Several Corrupt Official Exposed, Suspend From National Port

President Ellen Johnson Sirleaf has suspended the Managing Director of the National Port Authority (NPA), Mrs. Matilda W. Parker, and the Comptroller, Mrs. Christina K. Pealay. In a special statement announcing the suspensions Wednesday evening, President Sirleaf said her actions were based on the findings of an investigation by the Liberia Anti-Corruption Commission (LACC).Meanwhile, in an unrelated development, the Liberian leader directed the Ministry of Justice to collaborate with the LACC, and all accused persons associated with the investigation, to inform additional actions, should they be required. President Sirleaf also suspended all members of the NPA Board except for statutory members of the Board of Directors of the NPA and the Chairperson who was recently named.

The President additionally instructed Presidential Affairs Minister Edward McClain to immediately liaise with all chairpersons of Boards of all State-owned Enterprises to collate, and report to her, all resolutions which have been passed by these Boards, especially on board fees, benefits and other compensations.

In what has the makings of a potential test of President Ellen Johnson-Sirleaf’s perceived shielding of alleged corruption in her administration, a damning report by the Liberia Anti-Corruption Commission obtained by FrontPageAfrica has recommended that the Managing Director of the National Port Authority (NPA), her comptroller and Internal Affairs Minister Morris Dukuly, a former Vice Chair of the Board of the NPA, be charged for violation of fraud on the Internal Revenue of Liberia in the tone of nearly one million united states dollars. Supporting Document

Multiple sources have said that the final report, which has reportedly already been submitted to President Sirleaf, may be the last straw for Parker, who has enjoyed a special presidential privilege as one of President Sirleaf’s key confidantes and who also receives protection from the President’s sister, Jennie Bernard. Late Wednesday, the President’s office issued a statement announcing suspensions for only Parker and the Comptroller although the LACC report named others within the port hierarchy. The report in possession of FrontPageAfrica recommended that the NPA boss, along with Comptroller Christiana Kpabar Paelay, Dr. Nathaniel Barnes (Board Chairman who signed the RSO MOU and Morris Dukuly (Vice Chair of the Board who signed the Wreck Removal MOU) be held liable for violating several provisions of the Public Procurement Concession Commission (PPCC) Law, by their failure to publish a notification of intent to award a contract.” The report further recommended that Parker and her comptroller, Pealay be charged with Misuse of public money, property or record: 15.81(a and c) and Theft and/or illegal disbursement and expenditure of public money: 15.82(b) for knowingly, purposely and willfully ignoring all procedures and processes in disposing of eight hundred thousand United States Dollars (US$800,000) of government money to an individual and a firm with no proven record nor expertise in marine works and no clear evidence of performance in both the Wreck removal and ISPS consultancy contracts as agreed in the terms of the contracts.” According to 15.81. Misuse of Public Money, Property or record states: “A person is guilty of a first degree felony, if he: Knowingly steals, takes, purloins, or converts to his own use and benefit or the use of another; or without authority, sells, conveys, disposes of any record, voucher, money or thing of value of the government of Liberia of any Ministry, or agency therefore, or public corporation, or any property made or being made under contract for the Government of Liberia or any Ministry, agency thereof or public corporation.”(b) disposes of, uses or transfers any interest in property which has been entrusted to him as a fiduciary, and in his capacity as public servant or any other officer of an institution, in a manner he knows is not authorized and that he knows to involve risk of loss or detriment to the owner of the property of the government of Liberia of other persons whose benefits the property was entrusted.” Parker, Comptroller, Board Suspended On Wednesday, President Sirleaf suspended with immediate effect Parker and Pealay, respectively, based on findings of an investigation by the LACC. Sirleaf addressing the nation Wednesday, directed the Ministry of Justice to collaborate with the LACC, and all accused persons associated with this investigation, in order to inform additional actions, should they be required. Sirleaf has also suspended all members of the Board of Directors of the NPA, except for statutory members, and the Chairperson who was recently named. Barnes