Deal #3458

Location #1

Spatial accuracy level
Coordinates
Location
Kakata, Liberia

Latitude
6.576951114755688
Longitude
-10.311759481201193
Target country
Liberia
Comment on location
Salala Rubber Corporation is situated in Dining-Ta Clan, 8 km west of the national highway and 19 km north of the provincial city of Kakata, Margibi County

Land area

Intended size (in ha)
8000.0
Size under contract (leased or purchased area, in ha)
[2007] 8000
Size in operation (production, in ha)
[2013] 4297
[2014] 4805
Comment on land area
Another source mentions 40468.8ha in 1959. Another source states size is 8800 ha.

Intention of investment

Intention of investment
Non-food agricultural commodities

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
Previous owners- 70 years from 1959 (1959/08/01)

Negotiation status

Negotiation status
[2007] Concluded (Contract signed)
Comment on negotiation status
Current owners took over the company in 2007. Previous owners acquired plantation in 1959.

Implementation status

Implementation status
[2007] In operation (production)
Comment on implementation status
It is not clear when and if the previous owners brought the land into production

Leasing fees

Comment on leasing fees
The company paid US$1,200 in surface rental for the period 1 July 2010 - 30 June 2011.

Contract farming

Contract farming
Yes
Not on leased / purchased area (out-grower)
Yes
Comment on contract farming
The corporation is also engaged in a smallholder program for local rubber farmers. In implementing this program, Salala provides budded rubber stumps of variety of clones to local farmers who are selling rubber to Salala. In addition to providing rubber stumps, Salala also provides technical support – (training of tappers, etc.) agricultural tools and chemicals (acid, fertilizers) for local farmers.

Contract #1

Contract date
1959-08-01
Duration of the agreement (in years)
70

Operating company

Comment on investment chain
Owned by Agrifinal and Socfinaf, both subsidiaries of Socfin; Salala plantation and factory are managed by Socfin Consultant Services. International Finance Corporation (IFC) has tabled all SRC’s loan application processes pending full scale investigation into the complaint filed against it by communities.

 

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Data source #1

Data source type
Company sources
File

Data source #2

Data source type
Research Paper / Policy Report
File
Comment on data source
RUBBER PRODUCTION IN LIBERIA: An Exploratory Assessment of Living and Working Conditions, with Special Attention to Forced Labor.

Data source #3

Data source type
Company sources
File

Data source #4

Data source type
Media report
File
Date
2012-09-20
Comment on data source
All Africa- Liberia: SRC closes rubber factory

Data source #5

Data source type
Company sources
File

Data source #6

Data source type
Other (Please specify in comment field)
File
Comment on data source
IFC project overview

Data source #7

Data source type
Company sources
File
Comment on data source
SOCFINAF Annual report 2012

Data source #8

Data source type
Government sources
File
Comment on data source
Leiti 4th Reconciliation Report

Data source #9

Data source type
Company sources
File
Comment on data source
Socfin 2014 Sustainability report

Data source #10

Data source type
Media report
File
Comment on data source
Salala Rubber Corporation Aiming to Complement Liberian Government

Data source #11

Data source type
Contract
File
Open Contracting ID
ocds-591adf-6304126551

Data source #12

Data source type
Media report
File
Date
2017-05-25
Comment on data source
Swedish Human Rights Groups Investigates SRC, LAC Abuses

Data source #13

Data source type
Media report
File
Publication title
SRC’s Investment Faces Hiccups
Date
2019-07-04

How did the community react?

Community reaction
Rejection

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
communities filed a complaint with the Compliance Advisor Ombudsman (CAO) at the IFC on 27 May 2019 alleged that the expansion has undermined their livelihoods and has been accompanied by violence against women and community leaders.

Promised or received compensation

Received compensation (e.g. for damages or resettlements)
One report states compensation was not paid.

Promised benefits for local communities

Promised benefits for local communities
Education
Comment on promised benefits for local communities
"He revealed that his company in 2014 started the construction of a six classroom school building for the benefit of the citizens of Kwata but had to halt the work due to some disagreement that ensued between management and citizens of the town."

Materialized benefits for local communities

Comment on materialized benefits for local communities
"He revealed that his company in 2014 started the construction of a six classroom school building for the benefit of the citizens of Kwata but had to halt the work due to some disagreement that ensued between management and citizens of the town."

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
communities filed a complaint with the Compliance Advisor Ombudsman (CAO) at the IFC on 27 May 2019 alleged that the expansion has undermined their livelihoods and has been accompanied by violence against women and community leaders. Compliance Advisor Ombudsman (CAO) responded to the communities that their complaint meets its three eligibility criteria in June 2019. on Monday, May 27, 2019 a coalition of ten international NGOs, filed a lawsuit against the French Bollore Group.

Former land owner (not by constitution)

Former land owner
Private (large-scale farm)
Comment on former land owner
Plantation was in need of rehabilitation once SOCFIN took them over.

Former land use

Former land use
Commercial (large-scale) agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Rubber tree

Use of produce

Has export
Yes
Comment on use of produce
World wide

In country processing of produce

In country processing of produce
No
Comment on in country processing of produce
Rubber processing plant shut down in 2012.

Overall comment

Overall comment
Old plantation in need of rehabilitation.IFC sponsored this project between 2008-2012.

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