Tweah described the amount as the most significant package resulting from the forum, committed by China after bilateral discussions between Chinese President Xi Jinping and President George Weah.

“This is not a loan; it is an investment facility and framework entered into between the China Road and Bridge Corporation (CRBC) and the Government of Liberia, designed to unveil US$2.5 billion in financing for the country’s development over the next five years,” he said at the time.

Following Tweah’s announcement, the government faced heavy criticism for entering a deal without providing sufficient details to the public. In response to the backlash and to clarify the situation, the government later announced that no such deal was in the making.

The Boakai administration appears to be threading on a similar path. The Government, through its Minister of State Without Portfolio, Mrs. Mamaka Bility, announced last week, during President Joseph Boakai’s first cabinet retreat, that each of the 15 counties would get 19 pieces of the equipment, including Lofa, where Wologizi is situated. She said the machines were turned over to the government and she, along with Ministers Grisby and Giddings participated virtually. She mentioned that the machines were on the sea en route to Liberia. However, in response to the backlash, the government somersaulted on its statement. Information Minister Piah, in the ministry’s press briefing said no deal has been reached, and Minister Bility only presented a video announcing the government’s plan to negotiate for the equipment.

However, FrontPageAfrica gathered that despite the contradicting statement, the controversial deal was negotiated by Madam Bility, Public Works Minister, Roland Lafayette Giddings, and the Minister of State, Sylvester M. Grigsby. Inside sources also informed FrontPageAfrica that both Grigsby and Madam Bility had travelled to South Africa to seal the deal.

Though the agreement was not reached through the rightful channels, including the Public Procurement and Concessions Act (PPCA) of Liberia which mandates that all major government procurement activities undergo a transparent and competitive bidding process and Legislative oversight and approval for substantial government expenditures, the administration is said to be eager to get the machines to implement the government’s ARREST agenda, which includes Agriculture, Road, Rule of Law, Education, Sanitation & Tourism. In order to get things going, the government is said place its trust in MONROVIA – FrontPageAfrica has been reliably informed by top-placed sources within the Unity Party-led government that the expected arrival of the 285 pieces of earth-moving equipment is a signature fee that a South African businessman, Robert Gumede of Guma Group, has agreed to pay for the exploration of Wologizi Mountain.

The machines are to be procured from the SANY Group in China for an estimated and unconfirmed cost of between $30 to $50 million dollars, FrontPageAfrica gathered.

FPA has gathered that the agreement for the multi-million dollar equipment is not structured properly. There is no legally binding agreement. Sources close to this controversial arrangement say the yellow machines are being offered as a signing bonus, but some regime officials are cautious with chief negotiators Mamaka Bility and co over their non-stop push, and are instead calling for a concession agreement. Accordingly, the Executive Mansion has begun engaging lawmakers on Capitol Hill for the agreement (if submitted) to sail through the House and Senate.

The Wologizi Mountain, located in Lofa and Gbarpolu Counties which remains untapped, was discovered by geologists in 1905 and is said to have a vast mineral deposit. Past administrations have attempted to source it out to foreign mining companies but were unsuccessful.

Shortly after taking office in 2018, the Coalition for Democratic Change (CDC) government, eager to implement its Pro-Poor Agenda for Transparency and Accountability (PAPD), proposed a natural resource swap deal. Finance and Development Planning Minister Samuel Tweah, unveiling what he termed the “Beijing Envelope” following Liberia’s participation in the Forum for China-Africa Cooperation, announced that Liberia would benefit from a natural resource swap investment facility of US$2.5 billion over five years.

Tweah described the amount as the most significant package resulting from the forum, committed by China after bilateral discussions between Chinese President Xi Jinping and President George Weah.

“This is not a loan; it is an investment facility and framework entered into between the China Road and Bridge Corporation (CRBC) and the Government of Liberia, designed to unveil US$2.5 billion in financing for the country’s development over the next five years,” he said at the time.

Following Tweah’s announcement, the government faced heavy criticism for entering a deal without providing sufficient details to the public. In response to the backlash and to clarify the situation, the government later announced that no such deal was in the making.

The Boakai administration appears to be threading on a similar path. The Government, through its Minister of State Without Portfolio, Mrs. Mamaka Bility, announced last week, during President Joseph Boakai’s first cabinet retreat, that each of the 15 counties would get 19 pieces of the equipment, including Lofa, where Wologizi is situated. She said the machines were turned over to the government and she, along with Ministers Grisby and Giddings participated virtually. She mentioned that the machines were on the sea en route to Liberia. However, in response to the backlash, the government somersaulted on its statement. Information Minister Piah, in the ministry’s press briefing said no deal has been reached, and Minister Bility only presented a video announcing the government’s plan to negotiate for the equipment.

However, FrontPageAfrica gathered that despite the contradicting statement, the controversial deal was negotiated by Madam Bility, Public Works Minister, Roland Lafayette Giddings, and the Minister of State, Sylvester M. Grigsby. Inside sources also informed FrontPageAfrica that both Grigsby and Madam Bility had travelled to South Africa to seal the deal.

Though the agreement was not reached through the rightful channels, including the Public Procurement and Concessions Act (PPCA) of Liberia which mandates that all major government procurement activities undergo a transparent and competitive bidding process and Legislative oversight and approval for substantial government expenditures, the administration is said to be eager to get the machines to implement the government’s ARREST agenda, which includes Agriculture, Road, Rule of Law, Education, Sanitation & Tourism. In order to get things going, the government is said to place its trust in Guma Group owned by Robert Gumede.

