Mr. John Morlu, the former Auditor General, recommended that the money be paid back into state coffers because the act was against the law.

In its audit of the state institution responsible for oil exploration for the financial periods 1 July 2006 to 30 June 2008, the GAC revealed that NOCAL’s chair, Mr. Clemenceau Urey, also a leading member of the ruling Unity Party, admitted to approving the money for the Legislature’s endorsement of pending contracts.

The GAC said “the Board’s Chairman intimated that the lawmakers requested for such an amount from NOCAL to rapidly ratify the contracts, no evidence was provided to justify the claims of the Board’s Chairman.”

“US$118,400.00 was paid from NOCAL’s Account as “Lobbying Fees” to the National Legislature in order to ratify petroleum contracts that were pending before the National Legislature”, the GAC said.

Excerpts: The payment of the purported lobbying fees to the Legislature is unlawful, and contravenes Section 12.50(1) of the Penal Law of Liberia which states “a person has committed bribery, a second degree felony, if he knowingly offers, gives or agrees to give to another or solicit, accepts or agrees to accept from another, a thing of value as consideration for: (a) The recipient’s official action as a public servant, or (b) The recipient’s violation of a known duty as a public servant.”

Minutes of the NOCAL’s Board of Directors indicated that the Board was also concerned that payment of such amounts to influence the passage of the petroleum contracts of Broadway PLC and Oranto Petroleum was irregular, a form of bribery.

The Board’s Chairman in his response to the findings of the audit made these assertions:

After consultation with the authorities we gave in to their demands, reluctantly. The first amount was $ 50,000.00 was approved by the Board.”

“A scrutiny of the minutes will reveal that we did not have fund at the time; the Board authorized management to borrow it from the LPRC. A second payment was made to the Legislators without the approval of the Board. I was informed by Dr. Kromah, NOCAL’s President that the situation demanded that this amount be paid right away. I do not believe I was even in the Country and many Board members were unavailable.”

Board Chairman Urey admitted to the Board’s approval of the US$50,000.00 borrowed from LPRC for the purpose of bribing the Legislature for the passage into law of these petroleum contracts. By his admission, he is saying that he and the Board Members were aware of the disbursement from the borrowed US$50,000.00 from LPRC to a Member of the National Legislature and the Chief Clerk of the House of Representative. Montserrado County District #1 Representative received US$40,000.00 as authenticated by the receipt issued by her and the Chief Clerk James Kaba received US$1,500.00 as also authenticated by a receipt issued by him.

The Management of NOCAL did not provide any evidence of how and to whom the balance US$76,900.00 was paid. The refusal to provide the names of the members of the National Legislature who received the US$76,900.00 further demonstrated the irregular nature of the transaction. As noted, Board Chairman Urey indicated in his response to the findings that:

“A second payment was made to the Legislators without the approval of the Board. I was informed by Dr. Kromah, NOCAL’s President, that the situation demanded that this amount be paid right away. I do not believe I was even in the Country and many Board members were unavailable.”

By these statements, Chairman Urey attempted to exonerate the Board from all other subsequent payments made by the Management of NOCAL. His attempt to exonerate himself and the Board is feeble because he admitted that he and the Board authorized some of the payments. Chairman Urey contended, “the Board authorized management to borrow it from the LPRC.” This clearly showed that the bribery was authorized by the Board’s approval to borrow US$50,000.00 from LPRC. The number of authorizations the Board provided was not material and is not the issue. Instead the action of the Board to authorize the first payment was irregular and a breach of the Penal law of Liberia, setting the basis for the President/CEO to exploit the opportunity.

The Management in flagrant disregard to the laws of Liberia in its response

“Although management recognizes that this is a common practice, however, from henceforth we will refrain from so doing.”

‘Common practice’ cannot supersede the laws and Constitution of the Republic of Liberia, acknowledged Management’s response that it will refrain from the act of giving funds to members of the National Legislature but I am required to report as of date, meaning reporting material events that occurred during the course of the audit.

‘Common practices’ of giving funds to some members of the Legislators through the provision of public funds to ratify contracts and concessions is not an acceptable practice, as in some jurisdictions there is severe penalties including criminal charges for inducing Legislators through the giving of funds. The United States Foreign Corrupt Practices Act of 1977 prohibits the giving of money to public officials to influence official decisions, such as for the sole purpose of ratifying concessions and contracts. This alleged and unspoken ‘common practice’ also contravenes sections 12.51 and 12.52 of the Penal Law of Liberia which prohibits unlawful rewards and compensation to public officials.

Furthermore, ‘Common practice’ of giving funds to some individual members of the National Legislature was also not done in the manner that was transparent and accountable. For instance, besides the receipt of the US$40,000.00 from Representative Barr and the US$1,500.00 paid to Chief Clerk Kaba, the Management of NOCAL did not provide any evidence of how and to whom the balance US$76,900.00 was paid.

Chairman Urey further indicted the Board and Management when he contended:

“These Contracts were presented to the National Legislature on August 17, 2006. They were not ratified until April 16, 2007, a period of about eight months.” By his own admission, NOCAL had to pay off the Legislators to ensure passage of the contracts, as again, Chairman Urey defended that “we gave in to their demands, reluctantly. The first amount was $ 50,000.00 was approved by the Board.”

I recommended that the US$118,400.00 purportedly paid as lobbying fees be refunded to NOCAL’s coffers by Madam Alomiza Ennos Barr, Member of the House of Representative, James Kaba, Chief Clerk of the House of Representative, and Dr. Fodee Kromah, President of NOCAL. Except for a payment received and signed for by Madam Barr in the tune of US$40,000.00 and another payment signed for by Chief Clerk Kaba in the tune of US$1,500.00, there was no evidence of receipt by the National Legislature of US$76,900.00. On the basis of the information and clarification provided by Chairman Urey, I recommended that Dr. Kromah refund the amount and that the Minister of Justice employs the necessary legal means to remedy the fraud and the contravention of Liberian laws.