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Liberia: Theft Or Misapplication, Sinoe Superintendent on Hook

30 October 2008

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Documents and reports obtained by The Analyst's investigative reporters suggest that Sinoe Country Superintendent Sylvester Grisgby may be at the epicenter of a major financial syndicate in Sinoe County.

When news of the illegal withdrawal of US $25,000 from the county's development funds broke out in late September, following five months of hush-hush, the Minister Internal Affairs ordered an immediate probe.

The Analyst's documents and reports, which are part of investigations conducted by the Ministry of Internal Affairs (MIA), indicate that on May 22, 2008 Superintendent Grisgby surreptitiously withdrew an amount of US$25,000 from the Sinoe County Development Account at the ECOBANK in Monrovia.

The MIA investigation report did not say why the money was withdrawn from the account and how it was used, but it indicated that the amount was withdrawn without the approval of the Sinoe County Sinoe County Development Council and obviously for extra-budgetary purposes.

The report revealed that the amount in question was siphoned through a private company called the Sinoe Trust of which he (Supt. Grisgby) is the Board Chairman. The cheque was signed by the superintendent and co-signed by the wife of his brother who is said to be the county treasurer and also a signatory to the County Development Account.

According to the MIA report, Superintendent Grisgby also circumvented and in some instances ignored the processes and procedures put in place by the Budget Law and the MIA for the withdrawal of money from the County Development Accounts.

The Budget Law states that the Development Superintendent is signatory A-1 to the Account and that the Superintendent will only sign cheques in the absence of the Development Superintendent.

In this particular case, it said, not only did the superintendent ignore the Budget Law but that he also concealed the entire US$25,000 withdrawal transaction from the Development Superintendent until the deal was uncovered.

"The US$25,000 cheque was processed without the knowledge and consent of the development superintendent who is signatory A-1 to the account," the report revealed.

The Budget Law and MIA regulations also forbid the withdrawal and utilization of County Development Funds for initiatives that have not been approved by the County Development Council.

The MIA investigation report then noted that on these accounts, the US$25,000 expenditure was clearly outside of the budget approved for the implementation of the county development projects.

For such misdirected expenditure, the MIA report has called for action to be taken against those on the County Development Fund Management Team who failed to adhere to the policies governing the use of the fund.

Our reporters also gathered that unlike other transactions, the withdrawal of the US$25,000 was never reported by the county authorities in all of the reports it submitted to the MIA subsequent to the transaction.

The MIA report however noted that Superintendent Grisgby apologetically admitted to authorizing the withdrawal of the US$25,000 and revealing that he and his sister-in-law, Francis Modusu, signed the controversial cheques and used the money to purchase rice for resale in Sinoe County through the Sinoe Trust Company of which the superintendent is board chairman.

When the MIA team of investigators reportedly requested the superintendent to produce documentary evidence affirming the use of the money, he produced receipts only accounting for US$17,000, leaving the balance of US$8,000 to account for.

"Receipts were produced for the purchase of rice valued at US$15,000, while US$2,000 was paid for freight," the report said.

According to the report, documents were also displayed indicating that Sinoe Trust Company was credited the amount in question in May 2008 as loan to be reimbursed to the County Development Fund on/or before May 2009. To date, no part of the loan has been paid.

The report also established that there is no loan agreement/payment plan between the County Project Management Committee and the Sinoe Trust Company.

In the event the loan is not paid, which is most likely, funds already earmarked for projects will not be disbursed and that these projects will either not be completed or will not even get started. Meanwhile, the MIA scandal investigation team has recommended several measures to account for the money.

Prominent among the recommendations is that "a spot audit be conducted into the Sinoe Development Fund to check compliance with GAAP."

Also recommended is that the "Sinoe Trust Company be made to pay interest on the loan and that all signatories to the County Development Fund be warned to refrain from spending funds from the account outside of the approved budget, and more so, without following the procedures outlined."

Another key recommendation of the report is that the superintendent, Sylvester Grisgby be reprimanded for the misapplication of entrusted funds.

Observers believe that this recommendation of the committee is pivotal and borders on criminality. Under the Criminal laws of Liberia, misapplication of entrusted funds is a criminal offense and that the recommendation that the superintendent be reprimanded for such is now another test case for the political will of the Government of President Sirleaf.

Meanwhile, this paper has learned credibly that news about the withdrawal of US$25,000 from the County Development Account by orders of the Superintendent as a non-interest loan to a private firm for one calendar year has been greeted with frustration and disappointment by many Sinoe citizens spoken to by this paper.

According to them, Superintendent Grisgby has abandoned the county and was now operating from a make-shift hideout in the NARDA Building on Johnson Street, Monrovia whence he attends important meetings or meets high profile county guests in Greenville.

The Analyst made several attempts, without success, to contact Superintendent Grisgby to respond to the Sinoe citizen's allegation.

When this paper contacted the office of the Chairman of the Sinoe County Legislative Caucus, Senior Senator Mobutu Nyenpan, our reporter was told that he was not in office and that he was recuperating from a minor surgery.

Two other members of the caucus, representatives Jefferson Karmon and Timothy Davis, were said to be out of the country. However, this paper has gathered that the Sinoe Legislative Caucus is not a signatory to the County Development Account.

Observers say if Superintendent Grisgby's illegal cash withdrawal from the country's redevelopment fund is to warrant prosecution for corruption, it must be established whether the act is a theft of property or misapplication of county funds.

It can be recalled that the Superintendent of Bong County was recently suspended by President Sirleaf for similar alleged acts of financial impropriety related to the Bong County Development Funds.

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