Vice President Boakai on the move...

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Remarks by Thomas Kaydor, Jr. at the Retreat held by

The St. Thomas Episcopal Church on Camp Johnson Road

On the importance of ecumenism at the residence of

Bro. Eugene H. Shannon, S.D. Cooper Road, Paynesville

Saturday, 14 May 2016 @ 11:00 A.M.

 I. Introduction

Hon. Eugene H. Shannon, the host of this memorable Men Retreat of the St. Thomas Episcopal Church, Monrovia, Liberia:

Bro. Solomon Rogers, Chairperson of the Retreat Committee:

Bro. Yilaa Wloti Se, the illustrious President of the Men Department of the St. Thomas Episcopal Church:

Rev. Dr. Canon James B. Sellee, Rector, St. Thomas Episcopal Church:

Delegates and observers present at this retreat; invited guests, distinguished ladies and gentlemen:

I bring you greetings from the Trinity Lutheran Church in New Matadi Estate, Sinkor, Monrovia, Liberia in the name of the Father, the Son and the Holy Spirit. I also bring you greetings from my family that has permitted me to spend this time out on a national holiday. I am excited to have been selected by the Men Department of the St. Thomas Episcopal Church to share my ‘doctrinal’ views on the topic: “the relevance of ecumenism in our spiritual relationships and its impact on the integration of the Christian churches”. My reflection here today is fully grounded in the Holy Bible. I will therefore not be too academic, but simply attempt to provide a biblical analysis that befit your chosen topic.

II. What is Ecumenism?

The two terms “ecumenism” and “ecumenical” come from the Greek word οἰκουμένη (oikoumene), which means “the whole inhabited world“. This Greek word was historically used with specific reference to the Roman Empire relative to its conquering move of almost the whole world. Sadly today, the Greeks are embroiled into economic and social crises. I pray that God will see them though these difficult times. Ecumenical vision, as it stands today, comprises both the search for the visible unity of the Church (Ephesians 4:3) and the “whole inhabited earth” (Matthew 24:14) as the concern of all Christians.

Ecumenism is any effort aimed at the integration and unity of Christians throughout the world. The adjective ecumenical applies to any interdenominational initiative that encourages greater cooperation among Christians and their churches, whether or not the specific aim of that effort is full and visible unity.

Simply put, the goal of ecumenism is Christian unity and integration based on believe in the Holy Trinity (God the Father, God the Son, and God the Holy Spirit). This is rooted in the prayer of Jesus Christ “that they all may be one” or “high priestly prayer” in his farewell discourse (John 17:20-26). This is understood as the “ecumenical mandate”: the imperative that all Christians have for working towards Christian unity, even as a pre-requisite for effective evangelization.

There are, however, a variety of different expectations of what Christian unity looks like, how it is brought about, what ecumenical methods ought to be engaged, and what both short- and long-term objectives of the ecumenical movement should be. For some, Christian unity means a clear, visible, and organic unity of sacramental life, worship, and ecclesial structures. For others it is sufficient to share a common Christian faith and to cooperate on certain joint ministries or tasks where beneficial, especially for evangelization and charitable service to humanity, mainly the weak, oppressed, poor and distressed. I belong to the later view.

III. What Ecumenism is not?

Ecumenism does not include efforts at better understanding and cooperation among different religions (i.e., Christianity with Judaism, Islam, Buddhism, etc.). In such cases the appropriate term in my view is ‘Interfaith or Interreligious Dialogue’. The interfaith movement strives for greater mutual respect, tolerance, and co-operation among the world religions. There is no expectation of a unified religion as a result.

Ecumenism is not religious syncretism, “lowest-common-denominator” theology, or an effort to bring about “One World Religion” that is something other than Christianity. Nor is it “False Irenicism” or the “dumbing-down” of doctrine to the point of indifference.

IV. The Protestant Reformation and its implication on Christian Unity

The Protestant Reformation is historically attributed to the entire process through which Martin Luther despised and fought against the Roman Catholic teaching of “Indulgences”. Through this hideous teaching of Rome, it was said that salvation could be bought with money, Gold and Silver which eventually flowed into the Papal treasury. Luther wrote and nailed the 95 theses (points) against the doctrine of indulgences on the door of the castle church of Wittenberg. The points which he raised against indulgences spread throughout Germany within days; and within weeks had spread throughout Christendom. This unleashed the fury of the leaders of the Roman Catholic Church and Luther was declared a “heretic”.

Luther’s conviction was based on Romans 1:17 which states that “THE JUST SHALL LIVE BY FAITH”. From this he saw the fallacy of the Roman Catholic teaching of trusting in human works for salvation. His eyes were opened to the delusions of the Papal Church. He therefore proclaimed that Christians should receive no other doctrines than those which rest upon the Sacred Scriptures. These words were to strike at the very heart of the Papal Church, and contained the vital principle of the Protestant reformation. So just as Luther, we must not fight amongst ourselves based on denominational differences, but rather fight against wrong teachings anywhere in any form or manner.

The reality is that the reformation has divided Christians into many denominations. But is that wrong for the purpose of evangelism? I say NO. The division has made Christ known to many; hence ecumenism must now be the basis of us all uniting and integrating not as one denomination under the Episcopal, Lutheran or Catholic denomination, but we must focus on Christ as the redeemer who died on the cross to set us free. It is this message that we must all propagate and build partnership in villages and towns, regions and states, continents and the entire world. The pain, suffering and agony of one Christian anywhere must be the pain, suffering and agony of Christians everywhere. This is what I call ‘true ecumenism’.

