Scott Commits to ‘Sovereign Fund’ for All -Faces Senate Confirmation with Ambitious Plans

MONROVIA – Natural resources are not inexhaustible, and in most case for Liberia, not equitably dispensed for the benefit for all, which is why thoughtful leaders handle exploitation and proceeds therefrom with utmost care so that all citizens, including future generations, would also share in their benefit. Facing senate confirmation for the post of Chairperson of the Board for the National Oil Company of Liberia (NOCAL) last week, former Justice Minister Gloria Musu Scott proposed the establishment of she called “sovereign fund” for the benefit for all Liberians, including generations to come. The Analyst reports.

Presidential nominee for the position of Board Chairperson of the National Oil Company of Liberia (NOCAL), Madam Gloria Musue Scott, over the weekend made a strong case for her selection by President Joseph Nyuma Boakai when she faced intense grilling from the Liberian Senate, committing to a number of ambitious plans, including “sovereign fund”.

The former Chief Justice, former Chairman of the Elections Commission, former Justice Minister and former Senator assured the lawmakers that by September this year, the NOCAL Board in consultation with the NOCAL Senior Management Team will present to the Senate the Citizens Fund Bill for passage into law.

The renowned stateswoman also disclosed that NOCAL will shortly present a report for the desk of President Boakai in which strong recommendations are made for the establishment of a Sovereign Fund that will be used to impact Liberians, many of whom see the signing of huge concession agreements but don’t feel the impact of development.

These developments, nominee Scott said, will empower young Liberians who will become direct beneficiaries of training and job opportunities whether or not oil is discovered in the country.

At the confirmation hearing, Montserrado County Senator Abraham Darius Dillon became his grilling by commending nominee Scott for the exceptional academic and professional achievements, but wonder whether she is adequately prepared to serve in a sector that is seemingly an uncharted territory for her.

Dillon began: “Madam Nominee, your credential is very rich. And like my colleague Senator Jallah, I too worked at the Ministry of Justice when you were Minister of Justice and I was Special Assistant to the Solicitor General. Your academic credential is not in question. Your service to our country is as rich. But you are sitting as a nominee going into a terrain that I have not seen any information from you to determine whether you are suitable.”

The Senator continued: “The government of Liberia has enforced section 36A of the 2019 amended Petroleum Law by selecting a pre-qualifying about nine Liberians to own oil companies to potentially acquire 5% equity in oil concessions that the government intends to sign. Disappointingly, to date, the government has taken no action to enforce section 36.7 which mandates he government of Liberia to enact a Citizens’ Fund Law that will, among other things, regulate the administration of a 5% Citizens Fund to provide clear modalities by which all Liberians will benefit. That is the law. As per Section 36 of the law, the Ministry of Finance, NOCAL, LPRA and LRA should draft the Citizens Fund Law and send to the Legislature for legislative consideration. Are you aware of this law, and if so, what is NOCAL doing in this direction? Senator Dillon queried the nominee.”

The NOCAL Board Chairperson-designate responded: “Yes; we are aware that the Government of Liberia has a 10% of the shares in any discovery, and that is what NOCAL manages. And also, like you said, the 5% for Liberian-owned companies, and another 5% about benefits for citizens. We are working on it. Since I’ve been there, we have not reached you yet, but we are developing coordination between the sector ministries meaning the Ministry of Mines, Ministry of Finance, and we’re working along with LRA.

“Like my distinguished senator from River Gee spoke about conflicts and tensions between the Board and Senior Management Team, as we are now, we are working along with the President because we are aware of all these responsibilities. We are trying to smooth the tension because if this tension continues to get out there, we will not function as regards the responsibilities and duties as per statute, and we will portray to the sector investor that the oil and gas sector in Liberia is in disarray.

“Where we are now at this minute, we are exercising the wisdom to calm the sector. You will remember that during the first quarter of this year, there was a change made at NOCAL, and we are still working on things. So, to be able to come to you with a document as our duty and responsibility, we are trying to work out to calm heads and get us to do what we need to do.”

Still not satisfied, Senator Dillon pressed nominee Scott further. “Madam Nominee, we put in this law provisions that will benefit the citizens directly so they feel the impact of their resources. When we don’t follow up in terms of oversight for the implementation of this law to see how the citizens are benefiting, it always comes across as though we doing almost nothing to impact the citizens. It means these laws are just for us. So, I am speaking on this for a few minutes because I want a commitment that if we can enforce provisions of this law, that we can lease oil blocks for government revenue, and we don’t seem to be concerned about taking steps towards enforcing the aspect where the citizens benefit from these laws and these resources, then we are almost here for nothing.”

Dillon said he was the nominee’s attention, because “I am seeking from you a commitment as to when you think that bill can be submitted to us for our action in keeping with the structure of this law.”

Madam Scott retorted: “I will say by September 30 of this year. Senator Dillon, you and I are in sync on this issue because it also impacts security of the state because with the Internet and the young people seeing how young people’s lives in other countries are advancing, but they are seeing the signings of concession agreements at home, they wonder what is happening to them. You and I am actually in sync on the welfare of the ordinary citizens on the street; how their resources are impacting their lives.”

Senator Dillon commented further: “We just take our resources and give it out but the future generation don’t feel the impact of what the current generation is trading off. What NOCAL do in that direction when it comes to developing a sovereign fund for the future.”

To that inquiry, the nominee answered: “Right now, we have a report to present to the President, and that is one of our recommendations. The signature bonus comes in the big pot and it gets expended for salaries and other benefits. At the end of the day, there is no impact for the country. So, we in our board meeting, in discussions with the Senior Management Team, agreed that there needs to be sovereign fund where something concrete will be done with the income from this sector for the future generation.

“And the other thing is that we want to prepare personnel so if there is a significant discovery even in the explorative stage, to train them to be absorbed in the sector. We cannot go for discovery before we begin to train Liberians. From the time we sign, we will train Liberians, whether or not we make a discovery.”

Gbarlopu’s Amara Konneh Raises Read Flag

Gbarpolu County Senator Amara Konneh expressed reservations over why NOCAL has failed to provide the Ministry of Finance a report as it relates to the state-owned enterprise’s revenue contributions, wondering if the entity was in fact financially viable.

“You have been there for a while now as acting Board Chair. Is the organization viable? Is the financial position healthy in terms of revenue generation?” Senator Konneh wondered – an inquiry to which the nominee nodded in confirmation.

“Up to this point, the revenue income is from the sale of data; we are still partnering with TDS on that.”

Again Senator Konneh insisted: “NOCAL was among state-owned enterprises that did not report to the Ministry of Finance as it relates to revenue contributions from SOEs. I wanted to flag this to you as a Board Chair. And I hope you will work with the management to correct that.”

Nominee Scott said she was aware, indicating that she had made inquiry and promised ensure the needful is done, with plans to do a shore-based investment.

“In pursuit of that, the management has secured a land at the Buchanan Port to commence the shore-based investment,” she said. “This will provide steady, sustainable income to run the company whether we discover oil or not.”