The New Dawn (Monrovia)

Liberia: NOCAL in Controversial Deal

Photo: Chevron
An offshore oil rig.

Authorities at the National Oil Company of Liberia or NOCAL are said to be tight-lipped over a controversial deal that clearly indicates the breach of the government's conflict of interest policy.

This is so not because the over US$700,000 contract was single handedly awarded to the American firm Dupont de Nemours International by NOCAL's President and Chief Executive Officer Dr. Randolph McClain without the PPCC approval, but more so because Dupont is the company Dr. McClain last worked for before taking over as the oil company's chief executive. His deliberate non-compliance with the PPCC regulation has made it more questionable.

The contract at the center of this controversy is the NOCAL's Safety, Health and Environmental Care Training and Process Safety Management Project Agreement.

As the issue of conflict of interest about this contract is being raised, Dupont has already commenced work as per the agreement. It currently has an invoice of US$45, 000 lying on NOCAL's desk for initial payment.

Last Wednesday, July 10, 2013, the Executive Director of the Public Procurement & Concession Commission (PPCC), Mrs. Peggy Varfley Meres wrote Dr. McClain apparently upon hearing that Dupont had already commenced the implementation of the agreement, reminding him that NOCAL was yet to follow the PPCC request.

NOCAL Vice President for Public Affairs Mr. Israel Akinsaya in response to a New Dawn inquiry Sunday wrote in a text message:"As for your questions on Dupont, NOCAL will respond to your inquiries momentarily."

However, it all started early this year when Dr. McClain wrote the PPCC requesting that the Commission allow NOCAL to award a contract to Dupont through a process of single sourcing.

On February 26, 2013, the PPCC replied Dr. McClain informing him that in keeping with its (PPCC) Regulation No 003, all contracts which exceeds the threshold of two hundred fifty thousand United States Dollars (US$250,000.00) warrant the signatures of the Ministers of Justice and Finance as evidence of their participation in the negotiation and review process.

In the PPCC letter dated February 26, it requested that NOCAL update the contract and submit same so as to facilitate an informed decision.

But in its July 10, letter to Dr. McClain, the PPCC wrote: "Our records reveal that NOCAL has not responded to said Communication to enable the Commission ascertain compliance with the PPCC Act and its accompanying regulations. We therefore request that you submit information with regards to the status of the award of the contract for the services as indicated above."

But as if that was not enough there are further reports that Dr. McClain also single handedly awarded a US100,000 contract to Cape Resources for the rewiring of the building hosting its offices, the Episcopal Building. The ownership of Cape Resources as it relates to Dr. McClain is another subject of discussion.

The revelation of another breach of the government's conflict of interest policy this time by NOCAL McClain comes on the heels of the dismissal of Auditor General Robert Kilby and General Services Agency Director General Pearine Davis Parkinson.

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Comments Post a comment

  • jarryalfred
    Jul 17 2013, 20:30

    Madam President, Liberians are watching.

InFocus

Liberia Oil Chief Clarifies Conflict of Interest Allegation

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The head of the National Oil Company of Liberia, Randolph McClain, has clarified that contrary to media reports, NOCAL's deal with his former employer was lawful. Read more »