Monrovia – The fifty banking days for two controversial loans the George Manneh Weah presidency is relying on to jumpstart its ambitious coastal highway project officially came to an end recently. Eton, the most controversial of the pair should have delivered its first payment last Wednesday. So should have Ebomaf.
Report by Rodney D. Sieh, [email protected]
The projected Eton deal centers around a US$536 million arrangement 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 Barclayville 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 projected US$420 million Ebomaf 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. Boukoungou’s road construction company, EBOMAF.
As part of the agreement, 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 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 in writing between Ebomaf and the Government.
Legislators Mum Over Unprinted Handbills
Both the International Monetary Fund (IMF) and the World Bank had previously advised against borrowing above the country’s budget ceiling. President Weah in particular came under fire for granting a US$420 million loan to his businessman friend, Mr. Mahmadou Boukoungou’s road construction company, EBOMAF, whose planes the President has been using for presidential trip and a clear violation of the code of conduct and a conflict of interest.
On June 14, 2018, President Weah signed both loans into law following ratification by the National Legislature for the construction and pavements of 830 kilometers road network.
As per law and procedure, following ratification by both Houses and approval by the President, the loans should have been printed into Handbill, thus becoming law. Best case scenario, the funds should have been in Liberia by now.
The road construction projects, according to President Weah, are expected to be completed in the first term of his administration. At that signing, President Weah declared: “It’s my desire and I pledge that at the end of my tenure, I shall have connected all 15 counties. This shall be my focus; this shall be my legacy and my footpath after my tenure.”
The President said the Loan Agreements will help provide the opportunities for economic growth, increase development and will provide access to youth employment, while also impacting meaningful contributions to national development.
More than fifty days later, both loans have failed to materialize. Eton should as of last Wednesday, August 22, 2018 made the first payment toward its obligations while sticking issues of Eurobonds and printing of handbills is said to be stalling the EBOMAF deal from seeing the light of day.
FrontPageAfrica recently reported that a key sticking point has been that some senators have issues with stipulation in the final loan agreement with Ebmaf, which is delaying the loan from being signed into handbill.
The copy in possession of FPA 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 speaking on condition of anonymity to FPA recently, 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.
At least one senator is now acknowledging but reluctant to go public that the mood in the upper house regarding the delay of the loan is muted in secrecy. “Upon completion of the signing of the loan by the President, it should have been printed into handbill but as I speak to you know, everybody is just mute. Mind you, these loans were signed before the passage of the budget. The budget should be on the verge of being printed but there is no signal that the loans is anywhere near being printed into handbills.
In the past few weeks, the administration appears to have been signaling a move away from the controversial loans and limping toward the traditional institutions like the World Bank and the International Monetary Fund(IMF) even amid questions surrounding whether both agreements had been signed into handbill.
The government’s chief spokesman, Information Minister Lenn Eugene Nagbe said recently: “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 delays in the arrival of the nearly one billion dollars in loans for the coastal highway remains a mystery even as the government is coming under increased pressure to acknowledged that it unfairly characterized critics against the controversial loans as “enemies of the state”.
The administration had earlier rejected calls from both the media and some critics to scrutinize the two loans amid multiple red flags suggesting something sinister was amiss. In the wake of the uncertainty regarding the loans, FrontPageAfrica now takes a look at some of the key men in the president’s inner circle said to be responsible for misguiding him into putting his reputation and presidency on the line.
SAMUEL TWEAH, MINISTER OF FINANCE
THE LOWDOWN: The man in charge of the ministry tasked with formulating, institutionalizing and administering economic development, fiscal and tax policies for the promotion of sound and efficient management of financial resources of the government, is said to be one of the brains behind both loans. Regarding Eton, the minister acknowledged recently that the government failed to conduct due diligence on Eton Financial Private Limited, the company with whom the government recently signed a US$536 million loan agreement. The minister have failed to address the issue of the EBOMAF deal and did not respond to a FrontPageAfrica inquiry seeking clarity on the status of the controversial loan from the Burkinabe businessman, Mr. Mahmadou Boukoungou.
