FDA Debunks Discount Claims

MONROVIA – The Forestry Development Authority (FDA) says it has no 20 percent discount on bid with regards to land rental and other fees with any logging company that is operating in Liberia.

The statement of the FDA is in reference to a report released by Sustainable Development Institute (STI), a civil society organization monitoring the Liberian forest sector.

STI, in its report, had alleged that there were negotiations being made with the FDA by some logging companies to bid for 20 percent discount within their concession areas.

“We would like to clarify that logging companies have not made any formal request for a 20 percent discount on bid, land rental payments or any other fees,” John T. Woods outgoing Managing Director of FDA told the Daily Observer over the weekend.

Contrary to the STI report, Woods said, some logging companies, including Alpha Logging, Bargo & Bargo, Tarpeh Timber and Atlantic Resources Company, had all paid their land rental fees due the Liberian Government in full.

The outgoing FDA boss further said that because of the global economic meltdown, some companies had requested payments of bid land rental fees, which were due 30 days after ratification of their respective agreements.

Woods also pointed out that being cognizant of the global economic crisis and taking into consideration the employment implications these companies will have in Liberia, the government had granted the companies an extension of payment with penalty and interest, with a condition that each company must pay 50 percent of their fees by January 31 and the remaining 50 percent by March 31, 2010.

The FDA has, at the same time, warned that it will immediately cancel contracts of those logging companies that will fail to meet the extension deadline of March 31, 2010.

“If such payments are not made by January 31, the government will suspend their operations. If all payments are not completed by March 31, 2010 the government will commence contract termination procedures as per law,” Woods asserted.

Meanwhile, Woods said the FDA had taken due note of the report published by the STI focusing on various substantive issues affecting the reform and management of the Liberian forest sector.

“The Authority has taken note of the press release emanating from a report published by the SDI, and the Corporation has constituted a management committee to review the report and formulate measures and strategies to deal with the key recommendations made of the SDI,” he pointed out.

He was quick to point out that the FDA, under his leadership, has for the last four years worked diligently and aggressively to reform the forestry sector and pointed to several achievements including the new forestry law, active engagement of civil society and community rights law, among others.

The outgoing FDA Managing Director also assured the Liberian people that though he is already leaving the entity, he is confident that his successor of the forest governing body will remain committed to the reform agenda of the Liberian forest sector and laws. He added that there are numerous challenges, but that the process is on an irreversible course.