Monrovia – Liberian President George Manneh Weah has ordered his Minister of Justice Cllr. Frank Musa Dean to report to him within two weeks with a finding into the explosive report by the London-based watchdog group Global Witness alleging that the U.S. petroleum giant Exxon 2013 purchase of Liberia’s Block 13 oil license likely enriched former government officials who may have illegally owned the block.

Report by Rodney D. Sieh, rodney.sieh@frontpageafricaonline.com

The report also alleges that the oil company made unusual, large payments to senior government officials who authorized the 2013 deal.  

A FrontPageAfrica investigation has however spotted a potential monkey wrench in the quest of the Weah-led government to get to the bottom of the controversy with the designated head of the probe, Cllr. Dean at the center of a conflict of interest quagmire. 

Several Oil Blocks Under Dean’s Watch 

Cllr. Dean was Head of the National Oil Company of Liberia during the first bid round in 2004.

It was under Cllr. Dean’s tenure that the initial block was tentatively awarded, raising serious issues likely to thwart the two-week deadline ordered by the President. 

In addition to Oil Block 13, Cllr. Dean also oversaw the negotiations of Repsol Block 17, Oranto Block 12, 16, 15, 13, 11, 9 & 8. 

Global Witness has urged the Weah administration to look into the matter and the administration has obliged. 

In a statement signed by Information Minister Lenn Eugene Nagbe Saturday, the administration said it is in receipt of information from several international groups including Global Witness and Wall Street Journal alleging grave acts of corruption on the part of several former government officials relating to the sale of oil block 13 to Exxon Mobil. 

“Although President George Manneh Weah has already commissioned a general concession review, including concessions in the oil sector.”

“These allegations of bribery and misuse of office are deeply concerning.”

“The President has therefore instructed the Minister of Justice Cllr. Frank Musa Dean Jr. to investigate the matter and submit a preliminary report to him within two weeks.”

“The President said if illegality is determined, those culpable would bear the full weight of the law. He urged all to cooperate,” the statement concluded. 

Now with the revelation of Cllr. Dean’s proximity to the initial bid rounds, it is unclear how the administration will proceed. 

Block 13 was originally awarded by NOCAL in 2005 to Liberian-Anglo company Broadway Consolidated/Peppercoast (BCP). In 2007, the block was ratified by the Liberian legislature through bribery. 

In its investigation, the watchdog group published evidence it says shows that the company was likely part-owned by former Mining Minister Jonathan Mason and former Deputy Minister Mulbah Willie. 

Mason and Willie are suspected of granting the oil block to a company in which they held interests while they were also ministers in 2005, which was illegal under Liberian law. 

Exxon knew that Block 13 was originally awarded through bribery and that its purchase of the oil block could enrich former officials who might have been behind BCP. 

GW reported that in a PowerPoint presentation it obtained, Exxon wrote that it was interested in purchasing the oil block despite its “concern over issues regarding US anti-corruption laws.” 

GW noted that despite several red flags, Exxon went ahead with the deal anyway. Global Witness’ evidence shows that it structured the transaction in a way to skirt US anti-corruption laws by using a Canadian company – Canadian Overseas Petroleum Limited (COPL) – as a go-between to buy the block. 

Senior Campaigner Jonathan Gant declared, “It’s appalling that an oil giant like Exxon would buy up an oil block they knew was tainted by corruption. 

“This kind of morally dubious corporate behavior is particularly shocking in a country like Liberia where endemic corruption continues to rob people of opportunities.”

Liberian Equity Shareholders? 

Many industry observers are unsure what exactly will the government be investigating given that government is a continuum: The fact that employee bonuses were bribes?

Or that the disclosure documents GOL received from Broadway/Pepper Coast contained names of Liberian officials as equity shareholders? Was it that EXXON introduced COPL to Liberia to evade the Foreign Corrupt Practices Act (FCPA)? 

Complicating the controversy is the fact that disclosure documents were filed with the respective stock exchanges and all companies with the exception of Broadway are publicly-traded although Broadway’s primarily owner, RAB Capital was publicity traded.

One legal observer said Saturday it may be near impossible to list government officials as owners owing to the fact that only one Liberian shareholder was listed Cllr David Jallah, who was not a GOL official.

Several of those named in the report have confirmed to FrontPageAfrica that bonuses were documented in Board minutess as well as financial statements and it has been publicly documented that Broadway/Pepper Coast and COPL were owned by RAB Capital.

They were sister companies Broadway borrowed money from COPL using LB#13 as collateral (illegally) months prior to Exxon being introduced to the block. 

Former Justice Minister Christiana Tah, in her response to Global Witness which she shared with FrontPageaAfrica after the release of the reported said: “Bonus payments were authorized by NOCAL 

The Board of Directors to all NOCAL Staff and others who performed exceptionally in conducting the negotiations on the Exxon Contract.

