Harbel, Margibi County – Firestone Natural Rubber Company, a subsidiary of the Bridgestone Americas, Inc. , has sharply reacted to recent media reports regarding the amendment to the Amended and Restated 2008 Concession Agreement between the company and the Government of Liberia (GoL).
In a statement, Firestone Liberia, Inc. (FSLB), which operates the world’s largest contiguous rubber plantation since it first opened in 1926, says it vehemently condemns such media reports, describing same as being “simply wrong.”
“They are erroneous and inflammatory in nature and do not reflect the reality of the company’s agreement with the GoL,” Firestone Liberia maintains.
According to Firestone Liberia, it began negotiating the amendment in good faith with the Government of Liberia approximately four years ago, and throughout this process, the company says it has worked closely, openly, and in keeping with proper concession procedures with the GoL to arrive at an amendment that would provide critical support of the company’s Liberia-based operation, due to continued and unsustainable major financial losses.
“The company has worked and collaborated closely with the Office of the President, the National Investment Commission, the Ministry of Agriculture, the Ministry of Finance and Development Planning, the Liberian Revenue Authority, various Liberian and foreign Government legal advisors, the Inter-Ministerial Concessions Committee (“IMCC”), among other stakeholders,” Firestone Liberia said.
The company explains that the reasons for the amendment were clearly communicated to the Government and other stakeholders, and previously reported by other media, during the protracted negotiations over the past four years.
The primary objective of amending the Concession Agreement, according to Firestone Liberia, is to provide critical financial assistance to the company by extending certain Rehabilitation Term benefits included in the 2008 Concession Agreement, and lapsed December 31, 2015, for an additional 60 months after the date the amendment becomes effective.
The Rehabilitation Term provided for certain duty and tax relief as Firestone Liberia rebuilt its operations and business after the end of the Liberian civil conflicts, Firestone said, adding, “The only exclusivity provided in the amendment is what was already stipulated in the company’s 2008 Concession Agreement with the Government of Liberia – the ability to exclusively engage in production in the production area of Firestone Liberia.”
Firestone Liberia emphasized that while this amendment by itself will not solve the current financial issues facing the company, the company believes it is a critical show of support by GoL for private sector employment, employees of Firestone Liberia and their dependents, the country’s natural rubber industry, and the long-term viability of the largest private employer in Liberia.
