Monrovia – One of Liberia’s mobile telecommunications service provider, Novafone has filed a petition before the Justice in Chamber of the Supreme Court, His Honor Philip A.Z. Banks, to grant the issuance of a writ of Mandamus and order the Liberia Revenue Authority (LRA) to grant the company duty free privilege.

Novafone was bought a while ago by LoneStar-MTN, following a failed purchase from Libtelco which was spurned by the media.

The company noted that after the acquisition of Comium (Liberia) Incorporated, it applied for and was granted duty-free privilege by the Ministry of Finance on many occasions, but since the establishment of the Liberia Revenue Authority(LRA), the privilege has not been restored.

In its petition to the Chamber Justice, Novafone cited a case in point between August and November 2016, when it wrote the Commissioner General of the LRA, Mrs. Elfreida Stewart-Tamba requesting duty-free privilege for 78 Toyota Land Cruiser vehicles but Mrs. Tamba refused to grant the company’s request.

According to the petition, following the refusal of the LRA Commissioner General, the Minister of Justice invited the LRA boss and Novafone to an urgent meeting to discuss the company’s duty-free concerns but the meeting did not resolve the issue.

The situation consequently, led Novafone to pray the Justice in Chambers for a writ of Mandamus in keeping with chapter 16, subchapter B, section 16.21(2) of the Civil Procedure Law of Liberia. “…the Liberia Revenue Authority, respondent in this cause of action has continuously failed and refused to grant unto petitioner its entitled right to duty-free privilege thereby triggering this writ of Mandamus…” the petition concluded.

Meanwhile, the company in its petition disclosed that it purchased all the shares of Comium (Liberia) Incorporated and was issued a Share Transfer Deed consummating a share purchase agreement, thereby making it the sole owner of Comium (Liberia) Incorporated.

Additionally, the petition revealed that on November 21, 2012 it filed with the Liberia Business Register a second Amendment of the Article of Incorporation of Comium (Liberia) Incorporated which was subsequently registered and filed on the same day by the registry in keeping with section 1.4 of the Business Corporation act; thereby changing the name from Comium (Liberia) Incorporated to Novafone Incorporated.

At the same time, count four of the Novafone 12 counts petition contends that prior to the acquisition of Comium Liberia Incorporated, it entered into a Concession Agreement with the Republic of Liberia which provides among other things tax benefits.

“Comium shall be subject to the Tax law of Liberia of the general application except for the following exemptions with regards to the approved investment project: Machinery and equipment, the approved investment project shall be exempted from import duties on the dutiable value equipment including transport/mobile equipment and other specialized vehicle for a period of twenty calendar years commencing from the effective date of this contract with the option of an additional period of twenty years to commence immediately by the expiration of the certain period of twenty years shall be broken down into four-five years…” the petition added.

The situation consequently, led Novafone to pray the Justice in Chambers for a writ of Mandamus in keeping with chapter 16, subchapter B, section 16.21(2) of the civil procedure law of Liberia. “…the Liberia Revenue Authority, respondent in this cause of action has continuously failed and refused to grant unto petitioner its entitled right to duty-free privilege thereby triggering this writ of Mandamus…” the petition concluded.

Monrovia – A day after FrontPageAfrica publication quoting a letter in which Novafone redundant some of its employees, the cellular company has denied the information saying it is false and unverifiable but admitted that it is currently carrying out a restructuring exercise at the entity.

The management of Novafone has refuted what it described as a false and unverifiable story by the FPA against the company.

According to the company in a statement, On Thursday June 2, FrontPageAfrica published a story under the caption “Crises Prone Cellular company Novafone Redundant Employees“.

“Like previously, the writer, whom this time was not named in the article, did not verify nor give Novafone’s Management the opportunity to provide clarity on the matter before going to press with its story”, the company stated.

“Novafone again questions the motives and the ethical standards of the FrontPageAfrica Newspaper, the journalists and the editors.“

“We can best describe this article, as we did previously, as being irresponsible journalism and a clear attempt to defame and damage the character and brand image of Novafone,” the company said in the statement.

Novafone described as a blatant lie and not true FrontPageAfrica’s assertions that Novafone has defected in paying salaries to its dedicated employees.

The company said, while they  may not be subjectable to the paper’s scrutiny, they however wish to invite the same journalist and any other journalist to check their records to ascertain if they have been having trouble with paying their employees’ salaries each month.

“In the spirit if finding out the facts, we are open to giving clearances to media houses to do their own due diligence and investigation to establish the truth and facts about the allegation. Like before, Front pageAfrica had lied about Novafone evading tax without consulting the management of the company to find out the facts.

Even though the management admonished the paper to provide evidences or the facts, it is yet to do so,” the company stated.

Novafone admitted that the company is currently going through a restructuring process which has led to some positions like Sales Agent, in the company becoming redundant.

“Therefore, some employees have indeed received letters about their positions becoming redundant; consistent with Liberia’s Labor Laws. All employees of the company are aware of this restructuring exercise”, the company added.

While Novafone and its owners reserve their rights to follow the legal processes to get justice in this matter, it also encourages the paper to refrain from defaming the company’s reputations for whatever motives it has. “Just be a good journalist, that’s all we ask.”

The company has meanwhile promised that the management and employees of Novafone will continue to remain focus and steadfast in delivering full quality services to its value customers.

 Henry Karmo (0886522495) henrykarmo@frontpageafricaonline.com

Monrovia – When Novafone, a GSM service provider hit the Liberian market in 2013, many were zealous that a third major competitor has emerged in the Liberian mobile communication industry to fight for market share with the two leading GSM service providers -Lonestar cell and Cellcom.

“The management of Novafone hereby informs you that the post of Sales Agent will be redundant as of June 30, 2016. Your end of Service (Severance) payments consistent with the requirements as provided for in the Decent Work Act is being processed.

Please liaise with the Human Resource (HR) should you have further concerns”- Bechir El-Khoury, Chief Executive Officer (CEO), Novafone

Many Liberians knowing what competition has done for the affordability of GSM services in Liberia where the emergence of Cellcom led to drastic reduction in exorbitant fees charged by the Lonsetar Cell, many were happy to see a new entrant on the market, expecting another big improvement in services and reduction in prices, but within less than three years that dream now looks farfetched.