These bonus payments were made long after the Exxon deal concluded. I understand that even drivers received bonuses.

Do you mean to tell me that Exxon was so desperate that it even bribed drivers? I did not receive money or an offer to pay money from Exxon-Mobil for the award of the oil contract related to Block 13, neither am I aware of anyone who may have requested or received a bribe from the aforesaid company, directly or indirectly.” 

Mr. Robert Sirleaf, who was board chair at the time acknowledged that after the contract was signed and the funds transferred, NOCAL paid a bonus to ALL officers, board members and employees of NOCAL (approx. 140+) including drivers, janitors, secretaries and clerks.  

“I’m very sure one wouldn’t draw any conclusions that a bonus paid to the entire Company, including all junior staff, was a “bribe.”

“So, your suggestive is preposterous. In fact, the signature bonus Liberia received for the Block 13 contract was about fifteen times more than the largest signature bonus Liberia had previously negotiated for any oil contract,” Mr. Sirleaf, who is also the son of former President Ellen Johnson-Sirleaf told Global Witness.  

Former Finance and Economic Planning Minister Amara Konneh for his part categorically denied accepting a bonus through an official NOCAL check as did all others.

“I, Amara M. Konneh, as Minister of Finance and Development Planning at the time, did not solicit or request a bonus or any other payment for the work that I did for the benefit of my country’s oil burgeoning hydrocarbon program.”  

COPL reportedly contracted to acquire the Broadway/Peppercoast contract and invested at least US$15,000,000 in the contract well before Exxon/Mobil entered the picture. Prior to Exxon/Mobil entered the picture; COPL and Broadway/Peppercoast had already threatened to invoke the international arbitration clause in the contract if NOCAL attempted to terminate the contract.   

The financial backers of COPL and Broadway/Peppercoast, according to NOCAL at the time, had the funds to pursue such arbitration, and even if the arbitration was resolved in favor of Liberia, it could have taken years to reach that conclusion, according to NOCAL. 

The oil company was adamant that neither COPL nor Broadway/Peppercoast had the financial or technical capabilities to drill in Liberia’s off-shore deep waters. 

From Liberia’s perspective, the argument for NOCAL was that its budding oil sector was faced with a choice between a long, uncertain arbitration process and the possibility of getting stuck with a second-rate exploration company, or an immediate budget contribution of $45 million to Liberia and $5 million to NOCAL, and transfer of operational responsibility under the contract to one of the world’s most highly regarded off-shore operators.  

Arbitration Concerns 

If the arbitration had occurred, and if Liberia had eventually prevailed, any new contract would likely have been entered at a time at which oil was under US$50 per barrel, rather than the then nearly $100 per barrel.  

It is noteworthy that the highest bid in Liberia’s 2014 bid round was $15,000,000 per block, and the two bidders involved backed out of the deal as the oil price continued to fall. 

NOCAL boasted at the time that Liberia clearly came out ahead and financially benefited by going forward with Exxon/Mobil rather than trying to terminate the contract. 

For the immediate future, many Liberians are cautiously optimistic about the trend the pending investigation in the latest Global Witness investigation will follow.

Many have been left disappointed at the outcome of the previous GW bombshell which uncovered more than US$950,000 in bribes and other suspicious payments by UK mining firm Sable Mining and its Liberian lawyer, Varney Sherman. 

The report dubbed The Deceivers (1), showed how in 2010 Sable hired Cllr. Sherman, the former chair of the then ruling Unity Party government, in an effort to secure one of Liberia’s last large mining assets, the Wologizi iron ore concession in northern Liberia.

Senator Sherman told Sable that in order to obtain the contract the company must first get Liberia’s concessions law changed by bribing senior officials, according to a source familiar with the discussions. GW was able to  back up the account with leaked emails and company documents. 

The investigation headed by Cllr. J. Fonati Koffa sought and won indictment of the former Speaker of the House of Representatives Alex Tyler, Senator Sherman and others for allegedly committing multiple criminal offences, bribery, economic sabotage, criminal conspiracy, solicitation and facilitation. 

While the arrest of Tyler and attempted arrest of Cllr. Sherman generated a lot of public interest, the case eventually died a natural death with the new government appearing unlikely to pick up where the old government left. 

GW appeared unhappy with the trend of the last case, when it unveiled its report on the Exxon sale.

“Liberia’s attempts to stop corruption have failed – most notably the Sable Mining bribery debacle,” said Gant. 

“It is time for President George Weah to show that he is a reformer and task the Ministry of Justice and Anti-Corruption Commission to investigate immediately.” 

The probe of the Exxon deal is expected to resurrect some old faces and at least one current lawmaker, Rep. Adolph Lawrence. GW reports that there is strong evidence that Rep. Lawrence, who became a Representative in 2012, held a BCP ownership interest in 2011.

