Open letter to the Honorable Lawmakers of the Republic of Liberia

The Perspective
Atlanta, Georgia
December 28, 2021

Honorable Senators and Honorable Representatives of the Republic of Liberia
Lawmakers of the Republic of Liberia
Capitol Building,
Monrovia, Liberia                                                                   December 28, 2021

Re: Open letter to our Honorable Lawmakers of the Republic of Liberia

Dear Honorable Lawmakers of the Republic of Liberia:

I am kindly appealing to you for the Legislature of the Republic of Liberia to visit the idea that the World Bank should choose between being Liberia’s premier economic adviser and at the same time Liberia’s biggest creditor. This idea is not new.

Many years ago,  former employees of the Bank asked Dr. Jim Yong Kim, former President of the World Bank (from 2012-2019) to focus on profits, as per Mr. Andrew Rice’s article called “Is Jim Kim Destroying the World Bank-or Saving It From itself?” (www.foreignpolicy.com). Would a profit-seeking institution willingly reconsider a legal venture? Not really. Moreover, the Bank has and continues to assert that the activities of the five subsidiaries are separate and independent, hence, there is minimal overlapping of interest, and/or minimal benefits such as the economics of scale and/or functional integration of values that might be accrued from the synergies of subsidiaries.

The World Bank was organized in 1943 to fight poverty, etc. by using contributions from member countries. But, as per the information below, its five subsidiaries’ activities are undermining Liberia’s development.

1. International Bank for Reconstruction and Development (IBRD):

a) Generates revenue from Liberia to provide advisory services in negotiating concessionary agreements, for example. (See page # 3 of 2020 IBRD Annual Report).

b) Generates revenue from lending money to Liberia. (See page # 10 and # 14). Did IBRD play a role when Liberia awarded 66 fraudulent concessionary agreements of the 68 since big business owned 82% of the assets of IBRD? (See page # 2).

 

2020 IBRD Financial Statements: In 2020, $391M was left to fight poverty.

Revenue/expense	2020	2019	2018
Loan Interest revenue, Net	$2,414	$2,267	$2,161
Total Administrative Expenses:	2,023	2,057	2,049

In millions of U.S. dollars. (Page # 10 and page # 14).

2) International Finance Company (IFC)

a) Generates revenue from lending money to profit-making entities.

b) Generates revenue from gold mining, but Jessica Evans, a senior researcher at Human Rights Watch, was disappointed when the gold activities of New Liberty Gold affected residents in Kinior, Liberia.

c) Liberia Electricity Corporation paid IFC as a principal adviser “…for helping to reform LEC, according to IFC representative to Liberia, Jumoke Jaqun-Dokunmu. Also, did IFC play a role in selecting the Millennium Challenge Account (MCA) (i.e., an affiliate of Millennium Challenge Corporation-American Institution) to manage LEC from 2015 through January 20, 2021? Sadly, MCA has failed to publish a financial report.

3) International Development Association (IDA)

a) Generates revenue from lending money to poor countries.

b) Receives money from IBRD and IFC

c) Receives donations from member countries

 

2020 IDA financial statements: In 2020, expenses more than revenue.

Revenue/expense	2021	2020
Loan Interest revenue, Net	2,050	1,684
Total Administrative Expenses:	2,174	2,142
Grants (IBRD, IFC and Partners)	2,830	1,475

In millions of U.S. dollars.  (Page # 14 and page # 18)

In 2021, IDA had $36 billion for lending and grants: It gave $23.9 billion as loans to poor countries and gave $12.1 billion as grants. Note, grants are given “…once all conditions are met, generally at the time of disbursement.”  IDA charges fees for grants. “…Commitment charges earned on loans and grants (if any) are reported as non-interest revenue in the Statement of Income.” Moreover, IDA gives a significant portion of the grants to IGNOS (i.e., IDA does not remit grants directly into the bank accounts of governments). Worse, INGOs do not provide financial report. For instance, IGNOS did not report for donors’ USD 5B given to Liberia, according to Liberian Citizens’ Guide 2012/13 through 2018/19.

4) Multilateral Investment Guarantee Agency (MIGA)

 

MIGA helps investors mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, war, and civil disturbance, as well as offering credit enhancement on sovereign obligations. Has MIGA question ArcelorMittal Steel’s underpayment of the $3M to Bassa, Nimba, and Bong?

5) International Centre for the Settlement of Investment Disputes (ICSID):

ICSID provides, through its specialized rules of procedure, world-class facilities, and expert legal and administrative support, unparalleled dispute resolution services to States and investors. What is the view of ICSID concerning the ownership of the railway and port of Buchanan? Should Liberia give the railway and port of Buchanan to ArcelorMittal Steel?  

The Lawmakers of Liberia should organize a committee to review the activities of the five subsidiaries of the World Bank, specifically to visit the idea of increasing Liberia’s revenue from operating gold mines and diamonds creeks. Liberia’s revenue has been around USD 500 million since the fiscal year 2016/17.

Thanking you in advance for your understanding.

J. Yanqui Zaza
New York State Certified Public Accountant (NYS CPA), MPS                                                                             
Tel: +231-776491322  Email: jyanqui@aol.com     
VOA Paynesville, Liberia

References

2020 IBRD FINANCIAL STATEMENTS
https://thedocs.worldbank.org/en/doc/521601597072122154-0340022020/original/IBRDFinancialStatementsJune2020.pdf

2020 IFC Financial Statements
https://www.ifc.org/wps/wcm/connect/89ed5720-0a49-4584-aede-ccce7b811817/Annual+MD%26A+and+FS+Document_FY20+Q4.pdf?MOD=AJPERES&CVID=nx6aCl4

2020 financial statements of IDA
https://thedocs.worldbank.org/en/doc/55ac1406fd9fe61a56e6e5d097ef8251-0040012021/original/IDA-Financial-Statements-June-2021.pdf

2020 financial statements of MIGA
(https://www.ifc.org/wps/wcm/connect/89ed5720-0a49-4584-aede-ccce7b811817/Annual+MD%26A+and+FS+Document_FY20+Q4.pdf?MOD=AJPERES&CVID=nx6aCl4

2020 Financial statements of ICSID
(https://icsid.worldbank.org/sites/default/files/publications/ICSID_AR20_CRA_Web.pdf)
(https://icsid.worldbank.org/news-and-events/news-releases/icsid-publishes-2021-annual-report)

PRO-POOR AGENDA PREPARED BY CONGRESS FOR DEMOCRATIC CHANGE (CDC)
(https://www.emansion.gov.lr/doc/Pro-Poor%20Agenda%20For%20Prosperity%20And%20Development%20book%20for%20Email%20sending%20(1).pdf%20-%20Compressed.pdf)
Page # 61 of the PAPD: Private Sector Finance Fund: “Government intends to collaborate with the International Finance Corporation (IFC)…investment opportunities in the economy. The PSFF will finance companies that have more than 100 employees and need capital equipment for large investment in road construction, energy, ICT, and Water and Sanitation.”