It has now emerged that several companies bidding to log the country's rain forest and those being contracted, lack the requisite financial capacity and other legal documentations to venture in the forestry sector.

Series of due diligence reports that this paper has obtained reveal that over 10 companies that bided to log the country's forest, including those granted concession, felt short of the US$15 million capital requirement one has to obtained before being awarded a forest management contract.

Yet, according to documents, government ignored that vital information and surrendered one of Africa's most valuable rain forests to those companies.

The report further claimed that information on the Article of Incorporation, audited financial statements, tax clearance and bank statements of those companies "financial backers" who show serve as the true measure of their financial strength are unavailable.

In some instances, it is observed in the report that several of the companies do not have legal agreement with some of the institutions they claimed to be their financial backers.

This indicates that foreign companies are entering the forestry industry under false pretext with relative less financial potency and bargaining. These companies at most present false financial analysis wherein they undervalue the country's forest.

For instance, in October, 2008, ex GEMAP Controller, Thomas Downing informed the then Forestry Development Authority, Managing Director, John Woods, that Carbon Harvesting Corporation - a company negotiating for carbon concession, has presented a fraudulent financial analysis on a 400,000 tract in River Cess County and that the value of the forest is being under stated.

"The analysis of the logging activity is not sensible. The report estimates that the River Cess Forest, if logged under an FMC [forest management contract] would yield annual tax revenue of US$120,000.

"A better estimate would be at least 40- times that amount. The base land rental alone would be US$1 million per year. Stumpage and export taxes would increase the figure to, perhaps, US$4.6 million per year. and the annual bid land rental could add millions of dollar more" the then GEMAP officer revealed.

Amongst companies that have not demonstrated that they can acquire the minimum necessary capital as due diligence reports have indicated are: Global Woods, Timbertek, Southeast Resources, EuroLiberia, Atlantic Resources, Geblo, Unitimber etc.

FDA officials contacted said they believe that the process leading to the awarding of contract was good, though they are not involved with the granting of concession.