When Novafone hit the market, it initially lived up to the expectation of many, providing affordable and fast internet as the company was dubbed the provider of one of the best internet services in the country.

Novafone quickly got a sizable number of customers for its fast and affordable internet services but within a short spam, the company has gone down the ladder in last few months.

Foiled takeover

In the last few months Novafone has taken the public limelight for the wrong reasons, ranging from a foiled US$10 million controversial plan by the Liberia Telecommunications Corporation (Libtelco) to take over the struggling cellular phone.

Sabastian Muah, head of Libtelco explaining the Novafone takeover deal said “Our understanding of the Lonestar/MTN deal, the core network equipment was not part of the deal and Lonestar was willing to leave the modern core equipment, and again just buy Novafone out of competition for about $16-18 million dollars, ignoring loss of jobs and the network equipment valued at $9 million.  

This would put the value of Novafone at worse case $25 million or ideal case $27 million.  We went for $24 million – million less than the worst case.”

Muah at the time insisted that the deal which was still in negotiations is clean. “This was a clean and fair deal. Lone star just lost in the commercial bid.  Our lawyers and accountants on this were Negbalee Warner and Baker Tilly. They did a very thorough work.”

The takeover deal was heading for success when President Ellen Johnson Sirleaf wrote a letter quashing the entire process.

President Sirleaf apparently sided with the court of public opinion that the controversial plan by the Liberia Telecommunications Corporation (Libtelco) to take over the struggling cellular phone companies is a bad one.

FrontPageAfrica reliably learnt from multiple sources at the time that the President rejected the deal in its entirety, declaring to aides that it is not in Liberia’s best interest thereby rejecting plans by Libtelco to sanction a sale.

One source stated that the President through a communication instructed Acting Finance Minister James Kollie to immediately terminate all negotiations regarding the Novafone deal.

The source fell short of revealing what prompted the decision by the President but did say that the President instructed the Minister to revoke any instruction that has already been given or approval of the deal immediately.

Tax issues

Before the takeover deal hit rock, the Liberia Revenue Authority found the company in the web of tax evasion of over US$1 Million.

A month ago, in its vigorous drive to collect lawful taxes due the government and people of Liberia the LRA sealed the doors of five major businesses including Novafone for failure to settle tax obligations but the cellular company denied a FrontPageAfrica report that it was shut down for tax evasion in the tune of US$1.3M but company admitted that it owes US$1.3m in license fees.

Executive Vice President of Novafone, Abdullah Kamara at the time said the story was an attempt to tarnish the corporate image of Novafone even though the locks were visibly placed on the gate of the building housing the company headquarters.

Massive layoffs

Amid these controversies surrounding the company, FrontPageAfrica has gathered that the company is facing serious financial crisis and has resulted to laying off large number of its employees.

A copy of a letter served many of the company employees, a copy obtained by FPA indicates that Novafone is carrying out massive redundancy of employees and is processing their severance payments.

In a letter dated May 31, the company informed several employees that consistent with the Decent Work Act their severance is being processed to be paid.

Stated the letter: “The management of Novafone, hereby informs you that the post of Sales Agent will be redundant as of June 30, 2016. Your end of Service (Severance) payments consistent with the requirements as provided for in the Decent Work Act is being processed. Please liaise with the Human Resource (HR) should you have further concerns”.

The letter signed by Bechir El-Khoury, Chief Executive Officer (CEO), Novafone led to many of the affected employees going home disappointed not knowing where to turn.

One effected employee told FPA that in recent months the company has been finding it difficult to pay their salaries on a timely basis.

“We knew things were going to end like this, because these few months, we cannot even get our pay on time”, the employee who begged not to be named said.

Novafone in 2013 entered the fray with the purchase of Comium GSM, a global services mobile (GSM) company which also struggled to gain a footing on the tight but competitive market.

At the time, Novafone pledged to introduce a 4th Generation of mobile communications and promised to cover 85% of Liberia.

The company was cautioned at the time by Angelique Weeks, Managing Director of the Liberia Telecommunications Authority, who emphasized that the competition in the sector was high.

Within weeks, Novafone dispatched sale agent in several counties, wearing the company t-shirts selling scratch cards and marketing the company.

A collapse of the company will lead to massive loss of jobs in a country already facing huge unemployment.

Monrovia – Mr. Sebastian Muah, Managing Director of the Liberia Telecommunication Corporation (Libtelco) has told members of the Senate Committee on Post and Telecommunication that political pressure led to the cancellation of the purchase deal between Novafone and Libtelco.

Mr. Muah made the disclosure Thursday when he appeared before the senate committee on Post and Telecommunication Committee chaired by Senator Nyonblee Karngar-Lawrence of Grand Bassa County. His appearance is a result of a mandate given by the plenary of the Senate.

The Senate reached a unanimous decision in early May to halt ongoing discussions by Libtelco to purchase cellular company, Novafone.

The Senate’s decision, according to a motion; is aimed at giving the Committee on Post and Telecommunications, chaired by Senator Nyonblee Karnga-Lawrence (Liberty Party, Grand Bassa) the chance to gather the needed information relating to discussions surrounding the alleged US$10M purchase of Novafone by Libtelco.

The probe came as a result of a communication written by Maryland County Senator, Dan Morias, who informed plenary that the Senate has been left out of the discussion surrounding the alleged purchase of the cellular company.

Senator Morias’ communication stated: “Moreover, Liberia, being a Republic, practices free market economic principles.

It beats our imagination that we will get involve; not in failed government institutions, but rather join the free market of purchasing failed institutions as Novafone GSM and thereby transferring its liability to the people of Liberia.”

Muah Admits Mistake

“Doing it again will be done differently because there is a dimension that when I look at the pure business side of it, there is this dimension side of it that I pretty much overlooked and that was my decision and leadership.

No one asked me to do it. What we forgot in the process is that; we did not involve the legislature; even if law did not say so,” he said.

During Thursday’s appearance Mr. Muah said, the mandate he took when he took over Libtelco remains viable and it will take a longer time. He added that he may not be at the entity up to that time.

