The Liberia Extractive Industries Transparency Initiative (LEITI) has completed and published its 2nd EITI Report covering the period July 1, 2009-June 30, 2009 and involving seventy-one (71) companies and five (5) agencies of Government. The Report was launched on Thursday, February 18, 2010 by the Minister of Finance and Chairman of the Multi-stakeholders Steering Group (MSG) of the LEITI, Hon. Augustine Kpehe Ngafuan.           
  
The launching program was held at the Offices of LEITI, and attended by members of the Multi-stakeholders Steering Group (MSG), including representatives of the US Embassy, the British Embassy, UNDP, the United Nations Missions in Liberia (UNMIL) and civil society.

Launching the report, Hon. Ngafuan praised all LEITI stakeholders for their dedicated services that did not only lead to the successful completion of  the LEITI 2nd report but also made Liberia to become the only EITI Compliant Country in Africa and the second in the World, adding that the  Government of Liberia is much indebted to the stakeholders for their work.

According to Hon. Nganfuan, “the 2nd LEITI Report represents a significant milestone in the implementation of EITI in Liberia and the world at large because it is the first EITI Report to include the disclosure of payments by agriculture concessionaires.”

“The 2nd report LEITI report is both an affirmation and a testament to the commitment expressed by the President; it does not only build on the 1st LEITI Report, it also enhances the reliability of the data and expands the sectors covered”, The LEITI Chairperson Said.

 Mr. Ngafuan disclosed that beginning February 18, 2010, the Report will be available on the LEITI website and hard copies will be distributed to members of the international community, the press and relevant agencies of Government and that in the coming weeks the LEITI will begin a massive dissemination exercise of the Report both locally and internationally.

Hon. Ngafuan said that the support of everyone was critical to the success of the LEITI and called on every Liberian to read the Report and use its content  to contribute to our shared quest for accountability and democratic governance. 

According to the Independent Reconcilers “ at the end of the reconciliation, the remaining net differences amounted to US$144,995.00 or 0.4% of the total amount declared by the Government agencies”. The LEITI Report showed total payments of US$35,280,234.00 made by the extractive companies matched against a total of US$35,425,230.00 confirmed as received by the Government of Liberia. The report covered companies operating in the following four sectors: (1) mining; (2) Oil; (3) Forestry; and (4) Agriculture. Of the four sectors covered by the LEITI, the agriculture sector made the highest payment to the Government of US$18.3 Million which represents 51.69% of  total revenue received , followed by the Mining Sector with a total payment of US$10.75 Million dollars or 30.50% .
The LEITI is part of a global initiative called the EITI which seeks to promote transparency over mineral revenues with the hope of that the increased transparency will contribute to proper utilization of the revenues.

Meanwhile, a total of six (6) companies operating in the Mining and forestry sectors were fined US$1,000.00 each for failing to submit payment data to the Independent Reconcilers during the reconciliation process.

The Liberia Extractive Industries Transparency Initiative has completed its 2nd EITI Report covering payments made to the Government of Liberia by seventy-one (71) mining, oil, agriculture, and forestry companies during the 12-month period from July 1, 2008 to June 30, 2009. 

The 2nd EITI Report will be formally launched and released by the LEITI Multi-Stakeholders Group (MSG) on Thursday February 18, 2010 at 11: A.M. in the conference room of the LEITI Secretariat on the fourth floor of the Ministry of Finance Building. The publication will be followed by massive dissemination via print and electronic media, including the internet and also by way of extensive public outreach throughout the fifteen counties of Liberia.

 The Government of Liberia joined the Extractive Industries Transparency Initiative (EITI) process in September 2007, and published its first report on February 9, 2009 for the period July 1, 2007 up to and including June 30, 2008. The first EITI Report of Liberia contained payments data supplied by thirty (30) companies and revenues data supplied by four (4) agencies of Government.  Liberia undertook validation (EITI quality assurance mechanism) and became the first country in Africa and the second in the World to become EITI compliant in October 2009. 


The LEITI is established by an Act of the Legislature as a partnership involving the Government, the Private Sector and the Civil Society of Liberia, which is supported by Liberia’s Development partners. The LEITI seeks to ensure transparency over payments to, and revenues received by, the Government of Liberia in connection with the operations of all oil, mining, logging and Agriculture companies operating in Liberia. The work of the LEITI consists of regular disclosure, audit/reconciliation, and publication of both (1) all material payments made by oil, mining and logging companies (“Companies”) to the Government, and (2) all material revenues received by the Government from the above-mentioned companies.  A critical component of the LEITI work program is the comprehensive and reliable reconciliation and/or audit of the payment and revenue data provided or to be provided by both the Companies and the Government. The LEITI process also calls for massive and public dissemination of the EITI report.

The First Report of the Liberia Extractive Industries Transparency Initiative (LEITI) covering the period July 1, 2007 up to and including June 30, 2008 was published on February 9, 2009. The report contained payments data supplied by thirty (30) companies and revenues data supplied by four (4) agencies of Government. A total amount of US$29,454,662.00 was reported by the thirty companies as combined payment of taxes, royalties, land/surface rental and other administrative fees, while the four agencies of the Government reported total receipts of US$29,447,3390, thus yielding a combined discrepancy of US$7,323.00, which was the excess of reported receipts over reported payments. 