In acknowledging frailties with the Eton deal, the minister said recently: “There have been legitimate concerns about either the viability of Eton, the legitimacy of Eton – we’ve received all of those queries and we have conducted our due diligence and we are still in the process of conducting our due diligence. Due diligence is not a one-off event – it is a sequence of things that you can do. So, coming out of all of these conversations will ensure that we are making progress. But the notion that Eton is off the table is not true. Eton Finance – the loan we enter with Eton is a highly concessional loan and as I told the partners yesterday (Wednesday), that loan is concessional and I don’t’ think they have an objection to its concessionality.”
Minister Tweah also acknowledged that the administration which had until now been reluctant to heed to criticisms was finally taking into consideration the sticking points being raised. “One of the challenge, one of the things is that when we signed the HIPC agreement – we agreed that – I think it was signed in 1986 or so with debt waiver – that countries that waived their debts cannot take loans that will then be non-concessional meaning high-interest rates,” Minister Tweah said. The minister explained: “Interest on the Eton is 1.46 percent. So, under the World Bank rules, concessional rules, Eton is fine – in fact they believe it is too good to be true.”
CULPABILITY ODDS: 2-1
CLLR. FRANK MUSAH DEAN, MINISTER OF JUSTICE
THE LOWDOWN: The chief legal advisor to the President has been one of loan’s biggest defenders although he failed to put his signature to the Eton contract when it was signed in Hong Kong, a clear sign that he may have had his reservations but was reluctantly going along for the ride.
This was evident when Senator Sando Johnson(NPP, Bomi County), speaking in a FrontPageAfrica interview shortly after the signing raised concerns that the Memorandum of Understanding was not signed by the Minister of Justice who is the chief legal advisor to the President. “Firstly, if you look at the agreement, I think the Minister of Justice did not sign it, the Ministry of Justice is the legal person in this country, why didn’t he sign it? So, we have to look at all this thing and ask what’s going on?”
Despite his coyness, Minister Dean would later describe the Eton deal as one of the best loan agreements the country has ever entered into. He called on critics to give the process a chance and stop interposing hurdles to the process. “Some people say the people don’t have website; will the money be sent through the web?” Cllr. Dean asked rhetorically.
The minister went on to state that as the legal person of the government, he had read the loan financing agreement, and “Its benefits surpass petty consolidation.” “If you enact this agreement, it becomes law that will impact our economy. The agreement does not impose any particular company. The Ministry of Public Works will do the vetting,” the Attorney General declared.
As the chief legal advisor to the president, the attorney general bears a great deal of responsibility here.
CULPABILITY ODDS: 2-1
MABUTU NYENPAN, MINISTER OF PUBLIC WORKS
THE LOWDOWN: The man responsible for adequately administering the Engineering component of the state in terms of surveying, drafting/designing, construction and supervision, to improve and maintain, direct or by contract all highways, bridges, roads, streets, airport, seaport, and all other public infrastructure, has been very vocal about the need for roads. When he appeared before the Senate during his confirmation hearing, the former Sinoe County Senator called for radical affirmative action if the situation of roads that has become a ‘national security threat and national emergency is to be addressed.’
Arguing that the country’s annual budgetary allotment to roads connectivity was too meager to address the chronic nature of bad roads in the country, the minister has found himself in a complicated quagmire, believing on the one hand that intervention by bilateral partners in the road sector was inadequate to substantively change the situation while making a strong case for the both controversial loans to be signed. “We cannot build our country by relying on handouts or by thinking small. As Liberians and as a government, which got elected on an ‘agenda of change,’ we cannot continue to do ‘business as usual.’ Our people have hopelessly waited for far too long.”
The minister has said that the financing agreement signed by the Legislature presented a unique opportunity for Liberia to change the status quo. The minister added that the construction period of the US$420.8 million, if approved, will be 36 months (3 years) from the day of commencement. And the day of commencement being three months after the deposit of the first tranche of the loan.”
