Source: FrontPage Africa
Alex Tyler |
The Legislature has accused the executive of not being
transparent about its deals with multinational oil companies over its oil
blocks, foreshadowing a potential battle between the two branches of
government.
The legislators on Tuesday released findings of an
investigation they said showed the presidency was failing to adhere to
accountability and transparency procedures in negotiating deals for Liberia’s
offshore oil blocks.
The report by the House of Representatives showed that the
National Oil Company of Liberia, NOCAL, did not allow Liberian society groups
to participate in the process, when it was negotiating deals for oil blocks on
behalf of the presidency.
The investigation was launched about two months ago after
Margibi County Representative Emmanuel Nuquay raised concerns about the lack
stakeholder consultation in the negotiations.
According to document in the possession of FrontPage Africa,
the Legislature claims government risks losing US$27 million because of NOCAL’s
failure to complete the negotiation of oil Block 13, thus creating budgetary
deficit in breach of the national budget law.
The document also argues the budget is being undermined by
the deposit of revenue generated from the sale of the Japanese food aid and
petroleum products.
In line with the Liberian government’s appropriation and
disbursement procedures, money generated from the sale of commodities should
have been deposited into the government’s consolidated account and not into
escrow account.
Meanwhile, the House has endorsed a number of corrective
recommendations originating from its joint committees on Ways Means, Lands,
Mines and Natural Resources, State Enterprises, Public Accounts and Judiciary.
Among the endorsed recommendations, the House wants all
existing production sharing contracts and other addendums be reviewed for
compliance with all provisions of the new petroleum law of Liberia.
The joint committees also recommended that negotiations on
all offshore blocks, including numbers 1-7, be suspended until the conditions
are met including the review of the Act that created NOCAL in 2007.
It remains to be seen whether the Executive Branch will
consent to the House’s demands or lead to another battle between the two
branches of government.