If Lawrence continued to hold this interest when Exxon bought 2013, he also would have broken the law and may have received part of the money Exxon paid BCP. 

The report also suggested that if former Lands, Mines and Energy Minister Jonathan Mason did own BCP shares when Exxon bought Block 13, he would have received a share of the US$68.5 million Exxon paid BCP. 

Article 90(b) in Play 

Mulbah Willie, another former official, who was an assistant minister at LM&E died in 2012, so any money he was owned would likely have gone to his estate.

GW reported that COPL informed its investigators that its due diligence showed that there were no legal problems with the deal, that Mason did not hold shares in BCP, shareholders certified they held no interest for others, and that it received legal advice on its anti-corruption and anti-money laundering obligations.

The company stated that Lawrence resigned from a job he held with BCP in 2011 and that any money he received was reported to the Liberian Government. 

Global Witness has also seen evidence that shortly following the authorization of the 2013 Exxon deal senior Liberian officials were paid “bonuses” of US$35,000 by NOCAL – more than doubling their annual salaries. 

These officials, and the positions they held at the time, were: NOCAL CEO Randolph McClain, National Investment Chairman Natty Davis, Finance Minister Amara Konneh, Mining Minister Patrick Sendolo, NOCAL Board Chair Robert Sirleaf, who is the son of then-President Ellen Johnson Sirleaf and  Justice Minister Christiana Tah Robert Sirleaf was reportedly working pro-bono at the time.

However, he too received a payment of US$35,000. 

For now, some Liberians are raising concerns about the potential breach of Article 90(b) of the Constitution which states:

“No person holding public office shall demand and receive any other perquisites, emoluments or benefits, directly or indirectly, on account of any duty required by Government”. 

Contacted Sunday, Global Witness lead campaigner Jonathan Gant said It’s very encouraging that President Weah has called for an investigation into the 2013 Block 13 deal,” but cautioned that the review must be led by an independent investigator.

“Justice Minister Musa Dean should not lead it because he has a fundamental conflict of interest, having signed Broadway’s 2005 contract when head of NOCAL.” 

The evolving saga could likely prove to be the first major test of the Weah presidency with the world paying keen attention to yet another Global Witness investigation unraveling allegations of bribery, illegal bonuses and a corruption label which dogged its predecessor and now poised to ignite a lightning rod of enormous implications.

Monrovia – A damning report by the London-based corruption watchdog group, Global Witness, released Thursday, March 29, alleging that the US petroleum giant, Exxon’s 2013 purchase of Liberia’s Block 13 oil license likely enriched former officials who may have illegally owned the block, is being greeted with strong condemnations by these officials of the Ellen Johnson-Sirleaf-led administration, including her son, Robert A. Sirleaf.

Report by Rodney D. Sieh, rodney.sieh@frontpageafricaonline.com 

Global Witness is a non-governmental organization that investigates and campaigns to prevent natural resource-related conflict and corruption and associated environmental and human rights abuses. 

The report also alleged that the National Oil Company of Liberia (NOCAL) also made unusual, large payments to senior government officials, who authorized the 2013 deal and is calling on Madam Sirleaf’s successor, President George Manneh Weah, to investigate those involved in Exxon’s 2013 oil deal for corruption or wrongdoing.

The GW report alleges that its evidence suggests that shortly following the authorization of the 2013 Exxon deal senior Liberian officials were paid “bonuses” of US$35,000 by NOCAL – more than doubling their annual salaries. 

Those listed as receiving payments are: former NOCAL CEO Randolph McClain, former National Investment Chairman Natty B. Davis, former Finance Minister Amara Konneh, former Lands, Mines and Energy Minister Patrick Sendolo, NOCAL Board Chair Robert Sirleaf, the son of then President Ellen Johnson Sirleaf and former Attorney General Christiana Tah. 

Global Witness wrote: “Robert Sirleaf was reportedly working pro-bono at the time. However, he too received a payment of US$35,000. The evidence shows that these payments were associated with the Exxon deal.

The payments were probably made from the same bank account into which Exxon had recently deposited part of its bonus to NOCAL, although there is no evidence that Exxon knew about them.” 

In separate responses Thursday, both Mr. Sirleaf and the former Justice Minister sent separate communications they said were submitted to Global Witness as part of their responses. 

Former Minister Tah, in her response took exception to the report’s findings and Global Witness in particular, terming the report’s accusations that she was offered or received bribe as “malicious”. 

Former Minister Tah: ‘Appalled’ Over Bribery Label 

In her response dated March 7, 2018, the former Justice Minister wrote:

I am writing in response to the March 7, 2018 unsigned letter which you sent to me under Global Witness’ letterhead, accusing me of “likely” accepting a bribe in relation to a contract entered into between the National Oil Company of Liberia (NOCAL) and Exxon-Mobil in 2012, at a time when I served as Minister of Justice of the Republic of Liberia.

