-A General auditing commission’s audit report references the former ministry of mines and energy minister Gesler Murray as saying that Liberia is Losing Millions In River Sand Mining due to the lack of regulation
-As integrity watch Liberia disclosed back in April that over US$15M is generated annually by 7 of several sand mining and quarrying companies to the detriment of Liberia and Liberians
IPNEWS: A General Auditing Commission (GAC) compliance audit report has revealed how Liberia is losing out on millions of United States Dollars as a result of lack of regulations and other policies to regulate river sand mining in the country.
According to the GAC report, the absence of regulation on river sand mining under the George Manneh Weah-led Administration, led to millions illegally going into the pockets of some senior officials of the Mines and Energy Ministry and foreigners.
According the GAC audit report, former Mines Minister Gesler Murray acknowledged the report stressing that the regulations had been in development for three years but were never completed.
The lack of regulation resulted in significant revenue loss and no clear benefits for the communities where river sand mining occurred.
The report further outlined how illicit mining activities were conducted by individuals with closed ties to officials at the Mines and Energy Ministry, including members of the legislature, previously licensed companies that failed to regularize their statuses and comply with licensing requirements throughout the Weah six-year Administration.
Unauthorized mining by individuals and organized groups was observed at locations such as Stockton Creek Bridge, Caldwell Bridge, and St. Paul River areas.
Due to the absence of regulations or a Standard Operating Procedure, the ministry missed out on a grant of US$700,000 from the African Development Bank.
It was discovered that there was low revenue provided to the country’s fiscal envelope by the Ministry with a record shown that annual outturn for 2022 was US$1.4 million, while in 2023 realized a total US$1.1 million.
In 2023, the US imposed sanctions on some senior officials of the Weah Administration, including former Finance Minister Samuel Tweah, former Presidential Affairs Minister now Senator Nathaniel F. McGill and few others.
Washington considers those it sanctioned to be involved in corruption. They and their family members will not be able to enter the USA.
Liberia is ranked 142nd out of 180 countries in the annual corruption perception index compiled by Transparency International.
The country of about 5.2 million people is struggling to recover from two civil wars and the worst outbreak of Ebola, which peaked in 2014. The U.S. is exerting influence over Liberia. For example, before the presidential election in the country, the White House threatened sanctions against anyone who might “undermine democracy.”
Back in April, 2024, Integrity Watch Liberia (IWL) revealed that over US$15 million is generated annually by seven of the several sand mining and quarrying industries at the detriment of the country without substantive benefits to Liberians.
IWL is the Secretariat of the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), which is chaired by River Gee County Senator, Francis Dopoe.
Presenting the findings along with recommendations to the APNIFFT in April at the Capitol, IWL Executive Director, Harold Aidoo, said their findings showed his institution’s comprehensive study on the sand mining and quarrying industry, but proposed that policymakers should consider implementing measures to stabilize revenue streams, such as improving regulatory frameworks, promoting sustainable practices, and diversifying market channels.
“By addressing these underlying factors, the industry can enhance its contribution to domestic revenue mobilization and economic development, enhancing equitable growth and sustainable resource management,” he noted.
According to Aidoo, their findings, which spanned nearly four years from 2020 to 2023, shed light on the diverse financial landscape within the sector.
Aidoo further stressed that the study highlights significant variations in operational scales and market impacts. He listed Ever Bright Sand Mining Beach as raising on the average of US$3,809.09 and US$1,146,536.36 million per year, while Fengshou Quarry earned US$8,738.18 daily and US$2,630,192.73 million per annum.
The findings of which copies are in possession of this media entity further shows that Grass Field River Sand Mining Corporation made US$815 and US$245,315 daily and annually respectively, while High Investment Incorporated generated US$4,370 daily and US$1,315,370 million yearly on the average.
In furtherance, the IWL disclosed that Leeche Investment Incorporated earned US$7,895.45 per day and US$2,376,531.42 per year as Light Investment Incorporated made US$5,512.50 and US$1,659,262.50 daily and annually respectively.
The findings also highlight Z&C Rock Crusher generated US$19,643 daily and US$5,912,543 per year.
Also providing the summary findings on tax incentives and implications for domestic revenue mobilization to the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), Aidoo noted tax incentives play a significant role in attracting both domestic and foreign investments within the extractive robust industries.
According to him, Liberia has experienced substantial revenue loss due to tax expenditures, amounting to US$133.7 million and US$116.6 million in 2015 and 2016 respectively.
He averred that in the extractive sector, primarily mining accounts for a significant portion of tax expenditures, constituting 36.5% of revenues collected from the sector over a twelve-year period.
Commenting on the implications for domestic revenue mobilization, Aidoo among other things, stressed that addressing the challenges associated with tax incentives is crucial for enhancing DRM in Liberia.
Receiving the findings, the Chairman of the African Parliamentary Network on Illicit Financial Floor and Taxation (APNIFFT), Senator Francis Dopoe thanked Integrity Watch Liberia for what he termed as an excellent research.
He said the submission of the findings is timely, helpful and will inform the decision of the 55th National Legislature to act in accordance with the recommendations and to right the wrong in the sector.
