Liberia, positive progress for NOCAL Liberia – Positive progress for NOCAL and nepotism
September 25, 2013
On 17 September Liberian president Ellen Johnson Sirleaf’s son, Robert Sirleaf, resigned from his position as chairman of the board of the National Oil Company of Liberia (NOCAL) and a senior presidential adviser. Vice president of Public Affairs at NOCAL, Israel Akinsanya, handed in his own resignation shortly afterwards. The resignations have long been demanded by opposition and civil society groups. The resignations not only remove some doubts regarding nepotism, but also point towards the finalisation of new NOCAL and petroleum laws.
Ellen Johnson Sirleaf has been criticised for appointing her sons to key government posts. Her other sons are the deputy governor of the central bank and head of the National Security Agency, respectively. During an interview Robert maintained his resignation was the result of the international and domestic pressure from the opposition over the past 18 months. He went on to deny allegations of nepotism and accusations that he was siphoning government funds from the oil sector. The resignation confirms the claims of Sirleaf that her son would leave government when the reforms were in place. The resignation of Robert can be seen as a first step towards removing the president’s family members from the government, to avoid any speculation of nepotism and corruption, so she can continue to build on good governance and democracy.
In a press conference Sirleaf said Robert successfully completed his assignment to reform the oil sector and would now become a “private citizen”. Robert, in his term as chairman of the NOCAL board, drafted new laws and guidelines to ensure a comprehensive modernisation of the laws governing Liberia’s petroleum sector and NOCAL. The aim of the new Petroleum law and NOCAL Act is to allow all Liberians to benefit from the petroleum resources, by ensuring that revenues from oil deals are used to benefit all citizens. There are likely to be efforts to restructure the process that only allows certain people to benefit more from the oil resources than others, if the legislation is enacted.
The resignation of both NOCAL leaders comes only days after the debate on the new oil law was suspended in the Lower House until January. Two days previously the Liberian Senate agreed to pass the new Petroleum law and NOCAL Act, but there were requests for public consultation on the bill before its enactment. The resignations of the two top NOCAL leadership figures may prompt more resignations in the coming months, but it paves the way for a new and more experienced manager to handle the next step in implementing various measures and policies.
There will be other elements and leaders which will challenge the transparent management of the petroleum sector. Since Liberia does not yet have a commercial discovery, the new chairman of NOCAL will need to manage the expectations of the industry, and ensure it is managed in a manner consistent with international best practice. The new laws, if accepted, will contribute to transparency and accountability in the oil sector, which will be a significant achievement, especially compared to other oil producers on the continent. The new laws have the potential to ensure positive development in the country, although there is still a need to amend certain aspects of the new laws, like removing ambiguous phrases that could cause future issues. In spite of the potential risks, the new laws have the potential to ensure positive development in the oil industry and for civilians, as well as protect the environment and the safety of employees. Significantly, the laws aim to bring about change while sustaining an environment in which international petroleum investors will continue to invest in Liberia. With the removal of one of the elements on which allegations such as corruption and nepotism were based, the government has enhanced its re*****tion for transparency.
Annette Theron