taylor-made— the pivotal role of liberia's forests and flag of

A Report by Global Witness in conjunction with the InternationalTransport Workers Federation (ITF). September 2001

Recommendations contained on page 1

2nd edition:This report now incorporates a studyby the International Transport Workers Federation(ITF) of the part played by revenues generated

from Liberia’s shipping register.

The Pivotal Role of Liberia’sForests and Flag of Convenience

in Regional Conflict

Taylor-made

Preface

Through the imposition of targeted sanctions,

the international community has

demonstrated its concern over the threat

Liberia poses to regional security. Despite

recent overtures, this threat is still real:

Liberia continues to support the rebels of the

Revolutionary United Front, and continues to

import armaments in contravention of the

sanctions.

Liberia’s timber and shipping register are

two key sources of revenue for the Taylor

regime, which is engaged in these activities.

In , the timber trade alone generated

minimum profits of US$ million which

did not benefit the state. It is highly unlikely

that, without the lucrative revenues from these

sources, Taylor could sustain his programme

of regional destabilisation.

Timber related jobs in Liberia are few,

seasonal and insecure, other than those

provided to expatriates. Similarly, the

maritime programme offers few jobs to

Liberians who have very little contact with

what is effectively a device to give foreign

shipping companies a haven from taxes and

other responsibilities.

Economic sanctions focused on these two

sources of income would seriously restrict the

regime’s capacity to sponsor war in the

region. Furthermore, such sanctions would

hurt the warlord elite and a greedy industry

far more than most Liberians, who live in

abject poverty in a land with virtually no

infrastructure. The continuation of current

logging practices would be severely

detrimental for the Liberian people.

Taylor-made— The Pivotal Role of Liberia’s Forests and Flag of Convenience in Regional Conflict

Recommendations

The UN Security Council should:

● Immediately impose a total embargo on the exportation andtransportation of Liberian timber, and its importation into othercountries. Such an embargo should remain in place until it can bedemonstrated that the trade does not contribute to the RevolutionaryUnited Front (RUF) in Sierra Leone and armed militias in Liberia, andthat it is carried out in a transparent manner (as referred to in para ofthe Report of the Panel of Experts appointed pursuant to UN Security CouncilResolution () paragraph in relation to Sierra Leone).

● Conduct further investigations into the Liberian timber industry,particularly the Oriental Timber Company (OTC), to enable the UnitedNations Security Council (UNSC) and other members of theinternational community to gain a comprehensive understanding of therole of this industry in Charles Taylor’s presidency and the conflict inSierra Leone and, increasingly, Lofa County in Northern Liberia.

● Conduct detailed investigations into any other Liberian industries thatmay contribute to violence and human rights violations in West Africa.

● Impose sanctions on the Liberian shipping register, as this revenue is useddirectly by the Executive Mansion (i.e. under Taylor’s personal control)for extra-governmental purposes that do not benefit the state andprolongs regional insecurity.

The International Community should:

● Increase humanitarian aid to Liberia, channelled through UN agenciesand NGOs. Due to aid restrictions, agencies such as the World FoodProgramme have to allocate lower rations to, for example, InternallyDisplaced Persons in Liberia than to their counterparts in Sierra Leone.The sanctions should target the government, not the ordinary citizens ofLiberia or the victims of regional conflict.

● Put pressure on Guinea’s President Conté to bring an end to his supportfor cross-border attacks into Liberia (see Chapter . Factors of destabilisationin the region – page )

The Government of Liberia should ensure that:

● The country’s timber industry is run according to best internationalstandards of sustainable forest management, and to ensure that all timberrevenues due to the state are directed to the Central Bank of Liberia, andnot to the Executive Mansion.

● The timber industry benefits the lives of the Liberian population, ratherthan contributing to their poverty and oppression.

● Timber companies operating in Liberia do so according to the law, thatthey do not employ armed militias and do not engage in any activitieswhich contribute to conflict and human rights abuses.

Liberian newspaperdocumenting thelogging companyOTC’s militiasalleged human rightsabuses; May .

Taylor-made—The Pivotal Role of Liberia’s Forests and Flag of Convenience in Regional Conflict

Contents

Recommendations

Preface

Executive summary

An argument for sanctions on Liberian timber – the Liberianperspective

Introduction

Infringements against UNSC Resolution ()

Part One: The role of the Liberian timber industry

Links between logging, the arms trade and regional conflict

Logging industry individuals subject to the UN travel ban

The Russian Mafia and the links between timber and arms –

a case study

Logging company militias & military control of concession areas

The case for sanctions

Liberia and the RUF – past and present links

Infringements on the travel-ban

Violations against non-combatants

Liberia’s international links

The real value of Liberia’s forestry sector

Exports compared with imports (m)

Some buyers of Liberian timber in

The roles of France and China

Ships plying the Liberian log trade in

The plunder of Liberia’s rainforest –

a Liberian’s perspective

The logging companies

Oriental Timber Company (OTC)

OTC’s background and links

The extent and impact of OTC logging operations

OTC providing employment?

Royal Timber Company (RTC)

Inland Logging Company (ILC)

Salami Molawi Incorporated (SMI)

Bureaux Ivoirian Ngorian (BIN)

Factors of destabilisation in the region

Part Two: The role of the Liberian shipping registerby the International Transport Workers Federation (ITF)

Blood on the flag

What is a ‘Flag of Convenience’ (FoC) ?

Conflict Diamonds and the Liberian International Ship

and Corporate Registry

Unprotected crews

Conclusion

Appendices

Logging companies in Liberia & timber production by

company, January-June

Importers of Liberian timber by value (cif), -

Importers of Liberian timber by volume, -

United Nations Security Council Resolution ()

References

Acknowledgements

A t l a n t i c

O c e a n

Monrovia

BOMIMARGIBI

LOFA

SINOE

GRANDCAPE

MOUNT

BONG

RIVERCESS

NIMBA

MONTSERRADOGRANDBASSA

GRANDGEDEH

GRANDKRU MARYLAND

Mendekoma

Brewerville

Grand Cess

Nana Kru Nyaake

Sasstown

Sehnkwehn

Timbo

Bong Town

Yekepa

Edina

Kolahun

MarshallHarbel

Vahun

Gelahun

Towabli(Towai Town)

Nemeke

BoTubmanbur

g

KakataKola (Kola Town)

Kenema

Pujehun

Sulima

Nzérékoré

Guiglo

Taï

Danané

Tabou

Kailahun

Pendembu

Toulépleu

Irié

Robertsport

Buchanan

Harper

River Cess

Tchien(Zwedru)

Voinjama

Gbarnga

Greenville

Barclayville

Saniquellie

CÔTED’IVOIRE

GUINEA

SIERRA LEONE

LIBERIA

L I B E R I AInternational boundaryCounty boundaryNational capitalCounty capitalTown, village

0 80 km20

0 10 50 mi

40 60

20 30 40

Airport

8°

7°

6°

5°

Guéckédou

9° 8° 7° 10° 11° 12°

12° 11° 10° 9° 8° 7°

8°

7°

6°

5°

This report, by Global Witness in conjunction with the International Transport Workers Federation (ITF), is divided into two parts. Part One, focusing on therole of the Liberian logging industry, is by Global Witness and Part Two, focusing on the role of Liberia’s shipping register, is by the ITF.

List of acronymsAFL Armed Forces of LiberiaATU Anti-Terrorist Unit (Liberia)BIVAC Bureau of Inspection for Verification

Assessment and CertificationCDF Civil Defense Forces (Sierra Leone)DDR Disarmament, Demobilisation and

Reintegration Programme (Sierra Leone)FDA Forest Development Authority (Liberia)GOL Government of LiberiaLURD Liberians United for Reconciliation and

DemocracyULIMO-K United Liberation Movement for

Democracy in Liberia (under AlhajiKromah)

ULIMO-J United Liberation Movement forDemocracy in Liberia (under RooseveltJohnson)

RUF Revolutionary United Front (Sierra Leone)SOD Special Operations Division (of the

Liberian Police)SSS Special Security Services (Liberia)NPFL National Patriotic Front of LiberiaUNAMSIL United Nations Mission in Sierra Leone

Executive summary

THIS REPORT documents the increasinglyimportant role played by the Liberian timberindustry and shipping register in fuellingregional insecurity. The timber industry is used,by the Liberian government, to traffic arms

while also being Sierra Leone’s Revolutionary United Front’s(RUF) main source of income. Revenues derived from the timberindustry and shipping register also fund President CharlesTaylor’s notorious security forces, implicated in numeroushuman rights abuses. For this reason, Liberia’s shipping registerand ability to partake in the international timber trade meansthat it can also continue to prolong regional conflict andinsecurity within its own borders. It is important to note thatalthough the sanctions outlined in United Nations Security CouncilResolution () on Liberia* are taking effect, ties between theLiberian government and the RUF remain both strong andactive. It is also important to note that the importance of thetimber industry and shipping register has increased dramaticallyas trade in diamonds has now been formally restricted.

● Charles Taylor is still actively seeking arms supplies incontravention of UNSC Resolution () on Liberia.In May he approached Libya, and Libyan arms are believedto have entered by air via Burkina Faso. With increasedsurveillance of air routes, arms shipments by sea are on theincrease (see Chapter . Links between logging, the arms trade andregional conflict – page ).

● At least out of the logging companies recorded in theForest Development Authority’s (FDA) annual and semi-annual reports have direct links with either arms supply or thefunding and provision of armed militias for Taylor’s militaryuse.

● OTC and Maryland Wood Processing Industries (MWPI)both control ports where arms have entered Liberia.

● OTC, the Royal Timber Company (RTC), Liberian WoodManagement Company (LWMC), United Logging Co.(ULC), FAPCO, Salami Molawi Incorporated (SMI) andInland Logging Co. (ILC) all maintain private armed militias,and those of the RTC and ULC have made their militiasavailable for patrols on the Sierra Leonean border. Inaddition, some members of these militias regularly intimidatevillagers and take the law into their own hands, includingillegal detention and physical abuse.

● Several people subject to the travel ban under UNSCResolution () are involved in the timber industry.These include: Gus Kouwenhoven, Demetrius Robert Taylor,Talal El Ndine, Mohammed Salami, Austin Clarke, GabrielleDoe, Victor Haikal, Maurice and Oscar Cooper. The fact theUNSC are concerned about these individuals means, de facto,that there must be concerns over their business interests.

● In Liberia’s timber production of ,m was wortha minimum US$ million at world market prices (an averageof US$ per m in ), with exports worth just underUS$ million. During the same period the Liberiangovernment declared timber revenues of US$. million.

Given that reasonable production costs are approximatelyUS$ per m,, this means that a minimum of US$million was available to the logging companies after all theirproduction costs and taxes had been paid. This money isavailable to fill their profit margin, and to pay off theirpolitical and military patrons. These figures only take intoaccount the timber production that Global Witness knowsabout, both official figures and export under declarations,they do not take into account the undoubted undeclaredtimber flows that exit through Côte d’Ivoire and elsewherethat have escaped detailed scrutiny.

● Opposition to timber sanctions has come from both Franceand China, the two greatest importers of Liberian timber,and from the Liberian government. In France andChina imported a minimum of ,m and ,m ofLiberian timber respectively, approximately % of totalexports and worth US$. million. In both cases, the primeexporting companies are linked to arms trafficking and use of


* Referred to in the remainder of this document as UNSC Resolution ()

How sanctions – or no sanctions –would affect the Liberian people Little revenue derived from the Liberian logging industry and fromthe Liberian shipping register benefit the Liberian people.Weresanctions to be placed on the shipping register – very few Liberianjobs would be affected, while jobs held within the logging industry,an estimated 8,000, are seasonal, insecure, and in large percentageheld by non-Liberians. In 5-10 years, at current logging practices,Liberia is likely to be completely commercially logged out.At thistime there will be no jobs and no possibility of timber revenue forthe Liberian people.The years leading up to this would be yearswhere regional insecurity would have a steady source of revenue,where the people would continue to suffer intimidation by loggingcompany militias, and where the illicit arms trade would bepermitted to continue.


armed militias. French and Chinese opposition cite both thenegative effects sanctions will have on the Liberian people,and that there is insufficient evidence linking the loggingindustry to military funding and the arms trade. However,most Liberian independent press and ordinary citizensinterviewed by Global Witness regard sanctions as essential inprotecting Liberia’s forest resources. Furthermore, the attitudeof ordinary Liberians is that, for them, the situation is asabout as bad as it could get. Sanctions will hurt the elite, notthe average citizen.

● Charles Taylor is still using RUF forces in Lofa County, and isforcibly recruiting men and boys over the age of fourteen.Liberia continues to provide refuge to the notorious Sam‘Mosquito’ Bockarie, who, as of June , divides his timebetween Liberia and Normo Farma, Golahun Tonkia, SierraLeone. This report also provides proof that named RUFpersonnel were trained in Libya, before being returned toLiberia as refugees.

● Liberia’s forests are being destroyed at an unsustainable rate,which promises long-term negative implications for thecountry’s future. OTC’s General Manager, Joseph Wong, hassaid privately that he expects the company to leave Liberiawithin three to five years. Given that OTC controlapproximately % of Liberia’s forests, this one company willbe responsible for the commercial extinction of just under halfof this valuable resource. As the record of several of the otherbig loggers is little better than that of OTC, the future is bleak.

● Little has been heard internationally of conditions in Liberia’sforests, or of the views of ordinary Liberians. The sectionentitled The plunder of Liberia’s rainforest – a Liberian perspecive(pages -) was received from an anonymous author inLiberia. The facts are verifiable and the opinions are those ofan informed Liberian.

● Charles Taylor’s government is amassing considerable wealthfrom the Liberian maritime programme. While there is littleevidence showing that this revenue is benefiting the Liberianpeople, it is a vital pillar of economic security to a regimewhich is using much of its funds to destabilise neighbouringcountries. This industry is also cited in the UN Panel ofExperts on Sierra Leone as playing a role in facilitating thetrade in ‘conflict diamonds’ from Sierra Leone (see Part Two:The role of the Liberian shipping register, pages -).

An argument for sanctions on Liberiantimber – the Liberian perspective[Note: the contents of this section were received by fax from Liberia, froman anonymous source. It has been included in this report unedited.]

“President Taylor has confirmed publicly that the logging industryprovides his government with more income than all the other revenuesources combined. Independent observers agree that logging providesTaylor with substantial revenue. Calculations based on limited exportdata available to us suggest that the government could be receiving wellover US$60 million annually from logging. However, one sore point ofcontention is whether the generated revenue is being used to better theliving conditions of the Liberian people, especially the rural people whoare the traditional custodians of the forest and whose livelihood dependalmost entirely on the forest.