V. The Critique

Let me digress a little into some thought provoking ideas. The “Pope prayed for the ‘one human family’ desired by Christ… Marking the 97th World Day of Migrants and Refugees on Jan. 16th 2011, Pope Benedict XVI spoke of the “migration experience” of the Church and hoped for a future where all people consider themselves part of “one human family”. (Catholic News Agency, January 16th 2011)

“Pope Francis urged members of all religions and those belonging to no church to unite to defend justice, peace and the environment … Francis, the first non-European pope in 1,300 years, met leaders of non-Catholic Christian religions such as Orthodox, Anglicans, Lutherans and Methodists, Episcopalians, and others including Jews, Muslims, Buddhists and Hindus.” (Vatican City, March 20th 2013)

In view of these, others argue: ‘since when did Christ Jesus “desire” the whole world to unite, no matter what they believed? God clearly told His people to “come out from among them and be separate” (2 Corinthians 6:17). God also confirmed that “two people CANNOT walk together unless they be agreed” (Amos 3:3). So why establish the inter-faith Council, the “World Council of Churches” and the “National Council of Churches”.

These issues are mind boggling. However, I am here today to remind us all of the following:

Martin Luther said “cursed be that love and unity for whose sake the Word of God must be put to stake”! Also, Huge Latimer said “unity must be according to God’s Holy Word, or else it were better war than peace. We ought never to regard unity so much that we forsake God’s Word for unity’s sake.” (Italics mine)

In view of the above, our focus as Christians must be to preach the word of God, and strive to live according to biblical teachings keeping in mind Romans 3:23; and bear each other’s burden. We must have clear hearts and minds for one another. We must put away envy and destructive competition amongst us. We must stand for each other and pray for one another’s success. This is Ecumenism.

VI. Why Ecumenism is important and relevant in the 21st Century?

Rev. Dr. Samuel Kobia, then General Secretary, World Council of Churches, in his paper titled ‘New visions and challenges to ecumenism in the 21st century on 17 November 2006 in Shanghai, People’s Republic of China, argues that ‘the formation of the World Council of Churches is arguably the most significant development in ecumenical history in the second half of the 20th century. But during the same period the ecclesial landscape changed in other significant ways including the multiplicity and proliferation of denominations and non-denominational churches (especially since the 1980s), the growth of Pentecostal and charismatic movements, and the increase of bilateral ecumenical dialogues’.

So in the 21st Century if ecumenism is the quest for Christian unity, it must be understood what the divisions are which must be overcome. Christianity has not been a monolithic faith since the first century or Apostolic Age. Christianity is the largest religion in the world (making up approximately one-third of the global population) and the various divisions have commonalities and differences in tradition, theology, church government, doctrine, and language. Christians are visibly divided into different communions or denominations, groupings of Christians and their churches that are in full communion with one another, but to some degree exclusive of other Christians.

In view of these, we must overcome the widespread practice of segregating against each other and calling one another all kinds of names. This brings us to one of the key elements in your topic: “how our spiritual relationships can impact the integration of Christian churches”. Can the spirit live in peace in an environment of agony, treachery, greed, poverty and wars? The obvious answer is no.

This is why in 1975, as liberation theology was rising to prominence, M.M. Thomas of India, then Moderator of the World Council of Churches’ Central Committee, spoke of the need for a “spirituality of combat” in confronting the principalities and powers of this life. In the 1980s the WCC-Urban Rural Mission (URM) sought the spirituality that undergirds the community of people engaged in the struggles for transformation of society including the mineral and natural resource rich state of Liberia. In Korea, for example, the Minjung theology was developed which provided the grounding for advocacy work by Christians during a very difficult period in the history of their country.

In Africa, especially in South Africa, Black Theology ‘became the most effective way of conscientizing the oppressed, and inspiring them in their struggles against racism, just as it had been the case with Africans in the diaspora (USA and elsewhere). The Theology of Liberation in Latin America and Caribbean is perhaps the most significant paradigmatic shift in respect to the struggles of the poor and speaking the truth to power. Incarnation as the liberating love, which is both a gift and a task to be fulfilled, informed and influenced theological and hermeneutical discourses in the “Christian world”. God’s preferential option for the poor and oppressed became common language in mainline ecumenical theology. Today Christians in the South and elsewhere are challenged to build on contextual theologies as part of their ecumenical social responsibility in addressing contemporary issues of justice, peace, human rights and reconciliation. What is needed is a spirituality that takes hold of real-world as well as local challenges, and will not let them go unresolved. Fellow men of the St. Thomas Episcopal Church, the time is now that you raise up your voices against the ills in our society.

Such a spirituality may begin in a profound encounter with the self (each and every one of us in here). But from the beginning we must be prepared to move beyond self into close community (our neighborhood, towns, clans, districts and counties), and from there into action in the world God loves (beyond national boundaries). According to Dr. Kobia, “in the solitude of self, we experience a yearning for companionship; in community we find the desire and commitment to help build a more just and caring world community; and, in our interaction with the world and its many people, the Holy Spirit will affirm our identity and give us a place to stand. From that stand, we will develop and nurture ecumenism for our times in the 21st century’.