“My job is also a political appointment job, even though I don’t get confirm by the Senate, it is still a political job the board; and the President make decisions around it.

Mr. Muah explained that his mandate has been to create value for Libtelco and the Liberian People and be able to make Libtelco competitive by generating income not as the same as Ghana and Ivory Coast got when they got their incumbent out of their hands for 70%; but to get resources that can come to the development of Liberia and we are still committed to that,” he said.

FrontPageAfrica in April of 2016 reported from multiple sources that the President has rejected the deal in its entirety, declaring to aides that it is not in Liberia’s best interest and has killed plans by Libtelco to sanction a sale.

One source stated that the President through a communication instructed Acting Finance Minister James Kollie to immediately terminate all negotiations regarding the Novafone deal.

The source fell short of revealing what prompted the decision by the President but did say that the President instructed the Minister to revoke any instruction that has already been given or approval of the deal immediately.

In early May the Liberia Revenue Authority (LRA), in its vigorous drive to collect lawful taxes due the government and people of Liberia, Thursday sealed the doors of five major businesses after they failed to settle tax obligations since 2009.

Businesses shutdown includes Novafone GSM Company in Congo Town, Shenny Trading Inc., on Broad Street, Continental General & Life Insurance, Medicare Insurance Corporation, and Liberty Investment (producers of AquaLife Water), all in Monrovia.

Court and LRA officials delivered closure orders and requested employees out of the premises before sealing the doors of each of the businesses.

The five companies owed a total of US$1.36 million and a little over LD$30 million, including penalties and interest for the last six years.

Monrovia – the Liberia Revenue Authority (LRA), in its vigorous drive to collect lawful taxes due the government and people of Liberia, Thursday sealed the doors of five major businesses after they failed to settle tax obligations since 2009.

Businesses shutdown includes Novafone GSM Company in Congo Town, Shenny Trading Inc., on Broad Street, Continental General & Life Insurance, Medicare Insurance Corporation, and Liberty Investment (producers of AquaLife Water), all in Monrovia.

Court and LRA officials delivered closure orders and requested employees out of the premises before sealing the doors of each of the businesses.

The five companies owe a total of US$1.36 million and a little over LD$30 million, including penalties and interest for the last six years.

The LRA obtained closure orders from the tax court at the temple of justice in Monrovia to shut the doors of the premises after all legal efforts to have them pay their taxes failed, LRA lawyer Cllr James Bombo said.

The affected businesses will remain closed until their bills are settled with interest and penalties under the law.

During the period of the closure, the LRA will do a tax audit, education and will work along with the delinquent tax payers to meet their obligations under the law.

Monrovia – Cellular company Novafone has denied a FrontPage Africa report that it was shut down for tax evasion in the tune of US$1.3M but says the company owes US$1.3m in license fees.

Executive Vice President of Novafone, Abdullah Kamara, says the story is an attempt to tarnish the corporate image of Novafone.

Sources at the Liberia Revenue Authority told FrontPage Africa on Thursday the company was shut down for failure to settle its tax obligation of US$1.3m GSM fees allegedly accrued from 2012-2014. A reporter who visited the offices late Thursday found locks on the gate.

The source indicated that officers of the tax enforcement division of the LRA, backed by a court order and sheriffs from the Tax Court at the Temple of Justice, walked into the premises of the company during the morning hours and ordered the staff out of the various offices and shut down the office headquarters in Congo Town.

FrontPage Africa reported that President Ellen Johnson-Sirleaf has apparently sided with the court of public opinion that the controversial plan by the Liberia Telecommunications Corporation (Libtelco) to takeover one of the struggling cellular phone companies in Liberia, Novafone, is a bad one.

FrontPage Africa has reliably learnt from multiple sources that the President has rejected the deal in its entirety, declaring to aides that it is not in Liberia’s best interest and has killed plans by Libtelco to sanction a sale.

At Saturday press conference, Kamara said he believes that the story of a fail deal was intended to derail and put in disrepute a corporate marriage between Libtelco and Novafone that would have seen a very strong public corporation that actually brings real competition into a highly lopsided telecom market in Liberia, exposing consumers to price fixes, collusion etc. under the disguise of freebies.

“Novafone is considering several options with respect to our rights under the laws of the Republic of Liberia concerning these allegations. As far as we are aware, Novafone has never been closed down for Tax Evasion,” Kamara said.

“Yes, the company in comparison to other operators in Liberia can be labeled as being smaller in revenue and subscriber base, but Novafone is not and should not by any means be labelled as a failed company unless there was an agreed target that it failed to achieve.”

He said the company will never indulge in tax evasion as it is being portrayed in the media.

“Tax Evasion is Illegal and a serious economic crime under the laws of Liberia. Novafone has been audited more than once by the government of Liberia and as our records have shown, we have never been accused for tax evasion practice,” he concluded.

Henry Karmo (0886522495) henry.karmo@frontpageafricaoline.com

Monrovia – President Ellen Johnson-Sirleaf has apparently sided with the court of public opinion that the controversial plan by the Liberia Telecommunications Corporation (Libtelco) to takeover one of the struggling cellular phone companies in Liberia, Novafone, is a bad one.

FrontPageAfrica has reliably learnt from multiple sources that the President has rejected the deal in its entirety, declaring to aides that it is not in Liberia’s best interest and has killed plans by Libtelco to sanction a sale.

One source stated that the President through a communication instructed Acting Finance Minister James Kollie to immediately terminate all negotiations regarding the Novafone deal.

The source fell short of revealing what prompted the decision by the President but did say that the President instructed the Minister to revoke any instruction that has already been given or approval of the deal immediately.

Shutdown Over US$1M Tax Evasion

The news of the termination of the deal came on the same day that the Liberian Revenue Authority found the company in the web of tax evasion of over US$1 Million. The closure comes amid assertion by the LRA that the entity is ready to go after delinquent tax payers.

FrontPageAfrica has reliably learned from LRA sources that the company was shut down Thursday for its alleged failure to settle its tax obligation of US$1.3 GSM fees allegedly accrued from 2012-2014.

A reporter who visited the offices late Thursday found locks on the gate.