Everyone, except Taylor and his associates, believes that this is notthe case. Contrary to Taylor’s continual denial that he is more concernedwith amassing a personal fortune and building a military, whose conductover the years is marred by gross disregard for the rule of law, there isoverwhelming evidence suggesting he is doing just that.

The unsustainable exploitation of Liberia’s rainforest is now a majorconcern for environmentalist both within and outside Liberia, but formost Liberians, their concerns now go beyond the environment andsustaining a livelihood, but incorporate human rights abuses, theinstitutionalisation of lawlessness, corruption in government, and theentrenchment of a government that has proven beyond all reasonabledoubt to be inefficient and insensitive to their wishes and aspirations.

However, the above concerns pale alongside fears, expressed by across section of the Liberian citizenry, regarding the level of sub-regionalinsecurity that could result from Taylor’s military adventurism beingfunded largely by the logging industry.There is a consensus that theissues of forests destruction and all the associated ecological implicationsand the unequal distribution of revenue from logging, should not beallowed to divert attention from the more complex and explosive issueof President Taylor expending that revenue to build a military with thesole objective of entrenching his despotic and tyrannical regime.Thepotentials for igniting a conflict and plunging the sub-region intocomplete chaos and anarchy is too obvious for anyone to overlook.

The UNSC must consider our call for a moratorium on Liberiantimber and respond positively to send a clear signal to Taylor that hismilitary adventurism will no longer be tolerated; this would be the singlemost decisive blow to Taylor’s evil ambitions.Temporary job losses andeconomic hardship is a small price to pay for sub-regional peace andsecurity.Already, when questioned about economic difficulties that couldresult from such actions, most Liberians simply ask “how much moredifficult can life get?” or “what benefits are we getting anyway?”

These questions are a clear manifestation of the people’s.”

Left: Logging truck belonging to the Oriental Timber Company (OTC),implicated in numerous human rights abuses and arms trafficking;July

Below: Ghost town. Buchanan City, one of Liberia’s main port towns,showing lack of investment and devastated infrastructure; July

Introduction

IN SIERRA LEONE was declared the leastdeveloped nation by the UN, ranked at in the UNHuman Development Index. Its population has anaverage life expectancy of . years. This, in largepart, is due to the stampede by various elites and

factions over the past two decades for a slice the country’sresources, primarily diamonds, at the expense of the rights andthe livelihoods of the population. The extreme violence duringthe ’s sponsored by Liberia’s President, Charles Taylor,finished the job. With the imposition of targeted sanctions onLiberia, and the presence in Sierra Leone of the largest UNintervention since Cambodia, there seems to be a real chance forpeace. But there is overwhelming evidence that the Liberian-backed RUF are still operational, nurtured by Taylor and hisprimary funders – Liberia’s logging companies and shippingregister. While the logging industry poses a threat to the future ofLiberian forests, both pose a critical risk to national and regionalsecurity.

In December , the Report of the Panel of Experts appointedpursuant to UN Security Council Resolution () paragraph inrelation to Sierra Leone highlighted the active role of the Liberiantimber industry in regional insecurity and thus the importance ofconsidering an embargo on Liberian timber exports.

The imposition of UN sanctions on Liberia’s diamond tradehas ensured that Charles Taylor is completely dependent uponthe two remaining major sources of revenue: the logging industryand the Liberian ship registry, currently run by the US-basedLiberian International Shipping and Corporate Register(LISCR). The UN Expert Panel on Sierra Leone referred to theimportance of the timber industry both as a revenue generatorfor Charles Taylor, and because of its links to the arms trade.However, UNSC Resolution () adopted on th March excludes restrictions on Liberian timber exports, despiteclear signals that income generated from this industry fuels theinstability seen in large parts of West Africa. Global Witnessbelieves that the exclusion of timber exports from the sanctionscompromises efforts to remove sources of income to destabilisingforces in the region. The objection by France and China, the twolargest importers of Liberian timber, to the imposition of timbersanctions was apparently based on the lack of informationrelating to the links between the logging industry and the armstrade, and to the negative effects such sanctions would have onthe Liberian people.

The first section of this report will therefore focus on theselinks, demonstrating that elements within the Liberian timberindustry not only fund the arms trade, but are actually engagedin it. Furthermore, the report will demonstrate that because ofthe sanctions Charles Taylor has been forced to turn to otherforms of revenue generation. As revenue from the ship registry isrelatively static, Taylor has had little choice but to escalatelogging revenues, and confirmed it in his World Population Daymessage stating that his government “relies heavily on the forestwhich accounts for more than half of the gross national product”and concluded that “for never in our nation history have we beenfaced with so much pressure on our environment particularly theforest resources”. This increased dependency on the loggingindustry since the imposition of sanctions not only allows him tomaintain his corrupt and oppressive regime, but is resulting inthe destruction of Liberia’s forests at an alarming rate, which willalmost certainly result in the commercial and environmentalliquidation of this valuable natural resource.

That Taylor faces attacks by Guinean-backed rebels is not indoubt, and in the face of such aggression most sovereign nationswould have the right to resort to military means to defendthemselves. It was Guinea, after all, that initiated the attacks. ButTaylor’s sponsoring of the Sierra Leoneans of the RUF to wage

not only this war, but the war on Sierra Leone, coupled withforcible conscription of males over the age of in Lofa County,

undermines his case for the lifting of arms sanctions and for thecredibility or justice of his cause.

Timber production in was ,m, with a worldmarket value of over US$ million, with ,m beingexported. The sum received by the Central Bank of Liberia duringthe same period was just US$. million: an average of US$ perm. Annual timber production in was ,m, by ithad doubled to just over ,m, and by it had almosttripled. Minimum production in the first five months of wasup by % of the figure. These figures amply demonstrateTaylor’s reliance on timber, and the threat that this creates.

The implications are severe. When Liberia one day regains truestability, it’s treasury and it’s people will be deprived of a valuableeconomic resource. In addition, the negative ecological andeconomic impacts that result from deforestation: floods, droughtsand seasonal climatic changes could well create havoc for themajority of the population that depend on agriculture to survive.

In short, the extra pressure placed upon the forests by theomission of sanctions on the timber industry not onlyundermines the efficacy of the current sanctions regime, but willhave long-term impacts on the country. This will exacerbate thehardship of the average Liberian citizen and, eventually, willbecome an additional burden for the aid community.

Arguments against the imposition of timber sanctions have, inthe main, come from the timber industry and the main importersof Liberian timber. Arguments for sanctions have come fromgovernments wishing to end regional conflict, and from local andinternational civil society, who are attempting to break thevicious cycle underway in Taylor’s Liberia and to avoid wholesaleliquidation of Liberia’s resources.

The timber industry provides Charles Taylor with anopportunity to develop a long-term sustainable revenue sourcewith which he could help to rebuild Liberia’s shatteredinfrastructure. This would require him to give up the vast staterevenues that go directly to the Executive Mansion, and to assumethe responsibilities of a statesman towards his people, rather thanthat of a warlord using the country as a private enterpriseregardless of the cost to the people and state. If he choosesstatesmanship, then Liberia could attract foreign aid, such as the€ million of EC aid which is held up by negotiations aroundArticles and of the Cotonou Agreement,* which relate tocorruption and human rights concerns.

Liberia’s maritime programme has been cited in theDecember Report of the UN panel of Experts on SierraLeone as facilitating the flow of arms to guerrillas in SierraLeone and linked to the illicit trade in diamonds. The Liberianshipping register makes Liberia, in theory, the world’s secondlargest maritime nation. The reality is that the Liberian flag hasbeen rented out to foreign ship owners who want to escape theregulations and taxes of their own countries. Revenue from theregister provides President Charles Taylor’s government with atleast one third of its entire revenue from legitimate sources. Yetthere is little evidence that this revenue provides much benefit tothe Liberian people. What it does do is provide a key pillar offinancial security to a regime which is using much of its funds todestabilise neighbouring countries.

Sanctions are necessary to deprive the Liberian governmentof the funds they need to purchase arms and to maintain aregime that refuses the population the freedom of expression thatwould allow them to truly express their support, or lack of it, forTaylor’s government. They are essential to prevent thehaemorrhaging of timber from Liberia, which provides little orno benefit to the country.


* This agreement between the ACP states and the EU will provide € billion in EUfunding between -. Only articles & of the Cotonou Agreement canprevent EU funds being granted, when it can be demonstrated that the recipientgovernment is failing to address human rights and corruption issues.

Infringements against UNSCResolution ()

THE FOLLOWING is a list of violationscommitted by the Liberian government againstUNSC Resolution (), adopted by theSecurity Council on th March . It shouldbe noted that Global Witness has obtained

accurate and verifiable data that substantiates the informationlisted below. This data has also shown that the Liberiangovernment has effected several grave violations of the UniversalDeclaration of Human Rights adopted on th December (see Violations Against Non-Combatants – page ).

In , , (a), it is writtenthat the Government of Liberia must “expel all RUF membersfrom Liberia, including such individuals as are listed by theCommittee established by paragraph below, and prohibit allRUF activities on its territory, provided that nothing in thisparagraph shall oblige Liberia to expel its own nationals from itsterritory”.

● Several individuals sited in the “List of Persons Affected byResolution () on Liberia” travel-ban have acquiredSierra Leonean passports thus allowing them to surpass saidUN restrictions (see Infringements on the Travel-Ban – page ).

● The twenty original members of the RUF, called the “RUF” were, as of th June , in Liberia. Originalmembers of the RUF, called the “ ” are alsoin Liberia, fighting in Lofa County for President CharlesTaylor (see Infringements on the Travel-Ban – page ).

In , , (d), it is writtenthat the Government of Liberia must “freezefunds or financial resources made available by itsnationals or within its territory directly orindirectly for the benefit of the RUF or entitiesowned or controlled directly or indirectly by theRUF”.

● The Liberian logging industry is heavilyinvolved, both directly and indirectly, in thesupport of the RUF. This was documented inthe December Report of the Panel of Expertsappointed Pursuant to UN Security Council Resolution (), Paragraph in Relation to Sierra Leoneand remains true today. As outlined both in thissection and in Chapter . Links between logging, thearms trade and regional conflict – page ).

In , , (e),it is written that the Government of Liberia must“ground all Liberia-registered aircraft operationwithin its jurisdiction until it updates its register ofaircraft pursuant to Annex VII to the ChicagoConvention on International Civil Aviation of and provides to the Council the updatedinformation concerning the registration andownership of each aircraft registered in Liberia”.

● On th June , a Liberia World Airlines(LWA) aircraft, EL-AJO, allegedly involved inillegal arms trade in both and , wasspotted at Ostend airport in Belgium. TheLWA that was originally on the craft has beenpainted over. Below is a picture of EL-AJO in on its way to Croatia and a picture of theaircraft on in June in Belgium.

In , , (b), it is writtenthat the Government of Liberia must “release all abductees”

● Civilians have been forcibly removed from Sierra Leone andtaken to Liberia, thus adding to the amount of abducteescurrently in Liberia. Furthermore, Sierra Leonean refugeemales over the age of were being forcibly recruited into theATU and the AFL in May (see Violations Against Non-Combatants – page )

In , , it is written that “all States in theregion take action to prevent armed individuals and groups fromusing their territory to prepare and commit attacks onneighbouring countries and refrain from any action that mightcontribute to further destabilization of the situation on theborders of Guinea, Liberia and Sierra Leone”

● The Government of Liberia has been coordinating thepresence of both RUF and it’s own forces to be in LofaCounty (see Infringements on the Travel-Ban – page ) TheGovernment of Guinea is also strengthening its militarypresence in the border region.

In , , it is written that “all States shalltake the necessary measures to prevent the sale or supply toLiberia, by their nationals or from their territories or using theirflag vessels or aircraft, or arms and related materiel of all types;including weapons and ammunition, military vehicles andequipment, paramilitary equipment and spare parts for theaforementioned, whether or not originating in their territories”.

● On th May , a general cargo vessel called the Abu and owned by Belize-registered Alpha Paramount, arrived atHarper Port and unloaded a cargo of weaponry. This wascollected on the same day by an helicopter belonging to theAnti-Terrorist Unit (ATU) (see Chapter . Links between logging, thearms trade and regional conflict, page ).


Below top: Liberian aircraft EL-AJO of Liberia World Airlines (LWA) landing in Zagreb,Croatia; th June . Note LWA livery.

Bottom: Sanctions busting. Same aircraft with livery painted out, Ostend; th June

© Tom

islav Muic

© D

ietmar Schreiber

Links between logging,the arms trade andregional conflict

CHARLES TAYLOR’S ability to useLiberia’s natural resources for hisown means has been enhanced bythe Strategic Commodities Act,which was introduced suddenly to

the Liberian Congress in late at the behest ofthe Executive Mansion. Despite strong opposition, itwas passed into law in February without a fulland fair vote.

In Section three, the Act states that “the Presidentof the Republic of Liberia is hereby granted the solepower to execute, negotiate and conclude allcommercial contracts or agreements with any foreignor domestic investor for the exploitation of thestrategic commodities of the Republic of Liberia.Such commercial agreement shall become effectiveand binding upon the Republic as would any treaty towhich the Republic is a party, upon the sole signatureand approval of the President of the Republic ofLiberia.”

Thus, this act effectively places all of Liberia’sresources under the sole control of President CharlesTaylor. This in turn enables him to purchase the armsand to fund the supporters he needs to destabilise theregion and to gain control of resources across hisborders.

In the recent past much of Charles Taylor’s arms

supplies arrived by air from Libya, via Burkina Faso,The Gambia, and Eastern Europe, but with anincreasingly difficult domestic political climate inBurkina Faso, and more vigilant internationalsurveillance of Liberia’s air traffic, arms imports bysea appear to be on the increase. These arms arriveon some of the same ships that subsequently exportlogs. According to sources in Liberia, Taylor tried toobtain arms from Libya in mid May . Accordingto these sources, he hoped to acquire severalthousand assault rifles, a substantialconsignment of ammunition, and an unknownquantity of - rocket-propelled grenades. It is notknown whether or not Libya agreed to supply theseweapons.

Global Witness research and investigations havefound that in the past year, there have been severalsuspicious incidents in the ports of Liberia and Côted’Ivoire where a strong link between the Liberianlogging industry and the shipment of armaments wasvital for the implementation of the activities. Theseare listed below:

● After the imposition of the th May sanctions, onth May the Abu , a general cargo vesselowned by Belize-registered Alpha Paramount,arrived at Harper Port from Dakar, Senegal andunloaded a cargo of armaments: these armamentswere collected the same day by the Anti-TerroristUnit’s (ATU) helicopter. During unloading acrewman was killed by snapped cable, and talk ofthe incident pervaded the town. The shipsubsequently loaded with logs from MWPI, thelogging company which also controls Harper Port,through its representative Hussein Fawaz. One of


The Antarctic Mariner loading logs in July . Prior to this, it unloaded a mysterious cargo amid tightened security.

