IPNEWS: Last week, Former House Speaker Johnathan Fonati Koffa, vowed to support recent submission of a total Energies production sharing Agreement submitted to the House of Representative for rectification but not the ratification of the Atlas Oranto production sharing Agreement.
In podcast, former Speaker Koffa stated that “Regarding the President’s three bills submitted, I will support the Total Energies Production Sharing Agreement and the HPX Concession Agreement—these are solid investments for the future of Liberia’s resources.
I will oppose Atlas Oranto Production Sharing Agreement. Oranto, by its track record shows that it does not mean well for Liberia. It does not have the capacity to engage in the activity for which it has been contracted.” the Grand Kru County Representative vows.
In furthering his push for the Atlas Oranto deal rejection, former speaker Cllr. Koffa is cautioning the government of Liberia to reexamined the Atlas Oranto deal to safeguard the mineral rights of its citizens.
Appearing on OK FM, Former Speaker Koffa reminded the government that the last time Oranto got a production sharing agreement from Liberia it was so corrupt that it had to be “cleaned” through a Canadian company in order for it to be purchased by Chevron.
Oranto is a flipper to avoid transparency and accountability and will benefit only a few Liberians which they will never name. This same block was the subject of negotiations with Exxon Mobil, an American company with a solid record of production. The government must explain why it walked away from Exxon Mobil for a more dubious arrangement with a 419 company.” Former Speaker Koffa stated.
He cautioned further that the blocks awarded to Oranto has a right 85% which goes to the contractor, the company. 10% goes to NUCCA, while 5% goes for citizen participation
“Okay. Whatever way the citizens will participate, the fact that have been identified will be 5%. Then the agreement says NUCCA will hold that 5% for Liberians.
Okay, I mean, if it’s citizen participation, NUCCA will hold that 5%. So that’s 10 plus 5, that’s 15 NUCCA holding. It will lapse if after the farm or in 180 days, NUCCA does not exercise the right to claim that percentage.
What is bad about this is then it goes down at the end of the day, right? Even though we have this citizen participation, section 34 say, apart from the state, the authority and the contractor, no person shall have rights under this contract. NUCCA don’t have rights, citizens don’t have rights. If it’s about to lapse and citizens as beneficiary cannot file a lawsuit or cannot impose their rights on it, then what is it? It’s nothing.
So it’s an empty gesture. It’s a provision that needs to be reviewed and examined. Nigeria is a classless society.” Former Speaker Koffa argues.
On the terms of the government receiving 12 million as signautre bounus fees, former speaker Koffa rejcted those cliams as unture but only to favor Atlas Oranto.
“And someone said, Oranto’s signature bonus is $12 million. That is completely untrue, okay? In section 16.3 of the proposed agreement, it says signature and production bonus. for production, for signature bonus is $1.25 million.
In A, $1.25 million for signature bonus, and not 12. It’s not 12 million. I mean, it’s right here.
So every time you look at, I mean, when you look at the rest of the monies that will be paid, I want the co-production bonus. You’re not gonna pay it unless you do a phase, right? The important thing that is not listed here is, imagine Oranto is getting four oil blocks.
They have not paid for one data. You’re gonna buy land, and you do no survey. Can you imagine that? You’re gonna buy land, but you do no survey.
We know that Total Appeal, $3.5 million for the survey. Toronto did not pay. Now, what is inconsistent with the law? The law says all monies received, except for data payment, should go into the consolidated fund.
The agreement say 400,000 will go to LPRA, and then 850,000 to consolidated fund. That is inconsistent with law. Then it comes back, okay? In the same clause 16, they say the bonus due under clause A of this section shall be recoverable as petroleum cost.
You know what I mean? It mean that the money you pay, when you flip or you start producing, you can take it back. If you owe us $100. In this case, the company? Yes, in this, the $1.25 million that Oranto gonna pay upfront, okay, whenever they pay, whenever they flip or they start production, and they owe LPRA, let’s assume $10 million, they get to deduct that $1.25 million.
They flip, meaning what? If they sold to somebody else, because they don’t have the capacity. Oranto will have no choice, but to go sell it to Exxon Mobil or one of the big companies. Is that agreement before you now!
Is it before you, meaning the legislature? Yes, yes, I got it from my office. Is that why you’re arguing now? Is it on the floor? Are you debating it? No, we’re not debating it. It went to committee, and I have informed the committee, and then I gradually, as I read, I inform the public as to what I’m seeing in the agreement.
So you come, you make an investment. Every investor, right, when you come to make an investment somewhere, you gotta feel it in your pocket, okay? Investment is risk, right? But if I come to you, look, this Oranto agreement, I think Liberia should give it to me. I’m a Liberian, I’m entitled, you know, to our resources.
I can raise $1.2 million or $3 million or $5 million, and I get it back when I flip it and make $200 million. Any Liberian can do this, okay? We don’t need Oranto to do it under the arrangement that they have given, because all the money you spend up front, you get it back. Okay, so the way the agreement is structured, the way the agreement is structured, you have 100%, that’s the block, right? 85% goes to the contractor.
The company. 10% goes to NUCCA, 5% citizen participation, all right? Citizen participation in the country are only shared? Yes. Okay.
Whatever way the citizens will participate, the fact that have been identified will be 5%. Then the agreement says NUCCA will hold that 5% for Liberians. Okay, I mean, if it’s citizen participation, NUCCA will hold that 5%.
So that’s 10 plus five, that 15 NUCCA holding. It will lapse if after the farm oil, in 180 days, NUCCA does not exercise the right to claim that percentage. What is bad about this is, then it goes down at the end of the day, right? Even though we have this citizen participation, section 34 say, apart from the state, the authority and the contractor, no person shall have rights under this contract.
NUCCA don’t have rights. Citizens don’t have rights. If it’s about to lapse, and citizens as beneficiary cannot file a lawsuit or cannot impose their rights on it, then what is it? It’s nothing.
So it’s an empty gesture. It’s a provision that needs to be reviewed and examined.”former spesker Koffa cautioned.
