BONG COUNTY - gac.gov.lr · Forensic Audit on GOL/BMC ESCROW ACCOUNT projects implemented with funds from the Escrow account during fiscal year 2006/2007. The commissioned forensic

GENERAL AUDITING COMMISSION

Special Forensic Audit Report

of the

AUDITOR GENERAL

on the

BONG MINES COMMUNITY ESCROW ACCOUNT

BONG COUNTY

For the fiscal year ended 2006/2007

John S. Morlu, II Auditor General, R.L

Monrovia, Liberia June 2008

GOVERNMENT OF LIBERIA/ BONG MINES COMMUNITY ESCROW ACCOUNT Fuamah District, Bong County Special Forensic Audit Report For the fiscal year ended 2006/2007

1 Promoting Accountability, Transparency, Integrity and Fiscal Probity

EXECUTIVE SUMMARY

In accordance with the provisions of Chapter 53 of the Executive Law of 1972, I commissioned a Forensic Audit on GOL/BMC ESCROW ACCOUNT projects implemented with funds from the Escrow account during fiscal year 2006/2007. The commissioned forensic audit specifically included the audits of financial and related records pertaining to three (3) projects in Fuamah District, Bong County.

The audit was carried out with the objective of verifying whether the resources appropriated and disbursed for these projects were used for the intended purposes and that there was proper accountability for the disbursed funds. In performing the audit exercise, my team of auditors examined accounting and stores records of the projects, undertook physical inspection of all project sites in Fuahmah District, reviewed project status, and interviewed the beneficiaries, members of the BMC Technical Committee, officials and contractor. My audit team interviewed, reviewed documents for materials to the projects. We also did some audio and video recordings of the structures constructed using project funds. The audit covered the fiscal year ended 2006/2007. The three (3) major projects were proposed by the Citizens of Fuamah District through the BMC Technical Committee and approved by the government through the Superintendent of Bong County, the Bong County Legislative Caucus headed by Senator Jewel Howard Taylor and the Ministry of Lands, Mines and Energy. The three (3) projects have a total cost of US$236,694.39. The projects are:

PLACE PROJECT PROJECT COST

AMOUNT DISBURSED

BALANCE REMAINING

Bong Mines Handii Road US$147,927.17 US$147,927.17 US$0.00 Bong Mines Rehabilitation of

the annex to Handii Clinic

US$42,259.37 US$39,000 US$3,259.37

Subtotal US$190,186.54

US$186,927.17

US$3,259.37

Degei Town 7 Classroom school building construction and clinic renovation

US$46,507.37 US$30,000 US$16,507.37

Total US$236,693.91

US$233,434.54

US$19,766.74



I have made a number of recommendations, as a result of our observations and have included Superintendent’s responses to them in the accompanying report. I take responsibility for this report which is prepared on the basis of the limitations set out below. The matters raised in this report are only those which came to our attention during the course of our review of the accounting and financial records, discussions with management and physical verification of the project sites and are not necessarily a comprehensive statement of all the matters that may be relevant or of weaknesses that exist or all improvements that might be made.



ACCRONYMS USED ACCRONYM MEANING BMC Bong Mines Community GOL Government of Liberia TC Technical Committee MOU Memorandum of Understanding



TABLE OF CONTENTS CONTENTS PAGE NO. EXECUTIVE SUMMARY ................................................................................................ 1

1.0 BACKGROUND ....................................................................................................... 5

2.0 PROJECT MANAGEMENT ...................................................................................... 5

3.0 AUDIT OBJECTIVES: ............................................................................................. 5

4.0 AUDIT SCOPE, APPROACH/METHODOLOGY ........................................................ 5

5.0 THE FORENSIC AUDIT........................................................................................... 5

6.0 FUAMAH DISTRICT ............................................................................................... 6

6.1 HANDII ROAD PROJECT .......................................................................................................... 7 6.1.1 Findings for the Bong Mines-Handii Road Project ............................................................ 9 6.1.2 Conclusion/Recommendation ........................................................................................ 10 6.2 REHABILITATION OF THE ANNEX TO HANDII CLINIC ................................................................... 11 6.2.1 Findings For rehabilitation of the annex to Handii Clinic ....................................... 12 6.2.2 Conclusion/Recommendation ........................................................................................ 12 6.3 DEGEI TOWN SEVEN (7)-CLASSROOM SCHOOL BUILDING CONSTRUCTION AND CLINIC RENOVATION ... 12 6.3.2 Degei Town Seven (7) Class Room Project .......................................................... 15 6.3.3 Conclusion/Recommendation ........................................................................................ 15 7.0 CONCLUSION ...................................................................................................... 15

