Kendeja Money ‘Chopped’?

New Democrat (Monrovia)

28 April 2011

When the American millionaire Bob Johnson decided to build his 80-room luxury hotel where the National Cultural Center in Kendeja stood, he was requested to pay US$200,000 for relocating residents and inhabitants of Kendejah, and US$160,000 against US$800,000 for the first ten years rental fees as advance in relocation cost. Moreover, the Liberian state will receive US$7, 300,000 for the seaside location in half a century.

But the General Auditing Commission has discovered something else. Former Information Minister Lawrence Bropleh, sacked on the basis of police investigation into alleged illegal use of the Ministry’s fund for which he is undergoing trial, cannot account for US$121,659.90 that was taken from the account without substantiated reason, auditors say.

Auditors also discovered that although the full cost of US$80,000 to purchase 50 acres of land for relocation of Kendejah residents at Gben Town was made available to the government, only US$40,000 was paid against the land with no reason given as to why the full amount was not paid.

GAC auditors give details of their findings here: On 15 February 2008, the Government of Liberia (GOL) entered into a lease agreement with RLJ Liberia, LLC, chaired by American Businessman Mr. Robert L. Johnson. Mr. Johnson, the lessee, intended to construct a luxury 80- room style hotel on the Kendejah property, and the construction was completed in March 2009. Total rental revenue to be derived from the lease is US$7, 300,000.

As part of the lease agreement, Mr. Johnson had to underwrite the costs of relocating the residents and inhabitants of Kendejah at a total cost of US$200,000 and US$160,000 rental fees as advance payment against the US$800,000 for the first ten years into the lease agreement beginning 15 February 2008 to 15 February 2018. This amount (US$360,000) was paid in full by the lessee.

The GoL through MICAT paid US$40,000 against the $80,000 for 50 acres of land in Gben Town, Marshall, intended for relocating the residents and inhabitants of Kendejah.

But failure by MICAT to pay the outstanding balance of US$40,000 has stalled the processing of the title deed required to establish ownership of the land by the GOL.

There was no justification for not making full payment as there was enough money generated at the signing date of the Kendejah lease agreement to make the full settlement. The failure to make full payment has also caused a delay of the construction of the New Kendejah Culture Center, thus obstructing the Cultural activities of the Nation.

Government auditors, in their report, recommended that authorities at MICAT provide substantive justification why the 50- acre land acquired at Gben Town, was not paid for in full, despite the receipt of adequate cash for the purpose.

They insist that the Government of Liberia should pay the balance of US$40,000 to the landlord so as to establish Government ownership of the 50 acres of land for the Kendejah relocation project and allow the development of the Gben Town project.

On the payment of former occupants of Kendeja by MICAT, the report says auditors observed that checks were written in the names of individuals who were not residents of Kendejah, in violation of Financial Rule #23 which requires that “payments for goods/services rendered shall be made only to the vendor/service provider. No payments shall be made to third parties.”

Audit reports revealed that a total of US$121,659.90 was withdrawn from the Kendejah relocation account number 0220630001903, without stating the purpose for the disbursement.

The findings indicated that these payments were made to third parties including MICAT’s Comptroller and Chief Accountant.

“The act of payment made to a third party is a violation of the Financial Rule #23. The practice of paying money that belongs to a group of legitimate beneficiaries to a third party also poses a high risk that funds could be diverted fraudulently to suit personal gains,” auditors warned.

Therefore, the reports recommended that former Minister Bropleh, the former Comptroller, the former Chief Accountant and GECCO should be made to restitute US$121,659.90 because the third parties were not residents of Kendejah.

“Former Minister Lawrence K. Bropleh and Deputy Finance Minister for Administration, Tarnue Mawolo, respective custodian of the check books and signatories to the Kendejah account number 0220630001903, should be sanctioned for violating Financial Rule #23 by disbursing the Kendejah relocation funds to the third parties,” the report said.

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