announced his resignation from the board last year. The Liberian leader has instructed the Minister of State for Presidential Affairs to immediately liaise with all chairpersons of Boards of all State-owned Enterprises to collate, and report to her, all resolutions which have been passed by these Boards especially on board fees, benefits and other compensations. Said Sirleaf: “Where it is established that Boards have assigned emoluments to chairpersons and members that are inconsistent with established policies of this administration, it will be my pleasing duty to reverse all such resolutions.” She vowed that she will not hesitate to direct additional remedies, should they be required, to cure such unacceptable actions, wherever they are found to be practiced. FrontPageAfrica first learned of the existence of the NPA report last week, but Cllr. James Verdier, Chairman of the LACC, when contacted on Monday of this week, denied that such a report existed or that one was conducted by the LACC. According to multiple sources, the President has reportedly already informed Parker that her end is imminent, but pressure was said to be mounting within presidential circles to give the embattled NPA boss a soft landing, although a senior executive mansion source told FrontPageafrica late Wednesday that the President is determined to see the LACC recommendations implemented to the core. The General Auditing Commission has conducted at least 107 audits since the Sirleaf administration took office in January 2007, but only two have led to prosecution. ‘Grand Corruption’ at NPA According to documents in possession of FPA, the investigation into the NPA management began in March 2014 when a whistleblower addressed an anonymous complaint to the Executive Chairperson of the LACC reporting what he dubbed “Grand Corruption at the National Port Authority”. A company called “Denmar Enterprise”, was charged under the contract with the responsibility to provide security consultancy services. “The award of the security consultancy contract gave credence to Denmar Enterprises and thereby presented it a Recognized Security Organization (RSO) and, as such, it was recommended to the International Ship & Ports Security (ISPS) Department to be responsible for making decisions regarding safety and security managements at the Seaports of Monrovia, Buchanan and Greenville, and also to conduct Port facility security assessment in consideration of the sum of US$300,000.00(Three Hundred Thousand United States Dollars).

“That Matilda Wokie Parker, Managing Director of the NPA and Christiana Kpabar Paelay, Comptroller of the NPA and Seneah Martin Flomo be charged for violation of Fraud on the Internal Revenue of Liberia 15.80(a,b and c) for knowingly, intentionally and purposely creating the opportunity to deprive government of Liberia of its just revenue in the amount of fifty thousand United States Dollars (US$50,000) by not withholding the 10% service tax on the Wreck Removal Contract Valued at five hundred thousand (US$500,000) and also failing to withhold thirty thousand (US$30,000) on the IPS Consultancy contract valued at US$300,000.”

A whistleblower informed the LACC that he was requested by the Comptroller (Christina Kpabar Paelay) to supply stationery valued at US$3,000.00 on a pre-finance basis to the National Port Authority which the whistleblower did supply. However, a few days later, the whistleblower said after the supply, the comptroller Paelay called him and gave him a check of US$250,000.00(two hundred and fifty thousand United States Dollars) prepared in his name for encashment. ‘High-School Grad’ Denies Wrecking Knowledge Said the whistleblower whose identity is being concealed because FrontPageAfrica has learned, the whistleblower has agreed to turn state witness: “I along with the Comptroller (Christiana Kpabar Paelay) went to Ecobank, Vai Town Branch and encashed the check and the cash (US$250,000.00 turned over to her. Afterwards, she gave me US$3,000.00 which constitutes the value of the stationery I had earlier supplied the NPA.” The whistleblower continued: “Based upon the transaction, the Comptroller (Christiana Kpabar Paelay) asked me to register a business for supplying stationery. In this direction, she gave me the amount of US$500.00 and I registered Denmar Enterprise with the Liberian Business Registry. Thereafter, I was called at different times by the comptroller to receive and encashed checks bearing my name and the cash of those checks turned over to her, I made to the NPA. I was promised by the Comptroller that I will be given contracts to supply stationery if I continue to enchash their checks and return the monies to her. During one of the times, I was invited by the Comptroller to the NPA, I was asked to sign huge volume