ARD Demands Audit Of Concessions

30 May 2011

Several community based advocacy groups under the banner of the Alliance for Rural Democracy are demanding the comprehensive and speedy audit of all concessions’ agreements.

The Alliance for Rural Democracy (ARD) is calling on government to mandate the General Auditing Commission (GAC) to initiate an audit of oil, gas, agricultural, forest and mining concessions’ agreements entered with government.

The Alliance in a position statement released on Thursday in Buchanan, Grand Bassa County known as the Gbehzohn Declaration said the thorough audit of all concessions’ agreements would establish whether concessionaires are executing provisions provided in contracts’ documents.

Kutubu Young Sherif, a member of the Alliance and President General of the Motorcycle Union who read the Gbehzohn Declaration at the closed of a three day bi-annual meeting of ARD said that the audit of concessions would provide a clear guidance on how to track revenues allocated under various concession agreement earmarked for community contribution, social contribution, various fund established including welfare funds, scientific funds, rural energy funds, educational and land rental funds.

He indicated that the comprehensive audit of concessions’ agreements would also establish whether money allotted in concession contract for affected communities are having impact on community dwellers and address how natural resource revenues are working for the people.

Mr. Sherif disclosed that the Alliance also resolved that the National Legislature conduct public hearings and investigation on the implementation, compliance, performance and impact of all concession agreements entered by government.

“With reference to implementation of their provisions, specifically clear discussions on how to follow/track revenues’ allocated under various concession agreement earmarked for community contribution, social contribution, various funds established including welfare funds, scientific funds, rural energy funds, educational funds, surface/land funds as a way of showing development impact and address, the public hearings would establish whether our natural resource revenues are working for the people of Liberia,” Mr. Sherif read.

Attorney-at-law Alfred Lahai Brownell Sr, Lead Campaigner and Founder of ARD said: “A reviewed of several oil, mining, and agricultural agreements revealed provisions that have created several funds for the benefit or ordinary citizens but government has failed to provide information on whether these funds have been established.

He said the ARD would like to know who are the managers or trustee of these funds and how much has been generated by these funds.

“We will like to know if these funds have separate escrow accounts and who are the beneficiaries or what criteria are used to select beneficiaries?  What criteria was used to appoint or select managers/trustees o these funds, etc..,” Attorney Brownell noted.

Attorney Brownell said for example, “under the Oranto Petroleum and Anadarko concession agreements, these companies are to make an annual contribution of US$ 250, 000 to the Hydrogen Development Fund (HDF) during the exploration and production and they are to also make a yearly contribution of US$ 200, 000 to the Rural Energy Fund (REFUND).

He disclosed that the companies are to also provide annual contributions of $150, 000 to the University of Liberia for geology, mining engineering and environmental studies and a yearly payment of US$ 250, 000 to a social and welfare funds during exploration operation.

Attorney Brownell indicated that the research unearthed that the companies agreed to make available US$ 1, 000, 000 yearly during exploitation.

He noted that government has a fiduciary duty to disclose the status of these funds.

Mr. Brownell also disclosed that the Alliance is recommending that government convene a national conference on the future of the country’s natural resources in relations to balancing concessions with food security.

The group observed that an analysis of current concessions provide little of no allocation for achieving and sustaining food security in the short, medium and long terms.

The Gbehzohn Declaration also called on community members to take active interest in closely monitoring proceeds and expenditures of government resources as a way of determining whether government is devoting maximum of available resources to meeting its obligations to all Liberians especially vulnerable communities.

The Alliance for Rural Democracy (ARD) is a network of local communities (rural, urban slums and squatter dwellers), emerging and independent labor unions and pro poor informal sector institutions struggling at the “bottom of the economic pit, yearning for legal and economic empowerment and collectively advocating for the advancement of the economic, social, cultural, human and environmental rights of rural and urban poor communities in the country.

Established  on February  18th 2010 ARD is involved with  monitoring, documenting,  reporting and engaging relevant governmental and non governmental Institutions on the issues of the environment, natural resources, cultural, social and human rights activities taking place in the country through its individual members.  Attorney-at-law Alfred Lahai Brownell Sr, is the lead Campaigner and Founder of ARD.

AllAfrica – All the Time