Liberia: Senate Joint Committee Reveals $22m in Road Contracts Awarded Without Competitive Bidding By Public Works, Justice, and Finance Ministers

Three Ministers of the Unity Party (UP) led government of President Joseph Nyuma Boakai, including the Director of the Public Procurement and Concession Commission (PPCC) have been booked for grossly violating the Public Procurement and Concession Laws of the country by awarding separate road contracts totaling US$22.4M to various companies operating in the country without a competitive bidding process.

The ministers include: Roland Layfette Giddings, Oswald Tweh, and Boima Kamara of the Ministries of Public Works, Justice and Finance and Development Planning.

They were held liable for flagrantly violating the PPCC law in a report submitted by the Senate Joint Committee on Public Works and Rural Development, Public Accounts and Audits and Judiciary headed by Senator Albert Chie of Grand Kru County.

They signed and attested to the awarding of the road rehabilitation contracts to about 10 companies, with the Ministry of Finance and Development Planning making an advance payment of US$8 million to the contractors.

It can be recalled that the Joint Committee was mandated by the plenary of the Senate to probe a complaint filed against the act by Senators Nathaniel F. McGill, Simeon B. Taylor, Gbehzongar M. Findley and Abe Darius Dillon.

The Senators complained that the Ministry of Public Works awarded 10 contracts with a total value of USD22, 389,667.13, without a proper procurement process and relevant legislative procedures.

Findings

In its report submitted to Plenary and debated during regular session at the Capitol Building on Tuesday, May 28, the committee pointed out that during hearings on the matter, the Minister of Public Works indicated that certain roads were part of the deliverables for the President's first 100-day policy statement, and as such, the Ministry had an "emergency situation" at hand to commence work as the dry season was almost ending.

Minister Giddings justified that he had a mandate to keep crucial road segments across the country pliable, especially in the rainy season.

He claimed that the Ministry of Public Works took a decision to brief the Cabinet on its work plan for the 100 days, including the single-sourcing of contracts for road rehabilitation works due to time constraints. According to him, the cabinet did not interpose any objection.

Minister Giddings further claimed to have written the Public Procurement and Concession Commission (PPCC) to request for "no objection" to single source the rehabilitation and periodic maintenance of certain primary road corridors under the President's 100 Days Deliverable project for Fiscal Year 2024.

PPCC agreed

The Joint Committee report revealed that on March 11, 2024, the Executive Director of the PPCC wrote and approved the "NO OBJECTION" for the companies to execute the contract in the absence of an approved budget.

The Ministry of Finance and Development Planning (MFDP), which was also written, confirmed to the PPCC, through its Deputy Minister for Budget and Development Planning, that there were adequate funds allocated to the Ministry of Public Works to support the works contemplated in its "NO OBJECTION" approval.

During the committee's meeting with the Minister of Public Works, Senator McGill disclosed that the ministry was in violation of the PPCC law by requesting to sole source such high value contracts, instead of open competitive bidding process to get the value for money and awarding the contracts on "letters to proceed" without legislative approval of the budget amounted to obtaining loan without legislative approval.

According to him, the various contractors needed to seek pre-financing from banks based on those letters.

But the report pointed out that in his response, Minister Giddings apologized for the "missteps", but clarified that he was faced with an emergency situation to make urgent interventions on critical road corridors in the Southeast, other impassable areas in the northeast and other places in the country before the start of the rainy season.

He further justified that waiting on the passage of the 2024 National Budget by the National Legislature and its subsequent approval by President Boakai would have made it impossible to commence rehabilitation works on those crucial road corridors.

"The Minister again explained the emergency nature of the road rehabilitation work, and that the ten contracts had been signed by him and the Minister of Finance and Development Planning and attested to by the Minister of Justice. He said the Ministry of Finance has made an advance payment of US$8 million to the contractors. He also again apologized on behalf of himself, the Ministers of Finance and Justice and the Executive Director of the PPCC for the missteps in the entire procurement process," the report revealed.

It continued: "The Committee Chairs agree that the complaint of the Senators has merit as there were missteps in the action of the Minister of Public Works and Development, the Minister of Justice, the Minister of Finance and the Executive Director of the PPCC, irrespective of how genuine their intentions were. In the absence of an approved budget, they should, at the least, contact the Legislature for advice on how to handle the matter."

The Senate Joint Committee on Public Accounts, Audits, Judiciary and Public Works that the three ministers awarded the contracts for road works to 10 companies without a full-scale competitive bidding which would have ensured value for money and without Legislative approbation in the absence of the approval of the 2024 National Budget.

"The Committees have also established that the Ministry of Finance, the PPCC and the Ministry of Justice are equally responsible for the missteps. The Committees also note the explanation of the Minister that making crucial road corridors in the Southeast and other parts of the country pliable in the then coming rainy season presented an emergency situation and also take note of the inadvertent missteps of him and his colleagues mentioned supra in the procurement process and in the seeking of legislative approval."

