-Finance Min Tweah says gov’t looking for innovative financial solutions
By Frank Sainworla, Jr and Augustine Octavius
Close to seven months after taking office, the Coalition for Democratic Change (CDC) government in Liberia continues to insist that it inherited a virtually depleted national coffers and that hundreds of millions of US dollars have spirited out of the country’s economy.
The latest assertion of this has come from Finance and Development Planning Minister Samuel Tweah, who said in Monrovia on Monday that over US$500 million has left the economy and the government inherited US$65 million debt with commercial banks.
Minister Tweah made the disclosure when he delivered the keynote speech at a one-day forum on Liberia’s rubber sector organized by the Liberia Bank for Development and investment (LBDI) in Monrovia.
In his first State of the Nation Address last January, President George Manneh Weah said the former ruling Unity Party government left the government broke and the economy broken.
But in an interview with the British Broadcasting Corporation lafter she won the US$5 million Mo Ibrahim Prize for outstanding African leadership in February this year, former President Sirleaf claimed she left over US$150 million in the national coffers when she handed over power to Weah on January 22, 2018.
Ex-President Sirleaf said the records are there with the new leadership and “the figures speak for themselves,” arguing that she didn’t leave the Liberian government finances in shambles as it is being made for people to believe.
Finance Minister Tweah said: “The economy has been on a decline for a long time and we want arrest and reverse it for a growth.”
He adding: “we want innovative financial solution in order for the estimated 30 people employed in the rubber do not lose their jobs and come to the government seeking employment. “
At a Legislative public hearing a few months ago, Deputy Finance Minister for Fiscal Affairs, Samora Wolokolie said “unreconciled balances as well as bank reconciliation statements” as at January 31, 2018 was over US$11 million and 835 thousand dollars.
According to him, “the information speaks for itself” in so far as government’s liquidity is concerned and that as at the same period (January 31, 2018) the Liberian dollars balance is L$642 million.
He then put the “sum total” at over US$16 million.
Finance Minister Tweah said the Liberian government is contemplating securing between 50-100 million US Dollars once those in the rubber sector comes out with an innovative and master plan to adds value to the rubber.
Mr. Tweah acknowledged the challenges affecting the rubber sector, so it wants them solved.
“We are aware of the challenges and the problems in the rubber for that 100 years ago and the government wants to take practical steps so that we can reach out to our partners in finding this funding,”
For his part, the President of the Liberia Bank for Development and Investment has called for robust innovation and master plan in order to add value to rubber and stimulate the Liberian economy.
LBDI’s President John Davies, who is also the President of the Liberia Bankers Association, disclosed that from 1929 up to date, Liberia has been in the exportation of raw rubber without taking in consideration of the impact of the trade on the international market in the future.
The LBDI President pointed out that in the past, the government has sought the bank’s intervention when there was labor unrest in rubber plantation.
But the bankers association has resolved never to lend money these short measures because these loans are leaving these rubber farmers to become insolvent, he said.
Mr. Davies disclosed that Liberia is currently on the eleventh place among the 15 largest rubber producing countries with 0.8 and there is need to bring production to the fifth or sixth place.
The LBDI President advanced a number of ways forward, including good book keeping, planning and management of rubber farms.
For her part, the President of the Rubber Planters Association of Liberia, Wilhelmina Siaway said the leadership of the organization a plan to establishing rubber planting training institutions in various regions in the country.
Mrs. Siaway said her organization also plans to establish branches in various counties in order to enable planters in those areas to have access to the programs aimed at improving the rubber sector.
The Liberian rubber sector forum was also graced by the newly appointed Deputy Director General of the Cooperative Development Agency, Regina Sokan Teah, the Minister of Agriculture, Dr. Mogana Flomo, the representatives of the African Development Bank among others.