Monrovia – A former Superintendent, now regarded as a rising political icon from vote-rich Nimba County and the Secretary General of the opposition Coalition for Democratic Change are the latest politicians to be wrapped up in the Private Sector Development Initiatives (PSDI) audit recently conducted by the Internal Audit Unit (IAU) of the Ministry of Finance and Development Planning (MFDP).
Report by Rodney D. Sieh, [email protected]
According to the report which was presented to President Ellen Johnson-Sirleaf last Friday and made public Monday, by the Minister of Finance and Economic Planning, Mr. Boimah Kamara, Madam Edith Gongloe Weh and Mr. Janga Kowo are mentioned among a list of debtors in the controversial scheme.
Gongloe-Weh: ‘Pepper, Bitter-Balls Business Went Bad’
Ms. Gongloe-Weh, listed under the Liberian Women’s Alliance Inc., as President, located in the Roland Duo Compound in 72nd was reportedly loaned the amount of US25,000 while Mr. Janga Kow, listed under Sasglem Africa Corporation was loaned US$75,000.
Contacted Tuesday via phone from the US city of Philadelphia, Madam Gongloe-Weh said she was making payment toward the loan but acknowledged that there were glitches.
“We took the money for pepper and bitter-balls farming that went very bad. We have written the bank and ask them for resetting of the loan.”
CDC Kowo: ‘We Are Paying’
For his part, Mr. Kowo, the Secretary General of the opposition CDC also acknowledged that he took the loan but explained that he is in talks with the bank and has already made US$12,000 toward the debt.
“Yes, I am associated with a business, a legally-viable business. We were established long before the loan scheme came into place but nevertheless we have been paying on it.
However, due to the abrupt changes in the economy. We notified the bank that the economy was not doing well and the bank agreed.”
Mr. Kowo who described his business as a water business told FrontPageAfrica Tuesday that he has been surviving on the business for the past few years and has about 30 Liberians working for him.
The CDC executive said the loan was actually taken in a bid to expand the business.
“We used some of that money to purchase a Reserve Osmosis System or RO, which is a water purification technology that uses a semipermeable membrane to remove ions, molecules, and larger particles from drinking water.
“We did not take the money and run away as others did. We are not one of the businesses that took the money and folded or ran away. We are already an established as a business.”
Added Kowo: “My name is not mention as someone who took the money and did not exist. We renegotiated the payment, it could not be finalized because of the audit. “
“We are committed to pay. We have some of the money in Liberian dollars to pay but because of the audit.
Mr. Kowo said in the aftermath of taking the loan, sales of his business reduced by 50 percent because of the difficult economy but says he remains committed to paying.
“We have paid US$12,000 toward the loan and we have up to 30 persons in employ. We are ongoing business and we are not going anywhere, anytime soon. We are committed.
No Word from Parker
Ms. Clavenda Bright-Parker, Ambassador-at-large and special envoy to President Ellen Johnson-Sirleaf is also listed under Center Songai Liberia, receiving a loan of US$100,000. Efforts to reach her was unsuccessful Tuesday.
The Centre Songhai, according to its website, was founded in 1985 is principally involved in agricultural training, research, and production for sustainable livelihood in Africa.
“The Center’s aim is to create the conditions for improving the lives of Africans, the great majority of whom live in rural areas.”
The business located in Bensonville is said to be aimed at enhancing agri-business in Liberia. Among the crops being planted is the famous and high yielding Nerica-8 rice multiplied at the Central Agriculture Research Institute (CARI) in Suakoko, Bong County. Others crops under cultivation include, corn, beans, okra and many others that are essential needs of Liberians and foreign residents in all parts of the country.
In July 2014, the Daily Observer quoted Mr. Christopher K. Fayia of the CSL as saying that the business was in need of US$1.7 million to jumpstart activities.
“We are indeed facing daunting challenges and constraints owing to lack of funds to carry out structured plans crafted and designed for the training of Liberian farmers in several economic areas,” Director Fayia was quoted as saying.
This audit was commissioned by the Honorable Minister of Finance and Development Planning (MFDP) as part of the internal audit unit’s (IAU) annual audit plan, which looks at identified high risk functions and operations, especially those that have not benefited from adequate internal audit coverage.
The PSDI is a project that was established in 2014 at MFDP to provide loans to Liberian owned Small and Medium Size Enterprises (SMEs).
The loans granted were expected to financially strengthen Liberian owned businesses. The expectation was that the repayments would revolve or be disbursed to other Liberian businesses. Overall, the process would have created jobs and accelerated the participation of Liberian owned businesses in the economy of Liberia.
In May 2014, MFDP entered into a Memorandum of Understanding with the Liberia Bank for Development and Investment (LBDI) to partner and establish an account (GE Fund) through which the borrowers would receive loans.
It is also worth noting that an operational account titled ‘Liberia Private Sector Economic Growth Fund Account (LPSEGF) was also maintained for the administration of the fund.
To ensure the objectives of the PSDI is carried out effectively, a memorandum of understanding was signed between MFDP and LBDI with clear roles and responsibilities assigned.
The detailed roles and responsibilities of the parties to the MoU have been highlighted in section 2 of this report.
The management of MFDP responsible for PSDI and LBDI should take appropriate actions to ensure that repayments are made by all beneficiary businesses.
Specifically, for beneficiaries whose loan tenure has expired and may be experiencing difficulties in their business, there is the need to restructure the repayments to enable them to fulfill their obligations.
MFDP officials who authorized these transactions and the conflicted individuals should be answerable and repayment of amounts should be enforced.
US$545,700 Loaned Out
The PDSI audit previously named the chairman of the opposition Liberty Party, Mr. Benjamin Sanvee.
Sanvee was mentioned in the leak of an Internal Audit Unit (IAU) of the Ministry of Finance and Development Planning on the operational audit of the Private Sector Development Initiatives (PSDI), as head of one of several businesses that allegedly received business loans totaling US$545,700 but, according to the findings those businesses could not be located.
The company, Sanvee Holdings Inc. under which Mr. Sanvee is associated reportedly received a US$45,000 loan.
Sanvee stepped aside from his position but announced a few days later that he had entered into an arrangement to begin making repayment toward the loan.
Sanvee’s mention drew strong criticism and condemnation from the CDC whose representative Acarous Moses Gray equated the mention to fraud.
“His action is fraudulent especially when his office cannot be located and his refusal to pay the loan.Once the Liberty Party does not act the issue of a Crisis of integrity hangs over the institution,” Gray said at the time.
The issue of integrity and corruption is becoming a major debate issue ahead of this year’s elections.
This week, football legend, Senator George Weah took jabs at his opponents in the race for the presidency, describing the ruling Unity Party candidate as having lived out his political usefulness.
“Boakai is part of the most corrupt leadership, headed by President Ellen Johnson Sirleaf, that has ever ruled Liberia and owing to the point that he (Boakai) did not influence the leadership to stop stealing the country’s wealth for their personal benefits, he lacks the face to ascend to the Presidency,” Senator Weah declared.
He then slammed his other opponents in the opposition as being part of the corrupt system.
“They are all members of a corrupt system that have no tangible reasons for which voters should give them the country by voting for them in the October polls.”