Liberia is potentially losing significant job opportunities and revenue from the Liberia International Shipping Registry (LISCR) due to a controversial 10-year deal signed during Ellen Johnson Sirleaf’s administration.
This deal, initially amended on February 3, 2014, is set to expire on December 31, 2029.
Many Liberians remain unaware that the LISCR is a private investment based in the USA, leveraging the Liberian flag to generate substantial revenue with minimal benefit to Liberia.
The LISCR agreement was intended to improve the profitability and viability of the Liberia Registry. However, despite high expectations, the promise of significant revenue generation and job creation for Liberians has not been fulfilled.
The agreement stipulates that only American citizens can work at the Registry in the US, effectively excluding Liberians from participating in its operations depriving the country from knowing the actual profits being generated.
According to investigation, the Liberia International Shipping Registry was established with the Liberian emblem to facilitate the easy shipping of goods out of Liberia and to enable U.S citizens to own properties and establish multi-corporations under the Liberian flag.
This arrangement was solidified with the backing of the Sirleaf’s administration to gain business confidence from international partners.
The most pressing concern is the exclusion of Liberians from employment at the Registry in the US despite the agreement promising a share of the profits for Liberia.
There is a lack of transparency regarding how much revenue is generated annually, and the absence of Liberian employees means there is no internal oversight or knowledge about the Registry’s financial operations.
Our source informed Verity News that the U.S Government is aware of this deal and is yet to take any action or make public statement about said deal which puts Liberia at a disadvantage.
Additionally, the agreement, which prohibits Liberians from working at the Registry, raises serious questions about accountability and revenue generation and allocation for Liberia.
The agreement’s terms suggest that Liberia should receive 70% of the net program revenues, while LISCR retains 30%, starting January 1, 2015. However, the actual financial benefits to Liberia remain unclear due to the opaque nature of the Registry’s operations.
This scandal is compounded by the revelation that the Registry’s operations might be in violation of the agreement’s original terms.
There is a growing public outcry for a thorough review and possible renegotiation of the agreement before it automatically renews for another 10 years in 2029.
The looming risk is that if the government does not act to amend or renegotiate the agreement before December 31, 2027, the contract will automatically extend for another decade.
This extension would further entrench LISCR’s control over the Registry, potentially allowing continued misuse of the Liberian flag for unrelated business ventures, thus compromising Liberia’s economic interests.
Article VIII Sections 8.02 and 8.03 of the Maritime Amendment states that if the government does not buy out under Section 11.06, the agent (LISCR) has the right to extend the agreement for another 10 years.
The government must notify the agent at least two years before the termination date, which is December 31, 2027.
Given the critical nature of this agreement, there were increasing calls for the Asset Recovery Team established by the Joseph Nyumah Boakai administration to investigate and review the current terms of the LISCR agreement, but felt on dead ears.
Concerns have been raised, particularly by Liberians based in the United States, about the misuse of the Liberian flag by LISCR for unrelated business activities, which could constitute a default under the existing agreement.
Prince S. Tokpah, a development strategist, has highlighted the ambiguity and potential breaches of the agreement, calling for a comprehensive review.
Tokpah , the Economic Freedom Fighters of Liberia (EFFL) and other concerned citizens believe that the agreement, as it stands, fails to adequately protect Liberia’s interests and provides insufficient economic benefits to the country.
In light of these issues, it is cardinal for the Liberian government to reassess the LISCR agreement to ensure transparency, accountability, and a fair distribution of revenue generated by the Liberia International Shipping Registry.
This reassessment would also involve creating opportunities for Liberians to participate in the Registry’s operations, thereby securing both economic benefits and increase Liberia’s revenue.