The source indicated that officers of the tax enforcement division of the  LRA backed by court order from the Tax  Court at the Temple of Justice walked into the premises of the company  during the morning hours and ordered the staff out of the various offices and shut down the office headquarters in Congo Town.

Another report suggested that the offices of the GSM Company is expected to be open on Friday morning after the management of the company had made some initial payment but the source which hinted FrontPageAfrica has failed to state the amount paid so far.

The closure of Novafone comes barely a week after the Ministry of Justice and the Liberia Revenue Authority wrangled over  which government arm is responsible for  prosecuting delinquent taxpayers.

Prosecution-Jurisdiction Issues

A well-placed source from the Justice Ministry who spoke on the basis of anonymity told FrontPageAfrica that the slow pace in the prosecution of delinquent tax payers have been squarely blamed on the LRA over the jurisdictional issue.

“I want to say that the reason why delinquent taxpayers are paying lip-service to paying taxes is that the LRA claimed that they are responsible for the job and not the Justice Ministry” said official speaking on condition of anonymity Thursday.

An official of the Tax Court who also preferred anonymity stated that the rise in the cases of delinquent tax payers should not be the blame of the Tax Court who by law is responsible to prosecute delinquent tax payers. “Let me clearly state here that the Tax Court is not responsible to collect government taxes but the Liberia Revenue Authority (LRA) said the source.

But an LRA official told FrontPageAfrica during its investigation the long list of delinquent tax payers on the docket of the Tax Court does not automatically mean closure of business houses when there is compliance.

“The revenue law provides that when business house is in compliance with its delinquent tax payment, there is a need to cooperate with those business houses” said the source closed to the LRA.

Novafone Mum

Meanwhile there has been no official statement from the Management of the Navofone regarding Thursday’s shutdown.

With this latest closure, observers are of the belief that this may dampen the company which has been trailing the leading GSM firms, Lonestarcell/MTN and Cellcom for market share.

FrontPageAfrica recently reported that the deal, was valued around US$30 million with the company reportedly to receive US$5 million up front, with the remaining balance expected to be paid to the company within a year. But Mr. Sebastian Muah, Managing Director of Libtelco when contacted by FrontPageAfrica said the amount being speculated is wrong.

According to Mr. Muah, the deal is actually valued at around US$10 million with US$7 million being paid to the struggling cellular company upfront and the balance US$3 million set to be paid at a later date.

Despite the value issues, it appears the deal has hit a snag although it is not clear whether it was due to the low figure or financial disadvantage some feared for Liberia or whether the President’s decision was political

The deal comes just weeks after the acquisition of another local cellular phone company, Cellcom Liberia by Orange Group via its Orange Cote d’Ivoire

The deal, according to sources would have been financed by four local banks IB, LBDI, Ecobank and GT Bank which will be providing guarantee for the purchase.

FrontPageAfrica reported recently that that once the deal was sealed, the National Social Security and Welfare Corporation (NASSCORP) will replace Ecobank as guarantor.

According to knowledgeable sources close to the transaction, only US$500,000 will be paid as taxes to the government of Liberia.  

The taxes will be based upon a principle in finance known as capital gains.  That is the tax you pay for selling an asset, and the actual amount is dependent on whether the gains are short or long term.

Complicated Deal from the Start

Complications of the deal have prompted the attention from the national legislature. The Senate recently reached a unanimous decision to halt ongoing discussions by Libtelco to purchase Novafone.

The Senate’s decision, according to a motion, is to give the committee on Post and Telecommunications, chaired by Senator Nyonblee Karnga-Lawrence of Grand Bassa County the chance to gather the needed information as it relates to discussions surrounding the alleged US$10m purchase of Novafone by Libtelco.

The probe came as a result of a communication written by Maryland County Senator, Dan Morias, who informed plenary that the Senate has been left out of the discussion surrounding the alleged purchase of the cellular company.

Senator Morias’ communication stated: “Moreover, Liberia, being a Republic, practices free market economic principles. It beats our imagination that we will get involved, not in failed government institutions, but rather join the free market of purchasing failed institutions as Novafone GSM and thereby transferring its liability to the people of Liberia.”

He further asked his colleagues to use their oversight responsibility to arrest a situation he described as one near catastrophic proportion. The communication, after a brief discussion on the floor, was sent to the Committee on Post and Telecommunications.

Industry watcher say the financial valuation of Novafone is unclear, with challenges in determining the current market value based upon future cash flows or its maximum earnings potential. In the technology industry, companies sell at many multiple of their current earnings, since the market position of the company is important.  

In a moribund economy such as Liberia, with Novafone only having a small share of the market and with negative cash flows, it is troubling to some analysts that the Liberian government would purchase such an asset with guarantees from an SOE without much public debate or understanding.

Initially, Lonestarcell/MTN had reportedly expressed interest and came close to purchasing the company but the deal reportedly fell through the cracks after Lonestar rejected the offer and said it was unwilling to pay an extra US$3million for the switch as part of the package.

Libtelco, as part of the deal would have offload 60 percent of the deal to Vodafone, a British multinational telecommunications company operating currently in 26 countries and has partner networks in over 50 additional countries.

Settling for Less

Mr. Muah had previously explained that the balance sheet of the company will remain as is and the liabilities and receivables on the balance sheet will be assumed as part of the deal which essentially would have been the same as an going concern if the company continued to operate as is.

But many industry analysts are wondering why the government and Libtelco are settling for less when Lonestar had a reported US$18 million on the table?

But Muah explained that the deal is straight-forward. “Our understanding of the Lonestar/MTN deal, the core network equipment was not part of the deal and Lonestar was willing to leave the modern core equipment, and again just buy Novafone out of competition for about $16-18 million dollars, ignoring loss of jobs and the network equipment valued at $9 million.  This would put the value of Novafone at worse case $25 million or ideal case $27 million.  We went for $24 million – million less than the worst case.”

According to Muah, the talks and negotiation on the acquisition was initiated since last October when news that its competitor Lonestar/MTN embarked on similar effort to buy Novafone out of the market and make the Liberian market a two-player market.