Distinguished ladies and gentlemen, your Retreat today provides an opportunity for us to reflect on how Christians in the various denominations, communities, et al. need to unite, and then interact across denominational boundaries. Once such ecumenical spirit gains traction, it will be easier for us (Christians) to tackle and perhaps defeat the many ills in our society. Liberia can only become a better place for all (men, women and children) if we (Christians) in every corner of our land focus on Christ Jesus, our Lord and Savior, and practice His teachings. We must move His teachings beyond congregations, tribes, political parties, et al. The Golden rule must be ‘do unto others as you wish them do unto you’.

Least I forget, what are we (men in Liberia) doing about the 2017 elections as Christians within the confines of ecumenism? Are we looking for candidates who can dig deep into their pockets and satisfy us in the short term, or we are concerned about a brighter future for our children and country? Are we supporting candidates based on parties, denominations, and tribes or we are supporting those with an outstanding track record of reconciling Liberians, and collectively using their talents to build us a great nation? It is about time that we speak out against those candidates that cause Liberia and Liberians the mayhem, pain, suffering, deaths, poverty and agony to gain their wealth. We need justice, not killers, we need God fearing leaders, not rogues, warlords, gays, lesbians, and war sponsors who parade the corridors of power in our country at the detriment of the poor and oppress. We need to therefore elect individuals that come clean of the rotten system. Did I say those without any sin or who have never worked in Government? No. Romans 3:23 puts it clear that ‘we all have fallen short of the Glory of God’… with this caveat, we must look for the lesser of the evils.

VII. Conclusion

As His Holiness Aram I argues: “there is no alternative to a dialogue that challenges all religions to go beyond their institutional and dogmatic boundaries to seek a common ground for living, reflecting and working together. With this understanding and vision, our churches are called to re-engage responsibly in this common adventure’. Given the complex and sensitive nature of ecumenical and inter-religious dialogue, the engagement of the churches must be constantly reviewed and re-assessed in a critical and realistic manner” (Report of the Moderator to the 2003 WCC Central Committee meeting, p.5).

I therefore call on us all here today and those afar to introspect and overcome selfish barriers, move into communities and build bridges of peace, hope and unity, and move across countries to spread the word of God, bringing peace, justice, freedom to mankind, integrating Christians, and helping the poor get out of abject poverty, and the oppressed get justice. This is our ecumenical calling and charge.

Thank you very much for inviting me.

Questions & Answers!!!

Global Witness Exposes Corruption in Liberia

Liberian government pledges to investigate

A Global Witness exposé released today has uncovered over US$950,000 in bribes and other suspicious payments by UK mining firm Sable Mining and its Liberian lawyer, Varney Sherman. Responding to Global Witness’ findings, the government has pledged to investigate and hold those culpable to account.   

The report, The Deceivers (1), shows how in 2010 Sable hired Varney Sherman, Liberia’s best-connected lawyer and current Chairman of President Ellen Johnson Sirleaf’s Unity Party, in an effort to secure one of Liberia’s last large mining assets, the Wologizi iron ore concession in northern Liberia. Sherman told Sable that in order to obtain the contract the company must first get Liberia’s concessions law changed by bribing senior officials, according to a source familiar with the discussions. The account is backed up by leaked emails and company documents seen by Global Witness. (2)

According to the documents, Sherman then began distributing Sable’s money to some of Liberia’s most important government officials.

“Sable and Sherman paid bribes in order to change Liberia’s law and get their hands on one of its most prized assets, the Wologizi concession,” said Jonathan Gant, Senior Campaigner with Global Witness. “The government must act fast and investigate Sable, Sherman, and the officials they paid.”

The table below details the bribes listed in an account statement by Sable and Varney Sherman’s law firm, Sherman & Sherman:

Global Witness uncovered other payments by Sable to officials and unidentified people referred to as “Bigboy 01” and “Bigboy 02.” While it is not clear why the company made these payments, some of those involved are key to approving contracts.

Fombah Sirleaf, son of President Johnson Sirleaf and head of Liberia’s National Security Agency also benefitted from Sable’s largesse. In 2011, Sirleaf went on a US$7,598 hunting trip to South Africa paid for by Sable, spending over US$1,000 in a gun shop alone. There is no evidence that Sirleaf provided Sable with any favours, although he was clearly a useful person to know.

The table below details other questionable payments made by Sable:

At the time that these payments were made, Sable Mining was headed by British businessmen Phil Edmonds and Andrew Groves. At the time that these payments were made, Sable Mining was headed by British businessmen Phil Edmonds and Andrew Groves. The Deceivers shows how, in addition to their misadventures in Liberia, the pair have siphoned millions from investors and hired a security agent who spied on and intimidated their business rivals. Details of Edmonds’ wealth are rare, but in 2012 he was reportedly worth some US$14 million. (3)

Despite the company’s corrupt tactics, Sable has not been awarded the Wologizi contract. However, in January 2015, Sable announced that it had received lucrative rights to transport iron ore from its Guinean concession to the Liberian coast on a railroad used by ArcelorMittal. (4) According to Sable the deal will greatly reduce the costs of its Guinean operations. The Liberian government states that it is negotiating with Sable, but has not yet given the company rights to the railroad. (5)

“The Liberian government has pledged to ‘spare no efforts’ investigating Sable’s activities in Liberia and has said it will ‘bring to justice anyone found to be culpable’.” said Gant. “After recent prosecutions of officials for bribery in the oil and forest sectors, it is time for the government to tackle bribery in the country’s biggest sector: mining.”

