“The call for development in Liberia must not come at the cost of integrity and transparency. We must avoid entering into a Faustian Bargain, a deal with the devil, which compromises our values. Our commitment to the people of Liberia is clear: no business as usual. Anything less is a promise betrayed,” emphasized Martin Kollie, Chairman Emeritus of Research and Policy Response for JNB for President 2023.
Kollie’s remarks today, Monday, May 27, highlight a pressing concern regarding the recent announcement of the procurement of “285 yellow machines” by the Minister of State without Portfolio. The primary dealer behind this procurement is South African businessman Robert Gumede, who is entangled in numerous corruption allegations and scandals. Gumede is a known ally and chief funder of Zimbabwean President Emmerson Mnangagwa, who was recently sanctioned by the U.S. on March 4, 2024, for corruption. Engaging in business with Gumede poses significant economic and political risks for Liberia.
It is crucial to question whether the Government of Liberia conducted due diligence on Robert Gumede and his business dealings. An AI-generated video showcased Gumede of Guma Group facilitating the procurement of these machines from the SANY Group in China, estimated at an unconfirmed US$30 million.
While the procurement of yellow machines for road development and maintenance is commendable, it is paramount that the process adheres to due diligence and best practices, including thorough background checks, legal, and fiscal requirements. Liberia can and must secure clean deals without compromising integrity.
Robert Gumede’s reputation as a businessman is marred by several controversies:
- Robert Gumede and his company were subjects of a Special Investigating Unit (SIU) probe in South Africa over a multimillion-rand contract.
- Gumede fraudulently secured extended security, fleet lease, cellphone, and landfill site management tenders, violating the Municipal Finance Management Act.
- He was accused of clandestinely influencing a bidding process.
- Gumede is at the center of a 600 million rand tender scandal.
- The Home Affairs Department controversially canceled a contract with Gumede after a forensic audit uncovered irregularities.
- Gumede is known to have financially supported Zimbabwean President Mnangagwa.
These issues raise significant concerns for Liberia’s dealings with Gumede. The U.S. sanctions on Mnangagwa due to corruption and Gumede’s close association with him have implications for Liberia-U.S. relations.
It is imperative for the government to address several critical questions regarding this procurement:
- Where is the funding for the yellow machines coming from? Is it budgeted, a donation, or a gift?
- What is the exact cost of the project, including shipping charges?
- Were Public Procurement and Concessions Commission (PPCC) guidelines and legislative requirements followed?
- Was a need-based study conducted before initiating this project?
- What research or analyses informed the decision to invest in this project?
- How will the machines be maintained and fueled? Who will bear these costs?
- Do we have trained Liberian operators and road engineers? How will they be compensated?
- How was the decision made to allocate 19 machines per county, despite variations in size, population, and needs?
These questions, according to Kollie demand answers.
In light of these concerns, it is recommended that President Boakai avoids engaging with dubious companies and shady investors. Such relationships could further harm Liberia and its people. Insisting on clean deals, adhering to due diligence, procurement regulations, and transparency is essential. Negotiations with companies or investors should be managed by the National Investment Commission (NIC). Embracing a Faustian Bargain in our rescue mission is dangerous and will backfire.
After 177 years of poverty and underdevelopment, Liberia must chart a different course. The goal is not just for President Boakai to be a better president but the best president. This is why voicing concerns about these early missteps is crucial, he concluded.