EXHIBIT .................................................................................................................... 16



1.0 Background On 17 March 2008 the Auditor-General of Liberia commissioned a Special Forensic Audit of the GOL/BMC ESCROW ACCOUNT bearing account number 10610016012018(United States Dollar account). This account was jointly established by the Government of Liberia and GEO Services, Inc., a local scrap dealing outfit where royalties accrued from the sale of scraps from the Old Bong Mining Company site by GEO Services, Inc. were deposited for the development of Fuamah District, Bong County. 2.0 Project Management It is good practice to set up a project team to implement and monitor the successful implementation of the projects. During the course of the audit it was determined through the review of the project document that there was no provision for the establishment of Project Management Team to monitor and report on the execution of the project. However, a Technical Committee (TC) was set up to implement the project. Instead of monitoring the projects, the Technical Committee became the implementer and the monitor of the project. The TC direct involvement in the implementation of the project created a ‘conflict of interest’ situation in which it could not monitor itself. The failure to set up a project team to monitor the implementation of the project was a weakness, which may have led to the short comings highlighted in this report. 3.0 Audit Objectives: The objectives of the forensic audit were:

To verify that the projects under investigation were executed in a transparent manner and that there was no fraud, waste or abuse of Government of Liberia resources.

To verify that the projects were implemented and facilities utilized by target beneficiaries.

To verify that all transactions were done in accordance with basic accounting principles and there were proper internal control over financial management. 4.0 Audit Scope, Approach/Methodology In conducting the audits, we examined accounting and store records of the projects, undertook physical inspection of all project sites in the County, reviewed project status, and interviewed the beneficiaries and TC members, implementing partners and officials. We interviewed and reviewed documents for supplies of materials to the projects. We also did some audio recordings and took pictures of the structures constructed using project funds. The audit covered the fiscal year ended 2006/2007.The exercise was carried out from March 17, 2008 to April 23, 2008 5.0 The Forensic Audit On 24 March 2008, a team of Forensic Auditors departed Monrovia for Bong County to conduct audit of the GOL/BMC GEO Services ESCROW Account from which funds were withdrawn for development projects in Fuamah District. The development projects audited totaled US$236,694.39 for the following towns:

• Bong Mines • Handii • Degei Town



6.0 FUAMAH DISTRICT On Tuesday, 25 March 2008, the team of auditors met with a cross section of Citizens of Fuamah District, including the District Commissioner, Hon. Nathaniel A. Carter in the district’s administrative building. The citizens were informed that the team was in their district to conduct forensic audit of the GOL/BMC ESCROW Account held at the ECOBANK. The audit team was interested in knowing from the citizens, as people on the ground, whether or not these projects existed within their community, their knowledge and participation in the formulation and implementation of the projects and their statuses. During discussions with District Commissioner Carter and citizens of Fuamah District, the following were established:

• In 1999, GEO Services, Inc., a local company dealing in scrap metals in Bong Mines, Fuamah District, Lower Bong County, began operations. In 2000, citizens of the district expressed dissatisfaction over the operations of the company in their community without any direct benefit to them. Accordingly, the Escrow Account was established through a Scrap Purchase Contract made and entered into the 11th day of September, A.D. 2000 by and between the Government of Liberia and GeoServices, Inc. According to the contract, an amount of US$5 per ton of scrap sold by GeoServices shall be deposited in an escrow account to be managed by the Board of Directors of former Bong Mining Company or its designee, now substituted by the Bong County Legislative Caucus, for investment in alternative economic and social projects in the Bong Mines area, Fuamah District. This account was opened at ECOBANK and named GOL/BMC ESCROW ACCOUNT bearing Account #10610016012018.

