LIBERIA: Following Allotment Of Huge Salaries To Executives, NOCAL Concedes Bankruptcy, Calls For Merger?

The National Oil Company of Liberia (NOCAL) is said to be on the verge of collapse due to the departure of millions of dollars oil firms from the country, a situation that has given reason which that entity should layoff dozens of its employees, according to our investigation.

Report quoting a source at NOCAL said, to date, of the US$85 million that was budgeted, we have only raised US$1.4 million. Om the overall, revenue performance would be very weak which means that our expenses would exceed our revenue,” a local daily quoting Karmo D. Vile, Vice President for Finance at NOCAL said.

Mr. Vile said as a result of the shortfall in their revenue inflow, NOCAL has decided to cut its expenses by 48% and reduce its contribution to the 2015/2016 national budget down to US$3 million from US$54 million in previous financial year.

This statement sparked financial soundness and development in the hydrocarbon industry. “How can you generate US$14 million at the end of the third quarter of a fiscal period, and contribute US$3 million to the budget? It seems that NOCAL officials are on for something, they are trying to hide something from the public, there is nowhere in the world that you can generate a lesser revenue and contribute more to a cause. Where did the other money come from?” a man who identified himself as Rufus Mulbah in a chat with reporters pondered.

NOCAL’s financial reserve in question, according to our source, is on the verge of depletion due to poor management and waist. The Company is still maintaining their staffs who are receiving huge salaries in the amount of over US$20,000.00 monthly, and providing hefty retirement package around US$200,000, an account states.

Also at the Liberia National Legislature, NOCAL officials provided conflicting account about their main source of income. For instance, NOCAL Vice President for Finance, Mr. Vile said the Company’s main source of income was “Bid Round”, while the President and Chief Executive Officer of NOCAL, Dr. Rudolph  McClain told the same legislative hearing that their main source of income is from “Data Licenses”.

Despite of the impression provided by NOCAL to the legislature of its preparedness to make a big financial come back, the Company is falling short with as compared to statement made to that august body in helping to boosting the Liberian economy.
 Prior to this latest report, corruption has been at the heart of Liberia’s infant hydrocarbon sector management which is now crumbling with officials publicly admitting NOCAL’s financial shortfalls, a situation that seems to worry those being hired with lucrative salaries, pondering over their fate.

Sources closed to this news outlet speculated that due to the Company’s financial shortfall, talks are taken place behind closed doors with other public corporations for possible merger. This information has not been confirmed.However, all efforts were Fruitlessly made to contact the NOCAL management, but proved unsuccessful.
Investigation continues.

 

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