Minister for Lands and Natural Resources Mr Samuel Abu Jinapor has imposed a fine of $6,000,000.00 or cedi equivalent at the prevailing commercial rate on Maxam Ghana Limited for some regulatory infractions during a recent operation.
Maxam is the company at the centre of the explosion that occurred at Appiatse in the Prestea Huni-Valley Municipality of the Western Region, which killed some 13 people and razed the entire community down.
A statement issued by the Mr Abu Jinapor who is also the Member of Parliament (MP) for Damongo, explained that the $6 million is made up of a fine of $1 million and $5 million, which the company agreed to pay to Government after extensive discussions with the ministry.
The fine was imposed after the Report of the three-member Committee constituted by the Minister to undertake independent investigations into the matter affirmed some regulatory breaches on the part of the company, in the manufacture, storage and transportation of explosives for mining and other civil works.
Hefty fines
The statement noted that even though the penalties for the said breaches range between GH¢600.00 and $10,000, the Lands and Natural Resources Minister decided to imposed the hefty fine due to the nature and the totality of the circumstance leading to the tragic incident.
“These breaches, per L.I. 2177, attract fines ranging from six hundred cedis (GH(t600.00) to ten thousand United States dollars (US$10,000).
“Nonetheless, having regard to the nature and totality of the circumstances leading to this tragic incident, I, as the Minister responsible for Lands and Natural Resources, and, therefore, the overseer of activities in the sector, have imposed an administrative fine of the cedi equivalent of one million United States dollars (US$1,000,000.00), at the prevailing commercial rate, on Maxam.
“In addition to the fine, it has been agreed, after extensive discussions with Maxam, that the company will pay to the Government, the cedi equivalent of five million United States dollars (US$5,000,000.00) also at the prevailing commercial rate. For the avoidance of doubt, the total amount payable by Maxam to the Government stands at six million United States dollars (US$6,000,000.00) or its cedi equivalent at the prevailing commercial rate.
“Maxam shall pay the fine of one million United States dollars (US$1,000,000.00) or its cedi equivalent at the prevailing commercial rate before the restoration of its permit to manufacture, store, supply and/or transport explosives.
“Given the demonstrable cash inflows of Maxam and their current circumstances, the remaining five million United States dollars (US$5,000,000.00) shall be paid in eighteen (18) equal monthly instalments, beginning from 1st March, 2022 to 1st August, 2023.
“Maxam shall, therefore, pay to Government, on 1st March, 2022 and on every first day of each month, until final payment, an amount of two hundred and seventy-seven thousand, seven hundred and seventy-seven United States dollars and seventy-eight cents (USD277,777.78) or its cedi equivalent at the prevailing commercial rate.
“The imposition of the fine and agreed sum to be paid, is without prejudice to any criminal or civil liability Maxam may be subject to”, the statement added.
Remedial measures
It said Mr Abu Jinapor has also set out 14 conditions to be met by the company before the restoration of their operating permit.
The measures include a ban on the transportation of Ammonium Nitrate and Fuel Oil (ANFO) on a public road to a mine or civil work site unless expressly permitted by the Chief Inspector of Mines.
Other measures, the statement added, include explosives being guarded by two escort vehicles, one in front and one at the back, both having sirens to warn people about the explosives.
Furthermore, the company is to notify the Chief Inspector of Mines of their intention to transport explosives, 48 hours before the scheduled transportation, and mine inspectors are to inspect every transportation to ensure that all regulations and protocols are complied with.
According to the Minister, the 14 measures are to apply, fully, to all companies involved in the manufacture, supply, transportation, and use of explosives.
Other sanctions
The Statement indicated that sanctions against Jocyderk Logistics Limited and Arthanns Enterprise and Transport Services, two entities involved in the Appiatse tragic incident are being reviewed and will be applied and communicated in due course.
It explained that the Ministry is putting in place the necessary measures to ensure that mining and mine support services, are conducted in a safe and healthy environment that poses no danger to life or property.
Maxam Agrees To Pay $6M Fine
Meanwhile, Maxam Ghana Limited has reluctantly agreed to pay the $6 million.
In a statement issued by the Company yesterday shortly after the Minister communicated the imposition of the fine to Ghanaians, Maxam stated that although the breaches found by the Minister did not cause the incident, the company had decided to pay the fine and comply with the measures imposed by the Minister.
Maxam said based on a different interpretation of the law, they did not believe they committed any regulatory breaches. However, to ensure the continuity of their business, and to be able to supply their customers and protect the employment of their workers, they will pay the fine imposed by the Minister.
It has also agreed to pay the additional $5 million due to their commitment to Ghana and its welfare.
The company has also pledged to ensure full compliance with the new regulatory measures announced by the Minster to ensure that their operations are in accordance with the laws of Ghana and international best practices.
