Monrovia – Barely weeks after the Internal Audit report Unit (IAU) of the Ministry of Finance and Development Planning report was leaked involving Liberty party Chairman Benjamin Sanvee and others, Sanvee has asked for leave of absence from the party to redress the loan saga.
Report by Bettie K. Johnson Mbayo, [email protected]
The IAU recently conducted an audit on the operational audit of the Private Sector Development Initiatives (PSDI).
PSDI is a project, which was established in 2014 at the MFDP to provide loans to Liberian-owned small and medium-sized Enterprises (SME).
The loan was meant to financially-strengthen Liberian businesses. In so doing, the process would create jobs and accelerate the participation of Liberian owned businesses in the economy of Liberia.
Sanvee at the LP headquarter on Monday said since the audit it has been a tough time for him and his family as they have strived for excellence in exceling.
He said his stepping aside from the party was not an act of being a coward but it was geared around his integrity.
“I have thought about and prayed about this, and in the end as they say truth never hides. I am not resigning, the leave of absence is to take the time to restructure the loan and to make right our intentions,” Sanvee’s.
Sanvee is mentioned 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.
Auditors noted: “We received GE Fund account statement, loan agreements and customers’ file verification to authenticate the existence of the businesses including all other borrowers who received loans from PSDI.”
“Based on their addresses on books, we did not find or see the twelve (12) businesses at locations stipulated. We tried to contact them using telephone numbers obtained from borrowers’ files, but their phones were permanently switched off.”
The report continues: “However, on May 31, 2015, while concluding the draft report, we made further contacts, and were able to reach Mr. Benjamin Sanvee, CEO/Sanvee Holdings Inc.
He told us that we did not see the business at Bong-Mines Bridge as stipulated on the business file because; they have transferred/moved to Sinkor, 24th Street.
When questioned on the repayment of the US$45,000 loan received from the project, he promised to call us back after he shall have consulted his financial officer.”
The report noted that disbursing loans to institutions that do not exist or cannot be located constitutes deception, integrity issue and fraud as it came to the following conclusion:
“The actors Dr. James Kollie, Mr. Amos Koukou, the PSDI evaluation team and those entities should be further investigated. This is necessary because the actors should not have been the ones to vet and disburse loans anyway. This should have been the responsibility of LBDI.”
A statement which Sanvee partly consented adding that he was called but the caller did not identify themselves as an.
“Sanvee holding is a legitimate holding company, register under the laws of Liberia, it is a holding company and our office is on McDonald Street.”
He disclosed that he has 20% and is owned by his parents and 2 brothers.
Sanvee notes: “We invested into a business entity called Sophie dream, it was at the time the sole distributor of Bivaria beer and we brought in the company because we were interested in the business.”
“We formed a partnership and hoped to expand but it wasn’t that way, we did the CRF, and all BIVAC documentation.”
“At the signing we decided to take the initial investment and we say once the consignment arrived Sophie will free the container from the port.
“Our partner couldn’t come up with the money, so since we (Sanvee) investing in the first amount, we had to pay duty and start the process of selling the beer. But the money wasn’t available, so we took the loan,” he narrated.
Sanvee said “We decided to secure some financing to clear the container, at one point in time our partner Sophie wanted to secure a loan (this same loan) and we were told…. so we initiated the process, we went thru the processes and this was a legal program.”
He said one of the prerequisite of the loan was to make clear the intent of the loan, “We make it clear to the Government on the problems we were having and we got to loan through a legal process.”
Sanvee said on Sept 23, 2015, US$45 000 was given to Sanvee and holding and it was for 26 months which time will elapse in Nov 2017.
He disclosed that PDF matrix, an all men organization program was supported by Bivaria beer.
The LP Chairman said he understands the political timing but the call was made to him before the loan was taken.
“I understand that I am the chairman of the Liberty party and I also know that on May 31, I was called which was even long before the loan was given, the loan was given Sept 23, 2015.”
“I did get a call, but the call I got was not someone as an auditor, I don’t run the day to day of Sanvee holding and I told them I will speak to my brother.
“I did not set up bogus company, I have worked hard in building my reputation. It is hurtful that people will speak from the position of weakness and not strength,” said Sanvee.
LP Chairman continued: “I regret what this whole saga has put my family through, my father just retired from Coca Cola, and his retirement is why we created Sanvee holding.
He said his company isn’t proud that the agreement is defaulted, “We aren’t proud that we defaulted on the loan, it was never our intent, and it was due to the economic climate.”
Sanvee states: “We will not apologize for being Liberian, we received a legitimate loan, and I wasn’t a chairman of the Liberty Party when my family business received the loan, so I’m going to correct the wrong.”