Sherman, who has represented investors such as Chevron and Firestone, has also benefitted from his dealings with Sable. A $200,000 payout from Sable’s funds labelled ‘political contribution – UP convention’ is dated 22 April 2010, less than three weeks before a Unity Party conference where Sherman was elected party Chairman.

At the same convention, Unity Party members elected Henry Fahnbulleh as Secretary General. Sherman opposed this and publicly demanded Fahnbulleh’s resignation. Documents seen by Global Witness show how, on 24 June, Sable paid out US$25,000, labelled as ‘Political contribution – UP Secretary General resignation.’ Fahnbulleh quit the next day.

If it is found that they broke the law, Liberian government officials should be removed from office and prosecuted, while Sherman should be disbarred and also face criminal charges. For its part, if Sable broke the law Edmonds and Groves should be prosecuted and Sable’s transportation licence should be revoked.

“Edmonds, Groves, Sherman, and the Liberian officials they paid should not be able to profit from corrupt, back-room deals,” said Gant. “Only through these actions will Liberia demonstrate that it is serious in its fight against corruption.”

When asked to comment on Global Witness’s findings, Sable said it conducts its business ‘in a responsible and ethical manner.’ It said it had conducted a review into the payments in 2011, but that no evidence implicating the company’s Board of Directors was found and financial controls were tightened as a result. The payments documented by Global Witness were made by Delta Mining, in which Sable had only a minority interest, the company said. But the payments came from Sable’s account and not Delta’s, a spreadsheet detailing bribe payments shows.

Global Witness attempted to contact those listed as having received payments or gifts. Tolbert, Belleh Kupee and Wotorson all denied taking bribes from Sable. Tolbert, however, did acknowledge accepting payments to the football team. Saytumah, Tyler, ECB Jones and Fombah Sirleaf did not respond to letters hand-delivered to their offices. Sherman declined to comment on grounds of confidentiality, although he acknowledged that his firm made unspecified payments from its Sable client account.

/ ENDS

How Corrupt Officials Fraud Government

Ministry of Foreign Affairs

Internal Audit Investigative Report on IECI Japanese Grant Project

dated: August 11, 2015

Table of Contents

1.                 Executive Summary                                                                                                                                   2

2.                 Background                                                                                                                                                  3

3.                 Objectives                                                                                                                                                     3

4.                 Scope                                                                                                                                                             4

5.                 Methodology                                                                                                                                                4

6.                 Findings                                                                                                                                                         5

7.                 Conclusion                                                                                                12

8.                 Appendix                                                                                                              12

1.   Executive Summary

1.1  The Internal Audit Bureau has conducted a forensic audit of the International Economic Cooperation and Integration (IECI) Japanese Grant Project to ascertain the accuracy, completeness and reliability of the Project funds and of documents and activities undertaken for the period June 1, 2014 to July 31, 2015. The audit was conducted based on a request from the Minister of Foreign Affairs, His Excellency Hon. Augustine Kpehe Ngafuan as a result of allegation of suspected fraud in the management of the funds of the Project.

1.2  This report contains our findings and recommendations, based on the audit conducted of the project funds and evidence gathered.   Based on the audit of documents and records of the Project, we gathered the following findings:

1.2.1 The Department has no project accountant to periodically monitor, review and institute internal control over the Project funds;

1.2.2 No bank reconciliations of the two Project Accounts kept at Afriland Bank;

1.2.3 There was no segregation of duties of the financial activities of the Project; all the financial activities were conducted by a single individual, the Project Manager;

1.2.4 Signature specimen obtained from the bank indicates that the Project Manager and the former Deputy Minister for Economic Cooperation empowered themselves with exclusive rights to withdraw funds from the accounts with a single signature requirement; this action set the basis of a potential fraud.

1.2.5 Based on our audit and review of documents provided by the Department of IECI and Afriland Bank, we observed that transactions valued at LD$19,079,815.00, its equivalent in US$ 227,140.65 at the exchange rate of 84, represents net fraud amount during the period, as there were no supporting documents to validate the transactions.

1.2.6  Afriland First Bank did not exercise due diligence in protecting the Project Accounts kept with it.

1.3  It is our hope the above control weaknesses will be resolved as soon as possible to protect the funds of the IECI Project.

Sincerely yours,

Joseph Ballah

Director of Internal Audit

2.      Background

2.1  In June 2014, The Japanese Government provided a grant valued at US$ 731,422.00(Seven Hundred and Thirty one thousand, four hundred and twenty two United States Dollars), it equivalent in LD$ 61,439,448 to fund a project titled: “Institutional and Human Resource Support for Efficient Operation” of the Department of International Economic Cooperation and Integration (IECI) in response to the bilateral consultations between the Governments of Liberia and Japan in 2008. The Japanese Government provided the fund to build the capacity of staff of the Department of International Economic Cooperation and Integration (IECI). 

2.2  The Project was managed by a team comprising of the Deputy Minister for International Economic Cooperation and Integration and a Project Manager. The Project team had no monitoring and supervisory oversight body to periodically review its activities.

2.3  A 50% transfer valued at LR$ 33,316,422.00 (US$ 365,711.00) was approved and transferred from GOL consolidated account to the IECI Project’s account at the Afriland First Bank on 23^rd June 2014. The project’s bank statement showed that as of December 31, 2014, LD$23, 128,587.00 with it equivalent in US$ 275,340.32, had been spent, while the account balance showed LD$ 10,345,510.00 (US$123,160.83). Further, as of May 2015, the account showed a balance of LD$1,644,771.00, it equivalent in US$ 19,580.61 and by early June 2015, the account was in overdraft of L$1,703.00

2.4  An account was established at the Afriland First Bank for the Monitoring and Evaluation (M & E) of the International Economic Cooperation and Integration Japanese project in the amount of LR$7,229,328.00, its equivalent in US$86,063.42 to help in the supervision of the project.

