Liberia – The administration of President Joseph Boakai is facing serious allegations of corruption as a controversial scheme to sell the Putu Mountain iron ore concession for $2 billion has reportedly backfired, drawing scrutiny from various stakeholders.
Key attention has turned to Mamaka Bility, the Deputy Minister of State Without Portfolio, who is alleged to be at the center of the scandal. A leaked memorandum of understanding (MOU) suggests that a small group of public officials attempted to circumvent the statutory authority of the National Investment Commission (NIC) to facilitate the sale of the Putu Iron Ore Mining Concession, located in Grand Gedeh County.
The MOU, dated March 2024, purportedly details an agreement between the Government of Liberia and Pioneer Group LLC (PGL). Sources familiar with the document claim that it is tainted by rampant corruption. It appears to bear the signatures of the Minister of Justice, the Minister of Mines and Energy, and the former Minister of Finance, who reportedly acted on behalf of the Liberian government, alongside the CEO of Pioneer Group LLC.
The controversial deal aimed to transfer the concession from Severstal, the current owner, to PGL. However, significant opposition has emerged, particularly from Jeff Blibo, the head of the NIC, who refused to endorse the agreement due to concerns over its unfavorable terms and potential threats to Liberia’s national interests.
Central to the unfolding drama is Mamaka Bility, accused of orchestrating the deal and exerting undue pressure on fellow officials to obtain approval. This is not the first instance of scrutiny surrounding Bility; she has previously been linked to questionable transactions, including a contentious yellow machine deal.
Critics contend that Bility’s involvement represents a troubling case of influence peddling, raising alarms over her commitment to national interests. The failed PGL deal included a promise of a $2 billion investment and a $600 million payment to the Government of Liberia (GOL) for the concession transfer. However, questions about transparency arose when it was revealed that PGL would deposit a significant portion of the payments into an escrow account managed in Dubai, rather than in Liberia.
The MOU outlined a staggered payment plan, with PGL obligated to pay the remaining $500 million to GOL in two installments after a two-year moratorium. The balance of $1.4 billion was to be sourced from mining operations and unspecified external sources, raising further concerns about the deal’s viability. Notably, PGL is registered as a limited liability corporation under UAE law, complicating the agreement even further.
Historically, Severstal acquired the Putu Mine from Afferro Mining for $122 million in 2012, with estimates suggesting that an additional $3.5 billion would be necessary for its full development. Despite this hefty investment requirement, Severstal continues to maintain ownership of the concession, meaning any prospective buyer must negotiate directly with the company.
The collapse of this deal highlights significant governance issues within Liberia’s investment and mining sectors. The allegations against Bility, combined with the NIC’s resistance, underscore persistent challenges in the management of large-scale investment agreements.
As investigations into the PGL deal unfold, it is crucial for Liberian authorities to prioritize transparency and integrity in future agreements. The situation calls for urgent reforms in how Liberia oversees its resource investments and manages potential conflicts of interest among public officials.
This case serves as a stark reminder of the need for rigorous scrutiny and accountability in the management of national assets. As Liberia aims to attract and manage foreign investment, the interests of its citizens must remain at the forefront, with a commitment to high standards of transparency and governance.
With ongoing allegations of influence peddling and clandestine negotiations surrounding multimillion-dollar concessions, the question remains: Is Minister Mamaka Bility overstepping her authority and undermining the functions of the NIC? The Amended Investment Law of 2010 clearly designates the NIC as the authority responsible for promoting and coordinating investment activities across all sectors of the Liberian economy.
Information Minister Jerolinmek Matthew Piah when contacted, declined to comment on grounds he was just reading the story in the media. Deputy Minister Bility could not be reached for comment as she was said to have traveled with President Boakai. Jeff Blibo, the head of the NIC could not be reached.
