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Open Letter from CEO of Herakles Farms in Response to Report On ...

Open Letter from CEO of Herakles Farms in Response to Report On ...

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economic might <strong>of</strong> the concession area, HF would have realized that the people <strong>in</strong> Nguti, for <strong>in</strong>stance, are<br />

self-sufficient, surviv<strong>in</strong>g very well <strong>in</strong> their natural environment and allow<strong>in</strong>g nature <strong>to</strong> thrive. I have been<br />

go<strong>in</strong>g <strong>to</strong> this area <strong>to</strong> study the socio-economic situation <strong>of</strong> the people for the last 15 months. I will<br />

describe the Nguti sub division as one <strong>of</strong> the richest <strong>in</strong> Cameroon. Take the village <strong>of</strong> Ntale, for <strong>in</strong>stance.<br />

Ntale is made up <strong>of</strong> over 1000 cocoa farmers, accord<strong>in</strong>g <strong>to</strong> the village head, Chief Ajang Samuel. The<br />

smallest cocoa farmer I met was An<strong>to</strong>nio Enobi with 10 hectares <strong>of</strong> cocoa. Averagely he harvests 300<br />

kilograms <strong>of</strong> cocoa per hectare. This puts him <strong>in</strong> the neighborhood <strong>of</strong> 3 <strong>to</strong>ns a year. A <strong>to</strong>n <strong>of</strong> cocoa <strong>in</strong><br />

Ntale costs FCFA 850,000. An<strong>to</strong>nio makes about FCFA 2,550,000 a year. Other farmers <strong>in</strong> Ntale recruit<br />

over 20 labourers dur<strong>in</strong>g the cocoa peak season <strong>of</strong> about three months.<br />

<strong>On</strong> no occasion will An<strong>to</strong>nio have earned FCFA 212,500 a month if he was employed as a labourer by<br />

HF. Presently, HF pays about FCFA 60,000 a month for general labour. HF has also <strong>to</strong>ld its workers that<br />

once the company has its authorization, this amount will drop <strong>to</strong> FCFA 30,000. Young An<strong>to</strong>nio Enobi<br />

could, alone, pay 7 wages <strong>from</strong> his monthly <strong>in</strong>take. So if the Oakland Institute <strong>Report</strong> claims that people<br />

had been liv<strong>in</strong>g happily, then they are right. It is certa<strong>in</strong> that HF has its eyes on the 10 hectares <strong>of</strong> land<br />

An<strong>to</strong>nio is farm<strong>in</strong>g. Bruce Wrobel says they are not go<strong>in</strong>g <strong>to</strong> take farms. I wish he could expla<strong>in</strong> what he<br />

means by pay<strong>in</strong>g land rents <strong>of</strong> US$1.00 for developed land. Developed land here will mean all land<br />

which was formerly occupied by cocoa and other crops. Is it possible that the government <strong>of</strong> Cameroon<br />

believes that a hectare <strong>of</strong> land is worth only FCFA 500 a year? If it so believes, then the vision 2035 will<br />

only be realized <strong>in</strong> 6025. Tak<strong>in</strong>g the land <strong>from</strong> the people <strong>of</strong> Nguti and giv<strong>in</strong>g it <strong>to</strong> HF will send the local<br />

population 4 centuries back. HF knows this.<br />

Bad Arithmetic<br />

Section 13.5 <strong>of</strong> the Convention concern<strong>in</strong>g Surface Rental states; Commenc<strong>in</strong>g on the Effective Date for<br />

Inves<strong>to</strong>r and cont<strong>in</strong>u<strong>in</strong>g through out the Term, Inves<strong>to</strong>r shall pay annual surface rent <strong>to</strong> Government <strong>of</strong><br />

US$1.00 per hectare for State Land that is Developed Land, and US$0.50 per hectare for State Land that<br />

is not Developed Land.<br />

It is unbelievable that HF <strong>in</strong>tends <strong>to</strong> destroy crops on Developed Land which fetches <strong>in</strong>digenous farmers<br />

FCFA 400,000 (US$800.oo) a year, only <strong>to</strong> pay a pittance <strong>of</strong> FCFA 500 or US$1.00 <strong>to</strong> government as<br />

annual rent for land. Each <strong>to</strong>n <strong>of</strong> cocoa that is shipped <strong>from</strong> Cameroon pays cus<strong>to</strong>m export duties <strong>of</strong> over<br />

FCFA 75,000. HF tactfully, <strong>in</strong>cluded a clause <strong>in</strong> the convention exempt<strong>in</strong>g it <strong>from</strong> all forms <strong>of</strong> import or<br />

export duties for the Term <strong>of</strong> the contract (99 years exemption <strong>from</strong> duty). It means Cameroon will be<br />

los<strong>in</strong>g FCFA 475,000 a year <strong>from</strong> a hectare <strong>of</strong> cocoa <strong>to</strong> make FCFA 500 <strong>from</strong> a hectare <strong>of</strong> land<br />

surrendered for HF palm oil plantations.<br />

Local people also stand <strong>to</strong> lose an important source <strong>of</strong> their non timber forest products like Njangsanga,<br />

African bush mango, black pepper, bitter cola, eru and others. These products have both nutritive and<br />

medic<strong>in</strong>al value, tested and proven by both alternative and modern medic<strong>in</strong>e. Most African countries<br />

depend on the forests <strong>of</strong> Cameroon for these resources which are almost ext<strong>in</strong>ct <strong>in</strong> West Africa.<br />

Section 12.1 Import and Export Taxes and Duties. Throughout the Term, Inves<strong>to</strong>r shall enjoy a <strong>to</strong>tal<br />

exemption <strong>from</strong> any and all exist<strong>in</strong>g and future Taxes and Duties payable on imports and exports. Is<br />

this not robb<strong>in</strong>g Cameroon? This leads us <strong>in</strong><strong>to</strong> ask<strong>in</strong>g whether Louis Paul Motaze had scales on his eyes<br />

when he signed the Establishment Convention or he simply does not understand English. The whole th<strong>in</strong>g<br />

smells <strong>of</strong> another Albatross style fraud. We are wait<strong>in</strong>g for President Biya <strong>to</strong> order parliamentary and<br />

judicial <strong>in</strong>vestigations on this wholesale auction <strong>of</strong> Cameroon by the hand <strong>of</strong> Louis Paul Motaze et al.

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