Monrovia– What supposed to be a disaster for the entire country and an everlasting eating spree for few personalities in government has reportedly been averted in the acquisition of 285 pieces of earth-moving equipment or yellow machines by the government of Liberia.
The Liberian government said it is back on track with the acquisition of the hollering 285 pieces yellow machines intended to boost the nation’s infrastructure enhancement program (roads) across the country.
The government last weekend announced a breakthrough in the stalled deal that was supposed to cost the government staggering $34 million United States Dollars.
The renegotiated deal, according to the government, will cost the government $22 million United States Dollars, meaning a hollering $20 million dollars is saved from being purloined by criminal elements within government.
But the rebirth of the yellow machines acquisition had been without a headache, as the initial deal had to be stopped and renegotiated due to public outcry and scrutiny.
Initial efforts were thwarted after it became clear that the entire process was alleged to have been impervious and plastered with dishonesty as it did meet every ounce of legal requirement, including not going through the national legislature which is authorized by law to review and ratify all standing agreements and contracts.
Government officials pussyfooted trying to clarify the deal with a Chinese company put at the cost of over $43 million dollars.
But announcing the renegotiated deal last Thursday, Information Minister Jeronlimick Piah, who suffered serious lashes during the initial efforts to get the Yellow Machines, said the Government has achieved favorable terms in renegotiating the purchase and shipment of the much anticipated 285 pieces of earth-moving equipment.
He said the committee headed by Vice President Jeremiah Koung accessed possibilities of procuring the “yellow machines” considering price tag, shipment, and distribution across the 15 counties and submitted a report to Pres. Boakai for onward actions.
The report assured citizens that the earth-moving equipment would be brought in the same quantity (285 pcs) with a significant reduction in the initial price.
In the renegotiation, suppliers agreed to sell the machine at a total cost of US$22M way below the initial estimated cost of US$43 million –saving the government over 20 million United States Dollars.
It added that payment will be consistent with the national budget, and the full amount completed within three years beginning this fiscal year [2025].
Minister Piah said the first batch of payments is in the current budget 2025, and the suppliers will release the full quantity of the equipment after the first payment.
He added that the government will complete the financial obligations over the next two years.
The report paves the way for the formal procurement process, with each county set to benefit from 19 pieces of earth-moving equipment to enhance infrastructure development, particularly with road connectivity.
Recall that Minister Piah twisted tongue on two different occasions trying to clarify the circumstances surrounding the so-called deal.
Addressing himself to the Yellow Machine Deal at the time on one hand, he said it deal was sealed, and another hand, he stated that no decision was reached about the acquisition of the machines.
His assertion stemmed from unrelenting public pressure on the government to come true about the Deal, either to forgo or ensure it is done as legally as possible.
Despite the public resistance to the process, the government paraded through the principal streets of Monrovia 15 pieces of the machines.
While the rigmarole concerning the actuality of the deal persisted, bringing into question the government’s commitment to transparency and accountability, the entire was halted and president Boakai set up a taskforce headed by Vice President Jeremiah Koung to oversee the renegotiation of the deal.
However, while in the United States of America some time ago, the Vice President announced that the deal was on course and a final report regarding the acquisition of 256 yellow machines was finalized, putting the total cost at no more than US$22 million.
He said the initial estimated cost for the equipment was around US$43 million, but the figure was reduced to US$22 million -a difference of US$21 million previously projected, following the renegotiation.
The vice president indicated that the conclusion of the report had paved the way for the formal procurement process, with each county set to benefit from 19 pieces of essential earth-moving equipment.
“This initiative aims to enhance infrastructure development across the nation, ensuring that resources are allocated efficiently for the betterment of all Liberians,” he told the Town Hall meeting in the US.
President Boakai, addressing himself to the yellow machines debacle, said it was a gentleman’s agreement between the government and a partner, who turned out to be a South African businessman.
Although, $22 million dollars is in the media as the cost of the renegotiated deal by the special committee headed by the vice president, there are unverified reports that Mr. Robert Gutmene, the South African businessman, is demanding more than the amount.
Gutmene, a friend of President Boakai is said to be demanding $24 million dollars, and that President Boakai appears to be leaning towards his side.
Initially, Gutmene was said to be demanding $27 million dollars after the committee decided on the lowest amount proposed by one of the companies, BKK, a Liberian-owned company.
Vice President Koung reportedly insisted on the $22 million dollars, contrary to Mr. Gutmene’s demand for $27 million.
Millions saved from being purloined
However, contrary to media reports about the cost of the machines to be at $43 million dollars, advocate Martin K.N. Kollie has painted a different picture of what he claims is the actual cost.
Writing “How a few would have STOLEN US$57 Million from Liberia,” Kollie said the entire exercise, the so-called “development project”, was a syndicate intended to shield this $79 million scandal.
He insisted that is why “they never wanted to follow procurement and legislative processes as required and where necessary,” referencing those who initiated the deal.
Instead of US$43 million as announced by the Ministry of Information Thursday as the re-negotiated cost, he said it was US$79 million.
“Let’s provide the facts; the attachments will shock all Liberians and speak for themselves, detailing the GM Log Model, Type, Quantity, Unit Price, and Total Amount for the 285 yellow machines. These prices were intentionally manufactured and overly inflated to rob you, the Liberian people. The people who did this to Liberia and Liberians must be made to account. This is not just a dereliction of duty but broad-day corruption,” Activist Kollie noted.
The breakdown is below, as indicated on page 8 of the attached Financing Agreement:
He provided a breakdown as per the document obtained, with 19 pieces of SMG200 Motor Grader at US$4,419,006.70, 19 pieces of Trailer Truck Loadbed 3XL at US$3,246,606, 19 pieces of SSR120C-10 Single Drum Roller at US$2,034,317.27, and 19 pieces of Sany Fuel Tanker at US$4,089,465, while 19 pieces of Atlas CPCO Jack Hammer + Generator Pump put at US$669,446, and also 19 pieces of SY335C912KH Excavator at US$5,362,493.50.
He also disclosed that 76 pieces of SYZ320C-8W(R) Tipper Truck are put at US$10,136,389.04, 19 pieces of SW955 Front Loader at US$2,774,676, 19 pieces of BHL75A Backhoe Loader (TLB) at US$1,774,676, 19 pieces of Shantui SD22 Dozer also at US$7,935,236.
As per the uncovered deal, another pieces of Water Tanker Sinotruk put at US$2,139,957.27, 19 pieces of Pick Izuzu Mobile Service Units + Tools at US$1,855,622.08, while Finance, Insurance, Parts, Oil, Lubes put at US$32,916,622.74, thus totaling 285 Machines + Tools at the grand total cost of US$79,354,267.
The repayment plan as disclosed by Kollie revealed the First Down Payment would be US$19.8 million on February 1, 2025; Second Payment US$19.8 million on or before February 1, 2026; Third Payment US$19.8 million on or before February 1, 2027; and Fourth Payment US$19.8 million on or before February 1, 2028.
“This is approximately US$79.4 million. According to the government, the total cost for the same 285 machines has been reduced to US$22 million after the renegotiation. Please do the math. Subtract $22 million from $79 million,” he noted.
“What do you have? US$57 million. They would have STOLEN $57 million from you, the Liberian people, had we not raised the alarm for over six months. Imagine, they had already started importing some of the machines based on this first US$79 million criminal syndicate of an agreement,” Kollie wondered.
He thanked the government for renegotiating this deal to a reduced cost of US$22 million to be paid in 3 years, saying “our roads need to be rehabilitated and paved.
