Tackling Corruption By Breaking the Horn -US Govt Sanctions 3 Top Officials, more to follow – As Weah Suspends Designated Officials 

MONROVIA – Taking the oath of office in January 2018, President George Manneh Weah made a profound statement against Liberia’s age-old scourge: corruption. On that eventful day, President Weah said, “It is my belief that the most effective way to directly impact the poor, and to narrow the gap between the rich and poor is to ensure that public resources do not end up in the pockets of government officials. I further believe that the overwhelming mandate I have received from the Liberian people is a mandate to end corruption in the public service. I promise to deliver on this mandate.” But five years down the line, as his administration approaches the last leg of its six years tenure, President Weah now faces the toughest battle of his political career, with the Government of the United States of America having placed sanctions and travel restrictions on three of his top officials for  allegedly indulging in acts of corruption against Liberia and its people, with the caveat that more sanctions will follow on other government officials. Against this backdrop, President Weah on Tuesday, August 16, 2022 suspended the three designated officials to enable them face investigations.

According to the Tuesday press release from the Executive Mansion quoting the Liberian chief executive, President Weah has received with serious concern, a recent United States Treasury Department report which designates three of his officials for specialized sanctions under the Global Magnitsky Act.

“President Weah views the allegations against the officials contained in the report as grave.

In view of this, President George Manneh Weah has suspended the named officials, Minister of State Nathaniel McGill; the Managing Director of the National Port Authority Bill Twehway, and Solicitor General Seyma Serenius Cyphus with immediate effect to enable them to face investigation.

“The President has also designated the principal deputies of the suspended officials to act in their stead,” the Executive Mansion release noted.

 President Weah’s action to suspend his three top officials stems from the United States Department of Treasury slapping sanctions under the Global Magnitsky Human Rights Accountability Act on three key officials of the Government of Liberia in a bid to call for action on the primary cause of their involvement in acts of corruption against Liberia and the people of Liberia.

Announcing the sanctions Monday in Monrovia at a press conference, the United States Ambassador accredited to Liberia, His Excellency Michael A. McCarthy named Minister of State Nathaniel McGill, National Port Authority Managing Director Bill Twehway, and Solicitor General Syrenius Cephus as victims of the latest sanction of the U. S. Government.

Noting that the sanction announced against the three officials does not exclude others from potential future sanctions, the ambassador made it clear that the Global Magnitsky Human Rights Accountability Act, or GloMag, has only existed since 2017, so no previous Government of Liberia administrations could have had individuals sanctioned under the Act.

He however noted that of course, full accountability in Liberia can only come from Liberians themselves, and added that these are sanctions against individuals, not against the country, the party, or this administration. Today, these three Executive Branch officials are being singled out.

“This morning in Washington, D.C., the United States Secretary of the Treasury placed sanctions under the Global Magnitsky Human Rights Accountability Act on three Government of Liberia officials: Minister of State Nathaniel McGill, National Port Authority Director Bill Twehway, and Solicitor General Syrenius Cephus,” Ambassador McCarthy stated.”

The U.S. envoy pointed out that after a rigorous inter-agency investigation, the Treasury Department determined that these three officials engaged in corrupt acts, and they are now subject to U.S. financial sanctions and visa restrictions. “This is a decision that the United States Government does not take lightly because corruption is not a light topic. As Treasury Secretary Yellen put it, ‘corrupt acts take resources from citizens, undermine public trust, and threaten the progress of those who fight for democracy,’” Ambassador McCarthy added.

He said, “When a newborn child fails to achieve standard growth benchmarks, doctors call that a “failure to thrive,” noting that in the United States, the Legislative Branch and the Executive Branch agree 100% on Liberia policy – they are both calling for action on the primary cause of Liberia’s “failure to thrive” – a long-term infestation of rampant and pervasive corruption.”

Reminding Pres. Weah of Promise

Corruption, Ambassador McCarthy maintained, steals from the poorest, blunts or negates the impact of all of our development projects, defeats initiatives before they are even launched, and raises risk and uncertainty to drive away foreign investment.