I have chosen to address this letter to you because I understand you have dispatched similar letters under your signature with accusations of bribery against other parties who worked on securing for Liberia the advantages of an exploration agreement between NOCAL and Exxon. 

We have never spoken and I have no idea what your agenda is. I am appalled by the fact that you think it is ethical to allege bribery without first seeking out the facts.

Indeed, I am of the impression that it makes little difference to you whether you have facts right before making these allegations; hence I understand that the Chair of the Advisory Board has already expressed a cautionary note within Global Witness concerning the anticipated publication.

Hopefully, this letter (along with any other responses which I expect you are receiving  will give Global Witness cause for concern that not only are you acting recklessly with respect to reputational injury to innocent people but also acting in a manner that cast aspersions  on the reputation and credibility of Global Witness. 

Bonus payments were authorized by NOCAL’s Board of Directors to all NOCAL Staff and others who performed exceptionally in conducting the negotiations on the Exxon Contract.

These bonus payments were made long after the Exxon deal concluded. I understand that even drivers received bonuses. Do you mean to tell me that Exxon was so desperate that it even bribed drivers? 

I did not receive money or an offer to pay money from Exxon-Mobil for the award of the oil contract related to Block 13, neither am I aware of anyone who may have requested or received a bribe from the aforesaid company, directly or indirectly.

The suggestion that there was a “quid pro quo” link between entering into the contract and payments by using the term Bribe”, is malicious and appears to be deliberate and purposeful. 

I served the Government of Liberia in the capacity of Attorney General/Minister of Justice for five years and did not at any time solicit concessionaires or any individual or entity seeking a contract with the Government to pay me anything.

I advise you consult with your counsel on the legal ramifications of malice in publishing defamatory statements. I will not sit by and allow you to defame my good name. 

Rob Sirleaf: ‘No Bribe Was Necessary’ 

In his response dated March 12, 2018, Mr. Sirleaf in a communication to Mr. Jonathan Gant, Senior Campaigner for Liberia, said the accusations that bribes were paid is absurd and baseless. 

Said Mr. Sirleaf: 

I understand that you have been emailing people associated with NOCAL in 2013 asserting that “bribes” were paid by NOCAL to secure the signature of the Exxon-Mobil Block 13 contract. This is absurd and baseless. 

During my tenure as a member of the NOCAL team, I took great responsibility and pride in the development of Liberia’s potential oil resource for the benefit of our shareholders, the Liberian people.

The Block 13 contract was the most successful, publicly documented, and transparent transaction in Liberia’s oil industry history. 

It resulted in the payment by Exxon-Mobil of a US$50,000,000 signature bonus, with US$45,000,000 going to the Consolidated Fund of the Ministry of Finance which is well documented, and only US$5,000,000 retained by NOCAL.

In addition, it brought one of the world’s most experienced oil companies to Liberia. 

After the contract was signed and the funds transferred, NOCAL paid a bonus to ALL officers, board members and employees of NOCAL (approx. 140+) including drivers, janitors, secretaries and clerks.  I’m very sure one wouldn’t draw any conclusions that a bonus paid to the ENTIRE company, including all junior staff, was a “bribe.” 

So, your suggestive is preposterous. 

In fact, the signature bonus Liberia received for the Block 13 contract was about fifteen times more than the largest signature bonus Liberia had previously negotiated for any oil contract. 

No “bribe” was necessary to encourage signature of that contract, and any suggestion that I or anyone else received a “bribe” from NOCAL is totally false. 

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Konneh: ‘I Did Not Solicit’ Bonus, Bribe 

Former Finance and Development Planning Minister Amara M. Konneh when contacted Thursday, issued the following statement to FrontPageAfrica: 

Mr. Konneh wrote: 

On March 29, 2018, Global Witness released a report titled, “Global Witness Exxon Mobil Liberia March 2018”, in which my name is mentioned as having received a bonus of US$35,000 along with other former officials of the Government of Liberia after the successful conclusion of the Production Sharing Contract for Block 13 between the Government of Liberia through the National Oil Company of Liberia (NOCAL) and Exxon Mobil in 2013. 

Here are the facts, as Minister of Finance and Development Planning, which made me a member of the Board of NOCAL, I was effectively involved in the negotiation efforts to bring in ExxonMobil, America’s largest oil company, into Liberia’s promising oil basin as a means of boosting its outlook and ultimately attracting other supermajors to participate in the development of the country’s hydrocarbon resources.

After many months of intense negotiations, we concluded a landmark deal that would see Liberia receive a non-refundable signature bonus of $50 million United States Dollar, a first for a non-oil producing country.  

