Monrovia — A storm is brewing in the corridors of the Liberian Legislature as two prominent lawmakers -- Speaker J. Fonati Koffa and Representative Musa Hassan Bility -- have raised alarm over what they describe as a "corrupt and dangerous" oil agreement between the Government of Liberia and Atlas Oranto Petroleum, calling for its immediate rejection.
In a strongly worded communication addressed to the Chairpersons of the Committees on Hydrocarbon (Sam P. Jallah), Investment and Concessions (Foday Fahnbulleh), and Judiciary (Johnson Williams), the two lawmakers urged their colleagues to return the deal to the Executive Branch, citing a troubling history of corruption, lack of transparency, and the company's inability to fulfill its contractual obligations.
"Few moments in our sojourn as legislators will require us to stand up vigorously for the future of this country and the judgment of history. We are afraid one of those times is now," the letter stated.
A Checkered History
Keep up with the latest headlines on WhatsApp | LinkedIn
Speaker Koffa and Rep. Bility reminded their colleagues that Oranto Petroleum, a Nigerian-owned company, was previously granted three oil blocks (LB-11, LB-12, and LB-14) in 2007 under controversial circumstances. According to reports by ProPublica, Global Witness, and Forbes, the transaction violated the U.S. Foreign Corrupt Practices Act (FCPA) and was marred by bribery and fraud.
Oranto allegedly made over US$150 million after flipping the oil blocks to Chevron through a "straw man" -- the Canadian Overseas Petroleum Ltd. (COPL) -- without drilling a single well or making any tangible investment in Liberia.
"If it looks like corruption, quacks like corruption, and smells like corruption, it must be corruption," the lawmakers wrote, suggesting that any renewed engagement with Oranto raises serious ethical and legal concerns.
Transparency in Question
The lawmakers further criticized the latest deal for being negotiated in secrecy, bypassing competitive bidding processes that could have attracted more qualified and transparent investors.
They posed a series of pointed questions:
· Who are Oranto's Liberian lawyers and partners?
· Who advised the Government on this deal?
· How was the 5% Liberian participation handled, and who are the beneficiaries?
· Why did the signing bonus drop from US$10 million to US$1.2 million?
· Did Oranto demonstrate the required US$3 billion financial capacity?
"These are transparency questions that must be answered before the people's deputies can pass on this matter," the lawmakers asserted.
Questionable Capacity
Koffa and Bility also cast doubt on Oranto's technical and financial capacity, noting that the company has no record of ultra-deep-water drilling anywhere in the world.
They argued that Liberia's petroleum potential deserves partnerships with globally recognized players such as ExxonMobil, Chevron, Shell, BP, TotalEnergies, Petrobras, or Equinor -- companies with proven experience and financial strength.
"With such an enormous array of capable companies, why did the Government see the need to engage Oranto at all?" they questioned.
A "Flipper," Not a Developer
Citing industry reports, including a FrontPage Africa exposé titled "The Oil Block Flipper is Back", the lawmakers described Oranto as a "middleman" that secures oil blocks only to resell them for profit rather than develop them.
"He adds no value or substance to the blocks he has been awarded," the communication stated. "His faceless Liberian partners get to make millions while the country gains nothing."
A Call for Legislative Integrity
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Koffa and Bility warned that ratifying the Oranto Production Sharing Agreement (PSA) would amount to "a dereliction of duty", betraying the public trust and perpetuating the corruption that has haunted Liberia's oil sector for decades.
They emphasized that Liberia must not sacrifice transparency and national benefit for political convenience or expedience, urging their colleagues to reject the deal and demand accountability from the Executive.
"Our obligation to the Liberian people is our highest duty and calling," they concluded. "To give out a significant public resource to a company with no capacity to perform the contract is nothing less than a betrayal."
As debate over the controversial deal heats up, all eyes are now on the House Committees on Hydrocarbon, Judiciary, and Investment & Concessions, whose recommendations could determine the fate of one of Liberia's most contentious petroleum agreements in recent years.
