‘Law violated in contract award to Australian firm’

KABUL (Pajhwok): The Afghanistan Chamber of Commerce and Industry (ACCI) on Sunday criticized an agreement on surveying the country’s mines with an Australian company, saying the agreement was signed in violation of the Mining Law.

According to a Pajhwok Afghan News report, the Ministry of Mining and Petroleum (MoMP) in coordination with the Presidential Palace Investment Facilitation Unit had signed Frame Work Deed of Agreement for the Development of Mining with Australian Fortescue Future Industries PTY LTD on September 27/2020.

Some sources in the report had said that the agreement is signed in violation of the Mining Law and Wolesi Jirga’s Environmental Protection Commission had said that they would investigate the accord.

ACCI today in a meeting also expressed concern over the agreement and called it in violation of the Mining Law of Afghanistan.

Shafiqullah Attayee, ACCI acting head, talking to the meeting, said that it was a matter of concern that the mines study contract in 17 provinces of the country had been awarded to Fortescue Future Industries PTY LTD without any bidding process.

“Mines are important sources which the nation sees as a great asset, awarding the contract of survey of mines to this company without following a procedure can damage the morale of investors both national and foreigners in the mining sector,” he said.

He questioned whether the government was aware about the background of the company or had read the contents of the agreement in accordance with the Mining Law or not.

Nasib Aziz Baik, operative director of Gemstones Exporting Association, who attended the meeting, also said that the agreement with the Australian company would discourage local investors to invest in the mining sector.

He said that the government had to study the background of the bankrupt company and assess its capabilities.

“We have several times referred to the government for this contract on every level, but the Ministry of Mines and Petroleum had no any intention to give the contract to us,” he said.

He said domestic companies were not given even the contract of one province, but Fortescue Future Industries PTY LTD was given the contract of 1 7 provinces at once.

The private sector is concerned that the Afghan government cannot sign similar contracts with other companies in the next five years, something mentioned in the agreement with Fortescue Future Industries PTY LTD, he said.

Some other participants of the meeting complained about insecurity and illegal extortions from exporters on the country’s highways.

They asked the government to ensure security on routes and fight corruption and extortions.

Mds/ma

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