Ebonyi govt warns mining host communities, firms against sharp practices

The Ebonyi State Government has issued a stern warning to mining communities and firms in the state regarding the diversion and mismanagement of funds intended for the development and empowerment of local residents. The concern stems from allegations of unethical practices by mining companies towards host communities, particularly in Ameka autonomous community, situated in the Ezza South local government area where lead mining operations are underway.

Commissioner for Solid Minerals Development, Chief Chinedu Nkah, made the warning during the official presentation of scholarships and other support packages to students and women by First Patriots Limited, a mining firm operating in the Amaka community. Nkah, who had witnessed protests by some local residents, emphasized that the benefits derived from Community Development Agreements (CDAs) must be transparently accounted for and delivered directly to the intended beneficiaries.

He criticized the practice where mining companies pay a limited number of community leaders without providing details about the amounts or the intended purposes of the funds. The state government, under Governor Francis Nwifuru, has introduced stricter measures to foster better relations between host communities and mining companies. Nkah explained, "The CDA framework is designed to address longstanding complaints that mining communities were deprived of the benefits of mineral exploitation by mining firms."

Under the new framework, mining companies are required to notify the government before making any presentations to host communities, and these transactions must be conducted openly and documented. Nkah further cautioned mining company leaders against making announcements or commitments without adhering to the prescribed verification and approval procedures.

He stated that the ministry had not been informed about the scholarship list presented by First Patriots Limited, and they would not validate the proposed number of beneficiaries until the necessary checks and consultations had been completed.

The presentation involved N20 million allocated for scholarships, N10 million for apprenticeship and skills acquisition, N5 million for the Ameka women's August meeting, and the provision of 10 motorbikes for the Ameka security outfit. Mr Chibueze Uguru, Chairman of the Ameka Community Development Agreement Implementation Committee, affirmed that the committee was committed to promoting peaceful mining operations and ensuring adherence to the agreement between the community and the mining company.