More Than US$500-Thousands of ArcelroMittal Contributed funds Missing in Bong County

Constructed Gbarlorkpalah Diistrict

In Bong County, an intensive civil society lead investigation has uncovered that more than US$ 500 thousand cannot be accounted for in the expenditure of County Social Development Funds paid by ArcelorMittal Liberia and others.

Media carried out the investigation and Civic Education Rural Liberia (MACE-Rural Liberia), Foundation for International Dignity (FIND), and Development Education Leadership Training in Action Human Rights Foundation (DELTA-HRF) under the Bong County Social Development Funds Accountability Project.

Findings from the investigation titled Nua, Kwaa Ku Musie – which translates in local Kpelleh dialect as “Citizens, Let’s Wake Up” shows that contracts were awarded to contractors outside the Public Procurement and Concession Commission Act of 2010.

Pictorial of Recreation Center to be renovated in Bong Mines

In many cases, Bong County authorities awarded contracts without bidding as required by law. This gross disregard for the PPCC Act is a high contributing factor to the many stalled development projects in Bong County.

Out of a total of thirty construction projects (bridges, clinics, schools, offices for chiefs, road rehabilitation, and renovation of public facilities) agreed upon by delegates at the November 12, 2018, County Council Sitting in Bong, not a single projecthas been fully completed.

“Bulk of the projects are far from completion and most of them are currently being abandoned across the county” the investigation by the independent civil society groups found

Moses S. Bailey, of Media and Civic Education Rural Liberia who was a team leader on the investigation said the objective is to ensure proper management and accountability of Bong County Social Development Funds and to promote the culture of engagement and evidence-based advocacy wherein civil society and rights-holders in Bong County can hold duty-bearers accountable for the management and use of public resources.

Bailey said the investigation uncovered that about US$ 500 thousand of the total amount disbursed for county social development in November of 2018 cannot be accounted for.

According to him the report also considers projects resolute between 2018-2021, but that the money traced in the report was an allotment made during the county sitting in Bong in 2018.

The County Social Development Fund is of two sources in Bong County: The development fund directly allocated in the National Budget by the National Government every year, and the social development fund (corporate social fund) paid by ArcelorMittal as a social contribution for its operations in Bong County.

Across Liberia, there have been verifiable reports of gross mismanagement of county social development funds contributed by concessions that operate in a number of the fifteen counties, leaving affected communities in hopelessness and poverty.

When money paid for social development to affected counties is mismanaged, struggling citizens often gang up against concession companies, at a time resulting in violence and destruction.

ArcelorMittal and several other concessions have regularly fell victims of citizen harassment even though they have paid their fair share of the bargain but that government and local authorities too often fail to ensure that people living in these communities benefit.

For example, the Corporate Social Development Fund (CSDF) is an obligation in the Mineral Development Agreements signed between the Government of Liberia and ArcelorMittal, which obliges the company to pay US$ 3 million annually, as social development funds, to the three affected Counties. According to sources, Arcelormittal has paid over US$45 million in CSDF so far, even though such significant amount paid does not reflect realities in communities where the company operates.

This fund along with revenue generated from other sources in the county makes up the county social development fund that is managed by the Project Management Committee and guided by the budget Law.

Bong County gets US$2.2 million yearly as County Social Development Funds from concession companies and the national government because China Union provides US$1.75million, while ArcelorMittal makes available US$500,000, and MNG Gold gives US$12,000 every year.

And, as a county development fund, the Bong also receives US$200,000 from the Government of Liberia.

Decisions about the usage of this money are made at the County Council Sitting by delegates from around the county.

Therefore, in November of 2018, delegates from across Bong County converged in Gbarnga to decide on the appropriations of the county social development fund as the highest decision-maker in the county.

On November 18, 2018, a resolution was signed by the County Council. US$2.2 million was allotted for the implementation of various projects in the county, including support to the major health and education institutions in the county.

Consequently, US$1.7 million of the US$2.2 million2 approved for development purposes has since been expended with no single development project fully completed in the county.

The Project Management Committee (PMC) and local authority of Bong County made hundred percent payments to contractors for some projects, while some projects received fifty percent payments and above according to the investigative report.

Contracts awarded to contractors outside of competitive bidding, which is believed to be largely responsible for the poor implementation of projects in the county.

The investigation also saw systematic gross mismanagement of the county development funds on the part of county leaders: The Project Management Committee, the administrative leadership of the county with little or no oversight from the county legislative caucus.

Thirty (30) Construction and/or Renovation Projects were approved on November 12 2018 County Council setting held in Gbarnga and investigation found out that delegates also agreed to direct funding support to eight (8) Institutions, across the seven (7) Electoral Districts of Bong County, including health, education, farmers’ group, and the media.

The Project Management Committee (PMC), responsible for managing and monitoring projects and management of CSDF in Bong County, contracted eleven (11) construction companies to implement the county’s projects. Some of the companies were given up to six (6) different projects in a single District, while others were one or two.

The total amount apportioned for the different projects as well as support to institutions, from November 12, 2018, County Sitting Resolution, was found at Two Million Two Hundred Ninety-Seven Thousand Seven Hundred Fifty-Nine United States Dollars Eight Cent.

Recently, in Buchanan City, Grand Bassa County, it was reported that county development funds are being used for the construction of the political offices of Representative Matthew Joe.

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About Cholo Brooks 17512 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.

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