Libtelco owns a 20% interest in the Cable Consortium of Liberia, which owns and operates the cable landing of the ACE Cable system in Monrovia, was completed in 2012.

The company is currently using its existing ownership over cable ducts in the Monrovia area to construct a fibre-optic communications network that will connect to the cable system.

Rodney D. Sieh, rodney.sieh@frontpageafricaonline.com; Kennedy L. Yangian kennedylyangian@frontpageafricaonline.com

Monrovia – The Liberian Senate has reached a unanimous decision to halt ongoing discussions by Libtelco to purchase cellular company, Novafone.

The Senate’s decision, according to a motion, is to give the committee on Post and Telecommunications, chaired by Senator Nyonblee Karnga-Lawrence of Grand Bassa County the chance to gather the needed information as it relates to discussions surrounding the alleged US$10m purchase of Novafone by Libtelco.

The probe came as a result of a communication written by Maryland County Senator, Dan Morias, who informed plenary that the Senate has been left out of the discussion surrounding the alleged purchase of the cellular company.

Senator Morias’ communication stated: “Moreover, Liberia, being a Republic, practices free market economic principles. It beats our imagination that we will get involved, not in failed government institutions, but rather join the free market of purchasing failed institutions as Novafone GSM and thereby transferring its liability to the people of Liberia.”

He further asked his colleagues to use their oversight responsibility to arrest a situation he described as one near catastrophic proportion. The communication, after a brief discussion on the floor, was sent to the Committee on Post and Telecommunications.

In remarks, Senator Nyonblee Karnga-Lawrence chair of the Senate Committee on Post and Telecommunications asked plenary to include other committees on her committee which include the Senate Committee on Judiciary and Ways means and Finance.

The deal, according to multiple sources, is valued around US$10 million. Novafone will reportedly receive US$5 million up front, with the remaining balance expected to be paid to the company within a year.

But Mr. Sebastian Muah, Managing Director of Libtelco when contacted by FrontPageAfrica said the amount being speculated is wrong.

According to Mr. Muah, the deal is actually valued at around US$10 million with US$7 million being paid to the struggling cellular company up front and the balance US$3 million set to be paid at a later date.

The deal comes just weeks after the acquisition of another local cellular phone company, Cellcom Liberia by Orange Group via its Orange Cote d’Ivoire

FrontPageAfrica has learned that once the deal is sealed, the National Social Security and Welfare Corporation (NASSCORP) will replace Ecobank as guarantor.

The financial valuation of Novafone is unclear, with challenges in determining the current market value based upon future cash flows or its maximum earnings potential.

In the technology industry, companies sell at many multiple of their current earnings, since the market position of the company is important.  

But in a moribund economy such as Liberia, with Novafone only having a small share of the market and with negative cash flows, it is troubling to some analysts that the Liberian government would purchase such an asset with guarantees from an SOE without much public debate or understanding.

Henry Karmo (0886522495) henry.karmo@frontpageafricaonline.com

The most appreciable fundamental of life is not to copy what other people do if you don’t understand why they do it, why they want to do it, or how they are doing it. The reason is if these basics are not grasped the possibilities for the most profound errors are even higher.  This is exactly what is happening with the so-called vision 2030 initiative launched or undertaken by the Liberian government under President Ellen Johnson-Sirleaf. 

Instead of expressing absolute failure and disappointment in the process, the dreamers and implementers of our country’s vision 2030 are coining phrases such as ‘Amid Setbacks, Vision 2030 On Course’.  There is no such thing as ‘on course’ in this process and there is no such thing as a vision 2030 in Liberia in the first instance.  It is either an overdue trash or a well-thought-out scam.  Here is why.

According to local news sources, the Liberian administration held a National Development Summit on April 25, 2016 in Gbarnga, Bong County.  At the summit, the Liberian leader, President Ellen Johnson-Sirleaf, indicated that “the implementation of Liberia’s shared vision, Vision 2030, which seeks to make Liberia a middle income country, is well on course and that the government is committed to ensuring that the national vision is realized in the next 14 months”, the remaining time of the Sirleaf’s Unity Party’s administration. This is exactly the problem. No government implements a vision as broad in scope and magnitude within 14 months when nothing has been achieved so far.  Among other things, the Liberian leader and some officials of the government highlighted the recruitment and training of more soldiers and the hiring, training and deployment of more Police, immigration and drug enforcement officers as some of the key successes of the so-called vision 2030 that is being amplified nationwide. Really??

Other ill-prepared officials of the administration have noted that since the “launch of the National Vision, 5,192 officers have been recruited, trained and deployed nationwide. The LNP (Liberia National Police) has also purchased and delivered nonlethal weapons to 10 camps vacated by the United Nations Mission in Liberia (UNMIL) Police. The current strength of the BIN (Bureau of Immigration and Naturalization) is 2,346. In 2013 and 2014, they disclosed that 234 and 265 officers were trained and deployed respectively. They further indicated that the United Nation Development Program (UNDP) funding is helping to train additional 250 recruits in Grand Cape Mount County. Upon completion, uniforms, communication equipment and vehicles will be provided to the trainees”.  With what is enumerated above from the government’s own account, one wonders as to what is visionary about a government carrying out its constitutional duties and responsibilities? These things mentioned above are what any responsible government supposed to do any way. So why are these leaders banging around showcasing a function of below average governance?

A number of countries around the world, especially those transitioning from third world capacities to emerging markets status have geared towards a vision 2030 process.   Bahrain for example, launched its Economic Vision 2030 in 2008 with a philosophy and guiding principles of sustainability, fairness and competitiveness. Bahrain’s vision 2030 is a comprehensive economic compass that provides a clear direction for the continued development of the Bahraini Kingdom’s economy.  At the center of Bahrain vision 2030 is a shared goal of building a better and improved life for every Bahraini citizen. On the contrary, Liberia’s so-called vision 2030 makes our nation unstainable, unfair and non-competitive. The only thing sustainable, fair and competitive in Liberia is that almost everyone wants to be a politician or work for the Liberian government, and a few select families, friends, loyalists, bureaucrats and elected officials have become overnight millionaires through theft and misdeeds at the peril of our nation and people.