Part One: The role of the Liberian timber industry

the main importers of Liberian timber intoFrance, Bordeaux-based ETS F. Jammes SA, is amajor purchaser of MWPI timber.

● Prior to this, on th April , the MV Senorita,owned by OTC’s associate company Global Star,arrived in the port of Buchanan amid tightenedsecurity, indicating possible dubious activity.Armed men of the OTC militia patrolled the portand the Loop (the former Lamco / Liminco estatein Buchanan) which hosts the company’sexecutives, headquarters, workshop, warehouses,etc. The reason given for the extra securitymeasure was an expected visit of Charles Taylor;however, he did not arrive as speculated.

● In early July , the Antarctic Mariner arrived atBuchanan having left China via Singapore, andwas unloaded amidst heightened security, mostlyat night, by armed troops and OTC personnel,rather than by the usual stevedores. It is notknown what was unloaded but numerous woodencrates were among the cargo. At the time ofwriting the cargo was stored in warehouses atBuchanan for transport onward. The vessel wasthen loaded with over ,m of OTC’s logs, anenormous cargo, for shipment to China.

● In a vessel arrived in Freetown Sierra Leoneand mistakenly tried to deliver a container, butwas halted when Charles Taylor contacted the

Sierra Leonean government stating that thecontents of the container was destined for his wife,as a birthday gift. Honouring international normsthe container was allowed to proceed to Liberiaunopened. However, a Sierra Leonean presentwhen the container was unloaded confirmed thatit contained hi-tech armaments.

● In early Global Witness received (unverified)information that an arms shipment was due toarrive at San Pedro Port, Côte d’Ivoire. It is notknown whether such a shipment took place, butthere are reasons to regard San Pedro as an idealimport point. It is a major timber exporting pointfor Ivoirian, Liberian and Guinean timber, andthe traffic on the roads between San Pedro and theLiberian border is dominated by timber trucks,many of which cross into Liberia at Toulepleu andLogatuo. Therefore, arms imports could reachLiberian soil within a day of arrival at San Pedro,carried by timber or other trucks.

In addition to the above, it is widely known in Liberiathat OTC’s Buchanan operation is regularly used toimport arms. Of course, to prove this is difficult asthe sources would be in extreme physical danger iftheir identities were known. However, theinvolvement of the Ukrainian Mafia in both armstrafficking and the timber industry is welldocumented.


Logging industry individualssubject to the UN travel ban In addition to the above, the following individuals who aresubject to the travel ban under UN Resolution 1343(2001) have interests in the logging industry.

Gus Kouwenhoven

Chairman of OTC, Managing Director of RTC andBoard Member of the Forest Development Authority(FDA).

Demetrius Robert Taylor

Charles Taylor’s brother and Managing Director of theFDA.

Talal El Ndine

Board member of the FDA, and RUF paymaster.

Maurice and Oscar Cooper

Joint owners of the Inland Logging Company.

Mohammed Salami

Owns Salami Molawi International loggingcompany.

Austin Clarke

Deputy Minister of Defense Operations andowner of the LASTA logging company.

Gabrielle Doe

Adviser to Charles Taylor and connected toCavalla Timber Company and NACA LoggingCompany Inc.

Victor Haikal

Karel Logging Corporation.

Above: Anonymous document received by Global Witness inApril detailing a forthcoming arms shipmentscheduled for May. Talal el Ndine and Mohamed Samali,both in the logging industry, are cited as the individuals“contracted to source and purchase armaments”.


The Russian Mafia andthe links betweentimber and arms – acase studyAs with much resource extraction in conflictand post conflict areas, the tropical timbertrade has been the focus of criminal gangs.The Italian, Corsican and Russian Mafia haveall allegedly been connected with the timberindustry in West and Central Africa.

In June 2001 Leonid Minin, an Israelicitizen of Ukranian origin, reputed head ofthe Ukrainian Mafia was charged by theItalian authorities with illegal arms trafficking.This followed the imposition of a two-yearsentence for drugs possession following his arrest inthe Hotel Europa near Milan in August 2000, when hewas found to be in possession of cocaine.17

Documents that came to light when he was arrestedprovide an amazing insight into Minin’s multifariousbusiness deals.

Amongst a wide variety of speculative businessinterests, Minin is believed to be a central figure in thetrafficking of arms to West Africa, and to Liberia inparticular. Crucially he was/is chairman of Liberian-based Exotic Tropical Timber Enterprise (ETTE).Minin’s documented links with the arms industry, theLiberian timber industry and the movements of actorsin both these fields conclusively demonstrate the linksbetween timber and arms.This company is one of thethree named by the UN Expert Panel on Sierra Leoneas being involved in the acquisition of “a large amountof unrecorded extra-budgetary income to PresidentTaylor for unspecified purposes”.

One of Minin’s correspondents was Erkki

Tammivuori of Met AS and Met Corp, a companyinvolved in numerous arms deals with offices inLausanne and Istanbul respectively. Correspondence inGlobal Witness’ possession refers to negotiations tosell a Ukrainian aircraft carrier to the Turkish navy18

and to missiles (possibly Konkurs anti-tank) forUS$8,000 each.19 It appears that Tammivuori wasentering into a consultancy with Minin’s Limadcompany, according to an agreement dated 27th June199920 (although Global Witness’ copy is unsigned).The agreement seems to have centred around thesupply of various goods from the Ukraine, althougharms are not mentioned. However a blank ‘ExclusiveFrame Consultancy Agreement’ of Karor Trading SA,another Tammivuori company, states that “[the]

Above: Leonid Minin,purported head of theUkrainian Mafia,photographed by thepolice upon his arrest inItaly in .

Above right: Contract fromAugust betweenMinin-owned loggingcompany ETTE and theLiberian government,whereby the governmentagrees to provide ETTEwith US$ million. Thereason for payment isnot stated.

Below: Documentdetailing aspects of ananti-tank guided missilesystem, found amongMinin’s posessions uponhis arrest.

© A

genzie Fotogramm

a

Consultant undertakes to act as advisor to Contractorin its contracts with construction and othercompanies…both in the defence as well as in thecivilian sector…”21

Tammivuori spent ten days with Minin in Liberiaand Ibiza some time in the first half of 1999.22 Thisjoint visit between two known arms traders, one ofwhom also ran a timber company, demonstrates theintegral links between these two industries in Liberia.

ETTE is still in existence despite Minin’s arrest, butappears at this stage to be dormant. It sold some orall of its capital assets to the Spanish-owned ForumLiberia Corporation on 24th November 1999 forUS$5 million. US$1.5 million of the purchase pricewas to be supplied as fresh-cut logs to Buchanan Portduring 2000, and various instalments of this timberwas indeed delivered by Forum Liberia to ETTE.

Another agreement was signed on 20th August1999 by Minin and John Bestman, the Minister ofFinance, Government of Liberia.This documentconfirms that the government are indebted to ETTEto the tune of US$2 million – it does not state whatservices Minin rendered that cost US$2 million.Thedebt was to be repaid by exempting ETTE from alldue taxes related to its timber operations until thedebt had been repaid. So, in two agreements, Mininreceived US$1.5 million worth of timber and thewherewithal to avoid any taxes relating to it.

Minin’s Swiss-based company, Limad AG, alsobrokered a US$2.5 million (15,000m3) timber dealbetween the Liberian Cooper brothers (who run theInland Logging Company, and the China NationalAero-Technology Import & Export Corporation(CATIC).23 Limad was also in negotiations with theChina Aerospace Science and Technology Corporation(CASC) regarding an aerospace deal, notably the saleof Russian manufactured SS18 intercontinental ballisticmissiles to China.24 Limad Beijing stated that althoughCASC “…expressed their interest in the technologyof liquid-based rocket engines. However, since thismatter may have grave responsibility, nobody dare(sic) to have the final say”.25

Personal payments to the Taylor clan

Obviously, details of direct payments to the Taylorfamily are hard to document, but the Minin documentscontain two direct references to such payments.

In a fax to Leonid Minin on 17th May 2000 Minin’scompany representative in Monrovia stated that hehad offered to purchase two trucks for Bob Taylor(Robert Taylor, Charles’ brother, who is head of theFDA) “…in exchange for 100% discount of the taxeson the teak and the permission to operate the forestand a new good relationship in general”.26 It is notclear whether these trucks were in fact purchased asthe relationship between ETTE and Robert Taylorappeared to be in some trouble at around this time.27

Another document faxed from Minin’s company,Limad AG, on 10th March 2000 details “ExpensesLiberia”.The second to last item is listed simply as“15,000.00 [US$] Taylor”.

In early 2000 Minin also brokered an arms dealbetween former Russian test pilot Valery Cherny’sMoscow-based company Aviatrend, and thenPresident Robert Guei of Côte d’Ivoire, whichincluded 10,500 AK47 assault rifles, RPG-26 rocketlaunchers, sniper rifles and over 8 million rounds ofassorted ammunition.28

Logging company militias &military control ofconcession areas

GLOBAL WITNESS research andinvestigations have found that taxes from thelogging industry are deposited directly into theExecutive Mansion Special Projects Accounts,which is administered by Taylor. Also a

US$. and US$. sale tax placed on a gallon of gasoline anda bag of rice respectively go directly to the Executive Mansion.These revenues, especially the timber revenue, have enabledTaylor to maintain largely inefficient but brutal military andparamilitary units including the Anti-Terrorist Unit (ATU) andthe Special Operation Division (SOD). Both of these units havebeen directly involved in various human rights abuses, includingintimidation of opposition leaders and journalists, illegaldetention of private citizens at the notorious Gbartala Base(Bong County) without charge and extra-judicial killings. Thesehuman rights abuses have been documented by local andinternational human rights organizations, notably the CatholicJustice and Peace Commission (Liberia) and AmnestyInternational (UK).

In addition to the links between various logging companiesand arms trafficking, some logging companies recruit and armex-combatants, mostly from the rank of Taylor’s defunctNational Patriotic Front of Liberia (NPFL), to build up privatemilitias: some of these units are involved in military operations.OTC for instance hired Roland Duo, a notorious former generalof the NPFL and now Chief of Security at the Freeport ofMonrovia, as its chief of security. He lives in Monrovia butmaintains a residence in the OTC Lamco/ Liminco estate inBuchanan. Other companies who operate armed militias includeRTC, LWMC, ULC, FAPCO, SMI and ILC.

In Lower Lofa, Bomi and Grand Cape Mount counties theLWMC, ULC, FAPCO and RTC companies’ militias are mostlycomprised of ex-combatants. The largest concentration of theArmed Forces of Liberia (AFL) men in the region are based atthe main ULC camp, known as ‘ULC’. Personnel from the ULCprivate militia confirmed local reports that occasionally menfrom their unit are sent on “special assignments” with the thBattalion of the AFL. On th April men from the ULCmilitia and AFL officers travelling on a ULC truck to the borderwith Sierra Leone had an accident in which the ULC driver(known as Bukasa) and six officers of the AFL (including aCaptain Dolo) lost their lives. It is not clear what their mission onthe Sierra Leone border was, but this mission is indicative thatTaylor’s military are still involved in the insecurity there. RTCmen in the Bomi Wood Camp (the RTC main camp) explain thatthey are officers of the AFL on assignment with the company, toprovide security. Locals in Kumgbor, Bomi Wood Camp andULC Camp itself claimed that the companies’ securities forcesconstantly harass and intimidate them.

In one high profile incident in May , two employees(Foday Sannoh and Logan Nagbe) of John T. Richardson’s (anassociate to President Charles Taylor) JALK petroleumdistribution company, were arrested and incarcerated by OTCmilitiamen in the OTC’s private prison in Buchanan. In spite ofhis closeness to Taylor, attempts to get the local police involved insecuring the release of his employees were unsuccessful. Theywere only released after the Justice Ministry “appealed to theOTC to release his workers”. The case was never prosecuted.

All of these examples demonstrate the negative consequencesof the present militarization of the timber industry in Liberia.


The case for sanctions

THE SANCTIONS against Liberiaare already working, as peace isgradually coming to Sierra Leone.Around RUF troops havedisarmed, thereby making way for

around (pro-government) CDF soldiers todisarm also, under the Disarmament, Demobilisationand Reintegration (DDR) process. This process isscheduled to be completed by the end of November, although some delays are possible. However,most diplomatic observers agree that the process isextremely fragile, and it is highly likely that the RUF’sbest commanders and arms are still in Liberia. Thereason the RUF are actively disarming is that theyhave seen their main patron, Charles Taylor, beingincreasingly weakened and isolated by sanctions: inaddition, these forces are tired after years of fightingwhich has gained them nothing.

Although it can be argued that a sovereigngovernment has the right to exploit the naturalresources under its control, this argument does notapply to the current situation in Liberia, where theresources are being exploited contrary to Liberianlaw for the benefit of the elite, not the State or thepopulation.

Many have cited that the loss of jobs andrevenues, especially to rural Liberians, would beunbearable were Liberian timber exports to cease.Holding up rural Liberians as a human shield againstsanctions is a tactic to avoid taking action. Althoughthe effects on the economy and the loss of jobs willundoubtedly be a temporary set-back, it is far worseto destroy Liberia’s forest resources for the benefit ofPresident Charles Taylor, his inner sanctum and theforeign companies investing nothing sustainable inLiberia.

Timber sanctions can be enforced throughinternationally protected, independent observers atthe six major points of departure for Liberian timber:the ports of Buchanan, Monrovia, Greenville andHarper, and the land routes to Côte d’Ivoire.Through monitoring and information campaigns,France and other European countries must beencouraged into complying and not purchasing

Liberian timber smuggled via Côte d’Ivoire. Ifcompanies like OTC find profits are too low or theycannot pay their bills, and international pressure istoo great, they will abandon Liberia as fast as theyarrived.

In its recent announcement that it will cease topurchase timber from companies cited in the UNExpert Panel’s report, following NGO pressure,Danish multi-national DLH Nordisk raised the issueof the , timber related jobs at risk in Liberia.Apart from its failure to demonstrate the veracity ofthis figure which is grossly exaggerated, DLH has notappreciated the criminal links of some Liberiantimber companies, the fact that many of theseworkers endure appalling conditions; that villagersare intimidated by the armed militias hired bylogging companies; that villagers’ lands have beenbulldozed to make way for logging roads and thatlogging at the current rate in the existing anarchicclimate will liquidate the resource, removing foreverthe employment opportunities that can be affordedby a sustainably managed timber trade.