He added: “There must be a paradigm shift. President Weah has therefore made roads connectivity as the first and foremost priority of his administration as a means of actualizing the pro-poor agenda. I urge you to support the President in this lofty endeavor,” Minister Nyenpan said.
While Minister Nyenpan is said to be more involved in the technical aspect of both loan agreements, his voice does carry some weight not strong enough to make a major impact or game-changing play.
CULPABILITY ODDS: 5-1
EMMANUEL SHAW II, ECONOMIC ADVISOR
The former Finance Minister of Liberia during the Samuel Kanyon Doe era is also a close confidante of former head of state Charles Taylor. He stepped down from his position as a member of the board of director of Lonestarcell/MTN to accept a role as one of the lead financial advisors in President Weah’s government. Shaw, who spent most of his time in South Africa during the Liberian Civil War is no stranger to controversy and is known to wheel and deal. Many believe he has been one of the major engines behind the loan deal. Aides to Mr. Shaw has moved in recent weeks to dispel his role in the deal but his reputation with late President Doe and jailed former President Charles Taylor is making it difficult for many to believe he is not part of both Eton and Ebamof loans.
Recently, the Center for Transparency and Accountability in Liberia (CENTAL), an anti-corruption civil society advocacy organization, recently concluded that Mr. Shaw who amassed millions of US Dollars through shady deals during the Doe and Taylor era is amongst Global Witness list of “Economic Gangsters and Predators” who looted the country in the past.
Today, Mr. Shaw is said to be caught in a tug-of-war with forces within the President’s inner circle, juggling for the president’s ears. Finance Minister Tweah recently moved to address the speculations, categorically rejecting local media reports that he and Mr. Shaw were at loggerheads due to the fact that Minister Tweah has been leading most of the discussions regarding the negotiations of the deal with ETON Finance Private Limited. Minister Tweah completely dismissed the reports, terming them as false. “Shaw and I are on good terms and there’s nothing suggesting that we have a conflict for which he intends calling for my resignation,” Minister Tweah told the Daily Observer.
Even Mr. Shaw is coming to the realization that his recent behind-the-scenes overtures to distance himself from both loans is proving to be a tough sell.
CULPABILITY ODDS: 3-1
CHARLES BRIGHT, ECONOMIC ADVISOR
THE LOWDOWN: A general in former President Charles Taylor’s NPP government, Charles R. G. Bright’s rise came and crashed with a wimper. Since the surface of a controversial letter announcing that Bright had been elevated to a Cabinet-level position, Mr. Bright’s stock is said to have fallen.
Bright, who served as Finance Minister in the Taylor government and has been President Weah’s economic advisor, was General John T. Richardson’s principal deputy, remembered for taking over the Housing Bank in Monrovia in military uniform when Mr. Taylor’s National Patriotic Front of Liberia.
The letter which surfaced in May read:
“I George Manneh Weah, Sr. President of the Republic of Liberia by virtue of the power in me vested, do hereby acknowledge that Hon. Charles R. G. Bright, my advisor for Economic Affairs, has the status of a Cabinet Minister, with full courtesies and benefits appertaining thereto and commission him as follows:
To visit all Ministries and Autonomies Agencies, Government Commissions, Public Corporations and State-owned enterprises(wholly and or partially-owned) to obtain information and advise me on current policies, practices as it relates to the operations of the Entity in General, and its personnel in particular;
To be an Ex-Officio participant in all meetings at said Entities, Board or otherwise, regarding matters with an economic impact on revenue, expenditure, personnel and other assets;
To ensure, as practical as possible that personnel actions, employment salaries, other benefits, dismissals, retirement and work schedule are in keeping with approved government guidelines;
To Monitor, Generally, all activities of appointed officials and with written approval of the Minister of State for Presidential Affairs, utilize the expertise of other Liberians as resource personnel.
