Monrovia – The National Oil Company of Liberia (NOCAL) finds itself embroiled in a scandal as the Liberia Anti-Corruption Commission (LACC) launches an investigation into allegations of money laundering and corruption within the company’s administration.

By Lennart Dodoo

The investigation, stemming from events allegedly occurring between July 15-21, 2023, centers around accusations of collusion between NOCAL officials and BMC Group Inc. to launder funds through Sapele International Bank (SIB) Liberia Limited.

According to the LACC’s letter of request addressed to Hon. Jake Kabakole, Officer-in-Charge of NOCAL, the administration is accused of conspiring with BMC Group Inc. to open an account at SIB for the purpose of illicit money laundering. Subsequently, on July 17, 2023, NOCAL management purportedly issued a check amounting to USS728,464.42 to BMC Group Inc., which was promptly deposited into the newly established account. The funds, the letter alleges, were withdrawn within a week and remain unaccounted for.

In response to these grave allegations, the LACC has demanded the appearance of several key NOCAL staff members for investigation at its headquarters. The summoned officials include Timothy Kudar Jarry, Yekeh Gayflor, Edwina A. Barchue, Owen Gray, and Ernestine Massaley. They are instructed to appear with their legal counsel and all relevant documentation to support their testimonies.

The LACC’s request for cooperation underscores the seriousness with which Liberia’s anti-corruption authorities are approaching the investigation. The outcome of the probe could have far-reaching implications for NOCAL’s reputation and the broader fight against corruption in the country.

As the investigation unfolds, stakeholders await further developments and hope for transparency, accountability, and justice to prevail in the face of these troubling allegations.

MONROVIA – Religious community of both Christians and Muslims are meeting in Monrovia in a two-day sensitization seminar on Anti-Money Laundering and Combating the Financing of Terrorism.

The program is organized by Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).

It is the expectation of the organizers that the seminar will serve as a “springboard” for a renewed commitment of all religious and opinion leaders to identify the key roles they must play in raising awareness and shaping the morals of their congregations and followers through the force of moral persuasive messages.

Mr. Edwin w. Harris Jr, director general of GIABA, in his opening remarks, said; “Without pre-empting the resource persons assembled to lead discussions at this seminar, it is a common belief that religious leaders wield considerable influence among their followers. This is an evidence of potential influence of moral persuasion, which could be channeled to increase the good of society,” he said.

“We must be bold to speak the truth at all times, speak against evil, drive the good path, counsel the bad, and report obvious destructive evil to the appropriate authority, where necessary. If we must rid society of these wrongdoings, then, we must continue to stand as the shining light and examples which we are; we must resist all the negative influences and help in guiding the path of our followers in building a safe and secure society.”

According to him, in promoting peaceful coexistence, the voice of our religious leaders must be strongly heard against violent extremism, terrorism, corruption, human trafficking, kidnapping and other predicate offenses. And that, they must not only be heard, but must be seen leading the way by action and exemplary lifestyles.

“I must say here, though, that this is not a task for the religious leaders alone. GIABA is also interacting with and building the capacity of other stakeholders, including law enforcement agencies, the judiciary, financial institutions, designated non-financial businesses and professions, the media, youth and women groups and civil society organisations. This implies that all hands must be on deck for us to achieve the desirable outcomes.”

What is GIABA?

GIABA is a specialized Institution of ECOWAS, as well as a FATF-style Regional Body (FSRB) for West Africa. It was established in r 2000 by the Authority of Heads of State and Government of ECOWAS, with the mandate to protect the economies of member States from the laundering of the proceeds of crimes and combat terrorist financing (TF). 

To this end, GIABA works to ensure that member States comply with acceptable International Standards on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). 

As an FSRB, GIABA undertakes mutual evaluations – a peer review mechanism for assessing the level of technical compliance and effectiveness of member States’ AML/CFT systems with International Standards. 

GIABA also conducts valuable researches and typologies exercises to identify the various Money Laundering and Terrorist Financing trends and methods in order to strengthen preventive and enforcement efforts.

 Some of the components of GIABA’s core mandates includes: Ensuring the implementation of AML/CFT standards, in compliance with acceptable International Standards and practices, including the FATF 40.

MONROVIA – A FrontPageAfrica investigation has established that Solicitor General Cllr. Syrennius Cephus and the Magistrate of the Monrovia City Court, Jomah Jallah, have been holding telephone conversations with a key suspect in the money laundering case involving Korlane Investment Liberia Limited Liability Company, which was recently listed by the Financial Intelligence Unit as a shell company operating in Liberia.