Rwanda which, like Liberia, was in a brutal civil war with the most heinous genocide in human history, developed a roadmap instead of a vision 2030.  That roadmap is today a global model for genuine reconciliation, socio-economic and political progress. According to columnists Margee M. Ensign, Op-ed contributor and Mathilde Mukantabana, Op-ed contributor, of the Boston Globe, [April 7, 2014], “The progress Rwanda has achieved since its genocide may be the most significant example of human development of the past 20 years.  Its governance should not be the subject of criticism, but should stand as a model for other nations seeking reconciliation”. With sincere leadership, good governance and patriotism, the Rwandan leaderships have made unimaginable headways without paying millions of dollars to Washington, D.C.’s lobbyists and public relations firms for singular promotions aimed at seeking global attentions for undeserved awards.  Instead, the Rwandans focus on a roadmap that has led to marked progress. As a result, there is a universal acknowledgement that life expectancy in Rwanda has more than doubled in twenty years, a million people have been lifted out of poverty, women are the majority of the legislators, 95 percent of the population has health insurance, and the country is ranked as one of the safest places in the world to live in Gallup’s Global States of Mind poll. This is exactly the same country a million people were murdered in a genocide some two decades ago. What evolved in Rwanda is good leadership, patriotism, clear vision and a sense of togetherness.  In the case of Liberia, we went from unacceptable leaderships to the worse leadership in our nation’s 150 years history, with games, tricks and manipulation remaining constant.

Kenya’s vision 2030 launched by then President Mwai Kibaki in June 2008 has a philosophical framework and guiding principles.  In addition, it is void of political skimming and personal interests.  To manifest seriousness and objectivity, the leadership of Kenya set up a Vision Delivery Secretariat independent of any ministry or agency.  Since its inauguration, Kenya’s vision 2030 has brought advances in governance and more.  For example, Kenya is today a fully decentralized nation where governance and decision-making are truly participatory.  The country’s vision 2030 uses devolved funds to strengthen decentralization of development projects at the community level. Improved planning and coordination of such projects at the local level are given priority in realizing this goal.  Every county in Kenya has a governor with executive power and a sub-cabinet for administrative activities.  In addition, each county also has a local legislature that decides for their people at the local level.  As a result, socio-economic development and urbanization are flowing throughout the country without mandate from or dependence on the Kenyan capital, Nairobi.

Liberia is the contrary.  The people who live in Monrovia and earn over US$12,000 monthly (in a nation with one of the lowest GDPs and high personal and collective poverty rate) decide for the counties where food insecurity, poverty and unemployment are excessive, where there are no appropriate medical facilities and equipped schools, where women die from childbirth and kids from mal-nutrition and preventable diseases, and where foreign nationals are exploiting natural resources at will under the auspices of mining diamonds, gold and more. Unlike the Sirleaf-Boakai’s Unity Party lead administration that is increasing the size of government with numerous officials, bureaucrats, civil servants and security personnel for self-protection and loyalty, the Kenyan government’s vision 2030 aims to transform Kenya into a “newly industrializing, middle income society by providing a high quality of life and a clean and secure environment.

For its part, the Kingdom of Saudi Arabia’s new economic vision, with a clearly defined philosophy and guiding principles, aims to maximize US$100 billion dollars in non-oil revenue by 2020 and also create six million new jobs by 2030.  Accordingly, the Kingdom’s deputy Crown Prince Mohammed bin Salman indicated that if the reforms bear fruit, Saudi Arabia could “live without oil by 2020”. “We have all developed an oil addiction in Saudi Arabia and this is dangerous and has hampered development in many sectors during past years,” he told Saudi-owned al-Arabiya news channel.  In Liberia, we have the contrary.  Our government does not think about investing in innovation, alternative industries and in science, technology, engineering and math.  Instead, they are focused on exploiting our extractive industries.  They have sold off all the mining sectors––iron ore, diamond, gold and the potential oil wells; given away our land for rogue foreign agricultural activities.  They are even selling our birthrights. All public procurement contracts, if not given to insiders and family-connected individuals, then they are given to foreign nationals. Imagine, Chinese are selling sand and bread and soap are sold by Lebanese and others.  Small scale road and general construction contracts are given away to non-Liberians who, in turn, bribe few greedy officials and powerful members of the many hegemonies. And, when foreign nationals failed, then the administration seeks to artificially bail them out, as in the case of Novafone, a failed and mismanaged cellular phone company that is purportedly own by a not-so-good Lebanese business family that has floated Liberia’s wealth by fronting for corrupt officials during the past four decades.

There are other admirable visions that we could learn from. For example, the Abu Dhabi economic vision 2030 is a comprehensive blueprint that seeks to diversify the Emirate’s economy in the long term through what is considered a transformative process that will reduce the nation’s reliance on the oil sector as a source of economic activity.  As such, a greater focus is placed on knowledge-based industries with real significant increase in the contribution of other sectors to the Emirate’s Gross Domestic Product (GDP) by the end of 2030. In essence, the planners and implementers of the Emirate’s vision 2030 are not just on the same pace or coordinating in earnest, they are driving real improvement in the efficiency of their labor market by developing a highly productive and highly skilled workforce, and enabling their financial markets to become the key financiers of their economic projects and sectors. By this, the vision is on record to create significant opportunities for international and local private sectors in the Emirate while simultaneously creating new employment opportunities for UAE citizens in the future, especially in highly skilled, knowledge-based and export-oriented sectors.  In Liberia, we have the exact opposite.  We have a system that encourages everyone to become a politician or attempt seek political office because that is how wealth is generated–––through the abuse of power, corruption, public theft, cronyism, favoritism, nepotism and cover-ups, lies and deceit, and attention-seeking syndrome.   

