WHEN CRITICS BEGAN raising issues about the potential for trouble regarding the George Weah-led government’s quest for two controversial loans to fix roads, many including members of the Fourth Estate were labeled as enemies of the state.
DURING A SPEAKING engagement in Gbarnga, Bong County in June, the Liberian president expressed disappointment over the many criticisms descending on his administration just after five months.
THE PRESIDENT TOOK issues with critics and lamented the wave of criticisms against the government’s development efforts. “I told them that if you elect me, I will build your roads. I am trying to build the roads, they are criticizing me. From 1847 to 2018, we Liberians still don’t know what we want; if you don’t want road and good health system, let me know”.
ADDED PRESIDENT WEAH: “Some of my critics are abusing my mother on Facebook. What have I done to deserve all the insults I am receiving on Facebook, my people. Why you insulting me for? Is it bad to bring development? Is it because I grew up in the ghetto and went on to become President?”
THE TWO LOANS in question include a US$536 million arrangement with Eton Financial Private Limited geared toward the construction of a coastal corridor connection of counties’ capitals road project, via the construction of the Buchanan-Cestos City to Greenville to Barclaryville Road, the Barclayville to Sasstown Road and the Barclayville to Pleebo Road. Other roads to benefit from the loan include; the Medina to Robertsport Road and the Tubmanburg to Bopolu Road. Also to be constructed are ‘rest stops’ and ‘roadside service areas.’
THE SECOND, A US$420 MILLION LOAN aims at financing the design, construction, and supervision of road corridors in Monrovia(Somalia Drive-Kesselly Boulevard to Sinkor) and northeastern Liberia – Tappita-Zwedru Road, including Toe Town to La Cote D’Ivoire and Zwedru-Greenville.” The transaction, according to the document obtained by FPA has been labeled “The Loan” is between the Liberian government and Mr. Mahmadou Boukoungou’s road construction company, EBOMAF.
BOTH THE INTERNATIONAL MONETARY FUND and the World Bank have previously advised against borrowing above the country’s budget ceiling. The President has come under fire for granting a US$420 million loan to his businessman friend, Boukoungou whose planes he has been using for presidential trip and a clear violation of the code of conduct and a conflict of interest.
LAST WEEK the 50-banking-day deadline for Eton to come up with the US$536 million expired. The Eton contract stipulates that “the first tranche will be disbursed within 50 banking days after ratification by the National Legislature and the issuance of Sovereignty Guarantee by the Central Bank of Liberia. The final disbursement will be given 60 days after the first tranche disbursement or such amount of time agreed to in writing by Eton and the GoL, after the Sovereign Guarantee is issued by the Central Bank of Liberia in the form of substance satisfactory to Eton”.
SIMILARLY THE DEADLINE for the US$420 million from Ebomaf has also elapsed with no update on what stage the government is at regarding the arrival of the money.
THE EBOMAF AGREEMENT STATES: “It is agreed and understood by both parties that the transaction contemplated shall have the total disbursement of financing of US$420, 810,000.00(four hundred twenty million eight hundred ten thousand United States dollars) in four trenches as provided for in Article 4 to be concluded within fifty(50) banking days after the effective date or such longer period to in writing between Ebomaf and the Government.
LAST THURSDAY, Mr. Lenn Eugene Nagbe, Minister of Information, Culture Affairs and Tourism told the weekly press briefing that discussions are ongoing with the World Bank for a new loan deal after President George Weah had engaged executives of the Bank and other development partners.
NAGBE FINALLY acknowledged what many critics including the media and FrontPage
Africa has been saying for months, that the government borrow smartly. Minister Nagbe told reporters last week that President Weah was advised by developmental partners to do “smart borrowing” in order to avoid expanding the country’s borrowing space.
SAID THE MINISTER: “The World Bank now has presented to the government of Liberia an offer of US$500 million initially for the support of road. We have not concluded the agreement yet; the Minister of Finance is leading the discussion. We have been given an offer and the government will pay over the concessional period at the interest rate of 0.5 percent.”
THE GOVERNMENT says an estimated US$3.4 billion is needed for the construction of roads in the country.
WHILE THE WORLD BANK is yet to confirm or deny the claims by the government, minister Nagbe says the bank and the consortium of other partners have agreed to give Liberia a concessional financing arrangement that we as a government are looking at positively of a total of S$1billion dollar.
THE GOVERNMENT ACCORDING to Minister Nagbe have pitched a pitched to the developmental partners including the World Bank, a maximum of three-year timeframe for the targeted roads to be built, which means his government expects the bank to expedite the deal for the availability of the fund. “We are not guessing when we say we want to build a coastal highway. We are going to the next step to find the money,” the Minister said.
THE MINISTER WENT on to say that both the Ebomaf and Eton loans are still on the table as they are binded by laws.
WITH BOTH DEADLINES on the two loans elapsed, the government remains mum on what has happened since the ratification and signing of the loan.
FRONTPAGEAFRICA HAS LEARNED that a key sticking point has been that some senators have issues with stipulation in the final loan agreement with Ebamof, not what is already in the public domain. FrontPageAfrica has now in its possession a copy of the final draft which some Senators say is delaying the foreign ministry from printing before it becomes law.
THE CONCERNS STEMS from this portion of the final loan document which states: “This loan agreement represents the entire loan agreement between the parties and supersedes all existing agreement(s) previously executed between the parties or representation s made by one party to the other with respect to the subject matter hereto. This loan agreement may be modified only in writing, duly executed by the parties.”
SOME SENATORS are said to be demanding more regarding any prior arrangements made with Ebomaf during the last presidential elections. This sticking point is said to be a key reason why the loan has not been finalized even after 4-G passages of the two loans.
IN THE WAKE OF WHAT is unfolding and the delay in the arrival of the nearly one billion dollar in loans, the administration must begin explaining to the public what is going on? After all, many were labeled as enemies and unpatriotic when they raised their voices in opposition amid visible red flags showing signals of problems surrounding those loans.
THE WEAH-LED government and its supporters must understand that Liberia belongs to all and not just a select few with sycophantic tendencies who are failing to right the wrongs and advise the President on a lot of missteps causing problems for his administration.
THE DIVIDE AND RULE posture on display points to dangers ahead. If we as a nation tune out the views of certain segments of the society, we risk turning a blind eye to the common good that each and every Liberian should aspire to achieve.
NO LIBERIAN IS ROOTING for President Weah to fail. No sound Liberian wants Liberia to remain languishing in abject poverty. A good government will open its ears and listen to everyone and not a select few; a good government will not tune out and label critics as “enemies of the state” or “unpatriotic”. A good government will see reason to heed advise and take criticisms with a grain of salt. This is the only way it can succeed. “In union strong success is sure. We cannot fail!”, the country’s national anthem sings. This was written for all Liberians and not just a few – including perceived critics and supporters of the government.