3.      Objectives

3.1  The objectives of the audit were to provide reasonable assurance and ascertain the following:

3.1.1        Obtain an understanding of the GOL-IECI  Project;

3.1.2        Ascertain the extent of the fraud and misappropriation of fund;

3.1.3        Assess and evaluate the effectiveness and efficiency of internal control over the project funds and of the information and records of the Project;

3.1.4        Ascertain the accuracy, completeness and reliability of documents and records of disbursements;

3.1.5        Ascertain whether all transactions were authorized and approved by the appropriate persons; and

3.1.6        Identify all individuals responsible, negligent and or associated with the fraud.

4.      Scope

4.1  This IECI audit covers the period June 2014 to July 2015 and applies to the management and disbursement of funds from the IECI project’s accounts at the Afriland First Bank (LIB.). The audit also covers all documents and records of the Project activities and of control weaknesses in the system leading to fraud and misapplication of Project fund.

4.2  We conducted the audit in accordance with the International Standards for the Professional Practice of Internal Auditing as issued by The Institute of Internal Auditors. These Standards require that we plan and perform our audit to obtain sufficient and appropriate evidence as a basis of our conclusion and recommendations.

4.3  We also applied such other audit procedures as we determine were necessary to gather sufficient and appropriate evidence for our conclusion and recommendations.

5.      Methodology

5.1  We designed and performed a number of procedures to achieve our audit objectives. These procedures included interviews with individuals who are signatories to the Project Account, some staff of the Department of International Economic Cooperation and Integration, and some key staff of the Afriland Bank. We performed the following procedures:

5.1.1        Developed and executed a detailed audit program;

5.1.2        Conducted interview with interested parties and discussed the objectives of the audit;

5.1.3        Examined various documents and records to ascertain the level of misappropriation of Project fund;

5.1.4        Tested compliance with applicable laws and regulations to determine compliance with internal control measures;

5.1.5         Reviewed  and recomputed all financial documents obtained from the auditees;

5.1.6        Performed  analytical review of supporting documents provided by both IECI Project and the Afriland First Bank;

6.      Findings

Condition 1

Only Single Signature was required to withdraw from the Project Account

The audit revealed that signature specimens prepared to effect withdrawal from the Project accounts at the Afriland First Bank indicates that two of the signatories, in persons of Deputy Minister Elias Shoniyin and Project Manager, Augustine Nyanplu had the exclusive power to singly approve cheques for encashment. Deputy Minister Elias Shoniyin informed the auditors that he was not aware of any of the signatories possessing exclusive rights to approve checks singly, as this was never the intent of the Project. However, documents in the position of the auditors showed that Minister Shoniyin was fully aware of the exclusive power of single signatory right to withdraw from the Project Account. 

First signatory arrangement

During the process of our investigation, we observed that the GOL-IECI project A/C # 0000108854-01-70 was initially opened with the three (3) signatories affixing their signature as evidence on the signature specimen. The three (3) signatories were Mr. Elias B. Shoniyin, with the power A+A, Mr. Augustine Nyanplu, B+B and Mrs. Elizabeth Johnson Sirleaf as C+A or C+B. See Appendix

This action indicated that the both signatories in persons of Mr. Elias B. Shoniyin and Mr. Augustine Nyanplu could withdraw from the project account without the knowledge of signatory C. Therefore, the absolute or overriding power granted to Mr. Elias B. Shoniyin and Mr. Augustine Nyanplu created the basis for a potential fraud. Also, this created doubt or suspicion about the management of the project fund as well as the account.

Second signatory arrangement

The second signatory specimen card arrangement came about as the result of the appointment of Mr. Thomas Kaydor as Deputy Minister for International Economic Cooperation & Integration and Dr. Wede Elliot Brownell as Deputy Minister for Administration, Ministry of Foreign Affairs. Mr. Thomas Kaydor replaced Mr. Elias B. Shoniyin and Dr. Brownell replaced Mrs. Elizabeth Johnson Sirleaf. The arrangement was structured as follow. See Appendix

·         Mr. Thomas Kaydor- A+B, B+C

·         Dr. Wede Elliot Brownell B+A, B+C

·         Mr. Augustine Nyanplu C+A, C+B,

Under this arrangement, no individual signatory could effect withdrawal without the involvement of another signatory to the account. Prior to the submission of the signatory specimen to the Afriland First Bank for effective action, Mr. Nyanplu who was serving as the project manager, with the powers C+A and C+B, altered the specimen card with C+C without the knowledge of other signatory to the account. See Appendix

This action on the part of Mr. Nyanplu served as a recipe for continuation of the fraud. Also, the Afriland First Bank did not perform due professional care by contacting the two other signatories to the account (Mr. Thomas Kaydor and Dr. Wede Elliot Brownell) to authenticate the additional option of C+C. 