In accomplishment of the above responsibilities, all head of autonomous agencies of government, public corporations and state-owned enterprises are mandated to fully cooperate with my above-named advisor and provide him with any and all information, documents and support requested.
It was later gathered that Mr. Bright and Shaw had written the letter and had the president signed without reading. President Weah has since reportedly put Bright in the Dog house amid fears and pressure from Minister of State Nathaniel McGill that Bright was about to usurp his position as the most powerful member of the President’s inner circle.
Despite the falling out, friction between Bright and McGill is said to remain unsettled. But both Bright and President belong to the same masonic craft and many believe he still has some brownie points within the presidency.
CULPABILITY ODDS: 5-1
ARCHIBALD F. BERNARD, LEGAL ADVISOR TO THE PRESIDENT
The long-time influential figure behind President Weah has been involved in reading and interpreting the fine prints of both Eton and Ebamof loans. But like Bright and Shaw, Bernard is said to be caught up in an inner circle fight with McGill for the president’s ears. One source told FrontPageAfrica recently that the pair are getting along simply to ensure that the President’s interest in securing the loans are protected. Outside the loans, the pair, according to sources are managing but barely getting along.
Bernard has not publicly spoken out in favor or against the loans but he has been at the center of both as president’s trusted legal advisor. Unlike many of those in the president’s circle, Bernard has a long history with President Weah and is still highly regarded albeit shrinking of late.
CULPABILITY ODDS: 3-1
NATHANIEL MCGILL, MINISTER OF STATE
The most powerful man in the President’s inner circle is said to be at the forefront of every major deal or loan agreement involving the presidency. He has reportedly been at odds with both legal advisor Archibald Bernard and Economic Advisor Charles Bright. Like Bernard, McGill has been in attendance for both Eton and Ebamof’s MoU signings – and also working behind the scenes.
The Minister has also been very defensive of the loans and one of those calling on the opposition, the media and critics to give the Weah-led administration chance to perform and halt the criticisms.
Minister McGill was very critical of Senator Sando Johnson’s criticisms of the Eton Loan agreement, describing the loan as one of the best financial agreements the country ever signed, adding that the Weah’s administration will not relent in engaging loan agreement with any financial institution globally. “This is one of the best loan agreements the country ever had, the criticism by some people including Senator Johnson is unnecessary. We took the loan to build roads for our people. We cannot allow this country remain on grounds that we don’t want loan.”
Besides being one of the biggest defenders of both loans, the minister’s influence is growing by the day with many comparing his problems to what former President Ellen Johnson-Sirleaf experience with Minister Morris Saytumah during her first term.
CULPABILITY ODDS: 2-1
ALBERT CHIE, PRESIDENT PRO TEMP, SENATE
THE LOWDOWN: Both the head of the Senate and the lower house of the national legislature have come under fire of late for forming part of delegations with the Executive branch to seek loans. Chie, in particular oversaw the Senate’s 4-G passage of both loans. President Weah got the ground running early, taking both Chie and the Speaker of the House of Representatives Bhophal Chambers on trips in hopes of cementing his grip on the legislature with the end game of easing what would later be, smooth passage of two controversial loans that would follow later.
The Senate under Chie passed the loans despite concerns about Eton’s lack of credibility and financial history as well as conflict of interests surrounding the Ebamof deal and President Weah’s ties to the Burkinabe businessman. Additionally, the central issue regarding the Central Bank of Liberia whether the government’s consolidated account was being put on the line in order to secure the US$536 million loan from ETON.
Chie was vocal in his assurances that over the next 10 years, the government will accelerate the assessment, appraisal and sustainable development and management of its mineral resource band and other natural resources to improve the lives of the people especially rural dwellers and service these loans which have been obtained. Chie himself has a long history of ties to several concessions in the past and was instrumental in making recommendations to President for the leading positions at the Ministry of Lands, Mines and Energy making him the kingpin of all the major concessions including the two controversial loans.