of documents. I did not read the documents and did not know what they were about but I did sign.” Said the whistleblower, “I am just a high school graduate and have no knowledge of wreck engineering, ISPS and has never conducted Port Facility Security Assessment and therefore could not have entered into a contract with the NPA to perform such highly professional services. However, may I also inform the investigation that all of the below payments for both contracts were made in both my name and my entity on payment vouchers and checks. Those checks were encashed by me and monies turned over to the Comptroller (Christiana Kpabar Paelay).” According to the LACC Final Report, the Wreck Removal Contracts/ISPS Consultancy/Port Facility Security Assessment Contracts signed by the whistleblower are as follows: US$250,000.00(two hundred and fifty thousand United States Dollars); US$125,000.00(One hundred and Twenty Five Thousand United States Dollars) and US$125.000.00(One hundred and Twenty Five Thousand United States Dollars. For the ISPS Consultancy/Port Facility Security Assessment US$49,950.00(Forty Nine Thousand, Nine Hundred and Fifty United States Dollars); US$49,950.00) US$49,950.00(Forty Nine Thousand, Nine Hundred and Fifty United States Dollars); US$13,750.00(Thirteen Thousand, Seven Hundred and Fifty United States Dollars); US$49,00.00(Forty Nine Thousand United States Dollars) US$49,00.00(Forty Nine Thousand United States Dollars) US$49,00.00(Forty Nine Thousand United States Dollars) US$49,00.00(Forty Nine Thousand United States Dollars) US$36,100.00(Thirty Six Thousand, One Hundred United States Dollars) US$18,000.00(Eighteen Thousand United States Dollars) Comptroller Skipped Probe Citing Illness According to the LACC Final report, the whistleblower signed a statement to the LACC stating that all the aforementioned vouchers and checks were signed in the presence of his lawyer, Cllr. Momodu G. Kandakai. Comptroller, Paelay confirmed to the LACC investigators that she did co-sign a memorandum of understanding with (the whistleblower) to remove wrecks from the Port of Greenville in 2011 and Denmar Enterprises a recognized security organization in 2012. The LACC noted that Paelay who skipped a number of interview interrogations over health reasons, later told investigators in a written statement that the relevant procurement process as regards to the services sought under the MOU’s was upheld and that the PPCC was involved. She further indicated that payments were consistent with the terms and conditions of the MOU’s. The second contract was reportedly signed with an individual (whistleblower-name withheld) charging him with the responsibility of removing wrecks from the port facilities of Greenville, Sinoe County, Liberia with a value at US$500,000.00. The whistleblower further informed the LACC that both contracts were entered into with no regard to the Public Procurement and the Public Financial Management Laws of Liberia, and that up to the completion of the full contract amounts, “the contractor provided no performance report but received every single payment without any question.” The LACC report recommends several actions be taken against personalities and institution(s) associated with wrongful/criminal and/or administrative conduct based on the facts gathered and established from the investigation into the NPA. The final report recommended: “That Matilda Wokie Parker, Managing Director of the NPA and Christiana Kpabar Paelay, Comptroller of the NPA and (whistleblower) be charged for violation of Fraud on the Internal Revenue of Liberia 15.80(a,b and c) for knowingly, intentionally and purposely creating the opportunity to deprive government of Liberia of its just revenue in the amount of fifty thousand United States Dollars (US$50,000) by not withholding the 10% service tax on the Wreck Removal Contract Valued at five hundred thousand (US$500,000) and also failing to withhold thirty thousand (US$30,000) on the IPS Consultancy contract valued at US$300,000.” The report notes that Parker and her comptroller’s failure to act in both situations are in direct violation of the duty Section 905(a) &(f) of the Revenue Code of Liberia Act of 2000 which imposes on the taxpayer(NPA) to withhold tax thus causing the government of Liberia the loss of US$80,000. Section 15, 80. Fraud on the Internal Revenue of Liberia states that “A person is guilty of first-degree felony, if he: Knowingly conspires or colludes to defraud the government of Liberia (b) Knowingly makes an opportunity for any person to defraud the Government of Liberia by another(c) Does or omits do any act with intent to enable another to defraud the Government of Liberia.” Kesselly ‘Did Not Remember Any Discussion’ The LACC, upon hearing from the