–To Face Senate Inquest
IPNEWS: In the heat of the rice shortage crisis in Liberia recently, a ranking member of the House of Representative on Commerce and Trade, Rep. Samuel G. Kogar, appearing on Spoon Talk disclosed that the Liberian government allotted US$35 million over three budget year-period as subsidies to rice importers to avoid an increase in the price of rice on the market, the country’s staple food.
Rep. Kogar said with US$35 million allotted over three budget years as subsidies for rice importers, it is unthinkable why rice importers are yet to be given the subsidies set aside by the national government.
The Nimba County Representative disclosed that in the 2019/2020 budget, US$17 million was allotted as subsidies for rice importers, while in the 2020/2021 budget the government allotted US$7 million as subsidies for rice importers; and as for the current budget year 2021/2022 the government has allotted US$11 million as subsidies for rice importers, totaling a US$35 million over three budget years.
According to him, the then acting Minister of Finance Samora Wolokolie claimed that the Liberian government had disbursed US$5 million to the Ministry of Commerce and Industry to give rice importers subsidies. However, the lawmaker said the Commerce Ministry pushed back on the issue, stating it only received US$3.5 million from the Finance Ministry; leaving the question of why pay the money to the Commerce Ministry instead directly to the rice importers.
Rep. Kogar blamed the Legislature; adding, “We allowed the Speaker of the House and the Pro Tempore of the Senate to come from one side,” so there is no argument on the issue. He further noted some of the rice monies were left in limbo as the budget collapsed. “When the government is focused on one side, people get biased,” he pointed out, adding “once the budget expires, it becomes mute.”
The million dollars question is, what happened to the US$35 million allotted by the Government of Liberia for rice importers’ subsidy? There are being claims and counterclaims from both the rice importers and the Ministry of Commerce.
It can be recalled the rice importers also denied ever receiving any subsidies from the Liberia government to offset the planned increase of the price on the Liberian market. But the Ministry of Commerce on the other hand said it had received US$3.5 million from the finance minister as opposed to the US$5 million the Ministry said it gave to Commerce Minister as subsidies for rice importers.
Some local rice dealers who spoke to IPNEWS regarding the reported US$35 million the Liberian government has allotted for rice importers’ subsidies said people at the Ministry of Finance and the Ministry of Commerce seem to be deceiving Liberians that they are doing everything to alleviate the rice shortage syndrome that usually engulf the country.
“These government and the rice dealers have to be straight with us the local rice dealers as well as the Liberian people. The Commerce Ministry says it has paid some subsidies to the rice importers, while on the hand the importers are saying they have not received a dime. So, who is deceiving who now? Let documents be provided that the government is doing it can avert a price increase for rice by displaying how much it paid the rice importers, instead pulling here and there,” a local rice dealer told IPNEWS.
US$11 Million Noise Hangs over Ministers Samuel Tweah and Mawine Diggs
While there are two different pieces of information regarding the actual amount the Government of Liberia allotted in the National Budget as subsidy for rice importers – with Rep. Kogar concerned about three budget years allotment covering – 2019/2020 budget, US$17 million; 2020/2021 budget, US$7 million; and 2021/2022 budget; equating to US$11 million (Totaling US$35 million over three budget years). As for the Senate, their focus is only on the 2021/2022 budget; that focuses on the US$11 million allotted for rice importers.
It can be recalled the Legislature recently allotted US$11 million in the current 2022 fiscal budget as a subsidy to the Ministry of Commerce for rice importers as subsidies to rice importers to avoid an increase in the price of rice on the Liberian market, the country’s staple food. The importer had complained about of the global increase in the price of rice and avoid putting the burden on the Liberian consuming public sought redress with the Government of Liberia through the Ministry of Country.
After claims and counterclaims regarding the subsidies with the importers denying ever receiving a dime from the government on one hand, while the Finance Ministry said it gave the Commerce Ministry money to offset their costs, the Senate has decided to seek clarity over the US$11 million intended for rice subsidy; thus citing Finance & Commerce ministers, Samuel Tweah and Mawine Diggs for interrogation.
Finance Minister Samuel Tweah, as well as Commerce Minister Marine Diggs are expected to appear before the Senate plenary and provide clarity regarding the use of the US$11 million that was allotted in the 2022 national budget for major rice importers.
The Public Hearing to be conducted by the Senate plenary sitting as a Committee of the Whole is predicated upon a communication by Grand Bassa Senator, Jonathan Kaipay requesting the appearance of authorities of the two Government entities.
The Press and Public Affairs department of the Senate quotes the Grand Bassa Senator as saying “it was unbelievable for the Liberian Market to go out of rice when the Legislature took a giant step to provide a subsidy of US$11 million in the 2022 budget for the commodity.”
It can also be recalled Commerce Minister Mawine Diggs in a press statement during the heat of the recent rice shortage crisis, recollected that the Government over the last five years has worked with rice importers to keep the price of rice affordable for the Liberian people.
She further recalled that over a year ago importers requested the Government to abandon this policy and add US$2.00 to the price since they were selling at a loss.
Diggs said in spite of the importers’ action, the Government chose to remain committed to its regulated price of rice, and subsequently, in September of 2021 the Government of Liberia began a program to partially subsidize the high cost associated with the importation of rice due to increase in freight and other global supply chain issues.
“Over the last two fiscal years, the Government set the import subsidy at US$5.5million in the Special 2021 budget and US$11 million in the current 2022 budget, respectively,” the Commerce Minister said.
She said to date, about US$14 million has been given to importers, though the rice importers are denying ever receiving subsidies from the government to alleviate the increase in the price of the rice on the Liberian market.
“High regional pricing of rice above the price in Liberia, has placed significant pressure on the buffer stock in Liberia. Hence, this price discrepancy has given retailers the incentive to hoard rice in order to sell across the border for the sake of profiteering,” the Commerce Minister concluded in the press statement dated October 4, 2022.
The Senate’s Inquest
For most Liberians, the citing of the Finance Minister as well as the Minister of Commerce is not the first time that Liberian government officials have been called in by the Legislature for a public inquest regarding a particular situation.
On countless occasions, the Minister of Finance Samuel Tweah had ignored citations from the Legislature, citing his busy schedule in most instances, and in the end, he will be set free without legislative contempt as is done to other government officials.
It can be recalled when there was noise concerning the US$25 million mob-up exercise, the very Legislature attempting citing Minister Tweah to seek clarity, but again, it is yet to be proven whether he ever stepped foot at the Capitol building. Most times, he would designate Deputy Finance Minister for Fiscal Affairs, Samora Wolokolie in his stead.
Meanwhile, political commentators are of the belief and view that the citing of Finance Minister Samuel Tweah and Commerce Minister Mawine Diggs, should serve as a catalyst in resolving the repeated rice shortage syndrome that has engulfed Liberia over the years.
They are saying if the national Government can budget millions of dollars to alleviate pressure on rice importers on the international market, to reduce the burden on local consumers, the monies must be delivered to the importers without any conditions. They have called for a thorough investigation if there is any misgiving or misapplication, the culprits should face the full weight of the law. Bookmakers will be keen on the outcome of the citation extended to Ministers Tweah and Diggs.
