Minu's deal on Phulbari coal mine illegal: Law Ministry

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The Law Ministry has termed illegal the agreement signed a year ago between the Rajshahi city mayor and the `National Committee for Protecting Oil, Gas and Mineral Resources' on Asia Energy's Phulbari coal mine project, reports UNB.
There is no scope of using the Committee's agreement as a reason to cancel the Asia Energy deal, it said referring to a legal opinion of the Attorney General.
Official sources said the Law Ministry's remarks came in reply to a number of queries from the Energy Ministry, which sought clarification about the status of the National Protection Committee's agreement and also of the Asia Energy deal with the government.
After a vigorous agitation in Phulbari coal mine area, the Rajshahi City Corporation Mayor Mizanur Rahman Minu was forced to sign a Memorandum of Understanding (MoU) with the `National Protection Committee' on August 30, 2006.
One of the seven conditions of the agreement was that the government would cancel its deal with Asia Energy and also expel the company from the country.
Following the agreement, the Energy Ministry sought clarifycation from the Law Ministry regarding implementation of the agreement and also about the deal with the Asia Energy under which the UK-based company conducted a feasibility study at a cost of US$ 20 million.
The sources said the Law Ministry, after reviewing both the agreements, took the opinion of the Attorney General that "the then political government in order to meet the emergent crisis in the particular locality, made arrangements as such."
The chief law officer of the government said: "The Mayor, being a people's representative, his legal status, legal authority may not be an issue. The said National (protection) Committee, on the other hand, it may be noted, does not seem to be a recognised legal entity."
He added: "In the absence of proper papers, it cannot be ascertained if the said National Committee has been established by or under any authority of law. Its representative character does not seem to be quite clear. Having regard to the foregoing, so far as the legal status of the MoU is concerned, it appears that the MoU does not seem to have any force of law or any legal basis."
Regarding the Energy Ministry's query about cancellation of the Asia Energy deal, the Law Ministry said the Asia Energy was given approval for the feasibility study, not granted the mining license.
However, the Law Ministry said that if the government cancels the deal with Asia Energy, it has to follow certain procedures. But in such case, Asia Energy may choose to take the matter for international arbitration.