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 PRESIDENT SIRLEAF BUSINESS INTEREST, CONFLICT OF INTEREST? SIRLEAF DISAGREES, AND SON PLANS TO FILE LAWSUIT
The threat from Mr. James Sirleaf, one of President Ellen Johnson
Sirleaf’s sons, to file a lawsuit is another attempt to cover up the
President involvement in partnering with profiteers, potential source
for conflict of interest. Earlier, Ma Ellen released a statement to
kill a web site article detailing how she is serving profiteers and
taxpayers (i.e., two masters).
Undoubtedly, serving two unequal masters
at a time when one of the masters (i.e., Liberia) is weak, cash-poor
and susceptible to intimidation, bribery and corruption will create an
environment conducive for chaos. Strangely though, the efforts to distant herself from partnering with investors did fail.
Even her story that the business was for an American did not add up. She failed because the evidence is irrefutable. More so, her assertions made through representatives and supporters are different, and in some cases, explanations are contradictory.
For example, how was it possible for Steve Cashin (i.e., President Sirleaf business partner) to have received government largess to invest, through President Sirleaf, and at the same be someone with excess cash to buy businesses? Yeram Cohen had complained to President Sirleaf’s former Minister, Willis Knuckles about Cashin getting government assistance in 2008. Trying to fool the public into accepting the story that the President did not own any business interest, Sirleaf’s representative stated that it was Cashin who financed the various businesses. The Press Secretary added and said that Cashin was a venture capitalist who threw his excess cash into risky businesses in order to help his long time friend (i.e., President Sirleaf) and stimulate the Liberian economy. Even if Mr. Cashin did not receive any assistance from the government, was Cashin a venture capitalist? Zaza says no. This is because he (Cashin) took over a profitable Bank, rather than investing in risky businesses, a trademark of real venture capitalist.
The venture capitalist (Cashin) story did not fit, so the President Sirleaf has shifeed her share of business interests to a new owner, James Sirleaf, one of her sons. Why? Ma Ellen, apparently, has realized that the story that Cashin is rich and a venture capitalist has failed; and the public knows that Cashin is not only cash-poor, but he is feeding off government’s limited resources. So, James Sirleaf (her son) was selected as the new owner. Zobong, the President’s unofficial spokesman (www.liberianforum.com) attributed the business interest to Mr. James Sirleaf. Zobong said “All the business interests that were attributed to Madam Sirleaf such as the telecommunications outfit within West Africa etc., are business ventures partly owned by one of her sons, Mr. James Sirleaf.”
But the new owner of Sirleaf’s share of the business said, implicitly, that he is not involved. He has declined having business partnership with his mother, be it his share or be it the share of his mother. In fact he has threatened to sue J. Yanqui Zaza for referring to him as a partner of the Sirleaf businesses. In his reaction to the article detailing his business interest with his mother, he wrote an email to J. Yanqui Zaza: “Fortunately, for you, your thoughts are so mixed up that it wastes my time to even try and engage you. I want to admonish you to be very careful or I will sue you in the
American courts for libel. I do not play.”
Zaza is not worry about a lawsuit because the evidence is solid. However, if the idea of filing a lawsuit is part of the process of a cover-up, then it is better for him (Zaza) to go to court than to allow a privileged few to create an environment conducive for another civil war. He also welcomes any other views of the President's supporters. However, he disagrees with those supporters who believe that conflict of interest does not arise if a government bureaucrat such as President Sirleaf is rendering decisions that affect her business interest and consumers (Liberians).
What is conflict of interest? “A conflict of interest (COI) occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other.”
Zaza assumes that President Sirleaf and her advisors have not conceptually identified conflict of interest as one of the primary factors that bred the civil war. That could be possible because some experts have and continue to perceive corruption perpetuated by local bureaucrats only. They do not believe that investors, in pursuit of profits, contribute to corruption or in fact, in many cases, they (investors) initiate corruption when they use the practice of partnering with or bribing government bureaucrats. Okay they might not be convinced. If the evidence of conflict of interest in Liberia is not clear, what’s about the evidence gathered from the collapse of financial institutions on Wall Street in 2008? Every economic analyst has mentioned that regulations were toothless because of conflict of interest. They stated that lawmakers did not enact legislation because of corporate donations, rating agencies could not effectively monitor corporations since they got their fees from corporations, and CEO, due to the concern of profits and bonuses, focused less on the ability of creditors to pay their debts.
Did we not reject and denounce such an activity when an arbiter fetched for profits and at the same time instituted and enforced regulations against the vehicle of his profit machine? Or is there a conflict of interest if the President Sirleaf is investing in businesses, while at the same time she is performing her official duties? If the answer is no, how do such multiple business transactions create a conflict of interest? Is it not a conflict of interest, if a business, due to the connection to the presidency, is allowed to pay minuscule taxes or pay lower fines? That’s definition of conflict of interest.
So, if it was wrong when our lawmakers such as the late Richard Henries, Speaker of the House of the Liberian Legislature performed legal functions for LAMCO, Bong Mines etc, certainly, it is also wrong for Cellcom to have paid $600,000.00 legal fees to President Sirleaf’s advisor, who is her brother-in-law. Yes, it is also wrong for Jenny Bernard, President’s sister to be assisting Lebanese Merchants at the expense of fair competition. Further, it is wrong for the International Bank to use its ownership connection with president Sirleaf to violate regulations on banking policies, monopolize the market, etc.
The idea of business ownership is good in so far if some of the owners do not have the responsibility of being arbiters between the business interests, on the one hand, and consumers and taxpayer, on the other hand. However, in Liberia, it is difficult to find local investors who are not government bureaucrats or investors who are not related to influential government bureaucrats.
The issue of conflict of interest is not limited to investors paying low taxes, fines, etc. It is also about officials instituting failed policies. For instance, Liberian government officials did not build government’s offices because they benefited when the government rented their buildings. Most importantly, this kind of capitalistic arrangement does not help to discipline local investors and nurture potential entrepreneurs, says Paul Kennedy in his book called African Capitalism. He added that a business operated based on inside position and access to unearned resources and opportunities might not be accountable. Also, by its very existence, it may effectively block or retard the emergence and progress of more productive enterprises, Kennedy added. He drew his conclusion on the unsuccessful results from experiments to institute capitalism by many countries including Kenya, Ivory Coast, Nigeria, Uganda, etc. In many of these countries, a local entrepreneur either became parasitic capitalist (i.e., a local investor feeding off government limited resources) or became comprador, meaning local investor facilitating foreign investors to exploit their home country.
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