It added: "It is the opinion of the Senate Committees on Public Accounts & Audits, Judiciary and Public Works that the Minister of Public Works and Rural Development, the Minister of Justice, the Minister of Finance and the Executive Director of the PPCC are in breach of certain laws of Liberia to certain extent in the procurement process and in the seeking of the appropriate legislative approval before issuing notice to proceed to ten (10) contractors for road works. In the same vein, the Committees realize that the Minister's statement that he was presented with a certain emergency situation has some merits, although he had the opportunity to have approached the Legislature on the matter before proceeding."

Accept apology

The committee, however, recommended the Plenary of the Liberian to accept

the apology of the Minister of Public Works on behalf of him and the Ministers of Justice, Finance and Development Planning and the Executive Director of the PPCC, and consider their action an "inadvertent misstep, but with good intentions in national interest."

It also recommended that the Plenary serve a warning letter to each of the Ministers, curtailing that a repeat of such a grave violation of the PPCC law and constitution "will carry dire consequences."

It also requested a quarterly report from the Ministry of Public Works to the Liberian Senate on the progress made on road maintenance work; and the submission of an annual road work plan, to consider all 15 counties, to the Senate for approval before the submission of the draft fiscal budget to the Legislature.

During deliberations on the committee's report, Senator Momo Cyrus of Lofa County raised issues on the performances of some of those executing the contracts

"Some of the contractors had some performance problems before. So, I would love and crave that the contractors are called here to know whether they have the capacity to do the roads based on past history and information."

He said it is "worrisome" for some of these poorly performing contractors to be awarded major contracts by the government.

Senator Thomas Yaya Nimely observed that the Liberian constitution does not support "missteps" as being reported by the Joint Committee, but clearly spelt out violations and adherence to the laws of the country.

"What I'm hearing from the committee is the case of a hungry man that went down Water Side and stole somebody's food; he was about to die and so, he was about to die and that's not stealing? If the committee will come to us to let us know that we should forgive this man, let it be started that he violated the law. That's what we want to hear. But when he says he misstep, then he's minimizing the crime that he committed and we don't want that minimization to take place."

For his part, Maryland County Senator Gbleh-bo Brown admitted to signing the committee's report based upon the intent of the Ministers and Director of the PPCC to rehabilitate deplorable roads in the country.

He observed that roads previously done by other companies and concessions, including Bea Mountain, were being contracted to other companies by the government with the same terms and conditions.

He called for a probe to be launched into the matter.

Senator Brown further requested the Senate to ensure that the Ministry of Public Works provide updates on roads that have been rehabilitated from the amount allocated towards achieving President Boakai 100 days deliverables.

Weak opposition

Opposition lawmakers who are supposed to be keeping the government's feet to the fire are the ways of voting in favor of thwarting the rule of law and shielding public officials that are linked to shady deals and violations of the laws.

But a motion for the Senate Plenary to accept the apology of Minister Giddings on behalf of him and the others as contained in the Joint Committee's report was filed by Montserrado County Senator Saah Joseph of the former ruling Coalition for Democratic Change (CDC) during Tuesday's sitting.

Senator Joseph, however, observed that his constituents did not benefit from the US$22.4M allocated towards the fulfillment of President Boakai's 100 days deliverables.

He observed that citizens of leeward areas in Montserrado are cut off from the capital due to bad road connectivity.

He further called for the Senate; through its relevant committees ensure that the contractors adequately implement their respective contracts.

"They apologized for what the committee took to be inadvertent missteps which were unintentional. So, we are appealing to Plenary. Our prayer to the Plenary is, let's accept the apology of the Minister-not him alone-the Ministers of Public Works, Finance and PPCC," Senator Albert Chie stated.

Authorities of the Ministry of Public Works are expected to appear before the Joint Committee to respond to concerns raised by Senators and progress made on the roads involved. The committee would in turn report to the Plenary.

Business as usual

Despite flagrant disregard to the laws of the country, members of the Liberian Senate took a decision to pardon the three Ministers in the midst of mounting concerns over the expenditure of the US$22.4M by the government on "mud roads."

Citizens have been expressing concerns why the money allocated did not go towards the pavement of roads, but rather the reconditioning or rehabilitation of muddy roads in the country, especially the south-eastern parts of Liberia.

The gross and consistent violation of the PPCC law has been an aged-old problem in Liberia. Both the government, local and foreign contractors have been involved.

This act continues to create room for corruption, requests for kickbacks from companies implementing infrastructure projects by public officials, and the abandonment of projects in the country, amongst others.

If an adequate and satisfactory report is not submitted by the Ministry of Public Works to the Liberian people, through their respective lawmakers on the finalization of roads rehabilitation works funded from the US$22.4M to accomplish President Boakai's 100 days deliverables, members of the Liberian Senate may appear to be aiding and abetting corruption in the eyes of public due to their failure to call on the executive to take punitive actions against the three ministers and the Director of the PPCC for their action taken to award millions of dollars' worth of contracts without any competitive bidding process.

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