Exton Cubic threatens legal action over ‘gross abuse of executive power’

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Bauxite mining and prospecting firm, Exton Cubic Company Ltd, has threatened to take legal action to reverse the revocation of its mining lease by Ministry of Lands and Water Resources.

Mjoyonline.com has intercepted a correspondence between the firm and the Ministry in which Managing Director, Maxwell Amegashie, describes the decision by the government to revoke and invalidate its licenses to mine in Kyekyewere, Mpasaso and Kyirayaso, all bauxite rich areas in the Ashanti Region, as politically motivated.

“We are by this letter expressing our disappointment at your decision and state that the reasons for your action are not borne by the facts and evidence on record. We consider your action arbitrary and a gross abuse of executive power. We believe that such unfair treatment meted out to an indigenous Ghanaian company runs against His Excellency President Akufo-Addo’s mantra of ‘I believe in Ghana’”, the letter dated September 5, 2017 said.

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Lands and Natural Resources Minister, John Peter Amewu, recently revoked the mining lease granted Exton Cubic, although he had previously backed same.

Photo: John Peter Amewu

Ashanti Region Minister, Simon Osei, clashed with Mr. Amewu who had authorised the licenses. The Ashanti Region Minister faulted Mr. Amewu’s Ministry and the Forestry Commission for issuing the license to Exton Cubic to mine amidst a clampdown on illegal mining activities.

Related: Lands Minister revokes Exton Cubic's Mining contract

Related: Exton Cubic appeals to Akufo-Addo over mining lease cancellation

However, the Minister later explained that after consulting with the Attorney-General’s Department he has cause to declare as “invalid” the license granted the firm owned by the brother of former President John Mahama, Ibrahim Mahama.

Ibrahim Mahama

Photo: Ibrahim Mahama

Meanwhile, the revocation of the mining license is seen by many as fulfilling the desires of a section within the governing New Patriotic Party (NPP) who are unhappy that the huge bauxite potential of the country has been handed over to the family of a political rival, the National Democratic Congress (NDC).

Related: Joy News fact-checks claims by Minister in Exton Cubic drama

The intercepted letter warns the Lands and Natural and Water Resources Minister that the decision to revoke the leases threatens to jeopardise Exton Cubic’s massive investments and causes it to default in its agreements with partners.

“We wish to inform you that our company intends to do all that is possible within the remit of the law to protect and realise its rights under the Leases. Our lawyers have been instructed in this regard,” the letter concludes.