• That a technical committee was formed to ensure cordial working relationship between the Management of GeoServices, Inc. and Fuamah District citizens and to identify and implement development projects within the district. The formation of this committee was reached in a meeting held between the Ministry of Lands, Mines & Energy, GeoServices, Inc. and citizens of Fuamah District. Accordingly, the committee comprised the following institutions and/or individuals. A). Fuamah District Development Association (FDD&WA) provided two persons. 1. Augustine M. Kollie 2. Harris B. Wennie B). Citizens of Fuamah District provided two persons. 1. Eric Korturna, former Youth representative of the district 2. Hon. Joseph Tartee, Paramount Chief C). Bong Miners Association 1. Irefred Kaine D). Ministry of Lands, Mines & Energy 1. Sylvester Massaquoi For the period under audit, the following individuals managed the GOL/BMC Escrow Account:



a. Ranney B. Jackson, Superintendent of Bong County and Class “A” Signatory. b. Augustine Kollie, Chairman BMC/TC and Class “B” Signatory. c. Harris Wennie, Secretary General BMC/TC and Class “B” signatory.

• On March 27, 2008, the team of Forensic Auditors had a conference with Hon. Ranney B. Jackson,

Superintendent of Bong County, over the Special Forensic Audit of the GOL/BMC Escrow Account and the three (3) development projects. In his explanation concerning his knowledge of the three projects, Superintendent Jackson said that he is the prime signatory to the account; and signs along with Messrs Augustine B. Kollie (Chairman TC) and Harris Wennie (Secretary General) of the GOL/BMC Escrow Account. 6.1 Handii Road Project The Bong Mines Haindii Road Rehabilitation Project was initiated by the Citizens of Fuamah District after they were asked by UNDP to identify a priority project for their district. When the Road Rehabilitation Project was identified by the Citizens, they instead, through the Bong Mines Community Technical Committee, did a project proposal which the District Commissioner submitted to the Superintendent for approval and funding from the GOL/Bong Mines Community (BMC) ESCROW Account. The proposal was later endorsed by the Bong Legislative Caucus who communicated to the Ministries of Lands, Mines & Energy and Finance to release the fund (US$147,927.17) for the project. On 11 May 2007, Superintendent Ranney B. Jackson and Fuamah District Commissioner Nathaniel A. Carter signed a Memorandum of Understanding (MOU) with MAK, Inc. The Superintendent and District Commissioner signed for and on behalf of the citizens of the district, while Mr. Aaron B. George, General Manager of MAK, Inc. signed on behalf of the contractor. The Bong Legislative Caucus attested. The contract/MOU was signed May 11 2007 and the contract was to be completed within 75 days from the date of signing, which was approximately August 3, 2007. The contract was a 12 Mile Road Rehabilitation Project linking Bong Mines Community to Haindii. On 18 May 2007, the total project cost of US$147,927.17 was withdrawn from the Escrow Account and paid to MAK, Inc contrary to “Counts 4, 5, 7 & 8” of the Memorandum of Understanding, which stipulate that the payment to the contractor should be made after the work has been performed. Meanwhile, upon inspection of the Road Rehabilitation Project, the Forensic Audit Team established that approximately 200 yards of road clearing or grading was completed on the Bong Mines Haindii Road and about a hundred yards of the same work on the Bong Mines Popota Road. The team also established that prior to the visit of the President of Liberia to Haindii City on April 29, 2007; the Ministry of Public Works rehabilitated the Bong Mines Haindii Road and dropped several pieces of 24” corrugated metal pipes along the road.



