Africa-Press – Liberia. Finance and Development Planning Minister Samuel Tweah and former Minister Amara Konneh have engaged in a heated debate over the legitimacy of a US$37 million payment made by High Power Exploration (HPX) to the Government of Liberia (GOL) through the national budget since 2019.
Konneh said the payment received by the executive was not only shrouded in secrecy and done without legislative agreement, but Tweah violated provisions of the Amended and Restated Public Procurement and Concession (PPCC) Act and Public Finance Management (PFM) Act.
He said the payment from HPX has been shrouded in secret and that the Liberian people had no knowledge of it until the recent sanctions.
“Up till Thursday, the Liberian public knew little or nothing about the GOL-AML-HPX deal. It had been a secret!” Senator Konneh said.
“Victim of circumstances”
Though the money was received without a ratified concession agreement by the Legislature, which many say by law was illegal, Tweah termed the money as legitimate money — by virtue of it being received through the national budget — and he should not be punished for it.
Minister Tweah has since vehemently denied any corruption allegations and decried the visa restrictions imposed on him and his family, considering himself “a victim of circumstances caught between two powerful billionaires.” During a recent press conference, Minister Tweah cited the ongoing dispute between ArcelorMittal and HPX over the use of the railroad as the reason for the visa restrictions.
“I have never influenced ‘legislative processes’, whatever that implies,” Tweah said. “I was also informed that persons close to HPX were considering sanctions against me because the company had paid US$37 million to the Government of Liberia through the national budget since 2019 and was yet to have an agreement with the Government. Legitimate monies received by the Government of Liberia for the development of Liberia through the national budget are never a bribe. That an agreement has been difficult to reach because of the complexity surrounding a pre-existing agreement is no reason to threaten government officials with sanctions.
ArcelorMittal, owned by Indian billionaire Laskhmi Mittal, is reportedly reluctant to grant multi-user rights of the railroad to HPX, a Canadian American company owned by billionaire Robert Friedland. The negotiation of rail access for the transportation of iron ore from Guinea’s Simandou to the Port of Buchanan has been the subject of intense discussions between the involved parties.
However, Minister Tweah’s emotional response to what he perceives as unfair treatment by the US government may have inadvertently caused him more trouble, as he admitted during the press conference to what some consider to be fraudulent dealings within the Coalition for Democratic Change (CDC) regime.
He mentioned that HPX had paid $37 million to the GOL through the national budget since 2019, though there is no ratified concession agreement by the Legislature. This revelation raised concerns about the legality of the transaction. Still, Minister Tweah defends the payment as legitimate and insists that he should not be held accountable for it.
On the other hand, former Minister Amara Konneh, who is now a Senator for Gbarpolu County, disagrees with Minister Tweah, claiming that the $37 million from HPX was not legitimate and had been kept secret from the Liberian public until the recent sanctions.
Konneh argues that Minister Tweah violated provisions of the Amended and Restated Procurement and Concession Act (PPCC) and Public Finance Management Act (PFM) by accepting payments from HPX without a consummated concession agreement with the GOL.
“In good faith”
HPX is licensed to mine iron ore in Guinea, close to the border with Liberia in Nimba County. But to do so, the HPX needs a concession agreement to use the railroad from Yekepa to Buchanan, which is currently under the control of ArcelorMittal (AML) based on its existing mineral development agreement with the Government of Liberia (GOL).
In an August 2023 press release, HPX Chief Executive Officer Bronwyn Barnes noted that “the proposed Liberia – Guinea Corridor is the shortest and most direct export and import route from the iron-rich Nimba district to the seaborne international market, which provides superior logistics and significantly lower carbon emissions than the alternative transport routes.”
The HPX press release also announced plans “to commence operation in 2025 depending on reaching an agreement with the Government of Liberia over rail and port access arrangements, for which it has pre-paid the Government US$37 million in fees in a sign of good faith.”
What the law says
“While the negotiations are still ongoing among the parties — ArcelorMittal, HPX, and the Government — the GOL, through Mr. Tweah, has been taking money from HPX in contravention of Liberian laws,” Senator Konneh posted on his Facebook page.
Section 88.1 of the Amended and Restated Procurement and Concession Act (PPCC) of 2010 clearly states that “…no concession shall be implemented unless the proposed project has been issued with a certificate for concession.”
Also, Section 5.2(e) of the Amended and Restated Public Finance Management Act (PFM) of 2019 states that resources that become public money upon receipt include proceeds received by the state from the sale or leasing of any property owned by the state.
“By receiving payments from HPX without a consummated concession agreement with the GOL, Minister Tweah violated provisions of both the PFM Act and the PPCC Act, two sacred instruments that Finance Ministers MUST uphold,” Konneh argued.
“Too many unanswered questions”
“If there were ‘difficulties’ in having an agreement, why not work around those ‘difficulties’ before collecting the money from HPX?” Konneh asked. “On what basis did he accept the money? How was the money accounted for in the budget? What revenue line item was it placed under? The House of Representatives rejected AML’s amended agreement that was under consideration. The timing between the payment of the money and the rejection raises fundamental questions that must be answered,” Konneh said.
“Appropriations are made through the budget. Direct payments and disbursement are executed through the consolidated accounts based on projected revenues received as actuals.
“Too many unanswered questions! I implore the 54th legislature to use part of the 10 days they have been called by President Weah to receive and debate the draft budget to investigate these irregularities to avoid potential litigation,” he said.
Falsely indicting HPX?
Minister Tweah, however, maintains that the funds received from HPX have the approval of the National Legislature, and he accuses Konneh of spreading lies for political reasons.
“Desist from peddling lies on Facebook for political reasons,” Tweah retorted. “Mr. Konneh, one reason I opened my official Facebook account is to counter lies and propaganda from elements like you,” Tweah said. “The bovine unreason in your recent post is to argue that an AMERICAN COMPANY HPX “illegally brought money to Liberia. American companies are not supposed to engage in corruption in foreign countries, nor are they to ‘ break’ the laws of countries to pursue their interests. There was nothing illegal about the resources HPX brought to Liberia. It was legitimate public money that is fully accounted for with all required documentation.”
“HPX did not bring illegal money through Samuel Tweah. Maybe monies came into Liberia illegally through Amara Konneh while you served as Finance Minister. So don’t impute your experience to the resources HPX brought which were fully legal and publicly known through the national budget processes. I will subsequently provide evidence since this is an unfair attack on HPX in the guise of coming after Samuel Tweah!”
Tweah says he believes that Konneh is going after him but he is falsely indicting HPX for ‘ violating Liberia’s PFM laws or processes,’ which is far from the truth, and which could cause HPX to face a Congressional investigation.
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“I did not accuse HPX of ‘illegally’ bringing money to Liberia. I noted that HPX cannot hold me or the Government responsible for the current stalemate in the multi-user gateway. HPX resources are legitimate and legal and are backed by public law. Your implied accusation against the company is unscrupulous and unjustified. Even the IMF is fully aware of HPX resources,” Tweah noted.
The situation remains unresolved, and Konneh urges the current administration not to leave it for the next legislature and administration to handle.
“Don’t leave it for the 55th Legislature and the Boakai Administration. We need an open, transparent government to build a credible state. This is not personal. My heart goes out to the sanctioned officials and their families,” he said.
However, the debate between Minister Tweah and Konneh continues to escalate, with both individuals accusing each other of misconduct and raising questions about the legality of the $37 million payment from HPX. As the situation unfolds, further investigation and resolution are necessary to address the allegations and determine the legitimacy of the funds.
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