Global Policy Forum

By John McLaughlin

THE United Nations Security Council is likely to extend the existing Liberian sanctions regime until May 7 when it meets in New York today, after a recent report from a panel of experts detailed continuing concerns over Liberian compliance with its requirements.

In the maritime section of the report, the panel said the Liberian government had not responded to a request for data on the disposal of funds deriving from the Liberian ship registry once they reached the country. The panel was eager to match the Liberian figures against those of Liberia International Ship & Corporate Registry, the US-based registry operator, on how much it had sent on to Liberia and when, in order to ensure those monies were not being used for sanctions-busting. In addition, the panel seriously questioned the value of Liberia's recent engagement of Deloitte & Touche to monitor its timber and shipping revenues. The panel noted that, according to its terms of reference, the accounting firm is to perform only a systems and management audit, and not the financial audit so long sought by the UN. As one source close to the Security Council deliberations put it: "This is not about the figures at all. It is just window dressing."

Amnesty International last week backed the panel's call for further monitoring of Liberia's finances, calling for "a sustained financial audit of the Liberian timber industry by an international auditing team, to follow that being undertaken by Deloitte & Touche over a limited period. This longer term audit should be fully independent and verifiable and its findings made public."

Liberia's shipping registry was tied conclusively to UN sanctions busting in October of last year, when the US panel of experts revealed that registry funds had gone directly to pay for arms purchases and transport. That same report described Liberia's Bureau of Maritime Affairs as "little more than a cash extraction operation and a cover for sanctions-busting".

Virginia-based LISCR confirmed earlier this year that the sanctions-busting scandal had had a chilling effect on business and though the registry claims to have lost only 25-30 vessels over the course of the following year, it had not picked up anywhere near its share of new tonnage.

In May, the UN Security Council called on Liberia "to take urgent steps, including, through the establishment of transparent and internationally verifiable audit regimes, to ensure that revenue claimed by the government of Liberia from the Liberian ship registry and the Liberian timber industry is used for legitimate, social, humanitarian and developmental purposes".

The appointment of Deloitte & Touche was Liberia's response. In a statement in the wake of that move headed "measures to increase transparency, credibility and integrity in government," Liberian finance minister Charles Bright said: "The major objective (of putting the monitor in place) is to achieve a credible system for effectively accounting and reporting all receipts and disbursements of funds from the maritime and forestry programmes."

The continuing questions over Liberian compliance with the sanctions, coupled with imminent visits to the West African country by high-level delegations from the European Union and the International Monetary Fund, are likely to see the sanctions continue at least until May.

At the same time, the sanctions were originally based on Liberia's support for the rebel cause in neighbouring Sierra Leone. With that war over, the UN Security Council may have to find a different basis for the sanctions if they are to continue beyond next May.

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