Monrovia – A storm is brewing within the corridors of the Liberian Legislature as two outstanding lawmakers — Speaker J. Fonati Koffa and Consultant Musa Hassan Bility — have raised alarm over what they describe as a “corrupt and harmful” oil settlement between the Authorities of Liberia and Atlas Oranto Petroleum, calling for its speedy rejection.
In a strongly worded communication addressed to the Chairpersons of the Committees on Hydrocarbon (Sam P. Jallah), Funding and Concessions (Foday Fahnbulleh), and Judiciary (Johnson Williams), the 2 lawmakers urged their colleagues to return the deal to the Govt Department, citing a troubling historical past of corruption, lack of transparency, and the corporate’s incapacity to meet its contractual obligations.
“Few moments in our sojourn as legislators would require us to face up vigorously for the way forward for this nation and the judgment of historical past. We’re afraid a kind of occasions is now,” the letter acknowledged.
A Checkered Historical past
Speaker Koffa and Rep. Bility reminded their colleagues that Oranto Petroleum, a Nigerian-owned firm, was beforehand granted three oil blocks (LB-11, LB-12, and LB-14) in 2007 underneath controversial circumstances. In response to reviews by ProPublica, International Witness, and Forbes, the transaction violated the U.S. International Corrupt Practices Act (FCPA) and was marred by bribery and fraud.
Oranto allegedly remodeled US$150 million after flipping the oil blocks to Chevron by a “straw man” — the Canadian Abroad Petroleum Ltd. (COPL) — with out drilling a single effectively or making any tangible funding in Liberia.
“If it appears to be like like corruption, quacks like corruption, and smells like corruption, it have to be corruption,” the lawmakers wrote, suggesting that any renewed engagement with Oranto raises severe moral and authorized considerations.
Transparency in Query
The lawmakers additional criticized the newest deal for being negotiated in secrecy, bypassing aggressive bidding processes that would have attracted extra certified and clear traders.
They posed a sequence of pointed questions:
• Who’re Oranto’s Liberian attorneys and companions?
• Who suggested the Authorities on this deal?
• How was the 5% Liberian participation dealt with, and who’re the beneficiaries?
• Why did the signing bonus drop from US$10 million to US$1.2 million?
• Did Oranto exhibit the required US$3 billion monetary capability?
“These are transparency questions that have to be answered earlier than the individuals’s deputies can go on this matter,” the lawmakers asserted.
Questionable Capability
Koffa and Bility additionally solid doubt on Oranto’s technical and monetary capability, noting that the corporate has no document of ultra-deep-water drilling anyplace on this planet.
They argued that Liberia’s petroleum potential deserves partnerships with globally acknowledged gamers equivalent to ExxonMobil, Chevron, Shell, BP, TotalEnergies, Petrobras, or Equinor — firms with confirmed expertise and monetary power.
“With such an infinite array of succesful firms, why did the Authorities see the necessity to interact Oranto in any respect?” they questioned.
A “Flipper,” Not a Developer
Citing trade reviews, together with a FrontPage Africa exposé titled “The Oil Block Flipper is Again”, the lawmakers described Oranto as a “intermediary” that secures oil blocks solely to resell them for revenue quite than develop them.
“He provides no worth or substance to the blocks he has been awarded,” the communication acknowledged. “His faceless Liberian companions get to make thousands and thousands whereas the nation positive factors nothing.”
A Name for Legislative Integrity
Koffa and Bility warned that ratifying the Oranto Manufacturing Sharing Settlement (PSA) would quantity to “a dereliction of obligation”, betraying the general public belief and perpetuating the corruption that has haunted Liberia’s oil sector for many years.
They emphasised that Liberia should not sacrifice transparency and nationwide profit for political comfort or expedience, urging their colleagues to reject the deal and demand accountability from the Govt.
“Our obligation to the Liberian individuals is our highest obligation and calling,” they concluded. “To offer out a major public useful resource to an organization with no capability to carry out the contract is nothing lower than a betrayal.”
As debate over the controversial deal heats up, all eyes at the moment are on the Home Committees on Hydrocarbon, Judiciary, and Funding & Concessions, whose suggestions might decide the destiny of considered one of Liberia’s most contentious petroleum agreements lately.
