Ellen Halt ‘Excessive Benefits’ at NOCAL, NPA

Board of Directors are established to serve as an advisory board to the management of public corporations to help guide these institutions in making major decisions in the interest of the growth of the institutions, eliminating waste and protecting the corporation from a possible collapse. Currently at NOCAL, the company is at the verge of bankruptcy with reports that Board members have increased their benefits and other incentives over the last years, creating more financial burden for the company.

With both NPA and NOCAL recently in the spotlight for all the wrong reasons, President Ellen Johnson Sirleaf has called on the Board of Directors of both NOCAL and NPA to with immediate effect, nullify all resolutions passed approving excessive benefits for departing senior managers and board members. According to an Executive Mansion release, the Liberian leader has already mandated the respective boards to scrupulously implement the decision.

An Executive Mansion source confided in FPA that the President decision to order nullifying of the board resolutions at both NOCAL and NPA will pave the way for a major shakeup at NOCAL which is on the verge of bankruptcy and infighting over the conclusion of bid rounds for oil blocks (LB-6, LB-7, LB-16 and LB-17).

In Liberia over the last few years, the essence of board of directors has seen dramatic twists with individuals appointed on Boards using the situation to create for themselves full time jobs with huge benefits and other incentives. In many institutions, Board members have increased the number of board sittings only to be paid sitting fees any time they meet.

Some government officials receive more than two board fees on the numerous boards on which they are serving as members. Some say Board of Directors have become cash cow for many mostly aged people who are unable to engage in active work, providing retirement payment for these people.

Members of Board of Directors of Public Corporations such as the National Port Authority, National Oil Company of Liberia, Liberia Maritime Authority, the Liberia Petroleum Refining Company, the Roberts International Airport and others are known for taking home fat board fees.

One of the main reasons for the establishment of these boards to help these corporations against wasteful decisions has not been achieved at numerous corporations in Liberia according to prevailing situations at these corporations.

At the Liberia Forestry Development Authority (FDA) the Board of Directors sat and witnessed the issuance of illegal Private Use Permits (PUP) which resulted to loss of revenue. The Board of Directors of the Liberia Airport Authority (LAA) did not act enough to prevent a grand corruption scandal in the amount of more US$500,000.

A huge US$800,000 scandal recently took place at the National Port Authority with indications that the NPA board of Directors approved the awarding of contract to a bogus company without helping the agency through due diligence.

In the wake of the failure of many of the Board of Directors in Liberia to help corporations safeguard against waste, these board members are instead allotting more benefits to themselves with some now even putting in place huge retirement packages as though their jobs require full time services to these public corporations.

In an audit on the Appointment of Board of Directors For the Periods 2006 January -2010 September, the General Auditing Commission of Liberia noted that Cabinet Ministers who are statutory Board members were receiving board fees in violation of Article 90 (b) of the constitution of Liberia.

During the audit, the Auditor general noted in the audit of LPRC that managing Director Greaves received remuneration in the tune of US$26,600 for 2006 & 2007 and also 250 gallons of gasoline monthly for serving on the Board of Directors of LPRC, a public corporation in which he also served as Managing Director.

This remuneration, the audit noted however was not part of Mr. Greaves regular monthly compensation as Managing Director of LPRC where in addition he also received 1, 700 gallons of gasoline and fuel monthly in addition to his huge salary in the tune of US$19,294.50 for nineteen (19) months that he allotted and paid himself.

The audit also noted that that Cabinet Minister Jeremiah Sulunteh who was serving as Minister of Post and Telecommunications received US$26,500.00 from the LRA and US$12,500 from the LCAA as Board Fees.

The auditor general declared in the report that board members are not adding real value to these corporations “It is instructive to note that these board members are not adding real value to these public corporations though they have been hugely rewarded”, the audit report stated.