Following this major milestone, the Board of Directors of NOCAL decided it would be fitting to organize a bonus package for all of those who worked hard and long to pull off this deal, which included, as supported by Global Witness in their report, the relevant line ministries and agencies of the government and the entire staff of National Oil Company of Liberia. I call on NOCAL to release to the public the full list of everyone who received bonus payment from the Exxon negotiation. 

Additionally, Global Witness is fully aware that everyone knew the circumstances surrounding Block 13 before the Canadian Overseas Petroleum Limited (COPL) acquired it and then subsequently sold it to Exxon Mobil.

The records are there, and the transactions were concluded in the public and reviewed by top US lawyers to ensure that the transaction did not violate the US Foreign Corrupt Practices Act. 

Let me state here categorically that while I accepted the bonus through an official NOCAL check as did all others, I, Amara M. Konneh, as Minister of Finance and Development Planning at the time, did not solicit or request a bonus or any other payment for the work that I did for the benefit of my country’s oil burgeoning hydrocarbon program. 

Furthermore, I served as Minister of Finance from February 2012 to April 2016 and during and after my term of service, I did not at any time solicit or receive money or favor from corporations or individuals seeking relationship with the Government of Liberia. 

Global Witness further stated in the report that I was contacted to respond to their query but refused to do so. I would like to state categorically that at no point in time have I ever received a call or communication in any other manner from GW to respond to issues raised in their report relating to me. I am, as always, willing to respond to queries relating to issues arising during my time of service with the Government of Liberia. 

Let me conclude that we remain proud of the work we did for our country by ensuring that it benefited from US$50 million as a result of that transaction. That is by far the largest amount that Liberia ever received for any of its offshore blocks.

For Global Witness to suggest that a US$35,000 bonus paid to each member of the negotiating team for ensuring that Liberia got US$50 million from the transaction is a bribe on a US$120 million deal is an insult to the reputation and integrity of the Liberian officials.

In fact, global best practice would suggest that when employees achieve great results, bonus is a way of appreciating and incentivizing them.

When has this become a crime to pay and receive a bonus? 

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‘No Comment’ – Sendolo Mum 

Former Lands, Mines and Energy Minister Sendolo declined to give a detailed comment when contacted, declaring: “I do not see anything that warrants comment on my part.” 

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Block 13 was originally awarded by NOCAL in 2005 to Liberian-Anglo Company Broadway Consolidated/Peppercoast (BCP). 

In 2007, the block was ratified by the Liberian legislature through bribery.

According to Global Witness, its evidence shows that the company was likely part-owned by former Mining Minister Jonathan Mason and former Deputy Minister Mulbah Willie. 

Mason and Willie are suspected of granting the oil block to a company in which they held interests while they were also ministers in 2005, which was illegal under Liberian law. 

The findings note that Exxon knew that Block 13 was originally awarded through bribery and that its purchase of the oil block could enrich former officials who might have been behind BCP. 

“In a PowerPoint presentation obtained by Global Witness, Exxon wrote that it was interested in purchasing the oil block despite its “concern over issues regarding US anti-corruption laws. 

Undeterred by the corruption red flags, Exxon went ahead with the deal anyway.

Global Witness’ evidence shows that it structured the transaction in a way to skirt US anti-corruption laws by using a Canadian company – Canadian Overseas Petroleum Limited (COPL) – as a go-between to buy the block. 

“It’s appalling that an oil giant like Exxon would buy up an oil block they knew was tainted by corruption,” said Jonathan Gant, Senior Campaigner at Global Witness.

“This kind of morally dubious corporate behavior is particularly shocking in a country like Liberia where endemic corruption continues to rob people of opportunities.” 

The GW report said if Mason did own BCP shares when Exxon bought Block 13, he would have received a share of the US$68.5 million Exxon paid BCP.

Mr. Willie died in 2012, so any money he was owned would likely have gone to his estate. 

The report also noted that there is evidence that Adolph Lawrence, who became a Representative in 2012, held a BCP ownership interest in 2011.

“If Lawrence continued to hold this interest when Exxon bought 2013, he also would have broken the law and may have received part of the money Exxon paid BCP.”

Monrovia – The London-based watchdog group, Global Witness is urging the George Weah-led government in Liberia to immediately reinstate Mr. Konah D. Karmo, as head of Liberia Extractive Industries Transparency Initiative (LEITI).

The organization’s statement comes just days after President Weah declared that he had done nothing wrong by appointing former lawmaker Gabriel Nyenkan as Head of the LEITI Secretariat. 

“I have broken no law,” the President declared at a news conference recently when he returned from a recent trip to Monrovia. 

President Weah said he was simply exercising his constitutional power in his appointment at the LEITI, as the Liberian constitution gives the President the power to appoint officials of various agencies of government.

But in its statement Thursday, March 29, Global Witness said it is important for the organization to maintain its independence. 