Furthermore, documented evidence provided to us showed that miss Comfort Y. Mohn a staffer at the Afriland Bank deposited on two separate occasions on behalf of Mr. Augustine Nyanplu. It is yet to be established on whether or not it’s part of normal banking practice to deposit a certain amount in the name of a customer. According to the profolio manager, Mr. Steven Tokpa who indicated that issue of such situation occurs wherein customer will give money to the staffer to be deposited in the customer account bearing the name of the staffer as the depositor.

This action provides a potential risk for fraud.

 Criteria:

The COSO Integrated Internal Control Framework requires adequate segregation of duties such as multiple signature combination to bank accounts to ensure that no single individual has access to cash and bank without appropriate check and balances.

Cause:

The main reason for the lack of adequate segregation of duties and of the single authorising power was the poor structuring of the Project Management Team. The Project had no accountant to perform periodic reconciliation of the Project Account.

Consequence:

The use of single authorising and signing power of cheques of the Project funds has led to fraud and misappropriation of the Project fund in the amount of L$19,079,815.00, in USD equivalent $227,140,65 at the exchange rate of 84. Please see appendix. 

Corrective action:

The Project Manager, Mr Augustine Y. Nyanplu and the Deputy Minister for International Economic Cooperation and Integration, Hon. B. Elias Shoniyin should account for the funds misappropriated from the Project Account. This should be done within one month after the issuance of this report.

Condition 2:

Lack of due professional care on the part of Afriland Bank to ensure client moneys are adequately protected

We observed that Afriland Bank did not exercise due professional care in conducting the affairs of the Project accounts under its supervision by its deliberate failure to refer to authorities of the Foreign Ministry for clarity on critical issues relating to withdrawals and administration of the Project Accounts. On June 24, 2014, Afriland First Bank effected an overdraft in the amount of LD$1,631,500.00, in USD equivalent $19,422.62 at the exchange rate of 84, without documented authorisation from the Ministry of Foreign Affairs. The Bank, represented by its Chief Executive Officer (CEO), Mr. Amadu O. Bayo in response to auditors regarding the overdraft, explained that the transaction was not an overdraft, but a discount against the deposit made earlier. Table below shows detail of the transactions:

Date	Payee	CHK.NO.	Amt in LRD	Amt in USD	Signed by:
23/06/14	Augustine Nyanplu	0000083369	430,000.00	5,119.05	Augustine Nyanplu
24/06/14	Sold Cur. In A/C No. 417530		184,000.00	2,190.48	Augustine Nyanplu
24/06/14	Augustine Nyanplu	0000083371	1,017,500.00	12,113.10	Augustine Nyanplu
	Total		1,631,500.00	19,422.62

Secondly, in the establishment of the second signatory specimen, it was noticed that Mr. Augustine Nyanplu made alterations on his portion of the card with a C+C power, giving him exclusive right to singly withdraw from the project account. The bank however did not apply any effort in contacting other signatories of the account to ascertain the reliability of the document. The fact that the lowest signatory to the account, Mr. Nyanplu had been given the single right to withdraw unilaterally and neither signatories A or B had such right, should have raised eyebrows. Nevertheless, the bank ignored such and continued to do business with a single individual. 

Criteria:

Basel Bank Supervision Procedure and CBL regulation require banks to ensure proper protection of depositors funds by ensuring adequate internal controls in a process called “know your client” and such other measures that will ensure that depositor funds are safe and protected against fraud.

Cause:

The reason for the execution of the above transactions is the Bank’s deliberate failure to exercise due professional care regarding the Project Account. The Bank did not also exercise due professional care by accepting single authorising signature on a major entity’s account kept with it.

Consequence:

Due to the Bank’s failure to exercise due professional care, the Project Manager fraudulently withdrew funds from the Project Account that would not have been paid had the Bank taken due care.

Corrective action:

The Bank should account for all funds fraudulently withdrawn as a result of its failure to exercise due professional care. This should be done within one week after the issuance of this report.

Condition 3:

Breach of the PFM Act and Regulations by the Project Management Team

We observed that the Project Management Team of the IECI Japanese Project breached the Public Finance Management Law by authorising disbursements and paying cheques during the period June 2014- June 2015 without Internal Audit Bureau involvement to perform compliance review of all such disbursements.

Criteria:

Section 38 Subsection 1C) of the  Public Finance Management Act  requires that Internal Audit Unit evaluate the adequacy of management checks and balances and controls in the financial management practices within the institution. Accordingly, Internal Audit Bureau performs compliance reviews of all disbursements of the Ministry of Foreign Affairs.

Cause:

The lack of compliance review was due to deliberate attempt by the Project Manager to circumvent the PFM Laws; it was also due to the poor set up of the Project financial management systems and lack of appropriate oversight by the responsible authorities.

Consequence:

As a result of the lack of compliance review, most of the fraudulent payments that could have been flagged and or prevented by the Internal Audit Bureau intervention could not be prevented.  

Corrective action:

The Project Management Team should be properly structured and appropriate Project financial management systems should be set up to ensure that all disbursements are properly reviewed, authorised and approved by the responsible authorities. This should be done immediately after the issuance of this report. 

Condition 4:

Misappropriation of Project Funds

Based on our audit and review of documents provided by the Department of IECI and Afriland Bank, we observed that transactions valued at L$19,079,815.00, its equivalent in US$ 227,140.65 represent questionable transactions during the period as there were no supporting documents to validate the transactions. The audit also revealed that IECI Project Manager, Mr. Augustine Nyanplu, who was  primarily in control of all the Project financial activities, on numerous occasions, singly signed cheques to himself and withdrew funds from the Project Account without the involvement of other signatories.

