Nimba County District #2 Representative, Nyan G. Flomo, has expressed strong discontent with ArcelorMittal Liberia (AML) for failing to release the 20% Social Development Fund that is crucial for the development of mines-affected communities in his district.
In his recent annual report to his constituents, Rep. Flomo stated that multiple projects that were planned for communities impacted by mining operations have been delayed due to AML’s failure to disburse the funds.
According to the lawmaker, the 20% Community Development Fund—an annual allocation from AML to assist affected communities—has not been released, undermining the well-being of the citizens and leaving vital projects in limbo.
“Disappointingly, the AML department responsible for managing the 20% Community Development Fund has demonstrated a high degree of inefficiency and ineffectiveness,” Rep. Flomo said. “This has grossly delayed implementation, undermining the happiness and satisfaction of our citizens in the operationally impacted or frontline communities.”
The lawmaker further explained that despite several written communications and numerous meetings with AML representatives, no action has been taken to release the funds. “We have written numerous communications, called for meetings, and attended discussions with AML, but to no avail,” Flomo added.
Rep. Flomo revealed that during his predecessor’s term in 2022, a district sitting allocated approximately US$157,000 for eight key development projects.
These included the construction of a public school in Gboa Yeela, a clinic in Zuluyee, and a town hall in Boapea. Additionally, renovations were planned for several public schools in Vehyipa, Dahnlopa, and Zeahsonnon, while the Zorwee and Sehyikimpa town halls were to be completed. These projects, Rep. Flomo emphasized, have not yet materialized due to the delay in releasing the funds by AML.
“This is a direct result of AML’s failure to honor its commitment to these communities,” Rep. Flomo stated.
The lawmaker pointed to the 2024 resolution, which called for adjustments to the originally planned projects. These included reallocating US$44,000 that was initially earmarked for handpumps to instead install solar-powered water systems in several towns, including Makinto #2, Vanyanpa, Sopea, and Vehyipa.
In addition, US$8,000 from the 2022 budget and US$7,500 from the 2024 budget were combined to fund a 4-kilometer road grading project linking Zeahsonnon with Gbeinfeela. Despite the resolution’s approval, the projects remain stalled due to AML’s inaction.
“AML has not conducted a new bidding process as mandated by the resolution, nor have they taken steps to implement the adjusted plans,” Flomo said, expressing frustration over the continued delay.
The controversy surrounding AML’s failure to release the funds is particularly sensitive, given the historical context. The communities in question are located near AML’s Tokadeh mining site, which has long been a source of tension.
In 2014, youth in these mining-impacted areas staged violent protests, causing millions of dollars in damages to AML properties after feeling neglected by the company.
Under the Mineral Development Agreement (MDA), AML is required to contribute US$1.5 million annually in social development funds to Nimba County. Of that amount, 20%—approximately US$300,000—is designated specifically for the mines-affected communities.
However, this portion of the funds, which are meant to support community development, remains unreleased, leaving citizens to question the company’s commitment to its obligations.
“The community is suffering. This money is meant for their benefit, yet AML has failed to release it despite their clear obligation under the MDA,” Rep. Flomo said. “We will not sit idly by while the needs of these communities are ignored.”
The lawmaker also noted that he has made efforts to reconcile and unite the district’s residents, including those who opposed him in the 2023 elections. His office has also advocated for the construction of the much-needed ‘Dry Port’ along the Ganta-Saclepea Highway, which remains a stalled project.
Rep. Flomo’s frustrations are echoed by local leaders. Amos Gbatu, the Administrative Commissioner of Bain-Garr District, expressed disbelief over AML’s failure to act on the community’s needs. “Why is it taking so long for AML to release the funds and help our people?” Gbatu questioned.
The situation has sparked growing discontent among the citizens of Nimba. On the popular Facebook page Nimba Future Generations, many citizens from Yarmin Administrative District—part of District #3, represented by Rep. Nehker E. Gaye—accused their representative of not doing enough to push AML to meet its obligations. “Rep. Gaye has been weak in pressing AML to live up to its MDA,” one post read.
Efforts to reach ArcelorMittal Liberia’s Communications Department for comment on the matter have so far been unsuccessful. The Daily Observer contacted AML’s communication manager via email on Tuesday, April 28, 2025, but no response was received by press time.
Rep. Flomo concluded by emphasizing that the ongoing delays are not just an inconvenience but a betrayal of trust for the citizens of Nimba. “The funds belong to the people,” Flomo said. “I will continue to fight for them, and I will hold ArcelorMittal accountable for its failure to honor its commitments.”