The company has been indicted for money laundering, theft of property, wired fraud and criminal conspiracy.

Those indicted are Korlane Investment Liberia Limited Liability Company through its president and corporate agents, Evgeny Nikisuik, Diega Patrick Wahi Hermann and others to be identified.

“That Co-Defendant Korlane Investment Limited Liability Company has perpetrated fraud by instituting scant and dubious deals by using Visa and Master cards, and processing miscoded gambling and or illegal gambling transactions in which accumulated hundreds of thousands of United States Dollars transferred to Guarantee Trust Bank (Liberia) Limited through dubious transactions,” stated the indictment, among other things.

Cephus, Jomah under Spotlight

Documents seen by show that the Solicitor General who is supposed to try those indicted in connection to this major fraud and money laundering on twenty-three occasions placed and received phone calls from Patrick Wahi Hermann who is believed to be a major suspect in the scandal. These calls were placed between December 2021 and January 5, 2022.

For Judge Jomah Jallah, FrontPageAfrica established that there were 115 incoming and outgoing calls between him and Co-Defendant Patrick Wahi Hermann between December 2021 and January 5, 2022.

In some instances, the numbers of both men appeared in a row as incoming calls to the suspects and in other instances, both of them were called in a row by the Co-Defendant.

Judge Jomah could not be reached for comments, but Solicitor General Cephus told FrontPageAfrica that as a lawyer of his stature, he could not provide a response as why the calls placed and received to Patrick until FPA shared with him documents in its possession.

He further failed to confirm or deny whether or not and why he placed and received those calls.

FrontPageAfrica’s investigation further established that Patrick Hermann is believed to be the leader of the black money market in Liberia and has a strong contact with key actors in the judiciary including the Solicitor General, thereby, using these contacts to help shield money launderers and helping them get cleared through the court system.

The call records involving the Solicitor General and the Monrovia City Court judge bring to memory the recent leaked WhatsApp message reportedly from the office of U.S. Congressman Chris Smith to the Liberian Ambassador in the United States that revealed that the Solicitor General and Judge Jomah Jallah’s records were being looked into for corruption.

The WhatsApp message which Minister of State Nathaniel McGill confirmed was forwarded to him by Amb. George Pattern reads: “Further to our conversation the other day, I have made some inquiries. The prosecution of Alexander Cummings on what appears to be trumped up charges has not been well-received. There is renewed interest in Nathaniel McGill, whom you know from our previous conversations there is a dossier on. Now Benoni Urey and his daughter Telia have also attracted attention, as has the Solicitor General Sayma Syrenius Cephus. I think people are also looking into the judge’s record, to see if he has a history of corruption. Just wanted to let you know, based on our relationship. Other than that, I hope you have a good weekend.”

The Indictment

Korlane Investments Liberia Limited Liability Company was recently designated a as a high-risk money Laundering shell company set up for what appears to be the sole purpose to laundering the proceeds of crimes generated through fraud, a predicated offense for Money Laundering. 

According to the indictment, On October 12, 2021, the company filed an Articles of Incorporation with the Liberia Business Registry to engage in providing ICT Consultancy, project management and supervision, project monitoring and evaluation, digital solution for revenue collection, among others.

In October 2021 when Korlane Investment Liberia Limited Liability Company was established up to December 12, 2021, a little over US$500,000.00 was transferred directly from Master and Visa Card holders’ members from Ecuador and Slovakia directly into the local account of Korlane Investment Liberia Limited Liability Company. 

“In order to effectuate this dubious transactional activities, between the period of September 1, 2021 to December 17, 2021 or thereabout, the Co-Defendants used the business records of Korlane Investment Limited Liberia Liability Company and opened a current account with GT Bank Liberia Limited on account number 0123686/002/0001/000 through which it milked hundreds of thousands of United States Dollars by using miscoded gambling and or illegal gambling transaction, by manipulating Visa and Master cards transactions wiring the huge sum of money,” the indictment stated.

According to the indictment, Co-Defedants Evgene Nikisuit, Patrick Hermann Wahi Diega and others to be identified created the company as a vessel and shell to project and carryout these dubious transactions by laundering hundreds of thousands of United States Dollars in its GT Bank account and other banking institutions in Liberia.

