Cllr. Warner startlingly revealed that at one point, LPRC boss, T. Nelson Williams, overstated the project cost of the Ganta Oil Terminal Project (GOT) from US$772,002 to US$3.4 million. The Board of Directors, under his chairmanship, vehemently rejected it, Warner said.
The former LPRC Board Chair told newsmen in Monrovia yesterday that the board differed with Mr. Williams owing to four main reasons.
“Firstly, the contract was tendered without authorization of the Board, and in clear contradiction of other decisions of the Board.
“Secondly, items not included in the tendered documents were included in the successful bid in violation of the letter and spirit of the Public Procurement Concession Commission (PPCC) laws.
“Thirdly, the cost of the project was initially estimated by LPRC’s internal technical team to be about US$772,002 but the successful bid submitted by management to the Board was US$3,418,106.
“And lastly, management was requesting [that] the Board accept Petro Trade as the successful bidder but with authorization given [to the] Managing Director to enter into post-tender negotiation to agree on a fair price for the project that would be included in the 2012 budget.”
Warner argued that the overstatement of the Ganta Oil Terminal Project, which led to the Board’s rejection, was a testament to his character, having informed other members of the Board of Directors, including the Managing Director, of his position as legal counsel with Petro Trade. He thus rejected Williams’ conflict-of-interest allegations.
Mr. Warner also frowned at the recent Board of Director’s press statement alleging that he does not favor Liberian importers.
The former LPRC Board Chair said such allegation is a contrived narrative that neither the Board nor the LPRC’s management can prove.
“In fact, it is a creation of mainly Aminata and Srimex, [who] are consistently indebted to LPRC because collection from them was hindered based on their so-called political connections,” Mr. Warner said.
The former LPRC Board chairman did not state the amount of which Aminata and Srimex are robbing the Liberian government in penal duty fees.
Cllr. Warner further disclosed that owing to complaints from LPRC’s Financial Comptroller regarding Liberian importers’ indebtedness to the corporation vis-a-vis the Board’s decision to encourage Liberians’ participation, the Board agreed to brief the President.
“…I requested and obtained an appointment to meet the President to discuss the decision we had agreed to implemented in respect of Liberian importers,” Warner explained. “The President gave her full support to the decisions of the Board on enforcement of all commercial terms of the existing LPRC importation policy,” Mr. Warner said.
The former LPRC Board Chair told reporters he would unleash more documents proving the corruption charges against the LPRC management.
When the Daily Observer contacted the Chief Executive Officer of Srimex yesterday via mobile phone, he promised to speak to our reporter today at 10 a.m.
When the Daily Observer contacted LPRC for its reaction, a spokesperson for the company said that as of the present, no contract has been awarded for the rehabilitation of the Ganta petroleum storage site.
“We opened a bid for companies to give us an assessment of site with suggestions for rehabilitation,” said the spokesperson. “Five companies entered the bid, but only one, Sultan Steel of Lebanon actually submitted a bid. We decided that we could not go on one bid. So the Board of Directors suggested we appoint a technical auditor to work with us to open a second bid.
“Meanwhile, the Board also wondered whether we should undertake the project ourselves or get a partner to go in with us. The Board felt that we already had this major project, the rehabilitation of our Bushrod Island terminal, on our hands, and felt it would be difficult to do Ganta at the same time.
“Then we began to wonder about control. If we went in with a partner, that partner would want some control; so we are hesitant to do that.
“But,” said the LPRC spokesperson, we know that Ganta must be rehabilitated, because we must take care of the downstream petroleum sector.”
As to the local importers’ indebtedness to LPRC, the spokesperson said the company has a 60- to 90-day credit line. Once an importer exceeds the 60-day credit line, that importer is in default.
“At this time, there is no one in that category,” the spokesperson said.
The LPRC spokesperson further argued that Cllr. Warner, being a legal counsel to Petro Trade, a foreign importer, would not normally say anything in favor of the local importers. Warner, said the spokesperson, is also legal counsel to a foreign principal in Liberia Petroleum, a Lebanese named Ali Kafel.
“This is what we mean by conflict of interest in which the former chairman was involved.”
In reaction to Warner’s allegations concerning local importers’ indebtedness to the corporation, the spokesperson replied that all importers, foreign and local, owe LPRC at some point. All importers are aware, however, that they cannot exceed the 60-day credit line, lest they risk default.
Besides, said the spokesperson, with regard to the Japanese oil grant, the Japanese government itself said it preferred that preference for the sale of the oil be given to local importers, to empower Liberian businesses.
When the Daily Observer contacted LPRC for its reaction, a spokesperson for the company as of now no contract had been awarded for the rehabilitation of the Ganta petroleum storage site.
“We opened a bid for companies to give us an assessment of site with suggestions for rehabilitation,” said the spokesperson. “Five companies entered the bid, but only one, Sultan Steel of Lebanon actually submitted a bid. We decided that we could not go on one bid. So the Board of Directors suggested we appoint a technical auditor to work with us to open a second bid.
Meanwhile, the Board also wondered whether we should undertake the project ourselves or get a partner to go in with us. The Board felt that we already had this major project, the rehabilitation of our Bushrod Island terminal, on our hands, and felt it would be difficult to do Ganta at the same time.
“Then we began to wonder about control. If we went in with a partner, that partner would want some control; so we are hesitant to do that.
“But,” said the LPRC spokesperson, we know that Ganta must be rehabilitated, because we must take care of the downstream petroleum sector.
As to the local importers’ indebtedness to LPRC, the spokesperson said the company has a sixty to ninety-day credit line. Once an importer exceeds the 60-day credit line, that importer is in default. “At this time there is no one in that category,” the spokesperson said.
The LPRC spokesperson further indicated that Cllr. Warner, being a legal counsel to Petro, a foreign importer, would not normally say anything in favor of the local importers. Warner, said the spokesperson, is also legal counsel to a principal in Liberia Petroleum, a Lebanese named Ali Kafel.
“This is what we mean by conflict of interest in which the former chairman was involved.
The spokesperson said all importers, foreign and local, owe LPRC at some point. But they all know that they cannot exceed the 60-day credit line, lest they risk default.
However, said the spokesperson, in respect of the Japanese oil grant, the Japanese government itself said it preferred that preference for the sale of the oil be given to local importers, to empower Liberian businesses.
