By: Cyrus L Gray – Monrovia October 18, 2024
There is no proven way we can grow our economy and the wealth of the citizens if significant number of the citizens are not involved in the economy of the country in meaningful ways. Significant number of the citizens will not get involved in the economy if creative policies and measures are not employed to obtain the right conditions; that is why knowledge, specialized knowledge in many instances, matter in the appointment of leaders of public institutions.
Immediately after President Weah assumed office in 2018, I authored an article published in the Liberian Observer and served copy of my thoughts to the presidency. In the article, I made the case for the inclusion of maritime trained Liberians in leadership appointments in the maritime sectors (NPA, NaFAA and LiMA) and provided a list of all the known qualified Liberians in various maritime specialties and Admiralty. My admonition felt on dead soil, as it is the age-old practice in our country for professionals to be passed over in favor of political party stewards, friends and family, irrespective of their suitability for positions. I get it. Elections have consequences.
Let me make one more direct appeal to our president and the maritime leaders. There are several hitched opportunities in the sectors that once unhitched can bring significant value to our economy and people. A flag state, meaning a country whose flag ships fly, have two key responsibilities:
- To ensure that ships that fly the country’s flag are in compliance with all the provisions of international and domestic laws.
- To look out for the interests of the ships as they trade around the world.
As an added value, Liberia also maintains a corporate registry in which foreign companies legally register as Liberian corporations with addresses in Monrovia, Liberia, even though in actuality, they have no footprint on Liberian soil, be it a bank account or a physical office or agent.
The responsibilities, aforementioned, compel the flag state to have ready presence in most parts of the world. In cases other than Liberia and Marshall Islands (birthed out of the Liberia Maritime Registry by IRI) the seat of the flag state presence in foreign shipping capitals is either through the embassies or consulates. Because Liberia’s flag state model is the outsourcing of the maritime administration to a foreign private agent with proxy state authority, in this case LISCR, the agent maintains at least twenty-five (25) offices around the world. All ships flying Liberian flag are legally considered as Liberian territory, hence the adjudication of disputes and issuance of licenses are all subject to Liberian law.
Many have questioned why Liberians are not employed in large numbers on the more than 5500 ships flying Liberian flag. I will leave that concern for another day and focus on three lower hanging fruits:
Why are qualified Liberians not being hired in the several Liberian maritime offices around the world managed by the agent, LISCR? How does it hurt the interests of the agent if qualified Liberians were getting the same paycheck as the foreigners who hold those offices?
For example, Felizia Lieber is LISCR’s Corporate Manager in the Zurich, Switzerland office. According to LISCR corporate registry website (https://liberiancorporations.com/about-the-registry/senior-corporate-staff/), this is her highest level of her education. “In 2008 Felizia completed her training as a pharmaceutical assistant and gained valuable experience in operations and administration while working for a medical wholesaler.”
Two of the seniors most officers of the Liberian Maritime Registry, managed by LISCR are citizens of Panama, Liberia’s biggest competition. Alfonso Castillero is the head and Chief Executive Officer
These are only few examples. Why are these foreigners, qualified as they may be, having our lunch. Which Liberian citizen is employed in the Panama or any other national ship registry. In every Liberian ship registry office, I have visited since 1999, I have been met by all foreign executives carrying call cards with the Liberia national seal. You may be asking yourself, “Are there any maritime qualified Liberian citizens?” The answer is Yes. But do not take my word for it. Ask two of the leading maritime schools in the world, all owned by the International Maritime Organization – World Maritime University (Malmo, Sweden) and the International Maritime Law Institute (Malta). They have graduated, since the 1980s, over thirty outstanding Liberian scholars. Lawrence Barchue, a World Maritime University graduate was Assistant Secretary General for the IMO. Is it that there are provisions in that contract between the agent, LISCR and the government of Liberia that bar the hiring of Liberian maritime professionals?
Assuming LISCR hires three Liberians in each of her 25 offices around the world and offer month average salary of US$3000. That is US$225,000.00 monthly in employment income to Liberians and US$22,500 (10%) in monthly withholding taxes into the Liberian government revenue, representing US$270,000 in annual contribution to the national budget.
- The Liberia Maritime Institute in Marshall is also under the care of LISCR. The heads of the institution are all non-Liberians managing an annual budget of $3M with only 24 cadets/students in a two-year program. There must be no Liberian qualify to lead such a two-year degree program.
- In view of the fact that it is Liberian law/jurisprudence that is applicable to the ships flying Liberian flag and the shelf companies in Liberia’s corporate registry, does it not make sense that the ships (which are technically individual companies) and corporations be required to retain Liberian lawyer or law firm. If 5500 vessels in the Liberian registry were required to retain Liberian lawyer or law firm and pay, for example a monthly retainer of a minimum US$250, that would put a minimum of US$1.4 M into the local economy on a monthly basis.
This write up is not intended to give offence to anyone related to this issue. It is purely another attempt to call our policy makers to the reality that we can only grow the economy and condition of our people if they are enabled to participate in the creation and share of the wealth that is attributed to our country.
Every year, the government of Liberia receives anywhere between US$14M and US$19M as its share of the international maritime revenue, representing 80% of the net income. Assuming the gross collection from the ship and corporate registry sums well above US$150M, the numbers would suggest that more than US$100M goes to operating costs. If that were the case, does it not make sense for us to participate in the activities that the operating costs support so that the people and nation accrue greater dividend than just the annual $14M -$19M, representing 80% of the net income that we crave for every year?
Our maritime registry is more than a regulatory authority. It is a business. I like to admonish President Boakai and our new corpse of leaders to explore the natural advantages that have always been there and leverage for the good of our people and country. Already I can hear echoes, as has been in previous cases, that my advocacy would serve to isolate me. Frankly, I have gotten immune to that. In three weeks, I will be sixty years old, hence, I am not illusioned that I will all of a sudden find a large piece of diamond while walking in West Point, and finally buy that private jet. No! I am trying to play my role as a good citizen before I vacate the stage.
To quote the president, ‘Think Liberia, Love Liberia, Build Liberia.”
