The Firefinch Fiasco (Money of Mine Analysis), page-32

One of the major problems at Morila, that the two female directors picked up on very early, which is why they quit after just 3 weeks, is that the 4 villages surrounding Morila created a mine-governing-council, a group of local leaders that effectively (and aggressively) took control of the mine, which meant that FFX management effectively lost control, because they could not compete with the threat of a powerful local governing council.

The council was made up of local leaders, and militia.

The council took control of the money, and also the management and control of all personnel issues, as well as agricultural and financial issues. It became like a powerful union, and incited the local villages to mount aggressive protests and marches at the mine gate. They effectively took full control.

The two female directors quickly learned that they would not be able to fight the controlling governing council, a group of local chiefs who would treat two young English women with disdain. The two female directors became fearful, and very quickly felt threatened.

The council gave everyone a job, 1,700 employed at the mine, and paid money for literally hundreds of other community and agricultural projects. Many of the locals being given paid employment did nothing, they were effectively being given a free pension.

What the council did with the rest of the money, one can only guess, though I expect some it went to the local militia in order to maintain the council in powerful control over the region.

I think the two female directors knew they would be intimidated by the council, who also had local militia on their side. There may have even been threats to their lives if they tried to intervene, because a lot of money and power was at stake, and the local governing council was extremely forceful, and had the backing of the Junta, and well as local militia forces.

So basically, the 4 surrounding villages via a militia supported very powerful Local Governing Council (LGC) took control of the mine, and there was nothing FFX management on site, or in Perth, could do. When FFX tried to make changes at the mine, they were simply over-ruled by the local council, and told in no uncertain terms who was really in control. Effectively, everything had to go through the LGC.

This is how I see it, having read a lot of African mining journalism in French over the past month.

Gw