Liberia: Diverted China Union US$6m Paid to Liberia Vanishes from Questionable Account

Monrovia – Section 4 of the Public Finance Management Law regarding Public Funds and Money stipulates that in order to ensure the effective and efficient management, accounting and control of the public financial transactions and operations of the Republic of Liberia, a Consolidated Fund is established where monies owed government by foreign companies should be paid into the Central Bank of Liberia, the official depository of the Government of Liberia.

Under the law, resources that become public money upon receipt include, but are not limited to: “(j) Debts due of the State; (k) Money transfers corresponding to credits taken by the State in accordance with legal provisions regarding the formation of State Debt; and (I) Receipts from the issuance of national and international documents of credit by the State.”

Source: MoF Did Not OK New UBA Account

A FrontPageAfrica investigation has found that the National Port Authority, an autonomous agency, regarded as the gateway to the Liberian economy was in breach of the PFM law regarding funds owed the government by the Chinese mining Company China Union.

FPA has learned that the money, US$6 million owed Liberia was paid into a makeshift account instead of being paid directly into the government’s Consolidated Account at the Central Bank of Liberia.

Under the law, autonomous agencies cannot on their own open a separate account without the acquiesce of the Minister of Finance. All prior accounts opened did but the special account opened at the United Bank of Africa Liberia(UBA) did not follow the PFM law, thereby raising several questions including, why did the NPA hire an outside negotiator to facilitate the payment when it has a legal department? And Why would NPA need to open another account when it already has operating accounts at various banks, including Ecobank.

Furthermore, while Section 4 of PFM Law excludes state-owned enterprises from consolidated account, Section 45 and 46 gives the Minister of Finance and the board the authority to approve major decisions such as opening bank accounts and spending money. Minister of Finance is also Board Member and Board will have to approve opening bank accounts.

US$6M Paid into Questionable UBA Account

Out of the US$6 million paid into the UBA account by China Union, FrontPageAfrica has learned that US$1.5 million (one million five hundred thousand United States dollars) was paid to the Land and Housing Development Incorporated (LHDI), owned by E.C.B. Jones in two installments: US$750,000 (seven […]

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