Logging companies currently owe forestry related taxes in excess of US$10 million. Land related fees should have been paid before the concessions contracts were signed by government [1].

Instead of paying their arrears, logging companies are lobbying for a 20% discount on their taxes.[1] Forest Management Contract holders are asking for the Liberian government to waive more than US$3million per year or approximately US$75 million over the 25 year lifespan of their contracts.


If government grants this discount communities would lose US$25 million in the 25 years that loggers would log their forests.[2]

These are few of the revelations in a new report titled Liberia: the Promise Betrayed, launched today in Monrovia, by the Liberian NGO Sustainable Development Institute [2], Friends of the Earth Liberia.

The report reflects on the near collapse of the rule of law in the forestry sector in Liberia and argues that all of the current logging concessions are illegal given the widespread violations of laws and regulations that occurred during the recent logging contract allocation processes in Liberia.

The report also warns that current developments in the forestry sector point to a future of disappointment and conflict across communities, and sustained tension between the state (on one side) and those non-state actors and community representatives who are determined to ensure that the rights and interests of communities are upheld and protected.

The government is also likely to be disappointed. As at the time of publishing the report, logging companies owed the government more than US$12 million in taxes. The government expected to raise US$36 million from logging in 2009/ 2010 but less than US$5 million was collected by the end of 2009.

“These are worrying signs and the President needs to do more put the forest sector reform back on track, otherwise she risks leaving a tainted legacy and a cloud of doubts about her commitment to meaningful governance reforms in the forestry sector” says Silas Siakor, one of the authors of the report.

For more information about the report and this release contact:

Silas Kpanan’Ayoung Siakor

Director

Sustainable Development Institute

Phone: +231 (0) 6 641355

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Jonathan Yiah

Forest Team Leader

Sustainable Development Institute

Phone: +231 (0) 426 271

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Notes:

[1] The Liberian forestry Regulation 107-07 Section 33(f) states “The Government shall withhold signing of a Forest Management Contract or Timber Sale Contract until presented proof by the Holder that the initial annual area fee has been paid.” The regulation requires the same for Land Rental and Contract Administration Fees.

[2] Sustainable Development Institute (SDI/ Friends of the Earth Liberia) is working to transform decision-making about natural resources in Liberia, and to promote equity in the sharing of benefits derived from natural resource exploitation. SDI work aims to create space for the participation of local communities in decision making processes, supports and enhance their contributions to those processes, and strengthen mechanisms that will ensure that communities receive a fair share of the benefits derived from natural resource exploitation.