LEITI is part of the EITI- a global standard to promote the open and accountable management of extractive resources.

The Act establishing the states that only the LEITI Multi-stakeholder Steering Group (MSG) can appoint or remove the Head of Secretariat. Mr. Karmo still has three years left to be in the position. 

On Monday, March 12, 2018, Mr. Nyenkan took the country by surprise when he arrived at the offices of the LEITI to take over the Secretariat. 

Mr. Karmo informed the MSG the same day that Mr. Nyenkan had bulldozed his way into the office and taken over. 

“I write to inform you that the offices of the LEITI Secretariat were on today, March 12, 2018 invaded by officers of the Liberia National Police to have Mr. J. Gabriel Nyenkan forcibly take over as Head of Secretariat.” 

“As a result, I was evicted from the office and the assigned vehicle ceased by the LNP officers, who accompanied Mr. Nyenkan and his supporters. “

“The action which took place at about 12 noon was characterized by massive influx of Mr. Nyenkan and his supporters. Based on this, I requested other staff of secretariat staff to leave the office…”  

Nyenkan later told journalists that he invited the police because Karmoh had refused to respect the President’s order, as Karmoh said that his post was a tenure contract given to him by the MSG. 

Global Witness credited LEITI under Karmoh for being instrumental in its investigation on Liberia, including its latest allegation bribery in the Exxon Block 13 oil block negotiations.

“Exxon investigation was made possible by information published by the Liberian Extractive Industries Transparency Initiative (LEITI), an independent agency that publishes annual reports of payments made by companies to the government.”

“Without this information, Global Witness would not have started researching Exxon’s 2013 deal,” the organization said. 

“Our investigation shows not only that Liberia’s oil sector was corrupt, but also how important LEITI is for the country,” said Gant.

“The latest news that President Weah has illegally fired LEITI Secretariat Head Konah Karmoh is alarming and may show a weakening of political will to tackle corruption.” 

The GW findings uncovered that when Block 13 was sold in 2013, Exxon obtained 83 percent of the block. Canadian Overseas Petroleum obtained 17 percent of the block.

The transfer of Block 13 was structured in a way that 100 percent of the block was first transferred from BCP to COPL, and then COPL transferred Exxon its share.

Exxon stated in a PowerPoint presentation obtained by Global Witness that it wanted to structure the transaction this way “due to” its US anti-corruption concerns. 

Of the US$120 million Exxon paid for Block 13, US$68.5 million went to BCP. Global Witness estimates that Mason and the estate of Willie likely received a share of US$3.3 million.

If Lawrence still held a BCP interest when Exxon purchased Block 13, Global Witness estimates he would have received US$15,000. 

The Global Witness’ call comes as several civil society organizations and international stakeholders are contemplating withdrawing from LEITI in protest. 

FrontPageAfrica has learned that the civil society bloc of the LEITI MSG or PWYP Liberia (acting as founder of LEITI) is due to call a press conference shortly and issues a position statement, calling on the President of Liberia to withdraw the nomination of Mr. Gabriel Nyenkan as Head of LEITI Secretariat. 

The body is also expected to use the LEITI Act to point out the error made by the President and highlight the implications of the President’s action for investments in the struggling economy; and inform the Liberian people and the world in the event President Weah refuses to withdraw the nomination of Mr. Nyenkan.

The organizations are also considering boycotting the LEITI until the LEITI Act is respected regarding the appointment of the Head of Secretariat.

Washington, DC – A new Global Witness investigation released today shows Exxon’s 2013 purchase of Liberia’s Block 13 oil license likely enriched former government officials who may have illegally owned the block.

The Liberian Government should investigate Exxon’s US$120 million oil deal and ensure the independence of the Liberia Extractive Industries Transparency Initiative.

The state oil agency NOCAL also made unusual, large payments to senior government officials who authorized the 2013 deal. 

Global Witness calls on the Liberian Government to investigate those involved in Exxon’s 2013 oil deal for corruption or wrongdoing.

Block 13 was originally awarded by NOCAL in 2005 to Liberian-Anglo company Broadway Consolidated/Peppercoast (BCP). In 2007, the block was ratified by the Liberian legislature through bribery.

But Global Witness’ evidence shows that the company was likely part-owned by former Mining Minister Jonathan Mason and former Deputy Minister Mulbah Willie.

Mason and Willie are suspected of granting the oil block to a company in which they held interests while they were also ministers in 2005, which was illegal under Liberian law.

Exxon knew that Block 13 was originally awarded through bribery and that its purchase of the oil block could enrich former officials who might have been behind BCP.

In a PowerPoint presentation obtained by Global Witness, Exxon wrote that it was interested in purchasing the oil block despite its “concern over issues regarding US anti-corruption laws.”