Interviews of Major Participants Superintendent Ranney B. Jackson: This project was the rehabilitation of the 12-mile road connecting Bong Mines community with Haindii City, Fuamah District. The project was valued at US$147,927.17, and was awarded to MAK, Inc., a Liberian owned local construction outfit. I was by then a signatory to the GOL/BMC Escrow Account, and signed the check of US$147,927.17 along with co-signatories, Messrs Augustine Kollie and Harris Wennie in May 2007, with the full consent, approval and instruction of the Bong Legislative Caucus. With the full knowledge of the Caucus, the check was then submitted to MAK, Inc. through Mr. Aaron B. George, it’s General Manager, by Messrs Augustine Kollie and Harris Wennie on behalf of the BMC Technical Committee. After full payment of the US$147,927.17 (contract value) was made to MAK, Inc., Hon. Jewel Howard-Taylor submitted a contract on May 11, 2007 for our signatures. Based on my concern about signing the contract even though full payment had already been made, I, BMC Technical Committee and the Bong County Legislative Caucus agreed that MAK, Inc. is instructed by me to return US$47,000 to the GOL/BMC Escrow Account. MAK Inc, accordingly, presented Ecobank deposit slip # 41319 dated August 16, 2007, in the amount of US$47,000 but, said deposit was not credited to the escrow account. The check bounced. See exhibit 6.1A Chairman of TC Mr. Augustine Kollie: The 12 mile Bong Mines Haindii Road Rehabilitation Project was identified by Fuamah citizens with a cost estimate of US$147,927.17 worked out by the GOL/BMC Technical Committee. Meanwhile, District Commissioner Nathaniel A. Carter wrote a letter to the Superintendent of Bong County seeking his and the Bong County Legislative Caucus’ approval of the project and recommending MAK,Inc. as their selected contractor. Upon approval, the Bong County Legislative Caucus, in two separate communications dated May 3 & 10, 2007, requested the Ministries of Lands, Mines, & Energy and Finance to disburse the full amount of the project to MAK, Inc. Accordingly, the superintendent and the GOL/BMC Technical Committee issued a check of S$147,927.17 to MAK, Inc. through its Manager, Mr. Aaron B. George. In the GOL/BMC Technical Committee’s estimation of work done on the project MAK, Inc. performed 1.5% of the 12 mile road rehabilitation. Secretary of TC Mr. Harris Wennie: The Haindii road rehabilitation has ceased because the contractor, MAK, Inc, failed to honor the contract even though it received full payment of the contract value. We gave US$147,927.17 and he did not carry out the project as contained in the MOU. Mr. Aaron B. George, Manager of MAK, Inc: On May 11, 2007, I signed a 75 working day MOU for the rehabilitation of the 12 mile Haindii Road with Hon. Ranney B. Jackson, Superintendent of Bong County, and Fuahman District Commissioner Nathaniel A.Carter and witnessed by the Bong County Legislative Caucus. Upon the instruction of the Caucus I received the full payment of US$147,927.17, stipulated for the contract. The payment was made to me prior to the signing of the contract. I hired some machine and transported same to Bong Mines. We performed 35% of the contract. Due to the rainy season, I wrote Superintendent Jackson and sent a certified copy to the Bong County Legislative Caucus requesting for suspension of the road rehabilitation project and the re-commencement of same during the dry season of 2007. On January 23, 2008, I again wrote the superintendent and sent a certified copy of this letter to the Bong County Legislative Caucus assuring them that our company would resume work on the Haindii Road on February 12, 2008.



Exhibit 6.1B 6.1.1 Findings for the Bong Mines-Handii Road Project

• The process of selecting contractor for the Haindii Road Rehabilitation Project was executed without consideration of Section 46 of the PPCC Act. It was also in violation of Section 139 schedule 3C of the PPCC Act.

• The May 11, 2007 Contract/MOU between MAK, Inc. and authorities of Bong County on behalf of citizens of Fuamah District, with a lifespan of 75 work-days, which was approved and/or attested to by the Bong County Legislative Caucus was not executed in accordance with the principle of “good faith”. Furthermore, MAK, Inc. breached the contract by its failure to perform in accordance with the provisions of the contract/MOU.

• MAK Inc did not have the machinery to construct the road between Bong Mines Community and Handii Town. Instead MAK Inc secured the contract and then sought to rent equipment. MAK Inc constructed only 100 yard of a 12 mile road and the machine malfunctioned, bringing the project to a complete halt.

• April 29, 2007, the Ministry of Public Works rehabilitated the Bong Mines Haindii Road and dropped several pieces of 24” corrugated metal pipes along the road.

• The entire project cost of US$147,927.17 was given to MAK Inc by the Technical Committee in violation of the MOU, which stipulated that payments would be made after work is performed.