CULPABILITY ODDS: 2-1
BOPHAL CHAMBERS, SPEAKER OF THE HOUSE
THE LOWDOWN: When Bhofal Chambers was elected speaker of the lower house of the national legislature, anticipation was high that one of the most vocal critics of former President Ellen Johnson-Sirleaf would make a difference in shaking off the bad image of the legislative body. Seven months in, many political observers say, Chambers has been a major disappointment and embarrassment. Overseeing a body that allowed to two controversial loans with numerous red flags dampened the confidence many had in the once-robust lawmaker who was a thorn in the side of former President Sirleaf.
It was Chambers who sent the loans to the upper house following a 4-G passage for concurrence without conducting due diligence.
During his inauguration, Chambers promised to reform the lower house, declaring: “I will like to let you know that you will not be disappointed. This House will be rebranded. Your hopes will not be withered. We will build your prospects. I want to thank the President, Madam Ellen Johnson Sirleaf, as one who led this country, though there were challenges, gaps and weaknesses, we still understand that she did what she could,” he said.
CULPABILITY ODDS: 2-1
What’s Next? Loans Still in Limbo
The Weah-led government’s quest to secure loans for the construction of a coastal highway while commendable has had its critics. What remains clear to many is that the government’s recent change of heart toward the World Bank and the IMF suggest that bearing a sudden reversal of fortune, we may have heard the last of Eton and EBOMAF loans. All this is complicated by the government’s reluctance to be more forthcoming regarding the delays in signing of the loans into handbill and why it is taking so long for the first installment of the loans to arrive even amid the recent reported visit to Liberia of a man purported to be ETON’s executive director, Dr. Yungseoung Jin, a South Korean national. Mr. Jin was not presented to the media and the outcome of the meeting was never revealed although, his arrival was trumpeted as a sign that the deal was about to be consummated.
With deadlines for both loans already elapsed, the two controversial loans are still binded by law. Although they have not been consummated into handbills, the silence from both houses of the national legislature under whose mantle the loans were passed with 4-G speeds, remains a mystery.
And with the focus now being redirected toward the World Bank and the IMF, the start of the next dry season in November, a few months from now could prove pivotal for the administration looking to fulfill its promise to Liberians. But first finding the money, as Minister Nagbe said recently is key. “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.”
For now, the culpability surrounding who misled or misdirected the president continue to linger in a state of the unknown. On the contrary, in next door, Ghana, President Nana Akufo-Addo recently took swift action to dismiss the country’s energy minister due to proposals for a renegotiation of a $510 million private power deal with Africa Middle East Resources Investment Ltd. Akufo-Addo dismissed Energy Minister Boakye Agyarko and appointed Land and Natural Resources Minister John Peter Amewu to oversee the ministry.
Akufo-Addo’s government started a review of the 250 megawatts deal in August last year after claiming that the country was overpaying by $150 million for a transaction that was first negotiated in 2015 by the previous administration of President John Mahama. At the time, Ghana experienced chronic blackouts, crippling factories and exacerbating weak growth that slowed to the lowest in more than two decades.
Under a proposal that was submitted to lawmakers with the backing of Akufo-Addo last month, a new operator would take over running the plant in a deal that would’ve incurred Ghana $825 million in fresh costs, according to an estimate by Kwadwo Poku, country director of Gasop Oil Ghana Ltd., an Accra-based oil explorer.
The portfolio committee on finance and energy rejected the proposal and the Ghanaian President felt that the amendment would cost the nation more while the minister presented it otherwise, forcing the President to act based on the wrong advice he was given.
In Liberia, political observers say, President Weah risks treading a familiar line from his predecessor, Sirleaf who often felt the need to protect those close to her inner circle, most times at her own detriment. The delay and uncertainty over the loans from Ebamof and Eton appear at least for now to be engulfed in a state of denial and silence with both the executive and legislative branches of government reluctant or apparently unwilling to face the daunting realities now posing serious political implications and complications toward the fulfillment of the Weah-led administration’s pro-poor agenda.