While the overall net discrepancy of US$7,323.00 was 0.02% of the reported total receipts and therefore clearly negligible, there were significant discrepancies in respect of reported payment and receipts concerning individual tax kinds. There were nineteen (19) companies and two (2) agencies of Government that had discrepancies in their report. The Reconciler discovered that one discrepancy-the amount of US$104,288 reported as paid by Amlib United Minerals (Amlib) but which the Government denied receiving-apparently resulted from fraud. The Reconciler’s finding was confirmed by subsequent investigations. 

The cause of the discrepancy concerning the Amlib’s reported payment highlighted the need to investigate and resolve all unresolved discrepancies. While an internal investigation of the discrepancies was conducted and concluded by the Ministry of Finance and relevant companies involved, the LEITI MSG agreed that the unresolved discrepancies contained in the 1st LEITI Report be investigated by a competent, independent  (national/international) reputable auditing firm in order to provide needed assurance and credibility.

Following appropriate procurement process, the firm MGI-Monbo & Co has been selected to reconcile and investigate all unresolved discrepancies contained in the 1st LEITI Report. The reconciliation report is expected to be published before the 25th of February 2010.

The complete resolution of these unresolved discrepancies contained in the 1st LEITI Report is paramount to the LEITI Multi-stakeholders Steering Group (MSG) as well as the Government of Liberia.

Meanwhile, the 2nd EITI Report of Liberia for the fiscal year July 1, 2008 to June 30, 2009 is expected to be published by February 8, 2010 in Monrovia. The publication will be followed by massive dissemination and public outreach throughout the fifteen counties of Liberia as well as internationally. 

The Liberia Extractive Industries Transparency Initiative (LEITI) is a partnership involving the Government, the Private Sector and the Civil Society of Liberia, which is supported by Liberia’s Development partners. The LEITI seeks to ensure transparency over payments to, and revenues received by, the Government of Liberia in connection with the operations of all oil, mining, logging and Agriculture companies operating in Liberia. The work of the LEITI consists of regular disclosure, audit/reconciliation, and publication of both (1) all material payments made by oil, mining and logging companies (“Companies”) to the Government, and (2) all material revenues received by the Government from the above-mentioned companies.  A critical component of the LEITI work program is the comprehensive and reliable reconciliation and/or audit of the payment and revenue data provided or to be provided by both the Companies and the Government. The LEITI process also calls for massive and public dissemination of the EITI report.

The Liberia Extractive Industries Transparency Initiative (LEITI) has begun work to investigate and reconcile unresolved discrepancies contained in its first EITI Report published early 2009.  According to agreed schedule, the investigation and reconciliation of the unresolved discrepancies will be completed by the end of February 2010, and the Final Report thereof published early march 2010. 

The investigation and reconciliation will be carried out on behalf of LEITI by MGI-Monbo & Co, a consortium comprising of Midsnell Group International (MGI) which is an international auditing firm with presence in over eighty (80) countries and the Liberian firm of Monbo & Co which has over thirty years of experience in auditing for national and international clients. MGI-Monbo and Company was selected through a competitive recruitment process overseen and approved by the LEITI MSG.

The first LEITI Report covered the period July 1, 2007 up to and including June 30, 2008, and contained payments data supplied by thirty (30) companies and revenues data supplied by four (4) agencies of Government. A total amount of US$29,454,662.00 was reported by the thirty companies as combined payment of taxes, royalties, land/surface rental and other administrative fees, while the four agencies of the Government reported total receipts of US$29,447,3390, thus yielding a combined discrepancy of US$7,323.00, which was the excess of reported receipts over reported payments. 

While the overall net discrepancy of US$7,323.00 was 0.02% of the reported total receipts and therefore clearly negligible, there were significant discrepancies in respect of reported payments and receipts concerning individual tax kinds. There were nineteen (19) companies and two (2) agencies of Government that had discrepancies in their report. It was discovered that one of the unresolved discrepancies (involving the amount of US$104,288.00 reported as paid by Amlib United Minerals (Amlib) but which the Government denied receiving) was the result of fraud and that the Government of Liberia indeed never received the funds. Some dishonest personnel of Amlib misapplied the funds and subsequently fabricated receipt to support their false claim of payment. 

The cause of the discrepancy concerning the Amlib’s reported payment highlighted the need to investigate each unresolved discrepancy with the view of not only resolving the discrepancy, but also avoiding its recurrence.  While an internal investigation of the discrepancies was conducted and concluded, the LEITI MSG agreed that the investigation and resolution of the discrepancies be done by a competent and reputable independent firm in order to provide needed assurance and credibility. 

Meanwhile, the 2nd EITI Report of Liberia for the fiscal year July 1, 2008 to June 30, 2009 is expected to be published shortly. Preparation of the Report has been completed by the independent Reconcilers, Moore Stephens LLP who has also submitted the Draft Report for the approval of the LEITI MSG.  The LEITI MSG discussed the draft Report in a meeting held on January 21, 2010. A second meeting to discuss and hopefully approve the 2nd EITI Report of Liberia is scheduled for Thursday, February 4, 2010. Approval of the Report will be followed by immediate publication and massive dissemination. 

The Liberia Extractive Industries Transparency Initiative (LEITI) is a partnership involving the Government, the Private Sector and the Civil Society of Liberia, which is supported by Liberia’s Development partners. The LEITI seeks to ensure transparency over payments to, and revenues received by, the Government of Liberia in connection with the operations of all oil, mining, logging and Agriculture companies operating in Liberia. The work of the LEITI consists of regular disclosure, audit/reconciliation, and publication of both (1) all material payments made by oil, mining and logging companies (“Companies”) to the Government, and (2) all material revenues received by the Government from the above-mentioned companies.  Liberia is the first country in the world to include agriculture and forestry in its EITI program.