George K. Fahnbulleh

Ideas and Opinions...

In Liberia: NOCAL, No Cash Available for Liberia

Liberia Oil Basin

NOCAL paid nearly $4 Million USD to the Liberian Legislature over the past 18 months. The company paid $1,000,000 for the nation wide tour for the legislators to consult with their constituents.

I previously posted a check made out to Sen. Sando Johnson for $31,000.00 immediately after The Legislature passed the last oil block lease.

31000 x 102 = 3,162,000


It is my studied opinion, that NOCAL fronted the money to the legislators directly out of its coffers.

The lease signed with Liberty Petroleum, which had never ever drilled an oil well, fell through when Liberty could not flip the lease (which they tried to do 48 hours after getting it), and NOCAL was not able to collect it $25 million signature bonus. Out 4 million dollars with nothing to show, the President wants a restructuring.

Global Witness warned that Liberty Petroleum was unlikely to perform.

Global Witness: Liberia Has Burned the Furniture to Warm the House Feb 27, 2015

 A major oil contract, offshore Block 16, was recently handed to a coalition of three companies. One of these appears to lack sufficient funds to operate the oil block, and another has close links to some of Liberia’s worst tax dodgers. 
(1) On 18 December the first, and so far only, of these contracts was finalised. Block 16 was awarded to US-based Liberty Petroleum, Nigerian-based Pillar Oil, and Liberian-based New Millennium Oil and Gas, who together paid US$ 22 million in signature bonuses and other payments. 

(2) US-registered Liberty holds a 90 percent stake in the contract. Yet the company has only seven employees and a 2014 declared turnover of just US$ 3 million.

(3) In contrast, assuming that Liberty’s contract complies with the Liberian government’s new model contract (the Block 16 contract is not yet public), Liberty and its junior partners must invest US$ 53 million in the next seven years in oil exploration.

(4) Liberty is part-owned, through a series of intermediary companies and trusts, by US Congressman Trent Franks, a Republican representing Arizona’s 8th District.

(3) In contrast, assuming that Liberty’s contract complies with the Liberian government’s new model contract (the Block 16 contract is not yet public), Liberty and its junior partners must invest US$ 53 million in the next seven years in oil exploration.

(4) Liberty is part-owned, through a series of intermediary companies and trusts, by US Congressman Trent Franks, a Republican representing Arizona’s 8th District.

 

Just as Global Witness had previously warned, on June 16, 2015, FrontPage Africa reported:

The President confirmed that US oil company Liberty Petroleum, and Nigerian oil company A-Z failed to stump up US$25 million in cash they promised for four oil licenses that they agreed to purchase in the oil auction. These initial payments are known as "signature bonuses" in the oil industry.


The President said her son, Robert Sirleaf had reorganized NOCAL and left it strong. Now less than two years after he left, the President is saying the staff needs to be cut to 50? 

Why didn't Robert Sirleaf's reorganization cut the staff?

Unless the President is telling us the staffing increased from 50 to 300 AFTER Robert Sirleaf left it is clear their claim, his and hers, they reorganized the company is patently false!

Because the legislature has been PAID every step of the way, is the reason you do not see them clamoring for an explanation of what happened to the company.

This, my fellow Liberians, is the damage this woman has done to the country: she has completely destroyed the separation of powers and has corrupted and conscripted the legislature as her crime partner.

The Reorganization Team

President Sirleaf also disclosed that an Interim Transition Team (ITT) composed of the current Chief Operating Officer, the Vice President for Finance and the Vice President for Technical Services will hold over in the transition period, with severance pay delayed until the period is over.

I find it curious that the interim transition team includes the Chief Operating Officer & VP for Finance both executives who should have been managing the finances and operations of the organization.

The Chief Operations Officer, Althea Sherman (nee Eastman) was Robert Sirleafs best friend and classmate at CWA, Class of 1978.  She was brought in as his direct representative.  The Vice President of Finance, Karmo D. Ville was hired by Robert Sirleaf. Two of the three people being held over, are direct hires of Robert Sirleaf.

The entire thing is being stage managed by the president. Her son was Board Chair. She appoints his best friend to run the day to day operations of the company. The company fails. The president says fire everybody EXCEPT my sons friends, the same people who ran the day to day operations and the finance of the company that was poorly managed, are now going to lead the transition?

The Friends & Family plan works for AT & T, but it does not work for a country. 

I seriously fear for the future of this country.