Repeal of law on Songhor Lagoon has many implications

The Minister of Mines, Mr Kwadwo Adjei-Darko on Friday said a repeal of the PNDCL 287 of the Ada Songhor Lagoon (site for salt industry) has many implications which needed thorough discussion between the government, the Ada Traditional Council and the companies involved in mining the salt.

He said there must be automatic restoration of the lease interests of Vacuum Salt Products Limited (VSPL) and Star Chemical Industry Limited (SCIL) since no compensation has been paid them by government whereas the law states that there must be compensation paid to them, but this has not been done.

Mr. Adjei-Darko said this in an answer to a question asked by Mr. Amos Buertey, NDC- Ada, as to how soon the ministry would initiate steps to fulfil the promise to have the Vesting law 1992, PNDCL 287 repealed by Parliament and return the project to its original owners.

He said there are about five options to solve the issue and these include payment of compensation of about 4.5 million dollars to the companies by government and giving out the land unencumbered to the original owners of the land.

Mr Adjei-Darko said other options are allowing VSPL and SCIL to continue their leasehold interests and run their companies, prolong the period of the interim management committee to enable it to work and pay the compensation due the two companies under the supervision of the Oversight Committee before the law is repealed.

He said other options are bringing in a strategic investor, who would pay up front the amount or joint ventureship, in which the companies and the Ada people may participate. The Minister said government has therefore, communicated these options to the Ada Traditional Council and emphasised that government would do what was within the law to benefit Ghana and the people of Ada.

Mr Adjei-Darko explained that since 1966 the Songhor Lagoon, which covers a total area of about 29,850 acres went through various processes of development and the government's interventions, however, peace and security of the area came under threat as the operations of the two companies sparked off litigation's, posing danger to the investment.

As a way of resolving the dispute the government of the National Redemption Council in 1974, compulsorily acquired the entire Songhor lagoon and the surrounding lands by Executive Instrument 30/74 and consequently executed two leases for separate areas in the lagoon to the two companies to carry on the salt mining industry.

Mr Adjei-Darko said in 1986 the Minerals Commission was created and in 1992 Ghana National Procurement Corporation was tasked by government to promote the development of 1,000 metric tonnes of salt per annum at the Ada Songhor lagoon area.

He said since the government does not want to deprive the people, the surface rights of the salt mines would be eventually handed over to the owners of the land, but expressed concern that up to date there has not been a clear evidence of who are the real land owners in the Ada area.

This answer brought a lot of heated debate between Mr. Buertey and Mr Enoch Teye Mensah, NDC- Ningo/Prampram on one hand and the Minister, asking him to clarify the position of government when the land would be returned to the original owners and whether there was a project task force in place.