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Minister Nuetah Clarifies LAC Compensation Issue; Says Government Still Owes Farmers Over US$200,000

Ministry of Agriculture
Minister Nuetah Clarifies LAC Compensation Issue; Says Government Still Owes Farmers Over US$200,000
Minister Nuetah Clarifies LAC Compensation Issue; Says Government Still Owes Farmers Over US$200,000

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Grand Bassa County – Agriculture Minister Dr. J. Alexander Nuetah has clarified that the Liberia Agriculture Company (LAC) does not owe affected communities compensation for rubber trees removed during the expansion of its plantation, contrary to claims.

Speaking during a meeting with LAC management, elders, and residents of aggrieved communities near the company’s concession area in Grand Bassa County, the Minister disclosed that the Government of Liberia still has an outstanding balance of over US$200,000 owed to farmers under a previous compensation arrangement.

Dr. Nuetah explained that the issue dates back to 2004, when a government committee established under the administration of former Chairman Gyude Bryant assessed compensation claims by farmers whose rubber trees were affected during the expansion of LAC’s operations.

The committee, chaired by then Agriculture Minister George Karmea, determined that compensation for each mature rubber tree should be six United States dollars (US$6).

Under the arrangement endorsed by the Government of Liberia, responsibility for payment was shared between LAC and the Government, with the company paying US$3 per tree and the Government responsible for the remaining US$3.

“Based on the records available to the Ministry, LAC fulfilled its obligation under the agreement and made its payments to the affected farmers,” the Minister told community members.

He noted that the Government of Liberia has already paid approximately US$67,000 toward its share of the compensation, but more than US$200,000 remains outstanding under the 2004 agreement.

The Minister emphasized that the purpose of the engagement was not to renegotiate the terms of the agreement but to review the status of the outstanding payments.

“We are not coming here to discuss a new price or conduct a new assessment. What was agreed upon in 2004 as the price stands. Payments began in 2005, and in 2006, 2007, and 2008, the government made some payments,” Minister Nuetah explained.

The meeting followed a petition from elders of Compound #3 and surrounding communities, who called on the government to intervene in the long-standing matter.

Minister Nuetah assured community leaders that their concerns will be presented to President Joseph Nyuma Boakai and relevant authorities for review, adding that he will return to the community within one month to communicate the government’s decision and the way forward.