Monrovia – The Boakai-Koung administration has backtracked on its previous announcement about a controversial deal to acquire 285 earthmoving machines for road construction and maintenance. On the first day of the retreat, the Minister of State Without Portfolio, Mamaka Bility, announced that the equipment, including yellow machines and trucks, had already been turned over and were en route to Liberia, something that caused cheers from the audience.
Sources in the mining industry tell FPA that the yellow machines are already on the seas to Liberia, likely financed by HPX as a potential kickback.
A video released by the government showed dozens of earthmoving machines inscribed with President Boakai’s photos and the Liberian flag, captioned “Handover ceremony – Presidential infrastructure program – President Joseph Boakai.”
This announcement sparked concerns among Liberians, something that prompted questions about the arrangement under which the machines were acquired.
However, speaking on Tuesday for the first time since the announcement, Information Minister Jerolinmek Piah fumbled in his response stating that no deal has been made.
“Government did not decide and has not made a decision on the earth-moving equipment. There was only a video that came out unveiling the vehicles that the government is looking at but has not decided to have yellow machines, and once it is concluded, that will be announced,” he said.
He said that the presentation was showcasing what the government intends to do but has not reached that decision, adding that all lawful procedures will be met before a decision can be reached.
Potential kickback
FPA has gathered that even as Minister Piah tries to clear the government’s name, he may be causing more harm than good. Sources in the mining industry tell FPA that the yellow machines are already on the seas to Liberia, likely financed by HPX as a potential kickback for a favorable railroad user rights to evacuate iron ore from its mine in Guinea through Liberia deal with the Boakai Government. To avoid being trapped by the US Foreign Corrupt Practices, the source tells FPA that HPX is leveraging its relationship with the South African millionaire Robert Gumede, a friend of President Boakai. Mr. Gumede, who has no shares in HPX or business dealings in Guinea, is serving only as a go-between.
Despite the pronouncement, Minister Piah said no deal had been made and the video was just a mere presentation about the government’s plan.
In February, less than a month after taking office, HPX signed a letter of intent with the Government of Liberia and Guma Africa Group to develop the Liberty Corridor in Liberia, which will contain a new heavy-duty railroad connecting the Nimba district of Guinea to a new Liberian deep water port.
The partners have made some many flowering promises to the Government of Liberia. According them, the Liberty corridor will comprise a brand-new world-class rail system connecting Guinea to a new deep-water port at Didia, Liberia, an extension of the existing hydropower network from Côte d’Ivoire into the Nimba districts of Liberia and Guinea, an upgrade of existing road networks and the implementation of fibre optic telecommunication cable connecting Liberia to the Nimba district and potentially beyond.
The Liberty Corridor would be a joint development between the Government of Liberia, HPX and the Guma Africa Group.
GUMA AFRICA GROUP is a South Africa based investment and operations group involved in Mining, Infrastructure, Tourism & Hospitality, ICT, Healthcare, Human Capital Development, Renewable Energy, and rail manufacturing, among others.
HPX is an American exploration and development company focused on advancing its high-grade long-life iron ore mine in the Lola region of the Southeastern region of the Republic of Guinea.
A video released by the government showed dozens of earthmoving machines inscribed with President Boakai’s photos and the Liberian flag
Recently, President Boakai tasked Minister Bility with negotiating a deal worth over US$30 million dollars on behalf of the government. Robert Gumede, Chairman of the Guma Group is pushing his partner company Sany to make the 85 earth moving machines offer a reality to in turn get the Executive Mansion’s favor for the Liberty Corridor deal.
That deal, as announced by Madam Bility, has already been consummated. In the viral video, the key parties praised the partnership and termed it as a win-win situation for everyone.
Mr. Gumede can be heard saying through the partnership, the companies were connecting Liberia with China and South Africa, while Mr. Xu Ming, Senior Vice president of Sany Group said he was honored to share the handover moment with the Liberian Government.
Bility said the coming of the equipment is a hallmark of a new beginning to change the destiny of Liberians. She followed that up with a pronouncement during the cabinet retreat that the machines were already overseas coming to Liberia.
Nothing Consummated’
Despite the pronouncement, Minister Piah said no deal had been made and the video was just a mere presentation about the government’s plan.
“We are fully aware that the executive has all the lawful requirements that are associated with that power that we must negotiate on behalf of the government, when it reaches the point at which those decisions are taking, it will be done consistent with those lawful requirements because one of the critical pillars of the Arrest Agenda is the rule of law. And so, the President is very conscious of the fact that the rule of law should prevail,” he said.
Minister Piah added: “With regard to the desire to have earthmoving equipment, the scenario will be different depending on how you meet the legal requirement. The process regarding how we are going to get the earthmoving equipment will be communicated to the public when it is consummated, one thing we can assure that we are going to follow all the legal processes required.”