“OTC machines putting a roadthrough: many bulldozers andtrucks came, people were scared.There were trucks passing throughwhich were very heavy with loggedtrees damaging the roads for localpeople – nobody does anything, asthey were scared.

Every day trees fall down andblock the roads – roads are justbulldozed through by OTC people –they scare the villagers – nobodydoes anything”

Villager in OTC concession; July 2001


OTC logging truck en route to Buchanan;


THE SUPPORT LINKS that runfrom Liberia to the RUF have notbeen severed – neither before orafter the sanctions of th March. Violations of the sanctions

have been plentiful and the lines between the twoparties – as well as traditional boundaries betweenLiberia and its neighbours – have continued to fade.Liberia has now begun illicit logging operations inSierra Leone, reputedly with the cooperation of theRUF, who are also fighting in Lofa County. Reportshave shown that RUF rebels were “sent into LofaCounty to beef-up Liberian government defenses.”

Although there are several changes taking place inrespect to President Charles Taylor’s connection withthe RUF since the th May sanctions, significantlinks remain.

Infringements on the travel-ban

Individuals cited in The List of Persons Affected bythe Measures Contained in Paragraph of UNSCResolution ()* on the subject of travelrestrictions have, as of th June , acquiredSierra Leonean passports, making it easier for themto circumvent current restrictions placed upon themby the ban. Several of these individuals are peoplewho are directly linked to President Charles Taylorand to the RUF:

. Samuel Bockarie (alias Mosquito), whosewhereabouts have been indeterminate, nowpossesses a Sierra Leonean passport. He divideshis time between Liberia and Normo Farma,Golahun Forkia, in Sierra Leone (see “RUFVanguard” location list below). He is now an Anti-Terrorist Unit (ATU) senior member.

. Brig General Abu – ATU Deputy Commander.

. Mr Akkram Basma – Africa Motors,Monrovia, Liberia.

. Hassan Basma – Businessman at KissyRoad/Sani Abacha Street.

. Jamal Basma – in Freetown.

. Samuel Gibson – Adviser to President CharlesTaylor.

. Mr Keikula B Kpoto – President Pro-Temporeof the Liberian Senate.

Sierra Leoneans have also assisted more people onthe Liberia Restricted Persons List to get SierraLeonean passports. Some of these applications areallegedly coming from the United States or theUnited Kingdom.

Furthermore, several of the original membersof the RUF, called the “RUF Vanguard” are currentlyin Liberia. Their names and their locations as of thJune were:

Members of the RUF Vanguard based in Liberia( )

. Philip Palmer Mattru Jong

. Augustine Koroma Jimmy Bagbo [sic]

. Momo Kpaka Gorahun,Koya Chiefdom,Kenema District

. O K George Bo, Kakua Chiefdom

. Alex Koroma Polehun,Nongowa Chiefdom

. Siafa Massaquoi Nomo Farma,Kenema District

. Mohamed Njoboi Nomo Farma,Kenema District

. Moris Kallon Pujehun District

. Denis Mingo Pujehun District(alias Superman)(rumoured killed in action)

. C O Browne Liberian/Sierra Leonean

. C O Fattu Browne Liberian/Sierra Leonean

. Issa Sesay Northern Province,(Presently in Sierra LeoneSierra Leone)

. Sam Bockarie Gbandilo,(alias Mosquito) Kailahun District

. Isatu Kallon Kailahun District

. James Jalloh Kailahun District

.Fayia Musa Kailahun District

. Mike Lamin Kailahun District

.C O Lawrence Kailahun District

. C O Allysious Pujehun District

.C O Kargbo Northern Province

Original Liberian members of the RUF, called the“ ” have “returned to Liberia and arenow fighting for Charles Taylor in Lofa County”.They are also referred to as “special forces fromLiberia who entered Sierra Leone to fight for FodaySankoh in Kailahum district.” Their names are :

Sam G Tuah James Canway

Thomas Randott Sattu Major

Jr Nyinatti Rebel Fast

Tamba Joseph Jah Brother

American York Big Daddy Cool

Sadam Hussein Cooper Kollie

C O Barrow Tamba

Jehungbe Auscal Blesso

John Piwweh Togba Njuah

Charles Timba C O Dane

Edward Wah Anothony Flomo

Liberia and the RUF – past and present links

* Referred to in the remainder of this document as “The LiberiaRestricted Persons List”


Further lists exist illustrating the connections betweenthe RUF rebels of Sierra Leone and PresidentCharles Taylor’s personal security force, the Anti-Terrorist Unit (ATU). One such list, from January, is shown above.

Violations against non-combatants

Fighting in Lofa County has reportedly increased andthe international media is facing access-restrictions tothis region. Some suspect that these restrictions areput in place by the Liberian government so thatdubious activities of Liberian security forces and theRUF can be covered up. Conflict in the region hasforced Sierra Leonean refugees and Liberian civiliansto escape Lofa, Grand Cape Mount and Bomicounties. Furthermore, as of May / June Sierra Leoneans living in Liberia, whether refugees ornot, are “continuously being harassed by the Security.They are accused of being dissidents. Other countriesthat are harassed include Guinea, Nigeria and theGambia. Some have been tortured and, possiblykilled.”

According to eye-witnesses, Sierra Leoneanrefugees in Liberia are being forcibly enlisted orbribed into becoming combatants. Evidence gatheredshows that this is done with cooperation between theRUF and the Liberian government. In a documentdetailing events at the VOA-I refugee camp, SamuelBockarie (alias “Mosquito”) is quoted as the personwho was heading the enlisting campaign. He wasallegedly told by the “Liberian government to recruitman power for Military service”. Others named inthis activity are Bernard Freeman, a formercombatant who “always hosts the clandestine

meetings,” and Mustapha Kallon, a former RUFcombatant who is also Chief of Security at theVOA-I. In one incident on th October ,Bockarie entered the camp with two body guards thatwere from the Special Operations Division of theLiberian Police (SOD). One informant described howhe met them in a meeting with Mosquito. Therefugees, facing preacarious conditions, are faced withincreased pressures of insecurity: a factor that isplayed upon by those recruiting. In the same incidentof th October , refugees were presented with sixbags of rice and money for the families of enlistedrefugees that were to be taken to the warfront. TheVOA-I Chairman and his Secretary hesitated fromtaking part in the meeting and eventually withdrew.General Mosquito returned to the camp at : pmon the same day with a jeep and truck. Elevenrefugees subsequently boarded the vehicle. It is highlylikely that more were taken at a time when theinformant was not present.

The document also highlights that Guineanrefugees are subject to similar ill-treatment.

Many refugees are faced with the problem of nothaving proper identification and several non-combatants are reportedly being purposefullymisidentified by Liberian authorities. For example,there have been several arrests of ‘Kamajors’ in LofaCounty, in reality innocent Sierra Leonean refugeesor Liberian citizens.

One report details the procedures of these arrestsas well as a specific case of false identification:“several Sierra Leonean residents and refugees livingin Bong County, Grand Cape Mount County andMontserrado County have been captured – sometaken to the notorious ATU Camp for torturing andpossible death. The BBC also reported of a capturedKamajor who was presented to the Press in Monroviafor confession. My sources told me that he was a non-registered refugee.”

It is important to note that the recent move by theLiberian government to register Sierra Leoneanrefugees, which does not include UNHCR-registeredrefugees, begs the question as to what Liberianimmigration did with the refugees’ initial registration.Worry has been expressed that this registrationprocedure is a move to arrest further so-calledKamajors who in fact are innocent in an attempt toshow the international community that steps arebeing taken towards reform.

Sierra Leoneans are also being abducted fromSierra Leone itself. The following is a list of womenwho were kidnapped from their homes in SierraLeone and taken to Liberia. The list details theirtown of origin and their current location.

List of women abducted from Sierra Leone and taken to Liberia; June


In May , according to eye-witnesses, SierraLeonean refugees were being forcibly recruited byPresident Charles Taylor’s Anti-Terrorist Unit (ATU)and the Armed Forces of Liberia at the Bridgebetween Lofa and Bonga counties (St. Paulsville). TheATU were on one side, and the AFL were on theother. Both separated the women from men as theyarrived and then recruited males over the age of .Close to this bridge, and year old boys werebeing trained by these forces. According to GlobalWitness sources, this forced recruitment wasincreasing.

Liberia’s international links

It is important to note that the above violations existpartly because of Liberia’s links to countriessympathetic to President Charles Taylor’sgovernment. Previous reports about Gaddafi trainingthe RUF are substantiated by evidence obtained byGlobal Witness. In several Sierra Leoneans weretaken to Libya from other countries includingNigeria, Côte d’Ivoire, and Guinea. All of those listedas going were either holding low positions or wereunemployed and stayed anywhere from two monthsto months in Libya. They left because Libya cameto the decision that they would be deported, at whichpoint Liberia stepped in, took them over to Liberiaand gave them Liberian citizenship. While in Libya,they were reportedly given military training andsubsequently ear-marked to become RUF combatantsupon their arrival in Liberia. Several of them appliedto return back to Sierra Leone.

This type of link to a country outside of itsimmediate vicinity is not new to Liberia. In a pressrelease by the Embassy of Sierra Leone, dated thFebruary , it was documented that PresidentCharles Taylor had ties with “Nico Shafer, aColumbian cocaine kingpin, formerly associated withthe late Pablo Escobar of Cali, Columbia and ColFred Rundle … a former South African army officerwho openly trains Liberians, Burkina Faso andabducted Sierra Leoneans in Liberian militarycamps”.

The RUF is largely able to continue its actvitiesbecause of its support from the Liberian government.The Liberian government is able to fund the RUFmainly because of the monetary value of the timberwhich it exports.

Above: List of Sierra Leoneans allegedly given militarytraining in Libya to fight for the RUF in Liberia;

Below: Travel document of one of the deportees en route toLiberia;


The real value ofLiberia’s forestrysector

THE OFFICIAL FIGURESpertaining to Liberia’s timberproduction, exports and revenuegeneration comprise those producedby the FDA in their annual and

semi-annual reports, the annual reports of theMinistry of Finance and the Central Bank of Liberiaand from international trade statistics. The followinganalysis has drawn on all of these sources. However,the FDA Annual Report has not yet beenpublished – it should have been available in the firstquarter of – which means that total figures arenot available at a time when they most deservescrutiny. Figures for are drawn from import dataand documentation by Global Witness (see table below).

The Ministry of Finance annual report for states that timber production was ,m, andthat this generated US$. million for the budget.The Central Bank of Liberia in its report for records production of ,m, and states that thiscontributed ‘about’ $. million. Thus the tworelevant organs of the state record similar revenues,but display a ,m discrepancy in production.These two institutions use differing methods to arriveat their figures. The Central Bank reviews thepaperwork of each logging company’s production;the Ministry of Finance derives its data from Bureauof Inspection for Verification Assessment andCertification (BIVAC), the government’s taxcollecting agency. It seems likely that the higherproduction figure is more accurate as it was based onactual paperwork.

A reasonable minimum estimate of availabletimber revenue can be arrived by subtracting theaverage timber production cost from the worldmarket value of the timber; typically about US$per m. If timber production costs are on averageUS$ per m,, then, once sold, there is US$ perm remaining both to provide profits for the loggingcompanies and to provide Charles Taylor with therevenues he needs to support his lifestyle, patronage

system and armed support. In this remainingsum is likely to have totalled US$ million, orapproximately US$ million after the US$.million in taxes had been paid. However, this is notthe whole story. There are numerous methods ofexecuting timber fraud, some of which are indicatedbelow:

● In the first six months of Liberia log exportsto Europe were under-declared by ,m. ValueUS$. million (at US$/m).

● OTC processes logs in its sawmill, but does notdeclare any sawn production.Value unknown.

● There are numerous reports of undeclaredexports via Côte d’Ivoire. Global Witnessphotographed Liberian logs at San Pedro port,although log exports are illegal from Côte d’Ivoire.[Log exports from Côte d’Ivoire were more or lesszero in , ,m in and ,m in; the FDA indicate ,m were exportedfrom Liberia to Côte d’Ivoire (primarily overland)in the first half of ]. Value unknown.

Furthermore, on st July the Liberiangovernment issued Executive Order No. ,“restricting the Ministry of Finance to the collectionof % of all Land Rental Fees and % of allstumpage fees”, and mandating the FDA to “collectthe balance, % and % respectively for the supportand maintenance of the Forest land of Liberia”(replanting). However, the FDA did not receive thismoney. In early July the President of the TimberAssociation, a timber trade body, stated that “…wesee nothing being done by the FDA in the area ofreforestation.” The Deputy Managing Director ofthe FDA, Wayne Bryant, admitted that reforestationfees were being redirected. At the same meeting healso refused to comment on whether reserve forestswere being misused, stating that “it is too political.”

Thus in there was a minimum of US$million available to Liberia’s elite. In addition, manyof the logging company militias’ salaries would comefrom timber production costs. Given that thesemilitias engage in military operations, this isadditional support for Taylor’s military aims.Furthermore, the IMF noted that % of theNational Budget is used by the Executive Mansion forexpenses authorised directly by the president.

Timber imports from Liberia(based on imported data for selected countries)

0.00

0.05

0.10

0.15

0.20

0.25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Vol

ume

impo

rted

’000

m3

RWE*

1999199819971996 2000 2001

Source: World Trade Atlas

*export data have been converted to give Round Wood Equivalent import volumes

OthersItalyFranceChina

Note the downward trend at the end of each year reflects the wet season when logging slows down.

Some buyers of Liberian timber in 200111

Please note, this list is far from exhaustive.

Log supplier

Buyer Supplier arms links?

Global Star (Asia) Trading Ltd OTC 1

c/o Natura Holdings27-15 International Plaza10 Anson Road, Singapore

DLH Nordisk A/S MWPI 1

Skagensgade 66 OTC 1

DK-2630 TaastrupDenmark

Timber Trade Service OTC 1

Italy

Messrs. Bonomi OTC 1

Prefabbricati ILL SriVia San Vigilio 8138088 Spiazzo (TN) Italy

HBT Holzhandel GMBH OTC 1

Germany

TREEMEX OTC 1

NiederfeldwegD-32361 Preussisch OldendorfGermany

SIBA OTC 1

Rocade Fann Bel AirBP 2470 Dakar, Senegal

TECNOALP OTC 1

Italy

General Wood Ltd OTC 1

c/o Cofid6 Albemarle StreetPiccadillyLondon W1X 3HF

Simla Trade OTC 1

India

Sumas Trading PTE Ltd RTC 1

World Best Trading OTC 1

PO Box 4838DeiraDubai UAE


Logs aboard the BBC Australia, unloading Liberian logs for F. Jammes in Bassens, Bordeaux; March .