First and foremost, a national vision for any nation, no matter the size, population, natural resources or human capacity, is generally driven by a philosophy. In other words, guiding principles that set clear and comprehensive targets.  The current Liberian administration has no clearly defined and realistic philosophy with respect to addressing poverty alleviation and socio-economic development.  This is why it is all over the place with copycat ideas that do not bear any tangible fruits. Secondly, a national vision is not only guided by a defined and realistic economic plan, it is also measured by strategic public policy guidelines. On the contrary, since 2006, Liberia has had neither real economic plan nor a public policy framework.  Instead, we see Karamoko economics, at best––a process that relies on sorcerers and oracles’ consultation to derive fame, obtain accolades and elevation under the pretext of progress.  As a result, everyone does their own thing to please the all-powerful president and at the same time take whatever they can get for themselves.  We saw it with the bogus central bank’s fiasco loan scheme under ex-Governor Mills Jones.  The victims of that corrupt and self-conceited loan program are Liberia and the Liberian people.  Today, we all know the corruption that went on at the bank as explained by the ex-governor’s own special assistant in recent days.  Yet, they are walking scout free while Liberia lose big time.

Again, it all boils down to the simple fact that something terribly wrong is happening in the way our nation is governed. So why is the Unity Party administration glorifying setback or failure as progress? Why is the administration amplifying a basic duty as something extra-ordinary? The answer is simple; the leadership cares more about itself more than it does for the country.

At the recent mock summit in Gbarnga, the Liberian administration further intimated that “Steadfast progress [is] being made in all of the pillars,” including peace, security and the rule of law, economic transformation and human development”. To add more scam to the narratives, the administration is on record as saying “government is making steadfast progress as it relates to pillar one, which comprises four sectors to create an atmosphere of peaceful coexistence based on reconciliation and conflict resolution and providing security, access to justice and the rule of law”. Really???

 Let us address these denigrations one by one.  The administration appears to have an illusory understanding of peace and a distracted interpretation of security.  The absence of war does not amount to true peace and the fact that the well-connected and well-off in the nation’s capital, Monrovia, are personally secured does not mean that there is national security or that everyone in Liberia is secured. How can the Sirleaf’s Unity Party regime talk about peace when it has concocted an atmosphere of disunity between Liberians? Doesn’t the administration see the potentially chaotic undertone of Christians versus Muslims, tribes versus tribes, and natives versus Americo-Liberians because of the way the country is being ruled? How can the administration shamelessly forget that it engineered the so-called Christian state idea while simultaneously undermining the truth and reconciliation commission?  How can the administration forget that it has enriched a select social class of people rather than empowering the entire citizenry?  How can the administration forget that it has prioritized certain regions of the country for limited development purposes than others?  The entire south-eastern region of Liberia is absolutely neglected.  There is no reason why a mere dislike for the late president Samuel K. Doe, Sr. should equate to an unnecessary dislike and neglect of the southeastern region of Liberia. Is this peace or a desire for peace?

On the question of security, it would be an understatement to state that it is bamboozling.  One wonders what the administration understands by security.  True be told, there are both food and physical insecurities in Liberia.  Several Liberian families cannot afford a well-nourished meal. And even those who can, they live on less than a dollar a day.  Isn’t this food insecurity and acute poverty? According to the United Nations’ World Food Programme’s Fighting Hunger Worldwide, Liberia––Emergency Food Security Assessment, published June 2015, “Food insecurity affects 640,000 people, corresponding to16 percent of the population. Among these about 52,000 households (2 percent) are severely food insecure.

21 percent of households do not have access to an adequate diet. 41 percent of households did not have food or money to buy food the week before the survey, thus the average reduced Coping Strategies Index (rCSI) doubled in three years. Food expenditures share is beyond 65 percent of the total household expenditures for one fourth of Liberian households. 18 percent of households are using emergency coping strategies (mostly begging) to ensure bulk of food needs.  In May rice stock was completed depleted for one third of the households and the cassava stocks for 18 percent of the households.  The most food insecure counties are located in the south eastern part of the country (Grand Kru: 33 percent; River Gee: 32 percent) and the North (Grand Cape Mount (30 percent) and Bomi (30 percent) where the physical access to market is a constraint”. Doesn’t the administration know this?  Apart from the WFP, other international agencies even have a more undesirable analysis.

Furthermore, how can the Sirleaf-Unity Party’s administration holler about progress in the physical security sector of the country when several high profile murders of whistle-blowers, political opponents and critics remained unsolved?  These heinous crimes are unsolved not because of the lack of investigative capacity, but because of authoritative interferences, potential cover-ups, misstatements and the lack of political will.  

Apart from ushering in misguided flames and pretexts, when is the administration going to actually solve the murders of whistle-blowers Michael Allison and the well-calculated political assassination of Harry Greaves?  These are just two of the known ones; there are many Liberian citizens and residents who have been murdered mysteriously either for ritualistic purposes, or through abuse of power, and/or due to recycled revenge syndrome in the power that be.  

In addition to this chancy situation, brutality and armed robbery are also all time high, both by unemployed youth and by some rogue members of the Sirleaf’s administration own security forces.  To date, we don’t have any conclusive findings nor are we aware of any punitive actions in the case involving a Korean businessman who was robbed in daylight by senior officials of our government security forces?  What will urge a respected investor to consider investing under this regime so that private sector jobs are created for our people?   

Many of us are in favor of a vision, and in particular the so-called vision 2030 only if it is realistic, and not used as a scam to portray the opposite.  A vision of this nature, as espoused by the Liberian administration, should go beyond attention-seeking posture and the normal duties and responsibilities of a responsible government to an actual transformation of the lives of our people and fabric of our country and its institutions by deriving both quantitative and qualitative change and/or expansion of our country’s economy.  Such economic growth strategy ought to be pursued or achieved through a more productive use of our resources, including labor.  If that happens, it could result in higher per capital income and improvement in all Liberians’ average standard of living.  

This means the Liberian administration should put economic development at the center of its vision 2030, a process that should be prone to corruption, the lack of transparency, nepotism, cronyism, judicial mal-practice, executive interference, influence buying and peddling, pay and play tricks, and the abuse of power.  Currently, with our country’s vision 2030, none of these vices are addressed. In fact, they have intensified such that bureaucrats and public officials who have stolen national wealth are either left alone or protected by the power that be through a proxy dynamic process. Matilda Parker and Corp, Beysolow and Corp, all the thefts of NOCAL, and the list goes on.

