Sierra Leone News: Local Content Agency to Sue Dozens of Companies
By Stephen V. Lansana
Sierra Leone Local Content Agency (SLLCA) will take legal action against 39 companies that have failed to submit it local content plan, the Director General of the Agency said Friday.
Fodeba Daboh told this medium that in March this year, the Agency issued letter to 54 companies across various sectors as required by law to submit their local content plan within two weeks, adding that some of the companies asked for an extension period.
“But some of them have submitted it {local content plan}, whilst 39 companies failed to submit theirs,” DG Daboh said. Meaning, these 39 companies have breached the Sierra Leone Local Content Agency Act of 2016. But yesterday, Thursday September 12, 2019, we have submitted another letter to the defaulting companies, asking them to submit their local content plan.
He said that it is critical to note that as an Agency they are obliged to receive the company’s local content plan for review, adding that the local content plan shows what the companies have in mind to ensure that Sierra Leoneans are giving priority in terms of employment, capacity building and procurement tendering processes.
“Because the companies failed to submit their plans, they are now in breach of the Act. Therefore, our legal team within the Agency have decided to invoke section 69, 70, 71 and 72 of the agency’s Act which speaks to their punishments, fines and court action for breaching the Act,” DG Daboh emphasised. “But as for us, we see the work we do as not only a regulator but also as a facilitator. So we have decided to give seven days deadline for the 39 companies to submit their local content plan or face the full force of the law.”
He said that the penalties for breaching the Agency’s Act include: shutting down the operations of the companies, losing five or more percent of the total investment of the defaulters operation in the country, and imprisonment, among others.
He added that it is critical to note that President Bio said in his state opening speech that his government is determined to ensure compliance to the local content law. “So, it is unacceptable for us to settle for anything less than the proclamation of the president. That is the reason why we have decided to disclose our intention of taking legal action so that the companies will submit their local content plan within the seven days timeline. We are determined than never before. We are no longer doing business as usual. This Agency has a unique opportunity to ensure transformation of our economy.”
He said that section 40 of the Act states that companies most submit their local content plan, adding that this provision is not only for companies that they have in their database but for all companies operating in the country. He added that before a company starts operation in the country, it must submit it local content plan.
He commended those companies that submitted their local content plan, noting that the Agency’s mandate cut across every sector including work and construction, hospitality, mining and agribusiness to name but a few.
“The companies that have failed to submit it plans are big multinational companies. Let it be known that this time around, we are determined to ensure that the provisions in the Local Content Agency Act will be fully implemented,” he emphasized. “The government is determined to ensure compliance.”
“Local Content Agency is not an impediment to businesses in the country, but rather we just want the companies to operate in line with the Agency’s Act,” DG Daboh said.