Exports compared with imports (m3)

Note: Export figures are Liberia’s declared exports; Import figures are thoserecorded by importing countries.There are large discrepancies between thetwo.

1999 2000

(first 6 months only) (12 months)

Exports Imports Exports Imports Imports

China 14,762 144,419 77,318 290,409

Indonesia 11,988 6,784 9,391 13,401

Turkey 28,620 2,632 11,316 2,469 3,998

Belgium 1,115 0 2,083

France 70,411 74,813 56,300 92,540 167,779

Germany 5,155 6,189 7,690 9,284 12,364

Greece 1,420 2,204 9,333 13,837 23,513

Italy 36,408 35,756 29,052 52,512 78,800

Netherlands 1,301 1,274 6,324 10,517 21,677

Portugal 5,978 8,847 2,682 7,719 13,171

Spain 6,267 7,487 9,029 8,375 15,238

UK 1,336 1,899 3,108

Subtotal 182,310 139,201 285,380 285,861 645,541

India 6,485

Korea 11,584

Thailand 3,069 2,951

Tunisia 1,504

Senegal 1,294

Libya 2,935

Côte d’Ivoire 1,101 35,843

Gambia 526

Total 189,941 139,201 345,041 285,861 645,541

SourcesExports 1999: FDA Annual Report (January-December 2000)Exports H1 2000: FDA Semi-annual Report (January-June 2000)Imports: World Trade Atlas

Note: There will be a time lag between the exporting of cargo from Liberia and its subsequentimportation. Source data from neither the Forestry Development Authority nor the Central Bankof Liberia provide monthly export quantities. Roughly three quarters of annual production takesplace during the first six months of each year. Consequently, it may be reasonable to assume thatthe great majority of timber produced for export in a given year will be received by the importingcountry during the same calendar year.


The roles of France andChina

OF ALL COUNTRIES, France and Chinahave the largest financial interests in Liberia’stimber sector. France and China led the effortto remove timber from the proposedsanctions on Liberia in early .

The reasons given were:

China: The “humanitarian impact of sanctions on Liberianpeople. Of course we also import timber from Liberia, but that isnot our concern; we just want to find a proper balance betweenhumanitarian issues and the possible link between naturalresources and arms”.

France: The lack of a link between timber and arms, but:“Nous sommes complètement ouverts à imposer des sanctionssur le bois et le chaoutchou si le lien avec les armes soit établi”.(“We are completely open to imposing sanctions on timber (and rubber) if thelink with arms is proved”).

France enjoys extensive trade in West Africa and may beunwilling to be perceived as a threat by African governments.Furthermore, as the recent ‘Angolagate’ scandal exemplifies,several senior French politicians and their close business contactsare implicated in African resource and arms-based corruptiondeals. It is highly likely that further research can draw some linksbetween what has happened in Angola, and what has happenedin Liberia.

The trade argument is probably also true of China. WhilstChina undoubtedly values Liberian logs, it is also likely that theyare keen to woo Taylor away from his close alliance with Taiwan.

Historically, France has been a major importer of Liberian

timber regardless of the supplier. In , for example, duringthe war when the NPLF was in control of nearly all of Liberia’sterritory and controlled nearly all its timber exports, Franceimported , m of round logs from Liberia, worthapproximately US$ million at current prices.

The FDA Annual Report states that France importedover , m of Liberian round logs, or % of Liberia’sofficial timber exports. Although this percentage wasreduced to % in , the volume increased by around %to just under ,m. France’s imports therefore contributed aminimum of US$ million to the ‘parallel’ timber budget. SomeFrench distributors have friends in high places. For example, inMarch Pinault, a company that bears the name of one ofFrance’s richest men, said it had never heard of RTC, but hadRTC logs in its Nantes Yard – an interesting inconsistency.

France imports further Liberian timber that is taken by roadto south-west Côte d’Ivoire for milling and export. No reliablefigures are available on the volumes or value of this timber,however the FDA Semi-Annual Report for reportedexporting ,m by land to Côte d’Ivoire. Furthermore,France’s shipping industry is a major player in log and timberimports from West Africa. For example, Bolloré and Delmas area major shipper from Côte d’Ivoire.

China declared imports of just over ,m of logs fromLiberia in , therefore contributing a minimum of US$million to the parallel timber budget. However, the FDA Semi-Annual Report for the first half of puts China’s round logimports at ,m, against China’s declared imports of,m, a % discrepancy. Although some of thisdiscrepancy could be explained by exports in the second sixmonths of the year, it is likely that China is under-reportingimports.

In conclusion, by blocking timber sanctions France and Chinahave protected their tropical timber imports from Liberia,permitting companies like OTC and RTC to continue theirhuman rights and environmental abuses, to import arms, and tosupport implicitly and financially Taylor’s regional war andabuses of the economy, state and people.

RTC logs in La Pallice, France; March


The following table details recent shippingactivity. It is evident from this information thatOTC, directly linked to the sustenance of theRUF and arms shipments, is the main supplier ofLiberian timber to the international community.

Ships plying the Liberian log trade in 2001

Vessel Name Destination / Ports Supplier Buyer

Abu 1 OTC

Liski Amsterdam OTC DLH

Geortina Derince, Italy OTC Theodor

Calypso “N” Penglai & Chiwan, China OTC Global Star

Antarctic Mariner Penglai & Chiwan, China OTC Global Star

Baru II Salerno, Italy & Dakar, Senegal OTC DLH & SIBA

Atlas Sea Penglai & Chiwan, China OTC Global Star

Thelita Ravena, Italy

Abou 1 Dakar, Senegal

Kamilla Sete, France

Aris OTC

Zini Ancona, Italy OTC TTS

Geortina Kalamaki, Greece OTC DLH

Broadgate Penglai & Chiwan, China OTC Global Star

Abou 1 Dakar, Senegal

CEC Hunter Sete, France

Dutch Sea Sete, France

BBC Australia Sete, France

Louise Sete, France

Aron Ravena, Italy

SpringWood Penglai & Chiwan, China OTC Global Star

Geortina Derince OTC DLH

Anna Maria Vasto / Ancona, Italy OTC DLH

Anna Maria Vasto / Ancona, Italy OTC TTS

Achilles Penglai & Chiwan, China OTC Global Star

ZINI Ancona, Italy OTC TTS

Jedi Knight Penglai & Chiwan, China OTC Global Star

Aron Sete, France OTC DLH

Melte B Sete, France

Sernorita Penglai & Chiwan, China OTC Global Star

ZINI Ancona, Italy OTC TTS

ZINI Ancona, Italy OTC Bonomi

ZINI Greece OTC DLH

Atlantic Mercado Sete, France MWPI DLH

Atlantic Mercado Italy FAPCO, RTC, ULC DLH

Samsun Earnest Penglai & Chiwan, China OTC Global Star

CEC Blue Vasto & Ravena, Italy MWPI

African Trader Nordenham, Germany OTC HBT

African Trader Sfax,Tunisia OTC, RTC, MGC,Tutex DLH

Socofl Lake La Pallice, France OTC HBT

Socofl Lake Nordenham, Germany OTC Treemex

Socofl Lake Nordenham, Germany OTC HBT

Socofl Lake UK (Via Nordenham, Germany) OTC DLH

Arktis Crystal Dakar, Senegal OTC SIBA

Express Bordeaux, France MWPI

Rony Ancona & Mon Falcone, Italy OTC

CEC Pride Segunto, Spain MWPI

Posen Hull, UK & Villa Garcia, Spain MWPI

Corn Racer Penglai / Chiwan, China OTC Global Star

Panormos Pride Penglai / Chiwan, China & Indonesia OTC Global Star

Geortina Lefkandi, Greece OTC HBT

Geortina Lefkandi, Greece OTC Theodor

Altis Kemaman, Malaysia RTC Sumas Trading Pte

Georgios Nordenham & La Pallice, France HBT

Georgios Nordenham, Germany Treemex

Abu 1 Dakar, Senegal OTC SIBA

Shi Koku Pride Mangalore OTC World Best Trading

Shi Koku Pride India OTC SIMLA Trade

Liski Sete, France OTC DLH

Antartic Mariner Penglai & China Port, China OTC Global Star

Above: Logs in French company Pinault’s depotin Nantes, supplied by the Inland LoggingCompany (ILC), whose private militia isimplicated in several human rights abuses;March .

Below: Document detailing logs exported fromNPFL-held territory for French logger Rougierat height of civil war in .


The plunder of Liberia’s rainforest – a Liberian’s perspective[The following section has been shortened but is otherwise unaltered from the original received from Liberia]

2. An independent environmental impact assessment to acertain the level of threat and damage to the Liberianrainforest;

3. The GOL be pressured to lift its ‘siege’ on information aboutthe logging industry to enable independent observers gatherinformation without fear of being intimidated, harassed ortargeted;

4. The GOL to address the continued illegal importation ofarms by the OTC and other logging companies, into thecountry, in violation of the UN arms embargo and advise theUNSC accordingly.This would enable the UNSC to takeappropriate measures to discourage future violations of thearms embargo on Liberia.The GOL should also address theproliferation of militias organized by logging companies andprosecute those that have been involved in organizing illegalmilitias and importing arms for their private use;

5. Allegations against logging companies be investigated by anindependent environmental and human rights organizationand cases involving murder be prosecuted in a competentcourt of law; and

6. Aggrieved communities and individuals be compensated bythe guilty logging companies for damages done to communaland private properties, including bulldozing throughcommunal forests, farms, lost of lives in road accidents, etc.

The moratorium would remain in effect until all the conditionslisted above are met in their entirety.

Kindly accept my congratulations and best wishes for the successof your campaign.

Sincerely yours...”

“Dear Sir/madam:

I have followed with interest your activities, reference the

reckless and unsustainable forest exploitation by logging

companies in Liberia and the misappropriation of national

revenue, from the industry, for the benefit of an elite few. It is

worth mentioning here that I find them not only crucial to the

ongoing national and international efforts to protect the last

remaining significant forest block in West Africa, and also one of

the world’s critical biodiversity hotspots, but detailed and

extremely exhaustive.

Attached, are findings of a personal investigation of the industry,

which forms the basis for the recommendations I have advanced

in this letter. I also hope you will find some of the points, most of

which you might already be aware of, useful in the preparation

of future reports on Liberia.

Considering the fact that I can not publish this article locally,

due to safety and security concerns - not only for myself, but

also my immediate family members and associates, the omission

of my name should not in any way deter you from using the

materials.The information provided have been deliberately void

of sweeping allegations to enable you verify or cross check

incidents highlighted with other sources inside Liberia.This I

believe would nullify any suggestion, that this paper is simply the

“ranting of another Taylor hater”.

Grateful if you could consider the below recommendations

when preparing future reports on Liberia:

1. A UNSC endorsed and enforced moratorium on Liberian

timber until a full-scale investigation of the logging industry

can be conducted to prove or disprove that Taylor is using

timber revenue to fund destabilizing military activities in the

sub-region;


Liberia’s forest estateLiberia’s forest is under intense pressure primarily from logging

companies.Almost every national forest reserve or proposed

national park has been granted as concessions to logging

companies. Logging companies are also encroaching upon the

few national forest reserves not granted as concessions. Logging

operations have reached an unprecedented proportion, with

about 60% of the country’s rainforest now severely degraded.

The country’s bio-diversity is also threatened because

deforestation has effectively separated the northern and south-

eastern portions of the forest.

The government of Liberia and regional stability

Despite Liberian government denials, the Panel of Experts,

however,“found unequivocal and overwhelming evidence that

Liberia has been actively supporting the RUF at all levels, in

providing training, weapons and related matériel, logistical

support, a staging ground for attacks and a safe haven for retreat

and recuperation.”49 The report also stated that “Roads built and

maintained for timber extraction are also conveniently used for

weapons movement within Liberia, and for the onward

shipment of weapons to Sierra Leone.”50 And that “the

principals in Liberia’s timber industry are involved in a variety of

illicit activities, and large amounts of the proceeds are used to

pay for extra-budgetary activities, including the acquisition of

weapons.”51

Logging – a source of conflict in Liberia

The rainforest in Liberia is under intense pressure from mostly

unregulated logging activities by logging companies.These

companies who are the single most destructive force and agents

of deforestation in Liberia are also guilty of wide spread abuses

against locals and residents of indigenous communities. Evidence

of houses and farms (cash crops) being destroyed, traditional

and sacred forests being desecrated, large tracts of forest being

cleared and with it medicinal herbs, etc abound.

Logging companies, in Liberia, show no respect for traditional

and cultural practices and beliefs in areas where they operate.

From logging in communal forest reserves, where tribes conduct

“Traditional Schools” for the youths to felling trees of culturalsignificance, the disappearance of medicinal herbs and trees withcurative values are issues of concern to the rural communities.Some communities complain of loggers violating their traditionby invading scared [sacred] sites, thereby bringing their culturalpractices and beliefs into ridicule.

In Kokoyah district, Bong County, residents filed a complaintagainst the ETTE for logging in their scared [sacred] forest at atime when their “Traditional School” was in session, a complaintalso made by residents of Bopolu district, Lower Lofa (nowGbarpolu County) against companies operating in the region.None of these complaints were investigated by localgovernment officials, let alone prosecuted.

Also, the torture of 10 villagers, by OTC militiamen inRivercess County,52 is one of the most recent cases.To date theculprits have not been apprehended nor prosecuted.

There are several other cases, mostly unreported incidentsof harassment and intimidation of locals, environmentalistinvestigating logging operations, outspoken critics of loggingcompanies, etc.These incidents serve to discourage investigationof the industry and silence environmentalist who are aware ofthe misconduct of logging companies - but only speak in privateof the pending ecological calamity.

The militarization of the logging industryNot only does logging companies wield considerable politicaland economic sway over top government officials, theircontinued recruitment and arming of notorious ex-combatants,is not only illegal, but has become a major cause of concern forordinary Liberians.The OTC, RTC, SMI, ILC, and other loggingcompanies have recruited and armed hundreds of ex-combatants to serve in their militias.These militias mount illegalcheckpoints and extort money and food items from locals.Theyare also constantly engaged in running gun battles over disputedconcession boundaries.

Left page: OTC’sconcession, anindicator of whatawaits Liberia’sforests in -

years if currentlogging practicescontinue.