The ambassador then called President Weah’s attention to his inaugural speech. “I would like to remind you of President Weah’s inaugural speech in 2017 when he stated, “It is my belief that the most effective way to directly impact the poor, and to narrow the gap between the rich and poor is to ensure that public resources do not end up in the pockets of government officials.

“I further believe that the overwhelming mandate I have received from the Liberian people is a mandate to end corruption in the public service. I promise to deliver on this mandate,” Ambassador McCarthy quoted President Weah as asserting.

The United States Ambassador indicated, “This morning in Washington, D.C., the United States Secretary of the Treasury placed sanctions under the Global Magnitsky Human Rights Accountability Act on three Government of Liberia officials: Minister of State Nathaniel McGill, National Port Authority Director Bill Twehway, and Solicitor General Syrenius Cephus,” pointing out that the Department determined that these three officials engaged in corrupt acts, and they are now subject to U.S. financial sanctions and visa restrictions.”

Corruption: U.S. national security interest

Ambassador McCarthy warned that the United States Government does not take corruption lightly, because “Corrupt acts take resources from citizens, undermine public trust, and threaten the progress of those who fight for democracy.”

Recognizing corruption’s ability to corrode democracy, Ambassador McCarthy noted that on June 3, 2021, U. S. President Biden established the fight against corruption as a core U.S. national security interest, stating “Corruption threatens United States national security, economic equity, global anti-poverty and development efforts, and democracy itself.

 “Today’s actions are one of a series of actions taken to combat corruption in line with the U.S. Strategy on Countering Corruption,” he elucidated, and added, “… today’s announcement is in line with the U.S. Strategy Toward Sub-Saharan Africa, announced by the U. S. Secretary of State Anthony Blinken during his recent visit to South Africa.”

In that strategy, Ambassador McCarthy explained that two of the four main objectives touch on the effort to reduce corruption: “First, our goal to Foster Openness and Open Societies, which includes promoting government transparency and accountability; and second, to Deliver Democratic and Security Dividends, which includes backing civil society, empowering marginalized groups, and defending free and fair elections. Corruption undermines these and other goals.”

He assured that the United States stands with all Liberians against corruption, and highlighted some of the United States’ efforts in this effort.

Why Sanctions?

The United States diplomat hopes that the sanctions will help the victims set a goal that would thrive on accountability in their future endeavors.

“And the reason why our Treasury Department has designated Minister of State Nathaniel McGill, National Port Authority Director Bill Twehway, and Solicitor General Syrenius Cephus is because these individuals have been directly contributing to this problem. Rather than seeking ways to fight corruption for the betterment of Liberia, these individuals have consistently advanced corruption within this government, to the detriment of Liberia and all Liberians,” he said.

According to him, it is his hope that those Liberians who have been victimized by the corrupt activities of these individuals will take a small measure of comfort that we are helping to hold them accountable. “It is my hope that those who today are being victimized by the corrupt activities of these and other individuals will feel empowered to peacefully stand up to that corruption and say “no more.” It is my hope that Liberians do not view these sanctions as punishment of the country, but rather view them for what they are: an opportunity to chart a new course.

The U.S. government, he maintained, has taken this extraordinary step because extraordinary steps are necessary to tackle the cancer of corruption in Liberia. But ultimately, he continued, it will be up to Liberians and Liberian leaders to take full advantage of this opportunity, and to make the kind of fundamental changes that perhaps are more possible now because of these sanctions than they were yesterday. “As they say in Latin, carpe diem: seize the day! Do not let this opportunity slip by and allow a return to the status quo.”

Ambassador McCarthy quoted the Department of State Spokesperson as saying, “These designations reflect our commitment to implementing the United States Strategy on Countering Corruption, and it is our hope that they will help Liberia chart a different course forward.”

