Buchanan, Grand Bassa-Liberia: Just a day after receiving the Special Presidential Review Committee set-up to probe into allegations contained in the Global Witness report, President George Manneh Weah has vowed to execute the findings to the letter.
On Wednesday, the President received a formal report from the Special Presidential Review Committee at his Foreign Ministry offices in Monrovia.
The findings have not been disclosed. But the Global Witness investigation linked some present and former Liberian government officials to acts of corruption in awarding the oil Block 13 US$120 million contract.
But speaking at the opening of the first Cabinet Retreat since the CDC-led government came to power in Buchanan, Grand Bassa County on Thursday, President Weah warned his officials that he will not tolerate corruption and mismanagement in his government.
“Anyone held accountable, such person will be dealt with according to the law,” the Liberian leader stressed.
Block 13 was originally awarded by NOCAL in 2005 to Liberian-Anglo company Broadway Consolidated/Peppercoast (BCP). In 2007, the block was ratified by the Liberian legislature through bribery.
The international campaign group observed in its press statement recently:
“But Global Witness’ evidence shows that the company was likely part-owned by former Mining Minister Jonathan Mason and former Deputy Minister Mulbah Willie. Mason and Willie are suspected of granting the oil block to a company in which they held interests while they were also ministers in 2005, which was illegal under Liberian law.
Exxon knew that Block 13 was originally awarded through bribery and that its purchase of the oil block could enrich former officials who might have been behind BCP.
In a PowerPoint presentation obtained by Global Witness, Exxon wrote that it was interested in purchasing the oil block despite its “concern over issues regarding US anti-corruption laws.”
Undeterred by the corruption red flags, Exxon went ahead with the deal anyway. Global Witness’ evidence shows that it structured the transaction in a way to skirt US anti-corruption laws by using a Canadian company – Canadian Overseas Petroleum Limited (COPL) – as a go-between to buy the block.
“It’s appalling that an oil giant like Exxon would buy up an oil block they knew was tainted by corruption,” said Jonathan Gant, Senior Campaigner at Global Witness. “This kind of morally dubious corporate behavior is particularly shocking in a country like Liberia where endemic corruption continues to rob people of opportunities.”
If Mason did own BCP shares when Exxon bought Block 13, he would have received a share of the US$68.5 million Exxon paid BCP. Willie died in 2012, so any money he was owned would likely have gone to his estate.
There is also evidence that Adolph Lawrence, who became a Representative in 2012, held a BCP ownership interest in 2011. If Lawrence continued to hold this interest when Exxon bought 2013, he also would have broken the law and may have received part of the money Exxon paid BCP.
Exxon has not responded to Global Witness’ request for comment. COPL has, saying its due diligence showed that there were no legal problems with the deal, that Mason did not hold shares in BCP, shareholders certified they held no interest for others, and that it received legal advice on its anti-corruption and anti-money laundering obligations. The company stated that Lawrence resigned from a job he held with BCP in 2011 and that any money he received was reported to the Liberian Government.
“Liberia’s attempts to stop corruption have failed – most notably the Sable Mining bribery debacle,” said Gant. “It is time for President George Weah to show that he is a reformer and task the Ministry of Justice and Anti-Corruption Commission to investigate immediately.”
Unusual and large payments to Liberian officials in 2013
Global Witness has also seen evidence that shortly following the authorization of the 2013 Exxon deal senior Liberian officials were paid “bonuses” of:
- NOCAL CEO Randolph McClain
- National Investment Chairman Natty Davis
- Finance Minister Amara Konneh
- Mining Minister Patrick Sendolo
- NOCAL Board Chair Robert Sirleaf. Sirleaf, who is the son of then-President Ellen Johnson Sirleaf, was reportedly working pro-bono at the time.
- Justice Minister Christiana Tah
Robert Sirleaf was reportedly working pro-bono at the time. However, he too received a payment of US$35,000.
The evidence shows that these payments were associated with the Exxon deal. The payments were probably made from the same bank account into which Exxon had recently deposited part of its bonus to NOCAL, although there is no evidence that Exxon knew about them.
All officials have denied that these payments were bribes, stating that they were authorized by NOCAL’s Board of Directors as bonuses for negotiating a good deal with Exxon.
Global Witness’ Exxon investigation was made possible by information published by the Liberian Extractive Industries Transparency Initiative (LEITI), an independent agency that publishes annual reports of payments made by companies to the government. Without this information, Global Witness would not have started researching Exxon’s 2013 deal.
“Our investigation shows not only that Liberia’s oil sector was corrupt, but also how important LEITI is for the country,” said Gant. “The latest news that President Weah has illegally fired LEITI Secretariat Head Konah Karmo is alarming and may show a weakening of political will to tackle corruption.”
Global Witness calls on the Liberian Government to immediately reinstate Karmo as Head of the LEITI Secretariat and ensure LEITI’s independence is preserved. Liberian authorities should also investigate Exxon’s 2013 deal to see if Exxon or any Liberians broke the law.”
First Cabinet Retreat
Meanwhile, an Executive Mansion press release said the first Cabinet Retreat of the Weah-led administration aims to appraise the first few months in office and set a new focus that encompasses the Pro-poor Agenda.
President Weah called on members of the Cabinet to be proactive and stressed the ardent need to work in the interest of the Liberian people.
“We need to adopt expediency in our mode of work. We came here to work for the people, not for ourselves; I will not appreciate delays,” the Liberian leader emphasized.
He said at the end of the two-day retreat, a decision would have been reached to serve as road map of his administration in order to work for the common good of the country within the next six month.
The Retreat, which ends on Friday, is being attended by Vice President Jewel
Howard-Taylor, Ministers, Deputy and Assistant Ministers, Lawmakers, Superintendents, Heads of Autonomous Agencies, amongst others.