whistleblower notes in its report that it dispatched a team of investigators on September 29, 2014 to probe the allegations. “Analysis of the complaint documents broke down the allegations into two major segments:, i.e. two contracts signed by the Management of the National Port Authority and alleged violation of the Public Procurement and Public Financial Management Laws of Liberia.” The LACC proceeded to interview several players, including Binyah Kesselly, former Chairman of the Board of the NPA, Nathaniel Barnes, former Chair of the NPA board and Morris Dukuly, Minister of Internal Affairs and former vice chair of the NPA among a host of others. Kesselly served as board chair for the NPA from March 2009 to March 2012 during the period in question when the removal of the wrecks from the Port of Greenville, Sinoe County, Liberia, was signed between the NPA and Mr. Flomo. The LACC wrote: “Mr. Kesselly informed the investigation that the separate periods he served on the board of the NPA and in the respective capacities several discussions were held regarding the resumption of normal operations at all the sea ports within the Republic of Liberia and discussed were the processes that would ensure that plans were actualized. According to him, one of critical issues discussed was the challenge of movements of vessels within the various basins, especially within the Freeport of Monrovia and the Port of Greenville, Sinoe County. Wrecks removal at the Port of Greenville, Sinoe County had no immediate resolution as to methodology or a particular company to carry out the removal project – none in sight following several discussions at the level of the Board, to the best of his knowledge.” Asked whether he signed the contract awarded to (whistleblower) to remove wreck from the basin of the Port of Greenville, Sinoe County, Mr. Kesselly, according to the LACC denied signing the contract himself and further unequivocally told the investigators that he did not remember any discussion and authorization at the level of the Board of having someone sign on his behalf for said contract between (whistleblower) and the Management of the National Port Authority up to the time he left. He added that if such situation existed, there would be at least a minimum of board minutes and /or board resolution authorizing transaction. Mr. Kesselly further told the LACC investigators that if he was unavailable at the time or out of the country, the Acting Chairman of the Board would have signed in his capacity as Acting Chairman and not sign per procuration (PP) for him by any person as is reflected on the contract document. Asked by the LACC regarding his knowledge of the Security Consultancy MOU committing the NPA to Denmar Enterprise- the alleged Recognized Security Organization – to provide security consultancy services to the ports of Liberia, Mr. Kesselly made it clear to the investigation that at no time the contract was consummated he was neither member nor the chairman of the board of the NPA. “Nevertheless he informed the investigation that in his capacity as commissioner and chief executive officer of the Liberia Maritime Authority, he is the Designated authority charged with responsibility to implement the International Ship and Port Security(ISPS) Code in Liberia, but in this particular case, his entity had neither knowledge of the contract entered into for the security consultancy nor did it grant permit to any company, and did not accredit or validate “Denmar Enterprise” as a Recognized Security Organization(RSO) thereby authorizing same to engage in any form of ISPS and/or Maritime related activities in Liberia.” Dukully: ‘Board Never Expected’ For his part, Mr. Morris Dukuly, former vice chairman of the NPA board when interviewed by LACC investigators stated that he served as a member and subsequently as vice chair of the board under both chairmanships of messrs. Kesselly and Mr. M. Nathaniel Barnes and explained that the board had been informed that there was urgency about removing wrecks at the Greenville Port because of the obstruction placed in the way of port operations, including the vital economic activity of logging. Dukuly said the issue of the removal of wrecks had preceded the current management team and dated back to the administration of former managing director, the late George Tubman. According to the LACC, Dukuly in a bid to show distinction between the roles of the Board of Directors and the Management team told the investigation team that the Board of Directors of the NPA is not an operational board but rather a policy making board. “He asserted that the board was never expected nor did it participate in procurement processes, and that include contract negotiations. He clarified that such responsibility was devoted to the