Right: Tractorbelonging toOTC, Buchanan;July


The logging companies

The global timber market and Taylor

The worldwide tropical timber industrytraditionally approaches leaders of countrieswith large forest resources and weak institutions.Abiding by “local business practices”, itnegotiates deals to extract raw materials as

cheaply as possible. This mode of doing business suits thewarlord economy extremely well. Predatory transnationalcompanies have no allegiance to a given country, nor do theyabide by local laws and regulations unless obliged by their hosts.Their ability to operate relies on direct deals with the ruling eliteand the continued demand for their end products: plywood,chipboard and hardwoods, in this case by consumersunconcerned with, or ignorant of, the source of their goods. Inthis way the global market for logs and wood products plays intothe hands of warlord leaders like Taylor. Taylor is responding tomarket opportunities; he is not creating them.

Oriental Timber Company (OTC)

c/o Natura Holdings PTE Ltd, - International Plaza, AnsonRoad, Singapore . Tel: -; Fax: -.

OTC, also known also as ‘Old Taylor’s Children’ or ‘Only TaylorChops’, remains the most notorious logging company in thecountry. The company’s militiamen bear arms including assaultrifles and machine guns. The expatriate trailer drivers carry AK- rifles in their trucks at all times. The company imports armsinto Liberia for use by its militia, however, it is widely believedthat some of these arms are brought in for the government.

There have been numerous rumours as to how much moneyOTC paid to Charles Taylor to obtain its concession. Onereliable source stated that sometime between August andOctober the Ministry of Finance received a letter fromCharles Taylor ordering them to sign a paper confirming receiptof US$ million from OTC. This caused major problems for theMinistry as they had not recieved a cent of this money, itpresumably having gone directly to the Executive Mansion.Other sources suggest that as much as US$ million was paid.

What is known is that on th July , a standard Liberianforestry concession agreement was signed between GusKouwenhoven of the Liberian Forest Development Company

(LFDC) and the Government of Liberia to log the largestconcession in Liberia’s history, . million hectares, made up ofpre-existing concessions in the south-east forest block thatKouwenhoven “acquired” during the war. To be legally valid, aconcession agreement needs to be ratified by the LiberianCongress, which never happened in this case. Beginning inOctober the LFDC, then calling itself the Liberian-Malaysian Timber Company (LMTC), began a stated investmentof US$ million in logging equipment and operations,renovations of Buchanan port and road building. Soon thereafterthe LFDC/LMTC began operating under the name OrientalTimber Company, which it still uses today. Following complaintsby OTC that its initial . million hectares did not containenough high quality timber, in early further areas in upperGrand Gedeh County were seized and added to OTC’sconcession, bringing OTC’s total holdings to approximately .million ha. According to official FDA figures, this representsabout % of Liberia’s total productive forests.

OTC is linked to Hong Kong-based Global Star holdings,which is the main buyer of its production, and operator of manyof the ships which transport it. It is also possibly linked to theIndonesian Djan Djanti Corporation, with offices in Singaporeand Hong Kong and major processing installations in Indonesiaand China. The frequent changes in name and the multipleoffices in different cities in South-East Asia help to obscure thesource of the investment, the producer and destination(s) of thewood and tax liabilities.

OTC logging road,Gebia Town; July

“Many roads heading into the bush, yellowmachines going into the forests for operations, thedrivers and workmen never talk to us (villagers).Theyspent four months in the bush, using many machines.Only a few boys from the village were employed intheir (OTC) work for a short time.The loggers’machines ruined the roads, and crucially a bridge, forthe villagers – there was no way to pass.Whenconfronted, drivers said to villagers that they should gocomplain to President Taylor or OTC.As the localswere scared, they sent a letter to the localsuperintendent, but received no reply. Superintendentnever came to inspect the damage to the village andits roads, and never sent anybody to clear up the messmade in the rainy season.

The ground now wasted, and there is nothing leftfor the villagers in the bush – our roots have gone…”

Second villager in OTC concession; July 2001


OTC’s background and linksThose purchasing logs from the OTC are asked to pay Singapore-based Natura Holdings, a companywith a dubious history. It was established under another name in 1988 yet its returns for the periodto February 2000 state that it had never traded. On 30th March 2000, Dennis Myles Coe (American,Company Director with address in Singapore) and Widyanty Bte Mohd Yusope (Singaporean,Company Director) took over as the only Directors while the company was taken over by BritishVirgin Islands-based Extra Mile Investments.The following is information on Natura Holdings includinga list of people involved, a chronology of the company’s history, and questions that should beconsidered as to the nature of the company.

Chronology of the Natura Holdings

23th November 1988 The company was formed(number 04270/1988-K also expressed as198804270) as importers of rice, fruit andcanned goods.The formation agents were: NgAik Soon (Management Consultant) and PehThong Leong (Merchant) both based inSingapore. Ng Aik Soon was appointed Manager.The authorised capital for the company was$1,000,000 of which 2 shares were issued andheld by promoters

14th July 1989 Chareon Laothamatas andAmnuay Oerareemitr (both Thai Citizensdescribed as merchants) subscribed for oneshare each and became Directors.The companywas then owned and controlled by the fourdirectors

7th August 1990 The issued share capital wasincreased from $4 to $10,000 as eachshareholder put in $2,499

26th August 1995 Soon, Leong, Laothamatis andOerareemitr were removed from their roles asDirectors and Heng Hang Seng and Heng HuiKheng were appointed in their place. Both wereSingaporean. Ng Aik Soon was also removed asManager: no one was appointed in his place. Onthe same day, share capital was acquired with9,999 shares by Heng Hui Kheng and one shareby Heng Hang Seng.The Registered officemoved from 101 Thomson Road, 23-05 UnitedSquare Singapore 307591 to 112 RobinsonRoad, 12-00, DBS Finance Building in Singapore.The company claimed exemption, as a smallcompany, from filing accounts

13th August 1998 The company’s objectiveswere changed to investment and property

24th July 1998 The name was changed toPennywise Investment PTE LTD

30th March 2000 Dennis Myles Coe andWidyanty Bte Mohd Yusope took over as theonly Directors of the company. On the samedate, the whole of the share capital wasacquired by Extra Mile Investments Limited ofthe British Virgin Islands, the registered officemoved to 10 Anson Road. For the first timeaccounts were filed for the period to 29thFebruary 2000.These stated that the companyhad never traded but that $10,000 for shareshad been spent

7th April 2000 An Indonesian by the name ofRubyanto Argonadi Hamidjojo joined the board.He is described as a Company Director andresigns on 30th June 2000

12th May 2000 The authorized share capital wasincreased to $10,000,000 consisting of10,000,000 shares of $1 each. On the same day,Extra Mile subscribes $6,270,000 for 6,270,000new shares bringing its holding to 6,280,000shares.The corporate representative of ExtraMile was Ho Kui Hing

3th May 2000 The company became known asNatura Holdings PTE LTD

27th July 2000 The company raised aUS$10,000,000 facility from Fleet National Bankof Singapore and granted a charge in favour ofthe bank as security.Accordingly the companyshould or did have funding available to it by wayof the subscription for shares of some$6,270,000 and the credit facility ofUS$10,000,000NB: Unless expressed to be US$, all currency isassumed to be Singaporean Dollars

The following issues need to be addressed with regard to the nature andoperations of Natura Holdings:

● The company, which has existed since 1988, states that it has never traded.The onlyexisting documented activity being change of ownership, directorship and the proposedbusiness of the company

● In 1995, two new directors were put in place when they decide to invest in thecompany.Again, nothing happened until 2000 other than a change of name and theproposed business of the company

● The reasons for Mr. Coe and his colleague to buy such a company when they couldhave formed one as cheaply and without the need for due diligence – i.e. the need toobtain the warranties, indemnities and audits that go with taking over an existing entity,raise suspicions as to their objectives

● It is evident that Mr. Coe has influence that permits him to acquire the US$10 millionfacility which would no doubt require a track record and additional security

Natura HoldingsPte LtdFormerly PennywiseInvestment Pte Ltd

Originally Asthai (Singapore)Pte Ltd

Dramatis personaeNg Aik SoonPromoter and Manager

Peh Thong LeongPromoter

Chareon LaothamatasThai trader

Amnuay OerareemitrThai trader

Heng Hang Sengacquired the company

Heng Hui Khengacquired the company

Dennis Myles CoeAmerican, present Director

Widyanty Bte MohdYusopepresent Director

Extra Mile InvestmentsLimitedholding company based inthe British Virgin Islands

Rubyanto ArgonadiHamidjojorecent short term Director

Ho Kui Hingrepresentative of Extra Mile

Fleet National Bankprovider of US$10millionfacility


OTC’s President, Gus Kouwenhoven, is acontroversial figure in Liberia. He is one of thepeople targeted by the UN travel ban and is,according to the Report of the Panel of Experts appointedpursuant to UN Security Council Resolution ()paragraph in relation to Sierra Leone, “responsible forthe logistical aspects of many of the arms deals [withthe RUF]. Through his interests in a Malaysiantimber project in Liberia, he organises the transfer ofweaponry from Monrovia into Sierra Leone. Roadsbuilt and maintained for timber extraction are alsoconveniently used for weapons movement withinLiberia, and for the onward shipment of weapons toSierra Leone”. This has been confirmed by scores ofeye witnesses in the port of Buchanan and alongroads leading to Lofa County, as well as by peopleinvolved in Monrovia.

His shady business dealings go back a long time –from former President Samuel Doe, to the interimgovernments and warlords of the s and nowTaylor. In his country of origin, the Netherlands, GusKouwenhoven was one of the suspects in the ‘Tass’-an investigation on organised crime and large-scaledrugs trafficking. The gang he was involved in, alsoconsisting of some of his employees at his HotelAfrica and a Dutchman acting as the HonouraryConsul of Côte d’Ivoire to Liberia, allegedlysmuggled over a hundred tons of hashish fromMonrovia.

Gus Kouwenhoven operated his former loggingcompany, TIMCO, behind NPFL lines during theLiberian civil war, using the port of Buchanan forexport. When then rebel leader Charles Taylorarrived in Monrovia their ties were strengthened andhe accompanied Taylor on most of his campaigntrips during the election period.* As stated earlier,Gus also operates the Royal Timber Corporation(RTC) in the northwest of Liberia, strategicallylocated on the border with Sierra Leone. Presentlymen are being drawn from the rank of the OTCmilitia to fight in Lofa, while those unwilling to fightabandon their jobs ahead of conscription.

OTC has eight operational camps spread out inGrand Bassa, Rivercess, Grand Gedeh, Sinoe andNimba counties, and have constructed several dozensof roads crisscrossing the forests in the south-east toconnect their camps, completely without impactstudies, consultations, or compensation for damage toproperty or life. Each camp maintains its owndatabase of log production; Km has threecomputers while CD has two computers. A networkof High Frequency Radios, manned by radiooperators throughout the day, links all the camps andHQ in Buchanan and closely monitors logistics andpersonnel movements. The HQ in Buchanan is keptinformed of all operations, activities and emergenciesin the camp.

One observer on the road from Buchanan to Km (about hr mins. drive), counted trailers† enroute to Buchanan to deliver logs. An average of (+/-) trailers deliver logs to Buchanan daily betweenthe hours of : to : daily. Logs from the othercamps are delivered to Km where they are sorted

(scaled) and then transported to Buchanan.Some OTC letterheads bear Gus’ villa address at

Hotel Africa (Villa # ), where the RTC offices arealso located. The OTC General Manager JosephWong lives in the same compound (River View) as theRepresentative of the United Nations SecretaryGeneral and other top United Nations officials inMonrovia.

For its first year of operation, OTC imported“skilled” labour from Indonesia (- workers).Due to health problems, however, most Asianlabourers were subsequently sent home but asignificant number of them remain, driving trailersand bulldozers and occupying the managerialpositions in the field and at the port of Buchanan.Although there was no training as promised andpublicised, Liberians now constitute the majority ofthe OTC casual workers but a lesser percentage of itsskilled workforce. OTC maintains armed guards tokeep everyone else out of its logging sites and the portof Buchanan. FDA officials complain that they arerequired to provide the necessary hammer marks andapprovals off-site without ever inspecting OTC’slogging operations.

The extent and impact of OTC logging operations

In its first year of operations, OTC began with thecapacity to log up to , m per month, a target itmet most months of the - dry season whenit logged in Grand Bassa, River Cess and GrandGedeh Counties (confirmed in the FDA Semi-Annual Report). In the - dry season, basedupon the number of trucks operating, the number oflogging sites, and the distances between logging sites,the main loading station (kilometre fromBuchanan) and the port, OTC’s theoretical loggingcapacity is just in excess ,m per month.Assuming OTC is removing all marketable treeswhen it logs an area, this felling rate would consumeup to -, hectares of undisturbed forest permonth. Given the size of OTC’s total concession, thisrate of logging is within FDA regulations (aconcessionaire must not log in more than % of itsconcession in a year).

However OTC has not respected FDA regulationsfor preparing forest inventories and management

* To fully understand Gus Kouwenhoven and President CharlesTaylor’s relationship, one also has to investigate their dealings duringthe Liberian crisis, including Gus Kouwenhoven’s role in the trade oftimber for arms, which provided the NPFL bulk of its militaryhardware.† Each trailer carries about pcs of logs, some as much as pcs,while few carry two or three extra large pieces. The average volumeper trailer can be estimated at a minimum of ,m.

OTC’s unfinished plywood mill, Buchanan; July


plans, nor has it adhered to its reporting obligationsas specified in its (invalid) concession agreement. Ithas operated in flagrant violation of the FDA and itscontractual regulations concerning environmentalimpacts of its roads and extraction methods. It hasblatantly flouted FDA rules and Liberian lawconcerning minimum diameters for logs,*consultation and reimbursement for damage toprivate property (bulldozing through villages, farmsand plantations, logging in sacred forest groves),employee safety and employment preferences forLiberians. OTC has invaded neighbouringconcessions without permission or compensationincluding LAC/Forum Africa, University of LiberiaForest, Rivercess Logging Company/Inland LoggingCompany. Its trucks have caused numerous roaddeaths to OTC employees, local Liberians andforeigners alike. OTC has made many publicdeclarations, and has been asked by the government,to rehabilitate or construct a major saw mill in theport of Buchanan. For this it bulldozed the site inMay and has now completed construction of abuilding but as of August no machinery of anykind had been installed. In addition OTC has asawmill outside Buchanan, the production fromwhich does not appear in any FDA figures.

OTC has established a nursery for reforestationwhich contains both native and fast growing exoticspecies. It is assumed that this is merely a publicrelations exercise, given that the nursery only has thecapacity to reforest about - ha per year,compared to the ,-, ha per month it isdestroying.