Who is Gumede?

Robert Gumede is a South African business tycoon. In 2014, Gumede’s company was subjected to a Special Investigating Unit (SIU) probe authorized by President Jacob Zuma. Zuma signed the proclamation for the SIU to investigate the tender awarded by the Department of Rural Development and Land Reform to the billionaire’s JSE-listed IT firm, Gijima.

The SIU will investigate the R360 million contract that Gijima has failed to complete despite the department paying it millions of rand.

Gumede is a major shareholder in Gijima through Guma Tech, Guma Support, Guma Investment Holdings and Guma Tech Group, which jointly own about 36.5 percent of the company.

That was the second controversial major IT contract involving Gijima and a government department which appears to have collapsed.

Gumede is at the center of a 600-million-rand tender scandal investigation held under Section 417 of the Companies Act into Telkom`s awarding of a tender to GijimaAst for the manufacturing of telephone smart cards.

The investigation, which forms part of a bankruptcy hearing into the affairs of Applied Card Technologies (ACT), was requested by former ACT CEO John Sterenborg. He alleged the tender was unlawfully diverted from ACT to GijimaAst, which owned a 26% stake in ACT at the time. It is alleged that GijimaAst was not pre-qualified to bid at the time.

Pro-UP supporter Kollie skeptical about Gumede’s ‘gift’ to Liberia

The involvement with Gumede in the acquisition of the machines for Liberia has sparked concern from a pro-government loyalist, Martin K.N. Kollie, who said that doing business with Gumede has political and economic implications considering his checkered reputation he has earned for himself.

Mr. Kollie asked: “Did the Government of Liberia do any due diligence to know who Gumede is and what his business dealings have been? What’s the exact total of the yellow machine project including shipping charges in terms of dollars and cents? Were the PPCC guidelines and the legislative requirements followed if it’s a project that required procurement or pre-financing? Did the government conduct any need-based study before rolling out this project? What research outcomes/analyses in the short-run or the long-run informed the government’s decision to invest in this project? How will the machines be maintained, fueled, etc.? Who pays for this? Do we have trained operators and are they Liberian operators and road engineers? How will they be paid?”

Kollie called on President Boakai to streamline the government’s relationship with dubious companies and shady “investors”, adding that it could further harm the country and its people.

“Let’s insist on clean deals that are sufficiently subjected to due diligence, openness, procurement regulations, transparency, and real impact. Individuals should not be negotiating business and investment deals with companies/investors. Investors should be referred to the National Investment Company (NIC). Adopting the concept of the Faustian Bargain for a Rescue Mission is dangerous. And it will backfire,” he said.

Guma Group owned by Robert Gumede.

Who is Gumede?

Robert Gumede is a South African business tycoon. In 2014, Gumede’s company was subjected to a Special Investigating Unit (SIU) probe authorized by President Jacob Zuma. Zuma signed the proclamation for the SIU to investigate the tender awarded by the Department of Rural Development and Land Reform to the billionaire’s JSE-listed IT firm, Gijima.

The SIU will investigate the R360 million contract that Gijima has failed to complete despite the department paying it millions of rand.

Gumede is a major shareholder in Gijima through Guma Tech, Guma Support, Guma Investment Holdings and Guma Tech Group, which jointly own about 36.5 percent of the company.

That was the second controversial major IT contract involving Gijima and a government department which appears to have collapsed.

Gumede is at the center of a 600-million-rand tender scandal investigation held under Section 417 of the Companies Act into Telkom`s awarding of a tender to GijimaAst for the manufacturing of telephone smart cards.

The investigation, which forms part of a bankruptcy hearing into the affairs of Applied Card Technologies (ACT), was requested by former ACT CEO John Sterenborg. He alleged the tender was unlawfully diverted from ACT to GijimaAst, which owned a 26% stake in ACT at the time. It is alleged that GijimaAst was not pre-qualified to bid at the time.

Pro-UP supporter Kollie skeptical about Gumede’s ‘gift’ to Liberia

The involvement with Gumede in the acquisition of the machines for Liberia has sparked concern from a pro-government loyalist, Martin K.N. Kollie, who said that doing business with Gumede has political and economic implications considering his checkered reputation he has earned for himself.

Mr. Kollie asked: “Did the Government of Liberia do any due diligence to know who Gumede is and what his business dealings have been? What’s the exact total of the yellow machine project including shipping charges in terms of dollars and cents? Were the PPCC guidelines and the legislative requirements followed if it’s a project that required procurement or pre-financing? Did the government conduct any need-based study before rolling out this project? What research outcomes/analyses in the short-run or the long-run informed the government’s decision to invest in this project? How will the machines be maintained, fueled, etc.? Who pays for this? Do we have trained operators and are they Liberian operators and road engineers? How will they be paid?”

Kollie called on President Boakai to streamline the government’s relationship with dubious companies and shady “investors”, adding that it could further harm the country and its people.

“Let’s insist on clean deals that are sufficiently subjected to due diligence, openness, procurement regulations, transparency, and real impact. Individuals should not be negotiating business and investment deals with companies/investors. Investors should be referred to the National Investment Company (NIC). Adopting the concept of the Faustian Bargain for a Rescue Mission is dangerous. And it will backfire,” he said.