Managing Director of the NPA. Mr. Dukuly told the investigation that in his recollection and to the best of his knowledge, it was the Board’s practice for the Vice Chair to serve as Acting Chairman in the absence of the Chairman proper. Mr. Dukuly explained further that principal among functions delegated to the Acting Chairperson were to sign payment checks for salary and others payment checks that exceeded the threshold of US$50,000(fifty thousand United States Dollars). According to him, it was in fulfillment of such role that he recalled signing the contract for the removal of wrecks at the Port of Greenville. Similarly, Mr. Barnes, who served as Chairman of the Board of Directors of the NPA from April 9, 2012 to April 25, 20114 admitted that the security contract in question was signed by and between the management of the NPA and Denmar Enterprises during the period he served as Chairman of the Board for the provision of security consultancy for the International Ship and Port Security Department at the NPA. Mr. Barnes is quoted by the LACC as saying that during his tenure he and other board members were briefed about the need for the service and they then gave the management permission to hire a consultant. “In so doing, according to Barnes, he signed an addendum to the contract to indicate his consent for the provision of security consultancy services considering the fact that he was not available on the day the MOU was signed by management.” Barnes went on to justify the signing by stating to the investigators that the U.S. Department of Homeland Security had issued a warning about safety and security challenges in the Liberian ports and more importantly that China Union was starting operations without a security assessment. “According to him, the Port of Monrovia had to be reassessed because of China Union changes and cited concerns raised by the U.S. Coast Guard and the Liberia Maritime Authority about the ISPS Department. This is not the first time the NPA has been found in violation or financial improprieties. In June 2013, another report by the LACC found that some officials of the Sirleaf-led government, including Parker misrepresented the facts and lied in their declaration of assets. The LACC particularly noted that the managing director was less than truthful about the value of her assets and failed to cooperate with the commission in its efforts to get her to straighten the records provided. “Ms. Parker was also asked to disclose the seller of the aforementioned Sophie community property and the contact details of the seller. Ms. Parker disclosed the name of the seller but declined to disclose any contact details; telephone, residential address, and or other means of contact,” stated LACC boss Cllr. Frances Johnson Alison during a news conference on Tuesday, May 21, 2013. The LACC chair at the time, Cllr. Frances Johnson-Allison vented: “She wrote back that the receipts were missing both of the above statements cannot be true at the same time. One of the two assertions is definitely false and Mrs. Parker knows exactly which one is false.” Allison pointed out that the NPA boss embarked on a campaign of misrepresentation throughout the entire process of asset declaration: “No reasonable person will pay a hefty 65,000 dollars for a property but claims not to have any information on the seller and Miss Parker needs to be held to account,” said Cllr. Allison. “Ms Parker’s USA house was put at 750,000 dollars on her declaration, when asked for documents on the mortgage, her house was discovered to be valued only three hundred thousand. When asked to explain the gross disparity Miss Parker said it was an error; LACC wonders how a 300,000 dollars house can be erroneously valued at 750,000.” Transparency, Accountability Major Achilles for EJS In 2014, the joint Public Accounts Committee (PAC) of the National Legislature while reviewing a number of audit reports submitted to the body by the government’s supreme auditing firm, the General Auditing Commission (GAC) cited the NPA for alleged acts of corruption. But that audit report covered fiscal years 2006/07, 2007/08, a period before the appointment of current Managing Director, Parker who was appointed MD of NPA in May, 2009. The GAC audit reports alleged “significant problems with uncollected rental fees, failure to comply with the lease policy and illegal occupancy”, which the PAC concurred, has resulted in arrears and loss of revenue for the audit period. PAC did recommend that actions be taken by the current management team of the NPA as regards the reclaiming of areas that are illegally occupied by business firms and that rental arrears be collected and deposited in the escrow account created by the Ministry of Finance and Development Planning (MFDP). Transparency and accountability has been a major Achilles for the Sirleaf-led government, accused by critics of mustering the political will to deal with graft. Audit reports of several ministries and agencies of government have pointed to lack of proper internal controls and other procedures in safeguarding state resources, but since some of these audits were conducted more than six years ago, some entities audited are yet to implement recommendations contained in audit reports. Last week, the government came on FrontPageAfrica’s back and accused its editor of being unnationalistic and unpatriotic after a report emerging out of the President’s own statement that the recently-released audit of the Ebola fund by the GAC was marred by procedural errors. Said President Sirleaf while addressing media managers: “I have not read the audit report but I got a briefing on it, and I know that there may have been procedural errors but I believe that if someone says they had to go and buy a bus to carry people when a hundred people are dying on the streets and they did not go through a bidding process, I will leave it to you, to say which was better for them to have bought the buses to save the lives or for them to have taken two weeks to go through the bidding process”. The Government-run Liberia News Agency (LINA), in a commentary said “It is inconceivable and preposterous for a Liberian publication to maliciously unleash such a negative article which coincides with the visit to Washington D.C of the Liberian leader to participate in a Regional Post-Ebola Recovery Conference hosted by the World Bank for the three hardest-hit Ebola countries.” LINA questioned the timing of the article which it says demonstrates the lack of nationalism on the part of the FrontPage. “Throwing aspook into the wheel of international goodwill to settle whatever scores by publishing a negative article about a national leader cannot be justified, especially when it has a negative impact on efforts to reposition the country after a devastating health crisis. At this juncture, we pause to ask: Where lies the FrontPage newspaper’s nationalism? What will it benefit at the detriment and expense of its patrimony? Who gets severely hurt? President Sirleaf or the Liberian people?” Board Used as ‘Coverups’ The U.S. State Department (2009) reported in its Huma Rights Report that, “the government dismissed or suspended a number of officials for corruption. For example, on September 5, President Sirleaf dismissed the managing director of the state-owned Liberia Petroleum Refining Corporation (LPRC) after an investigation revealed alleged irregularities in awarding a no-bid 1.75 billion Liberian dollars ($36 million) concession. In October President Sirleaf dismissed the assistant superintendent for development in Grand Cape Mount County, for his alleged responsibility in the disappearance of more than 4.37 million Liberian dollars ($90,000) from the Grand Cape Mont County Development Fund. An investigation was ongoing at year's end. To date, the government has been unsuccessful in every corruption case it has brought against present and former officials.” Also in its 2009 Human Rights Report on Liberia, the United States Department of States reported that, “On October 8, the auditor-general said that boards of directors of public corporations in the country were being used as "cover-ups" to justify illegal transactions. The LACC and the Ministry of Justice are responsible for exposing and combating official corruption, but it was unclear whether the commission or the ministry had responsibility for prosecuting corruption cases.” The 2011 Report, the State Department reported, “The government dismissed or suspended a number of officials for corruption. On July 6, the president dissolved the Board of Directors of the Liberia Petroleum Refining Company (LPRC) as recommended by the General Auditing Commission (GAC). GAC cited board members’ alleged acts of amending by-laws to allow them to accept payments in addition to their salaries for services to the LPRC. The board was reconstituted on July 11.” These whole fraudulent schemes at NPA so well documented in the LACC report would have gone unnoticed had this whistleblower not come forth to report this matter. It is wonder how many more would be uncovered if a thorough independent audit were conducted during the regime of Manager Director Matilda Parker and her comptroller, Christiana Kpabar Paelay. In the 2012 Report, the U.S. Department reported that “state-owned enterprises (SOEs) published financial statements, but many of these SOEs had not been audited for several years.” All eyes are now on the Justice Ministry to see how far it will take the president’s order to prosecute those named in the LACC report at the NPA.