Criteria:

The Project fund was intended for institutional and human resource support for efficient operation of the Department of International Economic Cooperation and Integration. All disbursements other than those for the earmarked purpose are questionable.

Cause:

The Project Manager was able to sign cheques and withdraw funds from the Project Account due to the lack of appropriate controls and oversight by responsible authorities; it is also due to the poor financial management systems over the Project fund. In addition, the Bank did not exercise due professional care to verify with the Ministry of Foreign Affairs those cheques that were continually signed by and paid to the same individuals.  

Consequence:

This represents huge financial loss to the Government of Liberia of funds that are critically needed for institutional and human resource development. Please see appendix.

Corrective action

The Project Manager should primarily account for the amount of L$19,079,815.00, its equivalent in US$ 227,140.65 which represents questionable transactions executed by him alone. This should be done immediately after the issuance of this report.

Condition 5:

Contact numbers presented to the Bank were those of only two signatories

We observed that the only mobile numbers provided the Bank to make calls and confirm all payment requests were those of Deputy Minister Elias Shoniyin (0886521604) and Mr. Augustine Y. Nyanplu (0886589332). Other signatories to the Account were left out of the loop.

Criteria:

A major internal control by banks is to call account holders or otherwise signatories to an account to confirm cheques written on such account. This will authenticate and or validate any cheque written on the account.

Cause:

The Project Manager deliberately submitted numbers that he felt could confirm cheques fraudulently drawn on the Project Account.

Consequence:

The lack of the contact number of other signatories to the Project Account at the Bank contributed to the fraud perpetrated by the Project Manager.

Corrective action:

The contact numbers of all signatories to the Project Account should be submitted to the Bank, whether Afriland or any other commercial banks. This should be done immediately after the issuance of this report.

Condition 6:

Deputy Minister singly signed cheques

The audit team visited the offices of Minister Elias Shoniyin on 5^th August 2015 to conduct an interview regarding the activities of the GOL-Japasese Project Accounts. The Minister was asked as to whether he could recollect at any point in time, affixing his signature, singly to any cheque belonging to the Project. The Minister responded, indicating that all cheques signed by him were co-signed by Assistant Minister Elizabeth Johnson Sirleaf. However, processed cheques obtained from Afriland First Bank indicate that the Minister Shoniyin singly signed cheques bearing the name of Mr. Monie Hooke Momolu and other individuals as shown in the table below:

Date	Payee	Chk.no.	Amt in LD	Amt in USD	Signed by:
22/08/14	Monie Hooke Momolu	00127916	260,000.00	3,095.24	Elias Shoniyin
20/01/15	Bees Affordable Car Rental/ Marcus Juah	00168708	76,500.00	910.71	Elias Shoniyin
11/11/14	Augustine Nyanplu	00163886	43,500.00	517.86	Elias Shoniyin
14/01/15	Sky Tech, Int’l	00168705	52,615.00	626.37	Elias Shoniyin
20/03/15	Mattar Trading Co.	00173999	42,000.00	500.00	Elias Shoniyin
13/01/15	J. mart	00168703	121,800.00	1,450.00	Elias Shoniyin
12/03/15	Mattar Trading Co.	00173998	12,600.00	150.00	Elias Shoniyin
22/08/14	Monie Hooke Momolu	00127914	80,910.00	963.21	Elias Shoniyin
22/08/14	Monie Hooke Momolu	00127915	18,600.00	221.43	Elias Shoniyin
19/01/15	Monie Hooke Momolu	00168707	15,725.00	187.20	Elias Shoniyin
23/02/15	CHK. Remit No. 00173986	00173966	11,200.00	133.33	Elias Shoniyin
23/02/15	Chk. Remit No. 00173985	00173985	50,040.00	595.71	Elias Shoniyin
16/12/15	CHK. R emit. No.00165284	00165284	22,600.00	269.05	Elias Shoniyin
	Total		808,090.00	9,620.12

Criteria:

The COSO Integrated Internal Control Framework requires adequate segregation of duties such as multiple signature combination to bank accounts to ensure that no single individual has access to cash and bank without appropriate check and balances.

Cause:

The main reason for the lack of adequate segregation of duties and of the single authorising power was the poor structuring of the Project Management Team. The Project had no accountant to perform periodic reconciliation of the Project Account.

Consequence:

The use of single authorising and signing power of cheques of the Project funds could lead to fraud as it has led to fraud and misappropriation of the Project fund in the amount L$19,079,815.00, its equivalent in US$ 227,140.65  . Please see appendix. 

Corrective action:

The Project Management Team should ensure that there are signatory combinations to authorise and approve cheques on the Project Account. This should be done immediately after the issuance of this report.

Condition 7:

Cheque in the cheque stub marked voided was cashed by Mr Monie H. Momolu

During our analytical review of cheque stub received from Afriland Bank, we observed that cheque stub marked voided was cashed by Mr Monie H. Momolu. The value of the cheque was L$170,000.00. When contacted by Internal Auditors, Mr Momolu denied that he had any knowledge of the transaction. Internal Audit obtained documents bearing the passport and signature of Mr Momolu as a proof that he cashed the cheque. Mr Momolu further issued a memo to Internal Audit stating that he is not aware of this transaction. See Appendix

Criteria:

Best practice is that cheques marked voided should not be cashed or honored by banks. Such cheques should be safeguarded from an unauthorised access.