Impressed by its efficiency by Liberian standards,and perhaps frightened that OTC could abandonhim, Taylor has deepened economic relations withthe company. In addition to logging operations, OTChas upgraded the Liberian road network nationallyand become involved in importing and shippinggoods domestically. Government contracts, includingthose financed by international donors like the UNand the EC, now use OTC as an importing agent.

Traditionally, Liberia exported logs mostly toEurope where the quality demanded was very high.Regardless of the logging practices used, only verylarge, straight logs were sought. Thus the marketforced selective practices on producers which helpedto reduce over-harvesting. Trees for local timberneeds were harvested in salvage areas, not causingexcessive forest fragmentation, or they were thelower-grade logs felled alongside better grade logs.With the arrival of OTC, the nature of the demandhas dramatically changed. In addition to logs forEuropean buyers, OTC is supplying factories makingplywood and other processed wood products forSouth-East Asian markets. Cheap timber ofindiscriminate quality is sought for this so theincentives for selective logging are lost. In these ways

OTC providing employment?At the launching of the OTC in 1999, Gus Kouwenhoven (onvideo available at request) announced that his company wouldemploy at least 4,000 Liberians by the year 2000 and thatelectricity would be restored to Buchanan by the end of the year.He also promised that the OTC would build a plywood factorythat would employ hundreds of Liberians and construct durablebridges since they would be in the country for at least 20 years.

Few of these promises have so far been fulfilled.The plywoodfactory is still under construction and jobs promised to localshave come in the form of casual labour. Indonesian and Malaysiantrailer drivers brought into the country since 1999 to ‘train’ localsare still actively driving while few Liberians have been hired.Other Indonesians and Malaysians work as spotters andoverseers in the bush camps. Liberian staff rarely have a writtencontractual agreement with the company’s management and feware on full time employment.The company hires and fireswithout any regard for labour laws.Those working in hazardousjobs have no insurance and so far no relative of those that havedied in operation has received any form of compensation. Inearly May, OTC recruited about 200 people (some as young as13 years old) in the port and in other bush camps.

Not only OTC made fabulous promises when it arrived, mostlogging companies did on their creation or when they moved tonew areas.This situation led to a wave of protests across thecountry in April 2001. Citizens of Sinoe County conducted apublic meeting to petition the government to return some of therevenue generated from logging in the county to self-helpdevelopment initiatives and to protest the wave of harassment bylogging companies’ militiamen.After the Sinoe gathering, theprotest spread throughout the south-east. Following theseprotests a crackdown ensued; local government officials whoexpressed sympathy with the citizens were dismissed andreplaced and individual critics silenced.55

In March 2001, journalists at the local Radio Atlantic FMstation in Buchanan (Grand Bassa County) were ordered byOTC executives to retract a news item about a fatal roadaccident involving an OTC trailer and a vehicle carrying anAmerican missionary to the south-east.When the stationmanager refused, armed men from the OTC stormed the stationand disrupted the evening news bulletin. Despite severalcomplaints to the local police and the County SuperintendentMrs. Ellen Janjay Natt, the culprits were never arrested.

These incidents have been documented both by local andforeign environmentalists and journalists.56

* In the - dry season, OTC seems to have reduced its fellingof undersized logs compared to its first season. This was reportedlyfor two reasons. First, in their first year they logged in the concessionsnearest to Buchanan which had already been logged and oftenlacked significant quantities of mature trees. Second, OTC had greatdifficulties in attracting European buyers for its timber since it wasnot generally of the standard or species demanded by Europeans. Asexplained earlier, the areas nearest to Buchanan are poorer in thehigh-value hardwoods sought by Europeans than the forests furtherinland. In the - season, OTC has concentrated much of itslogging in these inland forests. Thus the shift to legal-sized logsprobably represents OTC logging in the mature, little disturbedforests of River Cess, Sinoe and Grand Gedeh counties and a greateremphasis on exporting high-value logs to European buyers.

Gus Kouwenhoven, executive in both OTC and RTC, makingpromises he hasn’t kept, Buchanan;


OTC is much more destructive than any previouslogging operation Liberia has seen.

Public outcry against OTC has been widespread,both in national and international media.,,,,,, However Taylor has defended OTC,declaring it his “pepperbush”, a Liberian term forsomething very near and dear that no one ispermitted to interfere with. He has responded tocriticism with harsh measures such as removingpeople from office, police intimidation and arrests onthe grounds of threats to national security.

When OTC set up operations in late Taylorwarned “officials not to harass investors”. By this hemeant that the customary ways that middle- andlower-level FDA staff augmented their income – pettygraft in the forms of “service charges” for preparingpapers, providing hammer stamps or issuing permits– would not be tolerated. The arrival of OTC with itstotal presidential protection has in effect rendered anenormous portion of the forests of the south-east offlimits. Local FDA staff therefore are turning toremaining forest areas to seek whatever rents orproducts they can get.

No evidence has surfaced that OTC is paying toFDA or the National Treasury the requiredindustrialisation, severance, conservation andreforestation fees or the export tax. OTC paid US$million in , probably directly to the ExecutiveMansion, for its concession fee for the first three yearsof operations, and for the Bureau Veritas inspectiontax, although Bureau Veritas does not regularlyinspect logs exports at Buchanan port.

Royal Timber Company (RTC)

Kouwenhoven also has logging interests in Lofa andBomi counties in addition to the ones in the south-east that were converted to OTC concessions. Thesize of the concession is unknown although it is thelargest in the north-west. Initially OTC was referredto as the LMTC when they first arrived in Liberia. Itis in fact difficult to distinguish between the OTC andthe RTC since Kouwenhoven is an executive in bothcompanies. It appears to be changing namesregularly, or operating under several names, possiblyin order to avoid being tracked or to have its timberproduction and exports appear too large. FDAreports that in and in the first six months of, RTC produced just over ,m of roundlogs in each period. These numbers probably vastlyunderestimate production, however, since RTC hadover , ha of forest officially approved by FDA

for logging, representing over % of Liberia’s mostmature and most economically valuable forest. RTClogs were observed and photographed in French portsin early .

With the increasing hostility in Lofa Countybetween the RUF, Sierra Leonean forces, anti-Taylorinsurgents, the Guinean army and Taylor’s army,only those companies with significant fire-power andmilitary backing have been able to maintain forestryactivities there. RTC and its derivatives are primaryamong them. The specific arrangements betweenRTC and the Executive Mansion concerningfinances, protection, trans-shipment of arms, etc. arenot known but with Kouwenhoven as managingdirector, it is highly likely that RTC’s involvement inregional destabilisation is similar to OTC’s sinceKouwenhoven is also OTC’s President.

Inland Logging Company (ILC)

Maurice and Oscar Cooper, who own and managethe company are long-time associates of PresidentTaylor. They are the brothers of Liberian ‘Diplomat’Gerald Cooper, who was declared persona non grata bythe UK Foreign Office in , ostensibly because heshipped a jeep with gun mountings to Liberia fromthe US, via Britain, in violation of the UN armsembargo on the country. The company’s loggingactivities go back to the early s during the war,when they extracted and exported logs from ‘greaterLiberia’; the parts of Liberia then occupied by theNPFL.

The ILC has a private militia in Sinoe County,which harasses and intimidates the locals regularly.The ILC manages the port of Greenville under thedirect supervision of Oscar and Maurice. A rowbetween the company’s executives and localsdeveloped at a citizens meeting in Greenville on thMarch , which resulted in a visit to the region byLiberia’s Vice President, Rtd. General Moses Blah,Attorney General, Cllr. Edington Varmah andInternal Affairs Minister Richard Flomo, on theorders of Charles Taylor, to deal with the risingtension. The meeting had been called by locals todiscuss the conduct of logging companies in thecounty and was attended by a senior local official,Superintendent Solomon Kun, and PresidentialMedia Advisor Milton Teahjay.* Several complaints

OTC log yard, Buchanan; .

* Milton Teahjay is a native of the county and a member of theopposition United Peoples’ Party (UPP). He was offered the cabinetpost of deputy Information Minister by President Taylor followinghis election, but was later moved to the Executive Mansion to serveas President Taylor’s personal advisor on the media.


were brought against logging companies (mainly theILC) in the county, ranging from harassment andintimidation of peaceful citizens to wantondestruction of the forest. A demonstration wasplanned for early April to present a formal list ofcomplaints to the government throughSuperintendent Kun.

On his return to Monrovia, Teahjay held a pressconference and severely criticized the companies,following which President Taylor immediatelydismissed him “for engaging in acts inimical to thesecurity of the state”. The demonstration was foiledand Solomon Kun was dismissed from his post asSuperintendent. Following intimidation by police,Teahjay attempted to leave the country a few dayslater but was denied exit by immigration officials atthe border (Dulay crossing point) with Côte d’Ivoire.He subsequently escaped the country and is in exilein the US.

Since this episode tension remains high in Sinoe,especially in Greenville, which is also reported to beanother port of entry for arms coming into Liberia.

In its maiden (and final) edition, The Journalistnewspaper (th April ) detailed citizenscomplaints against the ILC. The paper, reflectingpopular opinion, asserted that “the economic andpolitical powers which logging companies seeminglywield in the country are reaching nerve-breakingproportions nowadays.” The Ministry of Informationclosed the paper before its second issue, citinginternal managerial squabble as the reason for itsintervention.

Salami Molawi Incorporated (SMI)

General Cocoo Dennis is a major shareholder in thecompany and is largely responsible for managing it.SMI operates mainly in Grand Gedeh County, whereresidents (including Superintendent Ruth Milton)complain that SMI militiamen regularly harass andintimidate locals. General Dennis, or ‘general quick-to-fire’, a nickname he still bears from his NPFL dayswhen he ran the notorious child soldiers unit, was

responsible for arranging accommodation andtransportation for Burkinabe mercenaries en route toLiberia through the Côte d’Ivoire during the war. Hemaintained an operational base, for these activitiesand later for SMI operations, in the border town ofDanane throughout the war and only dismantled itrecently during the political disturbances and changeof government in the Côte d’Ivoire. He commandedone of the most notorious units [‘Sabebo’]* of theNPFL. He is presently leading units of the SMImilitia in northern Lofa County fighting alongsidegovernment forces, believed to be responsible forserious human rights violations. He is a veryinfluential confidante of President Taylor.

Furthermore, an anonymous fax received byGlobal Witness in early alleged that SMI’sowner, Mohammed Salami, was implicated in armstrafficking via San Pedro port in Côte d’Ivoire.

Bureaux Ivoirian Ngorian (BIN)

BIN operate a sawmill in Liberia, near to the Ivoirianborder town of Toulepleu: much of the company’sproduct is exported from the port of San Pedro. Thecompany has received criticism for primarilyemploying Ivorians rather than native Liberians,despite a pledge from Vice President Blah who, inJune , announced that Liberians would soonbe employed by BIN. Those Liberians that areemployed have complained that they do not have safedrinking water and latrines in the wooden campconstructed by the company. Furthermore, localcitizens do not even benefit from the scraps from thesawmill

This is an example that the timber industry notonly provides little revenue to Liberia, but little in theway of benefits to the people.

* The ‘Sabebo’ or ‘no safe’ unit (a reference to their trigger-happyattitude) committed some of the most brutal atrocities of theLiberian war. It had its base (called SABEBO) at LAC outsideBuchanan and safe passage through the area during the NPFLoperation Octopus was considered “a great blessing”. The name wastaken from the documentary film , (Escape from Sabebo).

Sawn timber supplied by BIN whose practices have had negative impacts on Liberians, San Pedro; August .


Factors ofdestabilisation in theregion

LIBERIA’S ROLE in the destabilisationof Sierra Leone is well known.Guinean dissidents would provide aneasy route for Taylor to replicate asimilar scheme in Guinea.

Tension is rising and opposition hardening thismonth in Guinea with the talks of the referendumthat may or may not allow President Lansana Contéto present himself for a third term. Poverty is on theincrease as the Guinean population does not benefitas it should from the redistribution of the country’sresources which are mainly used to cover largesecurity expenses or benefit a few individuals.

Sidya Touré, an opposition figure and ex-PrimeMinister, estimated that % of the State’s budgetofficially goes to security expenditure. Whether thisfigure is accurate or somewhat exaggerated, the fact isthat defence consumes colossal revenues in Guinea,and that national security can provide an ideal shellfor embezzlement. Key people from both thegovernments of Guinea and Liberia can personallybenefit from the border conflict. The President ofGuinea is also the Defence Minister, giving himrelative freedom in his decision making and budgetcontrol. Official figures spent on the army are farfrom actual figures; Guinea does not currently havethe resources to sustain a prolonged war.

In a bid to increase its revenue and presumably tosupport the long-lasting militarisation of the border,Guinea has recently struck a deal with a Malaysianlogging company which is cutting timber at analarming rate. A large quantity of wood from Guineatransits via Côte d’Ivoire. In the past, timber anddiamond revenues failed to appear in the State’sofficial revenue, so it is likely that the profits will bemainly used for national security. There areconflicting views on whether Guinea would want totake advantage of Taylor’s weakening control toexpand its frontiers, but whether it has sufficientmeans to do so is another issue.

Dissident forces, however, could be an ideal targetfor Charles Taylor to use the divide and conquertechnique he has already put to the test inneighbouring Sierra Leone, and there is a serious riskthat the border region becomes a permanent roguearea. Poverty and disillusionment in Guinea meanthat arms, prolific in the region despitedemilitarisation projects, are in danger of becomingeasier to obtain than food so that border fightingcould spread to the rest the country.

A multitude of groups are present in the region,increasing chances of regional destabilisation. Closeto Charles Taylor are Ukrainians, who crew andsupply most aircraft in the region. The UkrainianMafia has long been present in Liberia. NaturalisedIvorians, Gambians, Burkinabe and South Africanmercenaries are also currently available to Taylor.Ongoing disarmament in Sierra Leone and theimminent trial of RUF and Civil Defence Forces(CDF) leaders will incite some of them to seek similarpositions across borders. The Demobilization, and

Reintegration Program (DDR) appeals tomany fighters but some have or willchoose the quicker way of continuingtheir warring way of life, by joining otherexisting groups. Those will not need totravel far given the vast quantity offactions present in Guinea and Liberia.Many combatants do not consider bordersas an issue, when fighting elsewhere offersthem the means to further their careers.

Other potential recruits are thenumerous refugees from Liberia andSierra Leone, vulnerable to forcedconscription or voluntary enrolment. Aminimum estimate for refugees in Guineais , of whom , are fromLiberia.

