J. Nathaniel Daygbor
29 September 2008
A Presidential aspirant from the Free Democratic Party (FDP) in the 2005 elections in the country, Mr. David Farhat, has disclosed that the 100 pick-ups recently donated to government by Arcelor Mittal Steel Company are not free gifts.
Mr. Farhat, a former Finance Minister of Liberia and an accounting expert, hinted that the cars and other activities being conducted by the company would be reflected in its financial reports that may eventually end up been deducted from revenues to be accrued by government.
He noted that the rehabilitation of the various highways in the country and subsequent provision of the brand new pickups by Arcelor Mittal were free and that no one should think that it was a form of bribery.
Speaking to the Analyst Wednesday at his Old Road residence, Mr. Farhat said that Mittal came to do business and not as a missionary intending to get good name from Liberian government.
He opined that that the presentation of the cars may cause one to think that it is bribery, especially one who does not have the deepest understanding of business, adding, "I can tell that those are not gifts; let one fool you."
Mr. Farhat stressed that receiving of the cars by the Executive branch which later landed into the "honest" hands of members of the 52nd Legislature of Liberia has been a terrible thing, noting that "in a developed world, it is not taken lightly for an international company to offer such huge provision to government, since it could have terrible effect for both the recipient and the giver.".
He suggested that the best way to have done it was to give cash to the government, with the latter determining how to expend it, especially with the huge economic challenges facing the nation, rather than having the lawmakers to take possession of the donation when they can afford to buy cars from the salaries earned.
The FDP Standard Bearer however frowned on those who continue to describe the donation as a sign of pepperbush, drawing into the picture past administrations.
"I can show you that Firestone used to pay their taxes because I was Chief Tax Collector for government. In fact, Firestone was audited and free of tax invasion.
If Firestone and other companies were not paying legitimate taxes, how then did government operate," he asked. Mr. Farhat concluded by urging Liberians to desist from shifting blames on past regimes and instead help in the rebuilding process of the country.
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With all due respect to David Farhat, I am appalled about his explanation that the 100 vehicles provided government officials by Arcelor Mittal Steel Company is not tauntamount to bribery but a cost that will be reflected in the company's expense sector of its year-end-financial statements. Is Arcelor a purchasing department (GSA) for the Liberian Government? Did the Legislature approve or allocate this massive expenditure? When you also follow the bogus reason given by Arcelor that it purchased the vehicles for the government in response to requests from some officials seeking support to boost agricultural production, then I think something is very stink under all this arrangement. So when the officials who are at the receiving-end of the gesture are unable to service the vehicles (buy gas and do repar works), what happens next? Arcelor is going to provide the gas coupon. I bet it will. The former Finance Minister's vision is blurred not to see this danger. David Farhat intentionally failed to remember the section of the Revenue and Finance Law of Liberia that endorses charitable contibution by individuals and business entities. But donors are required only to make charitable contribution to only charitable or humanitarian organizatins. Portion of the contribution is allowed for deduction from the contributor's gross income. So sorry Mr. so-called accounting expert, under the spirit and intent of the Law, Liberia is not a qualified charitable organization that for-profit businesses or organizations should or can donate money or gifts. We are not fools David, if you got a cut you need to do yourself a favor and just be quiet. But yes David, Arcelor is here not for humanitarian services that is the reason well-meaning Liberians are questioning this dismal bribery termed donation. An influential American writer (Weiten, 2008 p201) stated that when a business executive takes clients for dining it creates a sense of obligation on the recipient of the dining to reciprocate the executive's generosity. Why does this mean for the relationship now and in the future between Arcelor and Liberia? It means that government should gets these vehicles so that it may restrain its tax auditors, labor inspectors and hosts of other regulators from messing around the gigantic, socalled life-saver Arcelor-enjoying the proclivity to limit the interpretation and enforcement of regulations and laws to the dictate of Arcelor. This is sad and painful for tiny country like Liberia living under the caprice of huge world-wide conglomorate. Let me add, in the 1900s but not far from recent history, the Europeans and Americans exploited the iron ore reserves of Liberia to build European and American bridges and massive infrastructural developments. After these economic giants met their developmental goals and had built stockpiles of reserves in iorn ores, they announced the decline in the value of the ores to them. What happened to Liberia that was solely depending on iron ore revenue was unprecedented unemployment- the aftermath we all know. Now the Indians and Chinese are ready to build their economies devicing the tactics of their predecessors- state seizure in which offcials of government are bought. But it is waste of time for Arcelor to buy few officials. Instead the company is buying the entire government disguising uner the canopy of philanthropist. We lack ingenuity so everyone will explore to exploit Liberia. Remeber what might be left when they leave-chaos, misery and self devaluation, extending the vicious cycle over and over.
Reference: Weiten, Wayne (2008) Psychology: Theme and Variations, Briefer Version. Wadsworth: Belmont, CA, USA