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Senators talk tough on NOCALs bankruptcy saga

elbcradio/LINA
Grand Cape Mount County Senator, Varney Sherman
Grand Cape Mount County Senator, Varney Sherman

(elbcradio.com/Sept., 9, 2015)-Grand Cape Mount County Senator, Varney Sherman, has recommended a forensic audit at the National Oil Company of Liberia (NOCAL).

Senator Sherman wants the audit done dating back to the signing of the company’s Production Sharing Contract (PSC) by the National Legislature in 2010.

His recommendation was one of several made Tuesday, September 8, 2015 during the Senate’s second day Extraordinary Sitting of the Fourth Session of the 53rd National Legislature at the Capitol in Monrovia.

Senator Sherman said: “The audit will authenticate and determine what led to the financial crisis that nearly sent the oil company to bankruptcy, prompting the restructuring of the company at its executive level.”

He also recommended that government withholds the proposed severance benefits for senior executive officials of NOCAL, because “their actions” led to the crumbling of the entity.

The Grand Cape Mount County lawmaker also recommended that instead, severance benefits be paid to employees at the middle and lower levels, noting: “In accordance with best corporate practices, officials at executive
Levels should resign, or be fired.

Senator Sherman’s argument was backed by a host of other senators, including Nimba County Senator, Prince Johnson, Grand Kru County Senator, Peter Coleman, and Sinoe County Senator, Milton Teahjay.

The senators’ propositions were prompted by a report on the state of affairs at NOCAL.

The report was presented by the Senate’s Joint Committee on Lands, Mines, Energy, Natural Resources and Environment, and Public Corporations as well
as Ways, Means, Finance and Budget.

Contrary to the committee’s report, calling for the payment of severance benefit to all employees of NOCAL, amongst others, Senator Johnson noted: “Payment to executives of NOCAL will be a waste of tax payers’ resources.”

Senator Johnson’s view, countering the severance benefit payment to all NOCAL employees, was subsequently buttressed by two of his colleagues, Dr. Coleman and Mr. Teahjay.

“Benefits for NOCAL senior management staff should be withheld and the reconstitution of the company be done in a manner that will avert the current circumstance,” They further emphasized.

 


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