Undeterred by the corruption red flags, Exxon went ahead with the deal anyway. Global Witness’ evidence shows that it structured the transaction in a way to skirt US anti-corruption laws by using a Canadian company – Canadian Overseas Petroleum Limited (COPL) – as a go-between to buy the block.

“It’s appalling that an oil giant like Exxon would buy up an oil block they knew was tainted by corruption,” said Jonathan Gant, Senior Campaigner at Global Witness.

“This kind of morally dubious corporate behavior is particularly shocking in a country like Liberia where endemic corruption continues to rob people of opportunities.”

If Mason did own BCP shares when Exxon bought Block 13, he would have received a share of the US$68.5 million Exxon paid BCP. Willie died in 2012, so any money he was owned would likely have gone to his estate.

There is also evidence that Adolph Lawrence, who became a Representative in 2012, held a BCP ownership interest in 2011.

If Lawrence continued to hold this interest when Exxon bought 2013, he also would have broken the law and may have received part of the money Exxon paid BCP.

Exxon has not responded to Global Witness’ request for comment. COPL has, saying its due diligence showed that there were no legal problems with the deal, that Mason did not hold shares in BCP, shareholders certified they held no interest for others, and that it received legal advice on its anti-corruption and anti-money laundering obligations.

The company stated that Lawrence resigned from a job he held with BCP in 2011 and that any money he received was reported to the Liberian Government.

“Liberia’s attempts to stop corruption have failed – most notably the Sable Mining bribery debacle,” said Gant.

“It is time for President George Weah to show that he is a reformer and task the Ministry of Justice and Anti-Corruption Commission to investigate immediately.”

Unusual and large payments to Liberian officials in 2013

Global Witness has also seen evidence that shortly following the authorization of the 2013 Exxon deal senior Liberian officials were paid “bonuses” of US$35,000 by NOCAL – more than doubling their annual salaries.

These officials, and the positions they held at the time, were: 

• NOCAL CEO Randolph McClain
• National Investment Chairman Natty Davis
• Finance Minister Amara Konneh
• Mining Minister Patrick Sendolo
• NOCAL Board Chair Robert Sirleaf, who is the son of then-President Ellen Johnson Sirleaf
• Justice Minister Christiana Tah

Robert Sirleaf was reportedly working pro-bono at the time. However, he too received a payment of US$35,000.

The evidence shows that these payments were associated with the Exxon deal.

The payments were probably made from the same bank account into which Exxon had recently deposited part of its bonus to NOCAL, although there is no evidence that Exxon knew about them.

All officials have denied that these payments were bribes, stating that they were authorized by NOCAL’s Board of Directors as bonuses for negotiating a good deal with Exxon.

Global Witness’ Exxon investigation was made possible by information published by the Liberian Extractive Industries Transparency Initiative (LEITI), an independent agency that publishes annual reports of payments made by companies to the government.

Without this information, Global Witness would not have started researching Exxon’s 2013 deal.

“Our investigation shows not only that Liberia’s oil sector was corrupt, but also how important LEITI is for the country,” said Gant.

“The latest news that President Weah has illegally fired LEITI Secretariat Head Konah Karmo is alarming and may show a weakening of political will to tackle corruption.”

Global Witness calls on the Liberian Government to immediately reinstate Karmo as Head of the LEITI Secretariat and ensure LEITI’s independence is preserved. Liberian authorities should also investigate Exxon’s 2013 deal to see if Exxon or any Liberians broke the law.

When Block 13 was sold in 2013, Exxon obtained 83 percent of the block.

Canadian Overseas Petroleum obtained 17 percent of the block.

The transfer of Block 13 was structured in a way that 100 percent of the block was first transferred from BCP to COPL, and then COPL transferred Exxon its share.

Exxon stated in a PowerPoint presentation obtained by Global Witness that it wanted to structure the transaction this way “due to” its US anti-corruption concerns.

2) Of the US$120 million Exxon paid for Block 13, US$68.5 million went to BCP. Global Witness estimates that Mason and the estate of Willie likely received a share of US$3.3 million. If Lawrence still held a BCP interest when Exxon purchased Block 13, Global Witness estimates he would have received US$15,000.

3) Exxon, BCP, Mason, Lawrence, Konneh, and Sendolo did not respond to Global Witness’ inquiries regarding the Block 13 deal. COPL’s response stated that the company was “aware of the allegations concerning Peppercoast’s minority shareholders.”

However, the company’s due diligence “found credible evidence that the allegations of impropriety were entirely false,” including that former Liberian officials held Peppercoast shares, and took steps to ensure only the company’s named shareholders received payments.

Additionally, COPL stated that the Block 13 deal was structured as a two-step process because the Liberian Government wanted to sign a new oil license with Exxon and COPL rather than amending the license originally awarded to Peppercoast.