Under Uncle Sam’s Eagle Eyes

The indictment and the call logs involving the Solicitor General and a judge come just weeks after the administration of US President Joe Biden unveiled steps to combat corruption globally, including assistance to foreign governments to increase financial transparency and new regulations on U.S. real-estate purchases to prevent money laundering.

The United States Strategy on Countering Corruption outlines steps for cracking down on criminal actors and their networks while improving cooperation between federal agencies—including the State Department, Treasury, Commerce and U.S. Agency for International Development—and law enforcement.

The 38-page policy released In December lays an emphasis on anticorruption efforts.

The Biden administration has said that corruption breaks down public trust, deepens economic and political inequality and degrades the business environment. The White House has cited estimates that acts of corruption cost between 2% and 5% of global gross domestic product though didn’t provide more details.

Last May, Mr. Michael McCarthy, the US Ambassador to Liberia called for workable laws to be enacted by the Liberian Legislature to improve AML/CFT laws to international standards, as the Intergovernmental Action Against Money laundering in West Africa (GIABA) prepares to conduct mutual evaluation of Liberia next year (2022).

The US Ambassador said the protection of the financial integrity of Liberia cannot be overly emphasized, as the second mutual evaluation has gained momentum; as evidence by the finalization of the National Risk Assessment Report recently by FIU and other stakeholders.

The Ambassador has also been pressing the FIU to distribute the risks and vulnerabilities identified in the National Risk Assessment Report to banks and other financial institutions that need to be in full compliance with the AML/CFT regulations in Liberia.

Ambassador McCarthy has also called for full compliance of AML/CFT laws by all actors in every sector, as the second mutual evaluation by GIABA could determine the integrity and credibility of Liberia’s financial system.

He added that failure of the Liberian Government to provide financial support and strengthen the AML/ CFT regime, could pose serious threat on the Liberian economy, money transfer and sustainability of investments in Liberia because; the alternative to not prioritize the work of the FIU, could yield unfavorable effects on the country to include Liberia being blacklisted and branded as a safe haven for criminals and their enterprises.

Monrovia – Liberia has taken a giant step in the global fight against money laundering and countering financing of terrorism (AML/CFT).

Report by Danesius Marteh, danesius.marteh@frontpageafricaonline.com

With support from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), the Financial Intelligence Unit of Liberia (FIU) has been holding series of national awareness and sensitization program for non-state actors.

The first regional awareness was held at the Tubmanburg city hall in Bomi County where more than 30 participants (chiefs, women and youth groups and civil society) were drawn from Bomi, Gbarpolu and Grand Cape Mount Counties on September 2. 

Tubmanburg city mayor Rebecca Benson encouraged the participants to help spread the message.

 “We’ve come to realize that when workshops are held, people just look at the instant benefits but the results are buried after you walked through the doors.

We hope this won’t happen at this workshop. You will be able to spread the message,” said Rebecca.

Civil society organizations (CSOs) are as worst seen as having an adversarial relationship and at best seen as partners in progress to government.

CSOs regional head in Bomi Omasco Z. Kamara thinks they can take-up the mantle of a continuous awareness throughout the region.  

“Only trainings among us can show whether somebody in the community can build a fabulous house from the salary he/she is working.

Just from today, I know that money laundering is another form of corruption. There is a need to call that particular person or persons to book but how can we do that? We need your support,” Omasco disclosed.

The FIUL was established as an autonomous agency by an act of the legislature in 2012 (FIU Act, 2012 enacted into Law on April 30, 2013) to serve as the central, national agency responsible for receiving, requesting and conducting preliminary investigations, analyzing and disseminating information concerning suspected proceeds of money laundering, terrorist financing and other financial crimes.

But why should the FIU engaged in sensitization when its name suggests financial intelligence.

“As you may be aware, this fight against money laundering and countering financing of terrorism is a global one; it is a regional one and it is a national initiative. So their participation and knowledge will counter in the AML/CFT regime will counter the commission of some of these predicate offenses,” said FIU deputy director Gabriel W. Bellepea.

Gabriel said he was thrilled by the level of interaction from the participants, who included journalist Jenneh Kemokai of Radio Cape Mount.

 “They were very much interested in the topics because these things border directly on their daily lives, their children, the regional security, their personal security and the economy of this country. So their level of reactions and participation show that they are ready to join this fight,” he pointed-out.

The FIU, with the approval of President Ellen Johnson-Sirleaf in March, issued four regulations to enhance the AML/CFT regime on May 26 in collaboration with the Liberia Revenue Authority (LRA) and Central Bank of Liberia (CBL).