• Financial records from ECOBANK showed that MAK Inc alleged deposit of the amount of US$47,000 bounced and therefore said fund remained in the possession of MAK Inc.

• The entire US$147,927.17 remained in the custody of MAK Inc.

• GOL/BMC Technical Committee including Superintendent Ranney B. Jackson failed/neglected to exercise lead oversight responsibility for the projects. There has been no effort on the part of the Superintendent to seek legal redress against MAK Inc for failing to deliver on the contractual agreement after it had received full payment.



Below are pictures of the portions of the 12 mile road for which US$147,927.17 was spent.

Ungraded portion of the 12 mile road Undone Bridge on the 12 mile road

'Beginning of the 12 mile road'

6.1.2 Conclusion/Recommendation • MAK, Inc., a Liberian-owned construction outfit headed by its General Manager Mr. Aaron B.

George is liable for the US$147,927.17, which is the full payment of the contract made to it. MAK, Inc. should be made to immediately restitute US$147,927.17 into the GOL/BMC Escrow Account. 6.1.3 Superintendent Ranney B. Jackson’s Response In his response to the findings/conclusions regarding the 12-mile Haindii Road Rehabilitation Project as embedded in the DRAFT Audit Report submitted to him for his comment, Superintendent Jackson indicated, “Bong County Legislative Caucus was the final decision maker in this process.

• They mandated that the full amount of the contract be paid to the contractor which was done. • They were the ones who drew up the contract and witnessed it. • They called this contractor to the capitol to appear before them as close as two weeks to this audit,

and never initiated any legal action or call for any legal action to be taken by the county or the Technical committee.

• Lastly, there was no time line set by the caucus in the contract for legal action to be taken. In fact, the week leading to this audit, the caucus met and reached an understanding with the contractor that they were in possession of equipment that the contractor would rent from them to complete the project. So how much negotiation between the Caucus and the contractor could be going on and I at the same time be launching legal action?”



“I believe that while the Caucus and the County should shoulder some responsibility, neglect is not the word to give the true picture of the actions of these two bodies.” (Referring to the Superintendent of Bong County and The Technical Committee.) “If the purpose for using this word on both bodies was because we did not take legal action against the contractor in a timely manner, then it should be stated that the Caucus and the Superintendent did not use good judgment by taking legal action in this matter. In my opinion, a recommendation would then be made educating us to take legal actions in cases like these and stating at what point of the contract a legal action would be necessary.” 6.2 Rehabilitation of the annex to Handii Clinic The rehabilitation and construction of an annex to the Handii Clinic was the first project initiated by the citizens of the Fuamah District. The Government of Liberia, through the county superintendent and Bong Legislative Caucus endorsed a project proposal submitted to them by the BMC/TC for the rehabilitation of the Handii Clinic and construction of a six-room annex with a cost estimate of US$42,259.37. BILAL Construction Company was selected by the BMC/TC to undertake the project in 2006. The contract was a sole sourced, not done on a competitive basis thus a violation of Section 46 of the PPCC Act. It was also a violation of Section 139 Schedule 3C of the PPCC Act/threshold BILAL constructed the six room annex, roofed it, put doors and window frames and put up the ceiling. According to the citizens, BILAL abandoned the project at that stage after receiving US$39,000 (installments of 50%, 25% and 15% based on total project cost). An NGO called PARACOM completed the Handii Clinic project. PARACOM, BMC/TC and the citizens of Handii confirmed that PARACOM completed the project. Interviews of Major Participants Superintendent Ranney B. Jackson: This project was the rehabilitation and construction of a six-room annex to the existing Haindii Clinic at the cost of US$42,259.37 in 2005. I was not Superintendent of Bong County then and was not a signatory to the account. Chairman of TC Mr. Augustine Kollie: On June 14, 2005, I was nominated by citizens of Fuamah District to serve as co-signatory to the GOL/BMC Escrow Account along with Mr. Harris Wennie. Following series of meetings with citizens of Fuamah District, a number of projects including Haindii Clinic, were identified. A contract was later entered into between a Liberian-owned construction outfit, BILAL Construction Company and citizens of Fuamah District, through the GOL/BMC Technical Committee, for the renovation of the Haindii Clinic and the construction of a six-room annex to the clinic at the cost of US$42,259.37. BILAL Construction Company received a total of US$39,000 and the balance of US$3,259.37 was withheld by the Technical Committee due to the company’s failure to complete the project. The Haindii Clinic Project was therefore completed by a local NGO named PARACOM at no cost to the Fuamah District.



