contributing to domestic revenue mobilization, indicating that while larger companies play a significant role in driving economic output, smaller entities contribute to local employment and meet demands.

At the same time, Executive Director Aidoo emphasized the fluctuations in revenue over the four-year period highlighting the industry’s sensitivity to various factors, proposing that policymakers should consider implementing measures to stabilize revenue streams, such as improving regulatory frameworks, promoting sustainable practices, and diversifying market channels.

“By addressing these underlying factors, the industry can enhance its contribution to domestic revenue mobilization and economic development, enhancing equitable growth and sustainable resource management,” he noted.

Also providing the summary findings on tax incentives and implications for domestic revenue mobilization to the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), Harold Aidoo noted tax incentives play a significant role in attracting both domestic and foreign investments within the extractive robust industries.

According to him, Liberia has experienced substantial revenue loss due to tax expenditures, amounting to US$133.7 million and US$116.6 million in 2015 and 2016 respectively.

He averred that in the extractive sector, primarily mining accounts for a significant portion of tax expenditures, constituting 36.5% of revenues collected from the sector over a twelve-year period.

Commenting on the implications for domestic revenue mobilization, Mr. Aidoo among other things, stressed that addressing the challenges associated with tax incentives is crucial for enhancing DRM in Liberia.

Receiving the findings, the Chairman of the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), Senator Francis Dopoe thanked Integrity Watch Liberia for what he termed as an excellent research.

He said the submission of the findings is timely, helpful and will inform the decision of the 55th National Legislature to act in accordance with the recommendations and to right the wrong in the sector.