This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/world/2013/may/08/liberia-natural-resources-deal-audit
The article has changed 5 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Liberia natural resources deals not compliant with law, find auditors | Liberia natural resources deals not compliant with law, find auditors |
| (1 day later) | |
| An audit of lucrative resource deals in Liberia has found that almost all the concessions awarded by the government since 2009 have not been compliant with the law. | An audit of lucrative resource deals in Liberia has found that almost all the concessions awarded by the government since 2009 have not been compliant with the law. |
| In a damning report commissioned by the Liberian government, international auditors found that only two out of 68 resource contracts worth $8bn (£5.1bn) were conducted properly. Concessions granted in agriculture, forestry, mining and oil – including a lucrative deal with oil company Chevron – were either wholly or partially flawed. | In a damning report commissioned by the Liberian government, international auditors found that only two out of 68 resource contracts worth $8bn (£5.1bn) were conducted properly. Concessions granted in agriculture, forestry, mining and oil – including a lucrative deal with oil company Chevron – were either wholly or partially flawed. |
| "These are problems that we have known about for a long time – but the fact that only two of 68 concessions were fully compliant with the law is just mindblowing," said Chloe Fussell from the international NGO Global Witness, which has seen the audit. "Some of the most damning material in the report concerns logging permits that cover one quarter of the country and were given out illegally." | "These are problems that we have known about for a long time – but the fact that only two of 68 concessions were fully compliant with the law is just mindblowing," said Chloe Fussell from the international NGO Global Witness, which has seen the audit. "Some of the most damning material in the report concerns logging permits that cover one quarter of the country and were given out illegally." |
| The report, by London-based accounting firm Moore Stephens, is a major blow for Liberia, whose president, Ellen Johnson Sirleaf, was awarded the Nobel peace prize last year and who has pledged her commitment to tackling corruption and the lack of transparency. | The report, by London-based accounting firm Moore Stephens, is a major blow for Liberia, whose president, Ellen Johnson Sirleaf, was awarded the Nobel peace prize last year and who has pledged her commitment to tackling corruption and the lack of transparency. |
| Liberia has been keen to attract foreign investment, after a troubled past in which resource deals and blood diamonds helped to fuel a devastating 14-year-civil war. | Liberia has been keen to attract foreign investment, after a troubled past in which resource deals and blood diamonds helped to fuel a devastating 14-year-civil war. |
| The government admitted the report had found flaws in its process, but denied they amounted to a violation of the law. | The government admitted the report had found flaws in its process, but denied they amounted to a violation of the law. |
| "We are taking these findings very seriously," said Liberia's information minister, Lewis Brown. "This audit was requested by the Liberian government through its corruption watchdog, and it will help us to close loopholes and to continue to strengthen our processes of transparency. | "We are taking these findings very seriously," said Liberia's information minister, Lewis Brown. "This audit was requested by the Liberian government through its corruption watchdog, and it will help us to close loopholes and to continue to strengthen our processes of transparency. |
| "We are moving away from a country that governs secretly, to a country now that is increasingly opening up," Brown added. | "We are moving away from a country that governs secretly, to a country now that is increasingly opening up," Brown added. |
| But there have been a series of damning findings in Liberia in recent months. Revelations last year about corruption and fraud in the country's $100m timber sector led to the government suspending large logging operations. | But there have been a series of damning findings in Liberia in recent months. Revelations last year about corruption and fraud in the country's $100m timber sector led to the government suspending large logging operations. |
| The government has also admitted serious flaws in its oil law, which is currently being re-drafted. Last year a deal with ExxonMobil and its partner Canadian Overseas Petroleum Limited over an oil field know as Block 13 fell short of Liberian law requiring 10% in royalties for Liberia. The deal would generate 5%. | The government has also admitted serious flaws in its oil law, which is currently being re-drafted. Last year a deal with ExxonMobil and its partner Canadian Overseas Petroleum Limited over an oil field know as Block 13 fell short of Liberian law requiring 10% in royalties for Liberia. The deal would generate 5%. |
| "The whole issue of compliance with the law has just been swept under the carpet in deals like Block 13 and the contracts examined in this audit," said Thomas Nah from the Centre for Transparency and Accountability in Liberia (Cental), an anti-corruption NGO in Liberia. | "The whole issue of compliance with the law has just been swept under the carpet in deals like Block 13 and the contracts examined in this audit," said Thomas Nah from the Centre for Transparency and Accountability in Liberia (Cental), an anti-corruption NGO in Liberia. |
| "I think there are so many vested interests both by external parties and local interests. We have all been making efforts to ensure that there is more transparency, and now it appears that this whole thing is becoming a charade," he added. "The perception is still that money is being passed under the table, and the citizens have no trust in the credibility of the government." | "I think there are so many vested interests both by external parties and local interests. We have all been making efforts to ensure that there is more transparency, and now it appears that this whole thing is becoming a charade," he added. "The perception is still that money is being passed under the table, and the citizens have no trust in the credibility of the government." |
| But the government said the audit report reflected a lack of capacity, and not corruption. "One of the biggest challenges we continue to deal with is the capacity gap – the war drove many of our brightest minds away, and this report identities are capacity issues when it comes to licensing and documentation. We do not believe this is a question of corruption or mendacity," said Brown. | But the government said the audit report reflected a lack of capacity, and not corruption. "One of the biggest challenges we continue to deal with is the capacity gap – the war drove many of our brightest minds away, and this report identities are capacity issues when it comes to licensing and documentation. We do not believe this is a question of corruption or mendacity," said Brown. |
| But experts who have seen the report pointed to a number of flaws, including a lack of competitive bidding, nonstakeholder participation, lapses in procurement procedures, and missing documentation. | But experts who have seen the report pointed to a number of flaws, including a lack of competitive bidding, nonstakeholder participation, lapses in procurement procedures, and missing documentation. |
| "I don't think the government can explain this simply by lack of capacity," Fussell said. "The report shows that big palm oil and rubber concessions were awarded without any competitive bidding. They were just handed out to the first company that came along." | "I don't think the government can explain this simply by lack of capacity," Fussell said. "The report shows that big palm oil and rubber concessions were awarded without any competitive bidding. They were just handed out to the first company that came along." |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. | |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. Enter your email address to subscribe. |