They include regulation dealing with cross-border transportation of currency and bearer negotiable instrument (CBTC); regulation for further distribution and action on the United Nations list of terrorists and terrorist groups (UNLTTGs); regulation on currency transaction reporting for financial institutions (CTR) and regulation on suspicious transaction reporting for financial institutions (STR).

The CBTC regulation requires all persons entering or existing Liberia by land, sea or air to declare currency or instrument above the threshold of US$10,000 or its equivalent in Liberian dollars.

All persons are obligated to provide customs officers with all relevant information or documentation to determine whether resources above the threshold being transported across the border are legitimate in origin and or method of acquisition.

The UNLTTGs regulation seeks to implement the UN Security Council Resolution (UNSCR) 1267 & 1373, and specifically as it relates to the further distribution of and action on the UN’s list of terrorists and terrorist groups.

It requires reporting, regulatory and other entities to inform the FIU upon receipt of the list of any customer and or potential customer on the list.

Financial institutions and other entities must also screen new and potential customers and inform the FIU about any transaction or attempted transaction by a name identified on the list.   

The CTR regulation requires the mandatory filing of cash transactions reports by financial institutions to the FIU based on the threshold of US$5,000 and above or L$100,000 (one hundred thousand Liberian dollars) for individuals or US$10,000 and above or L$1,000,000 (one million Liberian dollars) and above for businesses and institutions.

The STR regulation requires the mandatory filling of suspicious transaction reports by financial institutions to the FIU where there exist any reasonable grounds, including facts and circumstances that indicates a transaction maybe unusual or suspicious.

It is also required that financial institutions are exact or certain that the transaction is definitely connected to criminal activity.

The regulations on CTR and STR are to be implemented by financial institutions and regulated by the CBL.

The FIUL has requested the public to fully adhere to these regulations as it is committed to ensuring its implementation to the letter “to protect Liberia’s financial systems from abuse of financial crimes for the enhancement of national, regional and global peace and economic stability”.   

Attorney-at-law Wonderr Freeman is the FIU legal counsel and he believes there is still much to achieve.

“Finding resources to do what we want to do can be a problem. The other issue has to do with implementation of the laws. We have a situation where some of the prosecutors may not be very familiar with the entire money laundering legal regime.  

 You will see that some of the financial offenses maybe linked to money laundering. But if you prosecute and only look at the predicate offense, the first offense, and you don’t look at the money laundering angle you might be denying a good opportunity for the government to be able to confiscate property and seize accounts. So we want for the prosecutors to be aware of the laws on money laundering and to utilize them,” Wonderr explained.

An awareness workshop, which discussed an overview, legal and regulatory framework and some red flags (typology) of the AML/CFT regime, was held for insurance companies from September 5-6 at the FIU office in Sinkor.

 “It has been a rewarding experience for me because this is an area that we have all been waiting for us to make our contribution to the AML/CFT. The awareness was timely because insurance companies have a big role to play in money laundering and countering terrorism,” said Samuel Mintah, executive director of the Insurance Company of Africa (ICA). 

One of the recommendations adopted from the workshop is for insurance companies to recruit or train compliance officer(s) to implement the AML/CFT regime.

 “This should not be so tough [for us] because my institution already have a compliance officer. We also have internal regulators and internal auditors. So this will just be a matter of reinforcing and creating additional hurdles to prevent these kinds of occurrences because terrorists and money launderers look for soft targets,” said Joe M. Karpeh, head of marketing at Secure Risk Insurance Company.

The second regional workshop, which brought participants from Grand Bassa, Montserrado and Margibi Counties, was held in Buchanan on September 8.

The third regional workshop, which will bring participants from Lofa, Nimba and Bong Counties, will be held in Gbarnga on September 15. 

With support from the United States embassy near Monrovia, FIU conducted an awareness and sensitization workshop for judges and prosecutors from December 11-12, 2014 at the Temple of Justice in Monrovia.

With the collaboration of the Liberia Law Enforcement Agency, the FIU held AML/CFT awareness workshop at selected ports of entry and exit on March 5, 2015.

About GIABA

GIABA is a specialized institution of the Economic Community of West African states (Ecowas) responsible for facilitating the adoption and implementation of (AML/CFT) in West Africa.

It is also the Financial Action Task Force (FATF) style regional body (FSRB) in West Africa and works with states in the region to ensure compliance with international AML/CFT standards.

GIABA, which was established in 2000 with headquarters in Dakar, Senegal, consists of 15 members.