– The Truth, The Lies, The Law
A thorough investigation conducted by Verity News has finally uncovered the truth behind the yellow machine mystery.
It can be recalled that the Government said the 285 yellow machines were a ‘gift’.
In a letter to the Legislature, President Boakai later said that the machines are a result of a “Gentlemen’s Agreement” reached with his longtime friend.
The Ministry of Information said ‘no deal was reached’ contrary to what Minister Mamaka Bility initially said. Contrary to the government’s claims, the investigation of Verity News has uncovered a dossier of transactions including a US$79.35 Million Pre-Financing Agreement between a subsidiary of the Guma Africa Group, GM Logistics, and the Government of Liberia.
The Lies
It can be recalled that the Government of Liberia made multiple statements about the controversial Yellow Machine deal which seemed contradictory and self-incriminating.
During a Cabinet Retreat in Monrovia, the Minister of State without Portfolio, Madam Mamaka Bility, announced that 285 yellow machines and trucks had been procured and were on their way to Liberia.
Amid huge public backlash, the Ministry of Information, Cultural Affairs and Tourism clarified that “no deal” was reached on the yellow machines.
The President, H.E. Joseph Nyumah Boakai, said in a letter to the National Legislature that no deal was reached on machines in questions
“We are currently in the negotiation phase. No formal agreement or contract has been signed with any party. The discussions are ongoing, and no financial commitment has been made by the Government of Liberia and not a dime paid. To date, no funds from the Liberian treasury have been expended on this project. The first batch of equipment that arrived in the country was shipped at the supplier’s expense. The GOL has not incurred any costs related to the transportation or acquisition of these machines. Contingency for Unsuccessful,” President Boakai
The Truth
According to a pre-financing agreement, a copy of which is in our possession, the Government of Liberia through the Ministry of State for Presidential Affairs reached a 4-year pre-financing agreement with a subsidiary of the Guma Africa Group.
“This agreement is premised upon a build operate and transfer framework, where ownership of the assets will transfer to the government over 3 years. GM Logistics (Equipment Business Division of Guma Africa Group) agrees to procure, supply, and deliver to the Liberian government “unsolicited road and bridge construction equipment, supply and delivery and after-sales training, maintenance, and technical support”.
The pre-financing agreement, dubbed and styled Subsidiary Contract Agreement, amounted to US$79,354,267.
The payment terms, which constituted 48 months (4 years), scheduled repayments in four (4) installments. According to the agreement, US$19,838,566 will be repaid in year one specifically on February 1, 2025. The second installment is US$19,838,566 and is expected to be paid in year two on February 1, 2026. The same amount to be paid in year 4 on February 1, 2027 and in year 5 on February 2028. Representing the Guma Africa Group was its Logistics Manager, George Titan, while representing Liberia was its Minister of State without Portfolio, Mamaka Bility.
The Equipment
The following machines were included in the agreement: 19 Motor Grader at a unit price of US$232,579.30; 19 Load Bed 3XL at a unit price of US$170,874; 19 Single Drum Roller at a unit price of US$107,069.22; 19 Fuel Tankers at a unit price of US$215,235; 19 Jack Hammer + Generator + Pump at a unit price of US$35,234; 19 Excavator at a unit price of US$282,236.50; 19 Tipper Truck at a unit price of US$133,373.54; 19 Front Loaders at a unit price of US$146,022; 19 Back Hoe Loaders at a unit price of US$93,404; 19 Dozers at a unit price of US$417,644; 19 Sino Truck at a unit price of US$112,629.33; and ISUZU Mobile Service Units + Tools at a unit price of US$97,664.32.
The Law
Article 34(d) of the 1986 Constitution says, “The Legislature shall have the power to levy taxes, duties, imports, exercise, and other revenues, to borrow money, issue currency, mint coins, and to make appropriations for the fiscal governance of the Republic, subject to the following qualifications:
iii) no loans shall be raised by the Government on behalf of the Republic or guarantees given for any public institutions or authority otherwise than by or under the authority of a legislative enactment.”
The 2005 Public Procurement Concession Law also required a competitive bidding process before the procurement of government assets. The conditions and circumstances of these laws were never met before the importation of the yellow machines.