Instead of this administration focusing on attention-driven and manipulative tactics aimed at deceiving a suffering people, it needs to come clean and usher in inclusive ideas from all Liberians, especially people who are sincere to see a better Liberia with unlocked potential. The very first step towards unlocking our country’s economic growth potential is to create a strategic economic vision that will prioritize the uplifting of all Liberians, covering the richness of diversity and opportunities we have on our doorstep as a nation.  The vision for Liberia must concentrate on changing Liberia from a third world country to a first world nation.

To do this, we must regionalize Liberia into five areas:  Sinoe, River Gee, Maryland, Grand Kru and Grand Gedeh counties as region I with its own regional capital, governor, local/regional legislative council and government, and this should be in addition to the counties’ superintendents; Lofa, Nimba and Bong counties as region II; Grand Cape Mount, Gbarpolu and Bomi counties as region III; Grand Bassa, Margibi and River Cess counties as region IV; and Montserado as region V.

Then we must identify each region and capital with certain major industry sectors.  That is, we can have a technology capital, a manufacturing capital, a biotechnological and medical capital, a commercial capital for trade and general business; a political capital and more. This way, urbanization will boom and advanced infrastructure development spread nationwide, thereby reducing over-crowdedness and congestion in Monrovia.  Accompanying these efforts should be the construction of super highways and railways connecting the entire nation and also connecting our neighboring states such as Sierra Leone, Guinea and the Ivory Coast.

Alongside the delivery of this economic and social vision should come a public policy strategy that focuses on enabling the creation of private sector employment opportunities, not government jobs, by refocusing on real judicial independence and transparency, security sector reform, creating a business-friendly climate and condition that induce and attract foreign investments, enable local small business establishments, and spur innovation while supporting workforce development and training, as well as investing in agricultural food production, and in science, technology, engineering and math.   

Our goal should be for Liberia to be the most business-friendly nation in Africa, if not the world, and our target should be to create four million new jobs by 2030 in all sectors, from leisure and hospitality, professional and business services, information, manufacturing, education and healthcare, and construction to financial services, arts and entertainment, transportation, trade and utilities, and other services.   Just by having some of the best universities and technical institutions in Liberia, we will be able to attract foreign students which, in turn, would bring in revenue in tuition, rental and leasing and the purchase of goods and services.  By reducing tariff and putting in place a better port management system, possibly under some private management, we can become the gateway to West Africa’s commerce.

We also need to put in place a blue ‘card system’ and a numbering protocol that tracks and distinguishes Liberian citizens from non-Liberians.  At the moment, any Jack and James, Mary and Sally can become a Liberian without a proper naturalization process.  Besides, we don’t who is a legitimate Liberian resident or not.  In this period of global havoc, this is very important.  We can also introduce a tax payment monitoring system by allowing every Liberian citizen and resident to file annual tax returns.  Our poor people will be encourage to pay taxes if they know that they can get something in return at the end of the year.  The process will also make it easier for the government to track who is paying taxes and who is not.  The bottom-line is, we need a government that is not a hindrance, but one that serves the people and our business community so that they create jobs.    

With our nation’s vast opportunity of being a traditional ally of the United States and Israel over the last century, why can’t Liberia be the retirement destination for Americans, and the information technology and biotech partner of Israel? Why can’t Liberia be the Africa’s distribution headquarters for trading conglomerates like Wal-Mart, Apple, Gap, Home Depot, Loews, General Motors and more?  All of these opportunities are feasible if we have the right people to govern and implement our nation’s vision.  

So far, what we have is nothing but greed among a very small group of politicians and self-centered bureaucrats who only interest is short-sighted, selfish and mean.  We can do better than this and it is up to us the Liberian people to stand up for change, for ourselves and for our country, because if we don’t the shameless and heartless contingent aboard the Liberian ship will take us farther and dump us into deep sea to sink more and more.

Enough is enough!! We must change these unqualified pilots by our vote in 2017 before our ship sinks beneath the ocean of no return.  Let them go with their stolen wealth and earthly sins; they will account before God when the day of judgement comes, as no one is too big or too rich or too powerful to escape Heavenly powers.  On that note, the decision we make going forward will decide who we are as a people. And that means once a mistake is a mistake, twice a mistake means we are fools.  This is exactly why 2017 is crucial, if not, more significant than ever before.

Abou the Author:
Jones Nhinson Williams is a Catholic educated philosopher and an American trained public policy professional.  He can be reached at jnw5050@gmail.com  

Monrovia – The Managing Director of the Libtelco, Sebastian Muah, says Libtelco’s purchase of Novafone has a legal basis for the transaction, clarifying that the Sirleaf family has no link to the purchased company.

“In 1973, the national legislature by an act, the public authorities act, established a monopoly state corporation called Liberia Telecommunications Corporation,” he said. “This monopoly was removed in 2007 when the act was amended in the telecommunications act.”

Libtelco has been mired in the controversial buyout of the failing company, raising eyebrows for many who questioned the role of the National Social Security and Welfare Corporation (NASSCORP) as a guarantor.

But at a Ministry of Information press briefing, Mr. Muah said the original act and amendments enable Libtelco to, within its corporate veil, undertake such a transaction.

“I wish to note that another unique characteristic of Libtelco is, it also operates under the corporation laws of Liberia (the business corporate act-1976-1977).

So for the record, the Liberia telecommunications corporation is owned by the state 100% but is expected under its autonomy to be run like any other corporation guided by the country’s corporate laws in addition to applicable public sector laws”, said Muah.

He dismissed claims of the Sirleaf’s family having links to Novafone, saying their legal due diligence provided all the owners of Novafone cosmotell, a Lebanese company, as owning 100% of Novafone.

“Rest assure none of the cosmotell owners went by the name Sirleaf,” he said.

“These are all Lebanese nationals. Therefore my caution here, fellow Liberians, is 2017 is coming and we tend to become political; however it is wise to exclude our distinguished president who will be leaving the stage out of this as no value is being added.

We have a democratic process and until someone can show proof that she or her family owns a private company, please respect the presidency and focus along with all other law abiding Liberians on how we can move our beloved country forward”, the Libtelco head added.

Willie N. Tokpah/0777039231/0888140438 (tokpah.willie@frontpageafricaonline.com)