Cause:

This was a deliberate act by the issuer, Mr Augustine Nyanplu to defraud the Ministry of Foreign Affairs.

Consequence:

The act of cashing cheques whose stub is marked voided is a breach of internal control and fraudulent done purposefully to commit fraud.

Corrective action:

Mr Monie H. Momolu should account for L$170,000.00 which was an amount in cheque issued in his name and cashed. This should be done immediately after the issuance of this report. 

7.      Conclusion and Recommendations

7.1  The objective of this audit was to ascertain the accuracy, completeness and reliability of the Project funds and of documents and activities undertaken for the period June 1, 2014 to July 31, 2015. The audit was also intended to quantify the amount of funds misappropriated by the Project Management Team as a result of breach of internal controls.

7.2  Based on our audit and review of documents and records, the Project Manager, Mr. Augustine Nyanplu, who was primarily in control of all the Project financial activities, on numerous occasions, singly signed cheques to himself and withdrew funds from the Project account in the amount of L$19,079,815.00, its equivalent in US$ 227,140.65 without the involvement of other signatories. These transactions had no supporting documents to substantiate and validate his claims to the disbursements to himself.

7.3  We recommend that going forward; Internal Audit continues to perform compliance review of all disbursements from the Project Account as was initiated since July 2015.

8.      Appendix:

Cheques Signed by Mr. Augustine Nyanplu and paid to himself without any supporting documents and records to substantiate the disbursements

Date	Payee	CHK. NO.	Amt in LRD	Amt in USD	Signed by:
14/07/14	Augustine Nyanplu	00127909	950,000.00	11,309.52	Augustine Nyanplu
19/09/14	Augustine Nyanplu	00155648	560,000.00	6,666.67	Augustine Nyanplu
25/09/14	Augustine Nyanplu	00155630	4,550,000.00	54,166.67	Augustine Nyanplu
01/11/14	Augustine Nyanplu	00155643	860,000.00	10,238.10	Augustine Nyanplu
17/11/14	Augustine Nyanplu	00155644	4,450,000.00	52,976.19	Augustine Nyanplu
16/12/14	Augustine Nyanplu	00155646	810,000.00	9,642.86	Augustine Nyanplu
08/09/14	Augustine Nyanplu	00155649	900,000.00	10,714.29	Augustine Nyanplu
12/01/15	Augustine Nyanplu	00165324	620,000.00	7,380.95	Augustine Nyanplu
18/05/15	Augustine Nyanplu	00130982	300,000.00	3,571.43	Augustine Nyanplu
15/06/15	Augustine Nyanplu	00130993	45,000.00	535.71	Augustine Nyanplu
21/07/14	Augustine Nyanplu	00127715	960,000.00	11,428.57	Augustine Nyanplu
07/05/15	Augustine Nyanplu	00165301	125,000.00	1,488.10	Augustine Nyanplu
13/03/15	Augustine Nyanplu	00117090	600,000.00	7,142.86	Augustine Nyanplu
24/04/15	Augustine Nyanplu	00130978	125,000.00	1,488.10	Augustine Nyanplu
30/04/15	Augustine Nyanplu	00165298	125,000.00	1,488.10	Augustine Nyanplu
06/04/15	Augustine Nyanplu	00117094	250,000.00	2,976.19	Augustine Nyanplu
23/06/14	Augustine Nyanplu	000083369	430,000.00	5,119.05	Augustine Nyanplu
24/06/14	Augustine Nyanplu	Sell cur.	184,000.00	2,190.48	Augustine Nyanplu
24/06/14	Augustine Nyanplu	0000083371	1,017,500.00	12,113.10	Augustine Nyanplu
25/08/14	CHK. Remit No. 00127913	00127913	950,000.00	11,309.52	Augustine Nyanplu
26/06/15	Augustine Nyanplu	00130927	175,000.00	2,083.33	Augustine Nyanplu
04/08/14	Augustine Nyanplu	00127911	585,000.00	6,964.29	Augustine Nyanplu
25/08/14	Augustine Nyanplu	00127913	950,000.00	11,309.52	Augustine Nyanplu
04/03/15	Augustine Nyanplu	00060197	420,000.00	5,000.00	Augustine Nyanplu
04/08/15	Augustine Nyanplu	00127701	585,000.00	6,964.29	Augustine Nyanplu
		Total	21,526,500.00	256,267.86

Personal deposit effected by Mr. Nyanplu to increase the account balance.

Date	Depositor	CHK. NO.	Amt in LRD	Amt in USD
16/12/14	Comfort Y. Mohn		157,775.00	1,878.27
29/05/15	Comfort Y. Mohn		440,070.00	5,238.93
29/05/15	Pur. Curr. No. 602972		1,170,120.00	13,930.00
8/06/15	Imm. Trf. Same No. 00005969		10,000.00	119.05
23/06/15	Pur. Curr No. 616473	616473	142,800.00	1,700.00
29/07/15	Rev.Chq. from clear No. 00178667	00178667	325,920.00	3,880.00
01/06/15	IMM. TRF Same cu No. 00005911 O/GOL		200,000.00	2,380.95
	Total		2,446,685.00	29,127.20

Summary of Net fraud amount 

No.	Description	Amount in LRD	Amount in US
1	Withdrawal made by Augustine Nyanplu	21,526,500.00	256,267.86
2	Deposit made by Augustine Nyanplu	2,446,685.00	29,127.20
	Net Fraudulent amount	19,079,815.00	227,140.65