Secretary of TC Mr. Harris Wennie: The Haindii Clinic Project was completed by PARACOM and is presently in use. We only provided US$39,000 to BILAL Construction Company but BILAL did not complete the project. 6.2.1 Findings For rehabilitation Handii Clinic and the construction of annex

• The Haindii Clinic was completed by an NGO named PARACOM when BILAL Construction Company abandoned the project after it received US$39,000 and is currently in use. The payment of the balance of US$3,259.37 was withheld by the Technical Committee because the contractor did not finish the work. The amount withheld, therefore, was not withdrawn from the GOL/BMC Escrow Account 6.2.2 Recommendation

• Bilal Construction Company should not be paid the outstanding US$3,259 since it did not complete the work. 6.2.3 Superintendent Ranney B. Jackson’s Response Hon. Raney B. Jackson said he was not Superintendent of Bong County then and was not a signatory to the account. The audit confirmed that Hon. Raney B. Jackson was not Superintendent of Bong County and signatory to the GOL/BMC Escrow Account in 2005. 6.3 Degei Town Seven (7)-Classroom School Building Construction and Clinic Renovation On Wednesday, March 26, 2008, (after two hours of walk from the St. Paul River),the Special Forensic Audit Team visited Degei Town, Lorla Clan, Fuamah District to physically ascertain the construction of a seven-classroom Borlormie Public School Building and renovation of the Lorla Health Clinic and Nurses Home. The team met with a cross section of citizens of Degei Town, Lorla Clan, including the town chief, elders, youths, and women of the town. Mr. Papa Worlorsaye, Town Chief, and citizens of the town took the team on a guided tour of the town and sites of the proposed seven-classroom school building and clinic/nurses home renovation project. According to Town Chief Worlorsaye, citizens of the town were not aware of a seven-classroom school and clinic rehabilitation project to be funded from the GOL/BMC Escrow Account. However, he added that Reverend Noah Giddings, Pastor of the Lutheran Church in Degei Town, informed them in November 2007 that Hon. Corpu G. Barclay, Representative of District #1, Bong County and Financial Secretary, Bong County Legislative Caucus, was to undertake the construction of a seven-classroom school building and renovation of the Lorla Health Clinic in Degei Town as her “gift” to the people of the town. According to the town chief, Rev. Giddings told them that in fulfillment of this promise, Representative Barclay sent sixty five (65) bags of cement through him (Gittens), sixty (60) bags of which were towed to Degei Town by young men of the town from Goi Town near the St. Paul River in mid March 2008.



