Govt departments, investor differ on compensation

There are conflicting reports over disputed compensation to communities around Malingunde, Lilongwe, where graphite is being explored. The Australian investor says relevant departments were involved in the process while the Ministry of Lands says it is yet to conduct an assessment.

This follows a Nation on Sunday story a fortnight ago, which exposed frustration of villagers whose land is being used for exploration of graphite—a flake essential in making batteries for cell-phones, among other purposes.

Communities told Nation on Sunday that they were paid as low as K700 to have their land, including crop fields, used for exploration.

But, in an interview this week, Sovereign Metals Limited (SVM)country manager, Andris Kruger said they paid communities disturbance allowance based on government approved rates, following an assessment by Ministry of Lands and the District Commissioner’s office..

“Our disturbance allowance is based on government calculations. The Lands office did the valuation and people were paid according to their size of land which was to be used and, if there were crops to be disturbed, we considered that. We did this in a transparent manner. The Lands people were there and representatives from the Department of Mining and chiefs signed for this arrangement,” said Kruger.

He refused to disclose the total disturbance allowance they paid to the affected community, claiming government ordered him not to share such information.

But in a telephone interview, Lilongwe district commissioner (DC) Lawford Palani distanced his office from the assessment claims.

According to the DC, such matters were handled by the Ministry of Lands, Housing and Urban Development, (MoLHUD), arguing that his office’s role was only to raise awareness about the project.

In an interview, Ministry of Lands spokesperson Charles Vintulla when pressed whether compensation for the Malingunde communities said they are yet to do an assessment.

“Compensation assessments are indeed done by MoLHUD, but actual payment is done by the developer or investor, the ministry is not allocated any direct money for this purpose. The ministry got a request from the mining company to carry out the valuation in respect of compensations, and it is yet to carry out the exercise orderly,” he said.

Traditional Authority (T/A) Masumbankhunda, in whose area the exploration is taking place, said in as far as he is concerned, chiefs were not involved in the compensation that was paid.

“We were only asked to raise awareness on the matter. I would be lying to you if I say there is any chief who witnessed the actual payment of money, at least from what I know.

“I have heard a lot of people complaining of being given small amounts, but what can we do. We do not understand (mining) processes and we depend on government for information,” explained the T/A.

According to the Mines and Minerals Act, the investor or licence holder also has the primary responsibility to rehabilitate the land affected by their operations. The Act further empowers the minister to order that compensation be paid to the occupier of the land and also that the DC may facilitate lodging the claim for the payment of the compensation.

“Merely, paying monetary compensation and failing to rehabilitate land which has been clearly damaged by prospecting or mining operations is in breach of the Mines and Minerals Act,” reads the law.

When Nation on Sunday visited the affected villages, two weeks ago, the extent of the damage to some crops and land was quite conspicuous with some families expressing fear of a possible low yield. But Kruger insisted that the land was duly rehabilitated.

Commenting on the matter, land law expert Chikosa Silungwe blamed government for exposing communities to abuse, saying there was need for duty bearers to stand in between the people and the investor.

He also stressed that although government is required to do valuation, the final decision to have the land used for either exploration or mining should rest in the lawful occupier of the land or owner whose informed consent must be sought before any commencement of an activity.

“The law also empowers the minister to approve such amounts to be paid to the people. That said, whatever arrangement is there, it is within the right of the occupier to refuse the money being offered and demand that the minister mediates,” said Silungwe.

He further argued that government is duty-bound to protect the interest of the citizenry such that in the circumstances, there was need to negotiate on whom may not have sufficient knowledge to understand issues of mining. behalf of the people, most of

“Much as they want to attract direct foreign investment, government should always remember the interest of the people must come first. If what I am hearing is true, then I am shocked at the conduct of government. How do you prospect over my land and give me K1 000 and say ‘this is enough for you’. You are riding over people’s ignorance and the State has a duty to ensure that the interest of the people are protected,” he added.

Minister of Mines and Natural Resources Aggrey Masi, who has ultimate authority over issues of mines, referred the matter to the ministry’s  chief mining engineer Cassius Chiwambo.

According to Chiwambo, the issue of compensation at this level does not involve them, but the Ministry of Lands.

Put to him that the Mines and Minerals Act empowers them to act on such matters, Chiwamba changed tune, saying the ministry will investigate the matter, somehow blaming Lands Ministry of not providing them with information on the issue.

“Seriously, this is an issue we cannot just let go, then we are not serving the interest of the people. We have to serve the interest of Malawians, that of the investor and government as a shareholder, in order for us to develop this country. We cannot let Malawians suffer,” he said, adding that should it be established that the money paid to people was low, the company  maybe asked to pay more.

Meanwhile, Eddy Kalonga chairperson for Malingunde Community Action Group, which is championing community advocacy in the proposed mining area, warned of legal action if the rates paid to communities are not revised.

Activist Kossam Munthali, who is also chairperson of Natural Resources Justice Network, said poor Malawians need to be protected in such ventures

“We need proper laws to put Malawians first, protect the citizens. K700, what basis? K15 000 what basis? That’s madness. We condemn this in strongest terms and let government come and protect its citizens,” he pleaded.

In 2016, International Accountability Project (IAP), conducted research in the communities of Dedza and Lilongwe districts that were affected by the Diamphwe Multi-purpose Dam where similar complaints of poor compensation were registered. n