Monrovia – A growing controversy over millions of dollars reportedly paid by concession companies for county development projects took center stage at the Liberian Senate on Thursday, as lawmakers demanded answers from Finance and Development Planning Minister Augustine Kpehe Ngafuan regarding funds they say have failed to reach beneficiary counties.
Senators from several concession-hosting counties accused successive governments of withholding Social Development Funds (SDF) paid by companies operating in their regions, depriving citizens of much-needed infrastructure and social services.
The concerns were raised during a Senate hearing attended by Minister Ngafuan, who acknowledged longstanding challenges in tracking and disbursing the funds but maintained that records of many past payments remain incomplete.
The lawmakers cited reports from major concessionaires—including Hummingbird Resources, China Union, Western Cluster, and ArcelorMittal—that they had deposited millions of dollars into government accounts for onward transfer to affected counties.
However, senators said those funds have either not been reflected in national budgets or have not been disbursed to local authorities.
Leading the charge was Sinoe County Senator Crayton Duncan, who questioned whether his county had ever received social development funds from logging companies operating within its borders.
“For six years we have been asking for our social development funds from those logging companies operating in and around Sinoe County, using our roads and port facilities while harvesting our logs,” Duncan said. “Minister, have you ever given Sinoe County social development funds from the harvesting of our logs?”
Margibi County Senator Emmanuel Nuquay raised similar concerns regarding payments reportedly made by China Union.
“China Union has indicated that they have made payments, and we didn’t see those payments captured in the national budgets,” Nuquay told the Finance Minister.
Grand Kru County Senator Numene Bartekwa pointed to a reported US$1 million payment by Hummingbird Resources intended for four southeastern counties.
“There are Southeastern counties affected by the operations of a company called Hummingbird,” Bartekwa said. “They told us they deposited US$1 million into the government’s account for the four affected counties, and that money can only be accessed through a committee that you need to set up.”
Other senators joined the discussion, including Nimba County Senator Nya Twayen, who questioned the status of payments allegedly made by Ivanhoe Atlantic and expressed concern over delays in transferring concession-related revenues to Nimba County.
Grand Cape Mount County Senator Dabah Varpilah also raised concerns on behalf of counties in the western region.
“The Western Region Legislative Caucus also has concerns about monies paid by Western Cluster to government that have not been transferred to the counties,” she said.
The lawmakers argued that the continued delay in releasing Social Development Funds has denied residents in concession-affected communities access to roads, schools, clinics, and other critical development projects envisioned under concession agreements.
Responding to the concerns, Minister Ngafuan admitted that previous administrations had often failed to remit county development funds in a timely manner but stressed that the current government is working to improve the process.
“We are not a federal state; we are still a unitary state although trying to decentralize,” Ngafuan explained. “The general principle is that these funds that come from concessionaires should flow through the Consolidated Fund, which is the source of the budget approved by the Legislature, and then be allocated to the counties.”
According to him, government intends to reduce delays between the receipt of concession payments and their eventual disbursement to counties.
“If a concessionaire makes a payment in January, I don’t want a situation where counties receive that money in December,” he said. “We are working on that.”
Ngafuan disclosed that the Ministry has been engaging local authorities and reviewing procedures to ensure that legitimate payments are promptly released.
However, he acknowledged significant challenges in verifying some of the claims being made by concessionaires and county officials.
“Sometimes concessionaires will say they have paid the money, and when we check, we don’t find it,” he said. “But where we establish that payments were made and there are administrative actions required, those actions will be expedited so that the counties receive their money.”
The Finance Minister further revealed that while current payment records are available, historical records covering previous years are often incomplete.
“Past records are scanty,” Ngafuan admitted, pledging to work with the Liberia Revenue Authority (LRA) and the Comptroller and Accountant General’s Office to determine whether companies such as Hummingbird and others had made payments that were never transferred to beneficiary counties.
He also emphasized that the Ministry of Finance does not have unilateral authority to spend county social development funds.
“Those funds belong to the counties,” he said. “I can assure you that where we find evidence that concessionaires have made payments intended for counties, those counties will receive those funds.”
Ngafuan concluded by promising reforms aimed at improving transparency, accountability, and the timely transfer of Social Development Funds, while lawmakers signaled that they would continue pressing for answers on what they believe could amount to millions of dollars owed to counties across Liberia.
For many senators, the central question remains unanswered: If concession companies paid the money, where are the millions?
Source credit: By Obediah Johnson/Front page Africa
