Mining license revocation move turns sour on Balala

Last Updated 13 years ago by Kenya Engineer

 By Daisy Gakuu

Cortec Mining Kenya Limited Director, Jacob Juma on Friday claimed  the Cabinet Secretary for Mining, Najib Balala had demanded Sh80 million bribe from the company with an ultimatum to revoke the Company’s license failure to meeting the terms.

Mr. Juma claimed that on 6th July , the suspended Commissioner of Mines Moses Masibo called him and asked that they met at the Serena Hotel saying that Balala had demanded Sh80 million from him instead of rescinding the Cortec license for the exploration of rare metals and Nobium at Mrima Hills in Kwale.

Mr. Masibo was suspended on Monday on the same day that Hon. Balala cancelled mining licences issued between 14th January and May 15 affecting 31 companies, amongst them Cortec. Mr. Juma said that during the meeting, Mr.  Masibo called Hon. Balala on his mobile phone and put him on loud speaker.

 “l overheard the Cabinet secretary demanding for the money,” said Mr. Juma.

Mr. Juma said that Balala told them that he was away in Mombasa and that he would meet them on Monday, July 8th at his Kileleshwa house. On the 8th, they met up and Hon. Balala told him that he needed the money to buy a home in the city as he had sold his Karen home and spent the money on his campaigns during the last elections.

“The details of this conversation can be verified from Safaricom Limited between Juma’s cell phone number and that of Balala,” says Mr. Juma in a letter he has written to the Ethics and Anti-Corruption Commission demanding for an investigation. The letter is also copied to among others President Uhuru Kenyatta and the CID Director, Ndegwa Muhoro.

On Saturday, Hon. Balala refuted the claims.  He explained that the Cortec license had been cancelled because it was issued on March 7 following the March 4th elections.  Hon. Balala said that no licenses ought to have been issued.

However, Mr. Juma claimed Cortec was issued with a special mining license number 256 in 2007.  “What happened this year is that our license was validated to allow us go into actual mining. But our special mining license number 256 was issued under section 17 of the mining act in 2007. It was renewed in 2011 for two years and will expire in 2014,” he said.

“I have told Juma that his license has a problem and has to be reviewed. If it is clean, he will have it back. If it is not, then there is a problem,” Hon. Balala said.

Additionally, speaking at Memon Villa in Mombasa after attending Eid prayers on Friday, Hon. Balala said that minerals are national assets that must be protected.

“We will not indulge in politics. The reviewing of licenses was done to ensure that the resources benefit the local people and the country,” he said.

This was with efforts to counter Cortec’s claims that the Government was warming up to the Chinese and hence the move to revoke the mining licenses, adding that Cortec was the main target since it was the only operational company. (Read:Mining License revocation,a Chinese Conspiracy to control the niobium market-Cortec)

In response, Hon. Balala said that even the Chinese are investors and stakeholders just like Kenyans in the mining industry. “Anyone with issues should bring them before the taskforce which we set up,” said Hon. Balala.

The Cabinet Secretary appointed a task force with Mr. Mohammed Nyaoga, a Nairobi lawyer, as the Chair, to assess the validity of licenses issued between January 2003 and August 2013, draft recommendations and provide a report to the cabinet secretary for him to take necessary action within 60 days.

Speaking in Kwale on Saturday, the Deputy President, Hon. William Ruto defended Hon. Balala’s decision to revoke all mining licenses of 43 companies including Cortec.

“We are not in war with investors all we need is sanity in the industry to ensure those interested in mining are following the law,” said the deputy president.