He then urged Liberia’s leaders to put nation before self in this effort to lay the groundwork for better days to come for Liberia’s future generations, noting that the United States is a proud partner of Liberia and one of its oldest friends. “Today I assure you, from one old friend to another, America stands ready to support Liberia in this endeavor.”

Roles of the Sanctioned Officials

Meanwhile, the Department of Treasury of the United States Government has been defining the roles of the sanctioned officials, stating that Nathaniel McGill, the Minister of State for Presidential Affairs and Chief of Staff to President George Weah has bribed business owners, received bribes from potential investors, and accepted kickbacks for steering contracts to companies in which he has an interest.

The Treasury Department also indicated that Minister McGill has manipulated public procurement processes in order to award multi-million dollar contracts to companies in which he has ownership, including by abusing emergency procurement processes to rig contract bids, pointing out that the Liberian Minister of State is credibly accused of involvement in a wide range of other corrupt schemes including soliciting bribes from government office seekers and misappropriation of government assets for his personal gain.

“He has used government funds allocated to other Liberian government institutions to run his own projects, made off-the-books payments in cash to senior government leaders, and organized warlords to threaten political rivals. McGill has received an unjustified stipend from various Liberian government institutions and used his position to prevent his misappropriation from being discovered. McGill regularly distributes thousands of dollars in undocumented cash to other government officials for government and non-government activities.

“McGill is being designated for being a foreign person who is a current government official who is responsible for or complicit in, or who has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery,” the Treasury Department alleged.

For Sayma Syrenius Cephus, the current Solicitor General and Chief Prosecutor of Liberia, has developed close relationships with suspects of criminal investigations and has received bribes from individuals in exchange for having their cases dropped, and has worked behind the scenes to establish arrangements with subjects of money laundering investigations to cease investigations in order to personally benefit financially, according to the U. S. Government Treasury Department.

The Treasury Department accused the Solicitor General of Liberia of shielding money launderers and helping clear them through the court system, and has intimidated other prosecutors in an attempt to quash investigations, and utilizing his position to hinder investigations and block the prosecution of corruption cases involving members of the government.

“Cephus has been accused of tampering with and purposefully withholding evidence in cases involving members of opposition political parties to ensure conviction,” the Treasury Department averred.

The US Department of Treasury further justified its sanctions when it explained that Solicitor General Cephus is being designated for being a foreign person who is a current government official who is responsible for or complicit in, or who has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Commenting on the role of Managing Director of National Port Authority Bill Tweahway, the U. S. Department of Treasury said he Twehway orchestrated the diversion of $1.5 million in vessel storage fee funds from the NPA into a private account, and secretly formed a private company to which, through his position at the NPA, he later unilaterally awarded a contract for loading and unloading cargo at the Port of Buchanan.

The US Government through the Department of Treasury noted how the contract was awarded to the company less than a month after its founding; stating that Twehway and others used family members to obfuscate their own involvement in the company while still benefiting financially from the company.

The Treasury Department also indicated that Twehway is being designated for being a foreign person who is a current government official is responsible for or complicit in, or has directly or indirectly engaged in, corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Sanctions implications

As a result of Monday’s action, all property and interests in property of these targets that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC, the Treasury Department instructed in its statement issued.

Additionally, the instruction furthered that any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

Besides, by the sanctions, the Treasury Department’s statement ordered, persons who engage in certain transactions with the individuals and entities designated today may themselves be exposed to sanctions or subject to an enforcement action. Furthermore, unless an exception applies, any foreign financial institution that knowingly facilitates a significant transaction for any of the individuals or entities designated today could be subject to U.S. sanctions, saying the power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.

The Global Magnitsky Act

The statement narrated that building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems.

Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons, the statement also said.

It can be recalled that the Department of Treasury had earlier announced similar sanctions on Nimba County Senator Prince Y. Johnson, Grand Cape Mount County Senator Varney G. Sherman and Liberia’s former Director of Passport and Visa, Andrew Wonplo, bringing the number of senior Liberian officials sanctioned by the United States Government to six.