Three of the officials who received payments from NOCAL in 2013 also responded to Global Witness: National Investment Commission Chairman Natty Davis, Justice Minister Christiana Tah, and NOCAL Board Chair Robert Sirleaf.

All three stated that the payments they received were bonuses authorized by NOCAL’s Board of Directors for the work they had put into negotiating the Exxon deal. Tah and Sirleaf also stated that all other oil agency staff had received bonuses.

Monrovia – The trial involving those indicted in connection to the alleged corruption scandal outlined in the 2015 Global Witness Report may commence mid-December but with a new phenomenon – allowing cameras in court for television and live streaming.

First of its kind in Liberia and currently contrary to rules governing courts of Liberia, the intent of allowing cameras in court, as being negotiated with the court, is allow the public – both locally and internationally – watch the trial in real time to ensure transparent justice during the course of the trial.

The disclosure was made to FrontPageAfrica during an exclusive interview with head of the Special Presidential Task Force, Cllr. Fonati Koffa over the weekend.

“That is a part of transparent justice, the jury themselves will be aware that the public is watching, the international community is watching live.”

“When the trial is going on you’ll be able to go on the task force’s website and watch the trial and watch it on national television.

This case is so monumental and important to justice in Liberia that we will be petitioning the court to allow this process,” Cllr. Koffa told FrontPageAfrica.

We Know ‘Big Boys 1 & 2’

“We know who they are, I’m not sure FrontPage Africa exclusive interview is the place for us to reveal that. What we’re hoping is that the next time we announce a round of indictment we will also announce Big Boy 1 & 2, but we already know who they are,” Cllr. Koffa asserted.

‘Big Boy 1 & 2’ were mentioned in the Global Witness 2015 Report to have allegedly received US$250,000 each from Sable Mining to influence changes in the Public Procurement Concession Commission (PPCC) Act to favor the company’s acquisition of the Mount Wologizi concession.

The pair has remained unnamed since the release of the report. Global Witness in a response to a request of disclosure said it was up to the Government of Liberia to find out who they are.

Change in Trial Strategy

According to Cllr. Koffa, there has been a change in the trial strategy which was prompted by the fillings of several motions by the first batch of indictees.

This, according him, has delayed the trial.

“We have changed our trial strategy because of the long delay of appeals at the Supreme Court; we are proceeding with those already indicted as soon as the Court comes down.”

“The other group – it is likely that everyone remaining will be indicted. We are convening a grand jury… and we will go to the grand jury and it is likely that the remaining names in the report will be indicted.

“What we are doing as a matter of trial strategy is that the group that would be indicted next term of court will not be tried with this group, they will be tried separately because the problem you run into is once you indict this group they start to file their motions and we will have to go through the same process of delay,” the Presidential taskforce head told FrontPage Africa.

Koffa emphasized that the charges pressed against those named in the report have not been dropped. However, according to him, the prosecution remains open for plea bargains where charges are reduced in exchange for less punishment in exchange of admission of guilt.

“We have talked to the defendants; they’ve not indicated to us that they’re prepared to do that.”

“Whenever they are ready we’re open and ready to talk. But far as we are concerned, we are proceeding with this case on the indictment as charged,” he added.

 He added that Sable Mining remains indicted that the evidence against them are consistent, clear and cogent and a mutual legal assistance agreement was being developed  to ensure that the British Government assists the Taskforce in bringing the corporation and the named individuals that are not under Liberia’s jurisdiction to justice.

“If you do your research on bribery cases, you will find out that this is one of the few times there is a very excellent paper trail of evidence because you know bribery being a criminal act that involves government officials and sometimes private parties like in the case here is usually not put on paper, there is usually no discoverable email trail, it’s usually by word of mouth.  In this case we have more than one material witness and then we have documentary evidence that backs up the testimony,” Koffa averred.

The Major Challenge

The Special Presidential Task Force head said his major challenge in the execution of his duties had been the grip the powerful people indicted have on the media.

“The major challenge of the task force since it was formulated is corruption fighting back. Powerful people with money who have a lot of media infiltration have the ability to frame the issues in a way that the taskforce with its limited budget cannot.”

“We have to depend on the ability of the media to see the issue of the fight on corruption juxtaposed against the massive amount of money that is being spent against us,” he noted.

“The root cause of corruption is in ourselves and so what we try to do is to institutionalize the mechanism to prevent it.”

“All human being have flaws, even me sitting here – you know my story. What prevents us from indulging ourselves from the greater excesses of human nature is the system we put in place that is a deterrent.

It doesn’t matter who put that system in place, it matters that system becomes a system of laws that regardless of who he [perpetrator] is, he’ll be accountable and subjective to the law,” Cllr. Koffa said.

Report by Lennart Dodoo|+231 777 788 805|dodoolennart@gmail.com