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Liberia : Indicators

2011 > 20 Key Indicators > Verification Process (Due Diligence) of the Eligibility of Permit Applicants

The allocation process as stipulated in the law is transparent and includes safeguards to ensure checks and balances, but information on the process to verify applicants was not made accessible to the public prior to the award of logging concessions in 2008/2009. Due Diligence Reports have also had little impact on the allocations, as none of the four large concessions allocated in 2009 met the minimum requirements.

For example, the UN Panel of Experts in its report of 12 December 2008 (http://www.un.org/ga/search/view_doc.asp?symbol=S/2008/785) noted: “the due diligence committee found problems with all nine provisional winners of contracts. It found that none of the companies bidding on the three forest-management contracts had all of the technical and financial capabilities required by law and that there had been material changes in ownership of three companies, rendering their pre-qualification certificates invalid”. The contracts were nevertheless awarded disregarding the findings of the due diligence

Liberia’s Chain of Custody contract with Société Générale de Surveillance (SGS) is primarily limited to tax collection. The Voluntary Partnership Agreement with the European Union is expected to expand the scope of SGS to cover legality verification.

Title (a) Public Procurement and Concession Act
(b) National Forestry Reform Law
Organisation Forestry Development Authority
Date (a) 2005
(b) 2006
Source (a) http://www.ppcc.gov.lr/document/Approved%20Final%20Law-Act.doc
(b) www.fda.gov.lr/doc/finalforestrylawPASSEDBYLEGISLATURE.pdf
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