Gov’t orders Exxon deal investigation

President George Weah has ordered an investigation into the allegation of bribery that clouded the sale of the famous Oil Block 13 in 2013. “…these allegations of bribery and misuse of office are deeply concerning. The President has therefore instructed the Minister of Justice Cllr. Frank Musa Dean Jr. to investigate the matter and submit a preliminary report to him within two weeks,” a statement issued by the government over the weekend said.

Mr. Weah’s move follows report of former government officials pocketing huge amounts after the sale of the controversial oil block was sealed in 2013. Global Witness, an intentionally acclaimed environmental watch dog released a report on Thursday March 29, in which it accused several former government officials of receiving huge bonuses, among them was Mr. Robert Sirleaf, the son of former President Sirleaf after the deal.

Mr. Sirfleaf was then chairman of the National Oil Company of Liberia NOCAL Board on “a pro bono” at the time of the sale. Other former officials named are (NOCAL) former CEO Randolph McClain, National Investment Chairman Natty Davis, Finance Minister Amara Konneh, Mining Minister Patrick Sendolo and former Justice Minister Christiana Tah.

The controversial Oil Block 13 in question was originally awarded by NOCAL in 2005 to Liberian-Anglo Company Broadway Consolidated/Peppercoast (BCP). In 2007, the block was ratified by the Liberian legislature through bribery.

But Global Witness said it has evidence that the company was likely part-owned by former Mining Minister Jonathan Mason and former Deputy Minister Mulbah Willie. It said Mason and Willie are suspected of granting the oil block to a company in which they held interests while they were also ministers in 2005, which was illegal under Liberian law.

Exxon paid US$120 million for Block 13, out of which US$68.5 million went to BCP. Global Witness estimates that Mason and the estate of Willie likely received a share of US$3.3 million.

Each of the former government officials including Mr. Sirleaf and NOCAL former CEO McClain received US35,000 each.All of the former officials have denied that these payments were bribes, stating that they were authorized by NOCAL’s Board of Directors as bonuses for negotiating a good deal with Exxon.

But the report comes at the time the Liberian Government say it has received information from several international groups including Global Witness and Wall Street Journal alleging grave acts of corruption on the part of the former government officials relating to the sale of Oil Block 13 to Exxon Mobil.

“The President said if illegality is determined, those culpable will bear the full weight of the law,” the statement signed by Information Minister Eugene Nagbe said.

The President’s order to probe the bribery allegation surrounding the sale of Oil Block 13, also comes at a time the case of another bribery scandal involving some former senior and present government officials hinges on.

The case in point is the allegation of the US950,000 bribe allegedly received by former House Speaker Alex Tyler, Senator Varney Sherman and others to alter a mining law here in favor of a British company-Sable Mining. The climax of that case is yet unknown. Yet there are allegations that the former Government spent US$3 million to prosecute a case of USD950, 000.

Highlights of the Exxon-Block 13 deal

1. When Block 13 was sold in 2013, Exxon obtained 83 percent of the block. Canadian Overseas Petroleum obtained 17 percent of the block. The transfer of Block 13 was structured in a way that 100 percent of the block was first transferred from BCP to COPL, and then COPL transferred Exxon its share. Exxon stated in a PowerPoint presentation obtained by Global Witness that it wanted to structure the transaction this way “due to” its US anti-corruption concerns.

2. Of the US$120 million Exxon paid for Block 13, US$68.5 million went to BCP. Global Witness estimates that Mason and the estate of Willie likely received a share of US$3.3 million. If Lawrence still held a BCP interest when Exxon purchased Block 13, Global Witness estimates he would have received US$15,000.

3. Exxon, BCP, Mason, Lawrence, Konneh, and Sendolo did not respond to Global Witness’ inquiries regarding the Block 13 deal. COPL’s response stated that the company was “aware of the allegations concerning Peppercoast’s minority shareholders.” However, the company’s due diligence “found credible evidence that the allegations of impropriety were entirely false,” including that former Liberian officials held Peppercoast shares, and took steps to ensure only the company’s named shareholders received payments. Additionally, COPL stated that the Block 13 deal was structured as a two-step process because the Liberian Government wanted to sign a new oil license with Exxon and COPL rather than amending the license originally awarded to Peppercoast. Three of the officials who received payments from NOCAL in 2013 also responded to Global Witness: National Investment Commission Chairman Natty Davis, Justice Minister Christiana Tah, and NOCAL Board Chair Robert Sirleaf. All three stated that the payments they received were bonuses authorized by NOCAL’s Board of Directors for the work they had put into negotiating the Exxon deal. Tah and Sirleaf also stated that all other oil agency staff had received bonuses.

-Othello B. Garblah