Interviews of Major Participants Superintendent Ranney B. Jackson: This project was the construction of a seven-classroom building and renovation of the Lorla Clinic & Nurses Home, all located in Degei Town. This project was valued at US$46,507.37. The Fuamah District, through District Commissioner Nathaniel A. Carter requested and obtained the approval from my office and the Bong County Legislative Caucus for execution of said project. As prime signatory to the escrow account, I signed two separate checks of US$10,000 and US$20,000 respectively for the said project along with the two co-signatories, Messrs Augustine Kollie and Harris Wennie. The checks were turned over to Mr. Kollie, who cashed the checks. See exhibit 6.3A. Chairman of TC Mr. Augustine Kollie: The Degei Town, Lorla Clan Project involved the construction of a seven-classroom school and the renovation of the Lorla Health Center located in Degei Town. This project was estimated at US$46,507.85 and by October 2007, a total of US$30,000 had been withdrawn for the construction of the school. We spent US$21,000 of the US$30,000 to procure building materials and provide labor costs. The building materials purchased and labor costs were turned over to Rev. Noah Giddings, Pastor of the Lutheran Church Parish of Degei Town, who was selected by the GOL/BMC Technical Committee as the “contact person” for the project. The balance US$9,000 is in safe-keeping at my office. I have presented to the audit team receipts for the expenditure of the US$21,000. Secretary of TC Mr. Harris Wennie: Degei Town, Lorla Clan Project was under the direct supervision of the GOL/BMC Technical Committee and that a total of US$30,000 was withdrawn from the escrow account for the construction of the seven-classroom school building. Of this amount, US$21,000 has been expended to cover cost of materials and labor. See exhibit.6.3A Rev. Noah Giddings, “Contact Person” for Degei Town Project: Mr. Augustine Kollie called me to come to Monrovia in October 2007, and appointed me to serve as “contact person” for the project. By December 2007, I received assortment of building materials with total value of US$21,000 for transportation to the project site. While en route to the project site I had a vehicle breakdown; and, as a result, I deposited the materials in Kilibay and other surrounding towns for safekeeping. The materials however were not to the project site due to lack of cooperation on the part of the Degei citizens to tow the materials. I would like to take the audit team to physically inspect the materials. I paid US$2,000 to Mr. Frank Kollie to produce 745 pieces of assorted planks. 6.3.1 Physical Inspection of Building Materials On April 7, 2008, the Special Forensic Team returned to Bong County and visited four towns in Sanoyea District, including Kilibay, Davidta, Davidta Felekalai, and Yande kweleh. The second visit was to carry out physical inspection of building materials that were reportedly in safekeeping in these towns. The physical inspection of the materials was witnessed by Messrs Augustine Kollie (Chairman) and Harris Wennie (Secretary General) of the GOL/BMC Technical Committee. Rev. Noah Giddings and two representatives from the office of the Bong County Superintendent also were present during the inspection. The team’s inspection established that the below listed materials were in these towns:



• 281 bags of cement (about 267 bags were hardened due to improper and long storage-December 2007 to April 2008).

• 23 bundles of 32 gauge zinc • 150 sheets of ceiling tiles • 4 panel doors • 7 plywood doors • 4 head pans • 2 diggers • 4 shovels • 3 boxes of assorted nails • 2 roofing felts • 1 roll of roofing gutters • 2 aluminum buckets • 2 rolls of window screen • 1 wheel barrow

These are the pictures of the materials that were meant for the construction of the school but did

not reach the intended site



6.3.2 Degei Town Seven (7) Class Room Project

o As at April 7, 2008, materials purchased in December 2007 for the Degei Town seven-classroom school project had not reached to the site.

o Based on invoices presented to the team by the GOL/BMC Technical Committee, the value of the materials seen and inspected by the team is US$11,979, not US$21,000 as was alleged, creating an unaccounted for amount of US$9,021. The US$9,021 includes the cost of 19 bags of cement not seen or inspected by the auditors to complete the 300 bags of cement as shown on the CEMENCO receipt exhibited.

o Inspection of the materials showed that 267 bags of cement valued at US$2,136 was hardened and turned into cake. It is not usable. ‘This is the proposed school site where the school should have been built and the Lutheran church

building that is currently being used for the school activities’

Proposed school site Lutheran church building

6.3.3 Conclusion/Recommendation

• That Messrs Augustine Kollie and Harris Wennie are individually and collectively liable for an amount of US$18,021. Chairman Kollie has admitted keeping in his safe at his office US$9,000. The audit team also determined that US$9,021 intended for the purchase of materials for the Degei Town project was not utilized. 6.3.4 Superintendent Ranney B. Jackson’s Response “As prime signatory to the escrow account, I signed two separate checks of US$10,000 and US$20,000 respectively, for the said project along with the two co-signatories, Messrs Augustine M. Kollie and Harris B. Wennie. The checks were turned over to Mr. Kollie who cashed them,” Hon. Jackson said of the Degei project. 7.0 Conclusion Development projects are extremely important to the reconstruction of the Republic of Liberia. Projects earmarked at district level are vital to enhance delivery of services to a disadvantaged population. Giving the short comings in the implementation of the Fuamah District projects, it is important that GoL competitively recruit a private firm to serve as the Chief Administrator of these projects.



EXHIBIT

Documents

BONG COUNTY - gac.gov.lr · Forensic Audit on GOL/BMC ESCROW ACCOUNT projects implemented with funds from the Escrow account during fiscal year 2006/2007. The commissioned forensic