The_Open_Door_deel1

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September 1, 1977 the Government could still not determine its
position, and despite the negative advice given by the Government
employed auditing firm of Whinney Murray Ernst & Ernst concerning
an unchanged continuation of the relationship with M.M.A.L.
(111 ), the Government decided to extend the existing management
agreement by another year, until September 1, 1979, and to extend
the notice period accordingly to August 31, 1978. This, of course,
could not solve the problem with respect to N.I.O.C.'s
(expensive) mismanagement but highlighted a general
characteristic of the Tolbert Administration, i.e. the
postponement of decisions on delicate and major issues (which
only resulted in a continuation of the status quo). The
relations with the Christie Estate and its financial interests in
N.I.O.C. may have played an important role here (see below).
Finally in 1978 the management agreement with M.M.A.L. was amended
(pending negotiations for its termination). The contract period
was again extended to August 31, 1983 with a subsequent renewal
for an additional five year period unless written notice
of termination was given at least one year prior to the expiration
date. The management fee was reduced to 3.5? of the first
25 million dollars of gross sales and 3? of the excess with a
limit of one million dollar fee per contract year, effective
from September 1, 1978 (112). Whether this will solve the existing
problems in relation to the quality of the management services
rendered is doubtful.
The excessive sales commission amounting to 3.5? of sales
proceeds which had been paid to Wm.H.Muller & Company (a similar
arrangement as had been made between L.M.C. and the Dutch
company) had been reduced in'1972. In that- year the Muller
Company was replaced as N.I.O.C.'s exclusive sales agent by
CAEMI International B.V. though this was caused by factors
outside the Mano River Mine. The merger of Wm.H.Muller & Co.
with another Dutch firm in 1972 had resulted in Mullers' making
certain staff members redundant, and these then decided to form
an organization of their own. Lacking the necessary capital they
found a willing partner in the Brazilian company of "Companhia
Auxiliar de Empresas de dinera^ao" (CAEMI) which was looking for
a sales agent to take care of the marketing of its products.
Subsequently, with the know-how and experience of the former
Muller employees and the capital of CAEMI International S.A.
(Rio de Janeiro, Brazil) a Dutch subsidiary was formed, CAEMI
International B.V. (113). N.I.O.C./M.M.A.L. preferred to continue
business with the (former Muller) employees who were now working
with CAEMI and with effect from August 22, 1972 CAEMI International
B.V. was appointed its exclusive sales agent though the
agreement was not signed until January 26, 1973.
The sales commission paid to CAEMI is less than what was paid to
Muller, The commission payable to CAEMI consists of 2.5? of the
net sales proceeds of the first 3.2 million long tons shipped,
and 3% of the net sales proceeds of the tonnage shipped In excess