Several allegations highlight thefragility of the region’s stability:

● Liberians United for Reconciliationand Democracy (LURD), an anti-Taylor movement fighting in Liberia,receives equipment from Guinea.

● Guinea rejected a US$, ‘gift’from Colonel Gaddaffi, illustratingLibyan attempts to influence regionalpolitics.

● Guinea has given support to AlhajiKromah, leader of ULIMO-K, anenemy of Charles Taylor. Kromahestablished training camps in Guinea.

● The son of ex-Guinean PresidentSekou Touré, Ahmed, was seen by UNpeacekeeping forces in Kono, in SierraLeone, trying to recruit RUF fighters togo into Guinea. Ahmed Touré has reportedly beenbased in Liberia under Taylor’s protection.

With mounting international pressure on Liberia,Charles Taylor is being pulled in two directions:

On the one hand, he has several interests inkeeping pressure on the border. An old personal feudbetween President Conté and Taylor fuels the borderconflict. Guinea initiated the border attacks and nopeace has been re-established since on either side,despite the apparent will of the local populations, fedup with repeated looting from all warring partiesinvolved. The foreign ministers of Guinea, Liberiaand Sierra Leone also recently met in Monrovia todiscuss a possible summit between their presidentsaimed at ending continuing conflict on their commonborders. These meetings may give some cause foroptimism, but given Taylor’s duplicity with regard tothe presence of the RUF in Liberia, action will haveto speak louder than words. Guinean PresidentLansana Conté has to date refused to meet CharlesTaylor. Mount Nimba’s iron ore, in Guinea, alsooffers an attractive source of revenue for CharlesTaylor given the current dents in his income sources.

On the other hand, Liberia is involved in a publicrelations exercise to regain some credibility in theeyes of the international community. The Embassy ofLiberia in Washington, DC, recently stressed: “Wewish to make it emphatically clear that Liberia seeksnothing other than peaceful co-existence with itsneighbors, and is committed to remaining aresponsible member of the international community.”


Also, in the same declaration, The Embassy puts theblame on Guinea: “While we plead for yoursympathy and understanding as the process ofreconciliation and political tolerance take root in thecountry, it must be noted that despite Liberia’scommitment to regional peace and stability, itsborders are still being transgressed by attacks fromGuinea by dissident forces.”

The relationship between Liberia and anotherneighbour, Côte d’Ivoire has dampened sinceGeneral Gueï was overthrown, due to his links withLiberian mercenaries. President Laurent Gbagbo isdeploying efforts to improve diplomatic relations onthe international scene and shows little support ofCharles Taylor. Côte d’Ivoire has been facingproblems of its own with a collapsing economy andviolent political clashes. Previously enjoying wealth, astrong relationship with France and relative stability,the country has been shaken by the exodus of manyexpatriates occupying key posts in business and theadministration, and by ethnic divisions intertwinedwith the pursuit of legitimate elections or illegitimatepower. Côte d’Ivoire has opened its frontiers toLiberian refugees and prepared integrationprogrammes, to the discontent of Charles Taylor.Despite this cooling between the Ivorian Presidencyand Charles Taylor, there remain strong business linksbetween the two countries, as shown by the GlobalWitness investigation on the trade of Liberian woodin the port of San Pedro and at the frontier.

Burkina Faso, also once an ally of Taylor duringhis rise to power in the s, has also diminished itssupport in relation to internal problems and pressureof the international community. The arms movementbetween Burkina Faso and Liberia, previously veryimportant, diminished in favour of sea traffic withother partners.

The regional trend might go towards pacification,motivated by the disarmament process in SierraLeone, general fatigue of wars only profiting ahandful, and international pressure. The fragility ofthe stability of the region must, however, be a matterof serious consideration for all stakeholders. ShouldTaylor’s shortage of cash lead him to lose his troops,they will logically look for a faction to join or anotherleader. There seems to be no current emerging leaderin Liberia, but there are numbers of groups led byruthless individuals. For example the LURD, oneopposition group in Liberia, include figures likeCharles Julu whose campaign of terror in NimbaCounty in and under Doe, must not beforgotten, or the Taylor era would be only bereplicated. Lack of leadership could lead to increasedtension in the region. In Sierra Leone, the DDRprocess is still fragile as the diamond areas have notbeen disarmed and the most lethal weapons have yetto be handed back. The possibility of a renewedoffensive organised from Liberia, including ex-RUF,possibly CDF and other factions supported bycornered Taylor should not be dismissed.

The effects of war: an amputee and war-wounded camp in Sierra Leone. According to OCHA there are , Sierra Leonean internallydisplaced persons (IDPs) and , Sierra Leonean refugees (the largest refugee caseload in Africa according to UNHCR).

Part Two: The role of the Liberian shipping register

by the International Transport Workers Federation (ITF)


Blood on the Flag

CHARLES TAYLOR, the Presidentof Liberia, has discovered an easyway of making money – renting outthe country’s flag to foreignshipowners. Liberia, of course is not

a serious maritime nation. At most only a handful ofships from this huge fleet ever goes near Monrovia,but the hard currency revenue which flows to Taylor’sgovernment from the flag is impressive by anystandards and even more so for such a povertystricken country. It amounts to at least a third of thecountry’s officially declared income, perhaps muchmore in reality.

There are two reasons why this has happened.The first is the operation of the ‘flag of convenience’(FoC) system itself which enables a state to rent out itsflag without accepting any real responsibility for whathappens on board its’ ships. This system allowsshipowners to choose their own regulators and tooperate free from real control and is increasinglyopen to question within the shipping community. Intheory any state, whether or not it has a coast, canopen a shipping register and ignore the internationalrequirement for there to be a genuine link betweenthe ship and the flag. In recent years, many have doneso and have attracted the most unscrupulous anddodgy shipowners.

But Liberia has a separate advantage. It was oneof the first countries to operate a flag of convenience(or ‘open register, as its defenders called it). In thes, a number of leading shipowners who wantedto escape from tax and union rules in the US andother maritime nations, with backing from individualsin the US government decided to create and expanda Liberian shipping fleet. One of the stated intentionswas to boost Liberian exports to the US, butshipowners soon realized the advantages of beinggoverned by laws which they effectively wrote

themselves. At the time Liberia (the only Africancountry settled by freed American slaves) was anAmerican colony in everything but name. Itsgovernment did anything the US told it to and thecountry’s currency was the US dollar.

Until the mid s Liberia (together withPanama and a couple of other nations) dominatedthe market for ‘flag of convenience’ registers. In factLiberia was something like an American ‘secondregister’. Being heavily influenced by the USgovernment, Liberia’s flag was, from the beginning,run by an American company. Many US oil majorschose to make use of the flag, with the support of USgovernment interests so reducing their liability to payUS taxes and, more importantly, the obligation toemploy seafarers under US conditions.

For many years, including the decade long civilwar which ended with Charles Taylor’s elevation tothe Presidency, the flag continued to operate freefrom any interference from Liberia. During the yearswhen there was actually a government, it receivedsome modest revenues, but most of them stayed withthe operating company, International RegistriesIncorporated (IRI) which was based in RestonVirginia. IRI used it to support a register which,although more lightly regulated than most genuinenational flags, was more tightly run than many of itsflag of convenience competitors.

WhenTaylor came to power in , he soonrealised the potential profits which could be made fromwhat had become the world’s biggest shipping register.With help from some lawyer friends, he launched courtaction against IRI and, at the end of , cancelledtheir years old contract and gave it to a newcompany, established with help from his lawyers,Liberian International Ship and Corporate Register(LISCR). They took over the files, procedures, and mostof the staff employed by IRI but agreed to transfermore money to Monrovia. The legal action ended withan agreed settlement, but court proceedings about thisare still going on. The Liberian maritime programme isnow a major contributor to the Taylor regime’s coffers.

The International Transport Workers Federation (ITF)The International Transport Workers Federation (ITF) brings together almost600 unions in more than 136 countries in every part of the world, andrepresents over 5 million trade union members in every branch of transport.

For over 50 years, the ITF has operated a worldwide campaign againstmaritime “flags of convenience” (FoCs).The campaign acts politically – lobbying government andinternational bodies to make flag states responsible for their ships; and industrially – using trade unionaction to protect seafarers on FoC ships and ensure that they are covered by union agreements offeringminimum international standards.As part of this campaign the ITF maintains a network of 120 unioninspectors in ports around the world who board Flag of Convenience ships to check on the conditions ofthe crew.Their reports reveal a catalogue of abuse of seafarers, including unpaid wages, poor livingconditions, lack of medical attention, fatigue, and inadequate safety training. During 2000 industrial actionwas taken at ports in 29 countries in support of crews in FoC ships. In the same period the ITF and itsinspectors obtained over $23 million in back pay for crews from shipowners.

As well as improving conditions for transport workers around the world the ITF’s constitution commitsit “to support the work of the UN, its agencies, other intergovernmental and non-governmentalorganisations in those activities promoting peace based on social justice and economic progress.”


What is a ‘Flag of Convenience’(FoC)? Under international law every ship must sail under anational flag, and the ship carries the nationality of the flagit flies.A ship’s flag provides it the protection of agovernment while on the high seas.At the same time flagstates are responsible for exercising effective jurisdictionand control in administrative, technical and social mattersover the ships flying their flag (United Nations Conventionon the Law of the Sea, 1982,Article 94).They areresponsible for ensuring safety, training and maritimepollution standards and minimum social conditions onboard their ships.They can also raise revenue by imposingtaxes on ship owners.

Traditionally, most flag states had strict nationality rulesboth for the shipowners and for the crews. However,since the second world war, a number of countries beganthe practice of effectively renting their country’s flag toshipowners of any nationality, guaranteeing the absoluteminimum of rules, regulations and taxes.These are called“Flags of Convenience” (FoCs), also known as openregisters.

As long ago as 1958, the Organisation for EconomicCooperation and Development (OECD) defined Flags ofConvenience as “the flags of such countries as Panama,Liberia, Honduras and Costa Rica whose laws allow – andindeed, make it easy for – ships owned by foreignnationals or companies to fly these flags.This is in contrastto the practice in the maritime countries (and in manyothers ) where the right to fly the national flag is subjectto stringent conditions and involves far reachingobligations”. In 1958, the ITF organised a worldwideboycott against so called PanLibHonCo ships whichdeveloped into its present day campaign against the FoCsystem.

Flags of Convenience do not sit easily with currentinternational maritime law.The United NationsConvention on the Law of the Sea (UNCLOS) 1982 isacknowledged as the pre-eminent internationalconvention within the UN system concerning oceans andseas. It provides the framework for the more detailedinternational minimum standards adopted by other UNagencies such as the International Maritime Organization(IMO) and the International Labour Organization (ILO).Article 91 of the Convention provides that there shouldbe a “genuine link between the State and the ship.”Anattempt to establish a better definition of what this meansin practice was made by the adoption of a further UNConvention on the Registration of Ships in 1986. Lobbyingby shipowning interests resulted in a text which wasvirtually meaningless and this Convention has remainedlargely unratified and its adoption was accompanied by arush of new entrant states into the FOC ‘market’.

The existence of a “genuine link” is essential if the flagState is to be able to meet requirements of UNCLOS,especially those contained in Article 94 (Duties of the flagState) and Article 217 (Enforcement by flag States).Thecontinued relevance of the “genuine link” is illustrated bythe fact that the United Nations General Assembly inA/RES/54/32 “Calls upon the International MaritimeOrganization, in cooperation with the Food andAgriculture Organization of the United Nations, regionalfisheries management organizations and arrangementsand other relevant international organizations, and inconsultation with States and entities, to define theconcept of the genuine link between the fishing vessel andthe State in order to assist in the implementation of theAgreement.”

The ITF believes that the minimum acceptabledefinition of a “genuine link” is that there is within the flagstate a substantial entity which can be made responsiblefor the actions of the ship, so that the flag state can havereal influence over the behaviour of the owner.The bestway of ensuring a “genuine link” is if the shipowner isincorporated in the same country and has assets in thesame jurisdiction as the flag of the ship. Under the FoCsystem, the registered owner of most ships is a ‘shell’company set up for the sole purpose of owning that ship.That registered owner is often, in turn, owned by anothercompany which may itself be registered in a country withvery liberal company laws. It is hard (deliberately so) toidentify and hold accountable the real owner.

Behind this web of companies there is always a realowner who benefits financially from the operation.Thisindividual or company, the beneficial owner has ultimatecontrol over what happens to the ship, including whichflag it is registered under. For the ITF it is the beneficialowner, not the registered owner, who counts.

The secrecy and lack of transparency of the FoCsystem allows owners to ignore their responsibilities andcut their operating costs.As well as lax company laws,FoCs offer cheap registration fees, low or no taxes, andfreedom to employ cheap labour from any country.As aresult shipowners have increasingly found there were bigsavings to be made by using an FoC. It has been estimatedby the OECD (which was a supporter of the FoCsystem) that the cost advantages of using an FoC ratherthan a genuine national flag ship was up to $1 million ayear even if all international safety and social standardswere scrupulously observed. For shipowners prepared touse the system to the full and take the chance of gettingcaught by port state authorities, the advantages can beeven greater.

Today there are at least 30 states which are classifiedby the ITF as offering Flag of Convenience facilities. Moreare trying to join the market all the time, even offering thechance to register your ship via the Internet with noquestions asked. FoCs account for nearly half of theworld’s merchant shipping fleet, including the bulk of largetankers, bulk carriers and cruise ships. Countries withtraditionally large national merchant fleets have seen theseshrink dramatically as their vessels were “flagged out” toFoCs.The FoC system, by offering shipowners fromindustrialized countries access to cheap labour and liberallaws, has actively discouraged the growth of domesticallyowned shipping industries in most developing countries.

The Liberian ship registry funding a pariah state


Selling Secrecy

What Liberia offers shipowners is a Flag of Convenience(FoC). This term, which was coined by the ITF andstrongly disliked by shipowners, has become generallyused in shipping and elsewhere. It means what it says.Shipowners have the convenience of choosing theirflag and the laws they will obey. If they don’t like thelaws, they choose another flag. IRI, which had thecontract to run Liberia’s flag from the beginning,understood that its target was the quality end of theshipping industry. The registry traditionally chargedhigher fees than most of its competitors, andadministered above average technical standards. Incommon with the rest of the FoC market, however, ithas paid special attention to offering a very high levelof corporate secrecy.

Registering a company in Liberia is extremelyquick and easy. It takes on average hours and doesnot require disclosure of share ownership or thenames of directors. Liberian offshore companies(which are always used to register ships) are notrequired to submit any form of annual return oraudited accounts. There are also no requirements tomaintain even a symbolic presence in Liberia, or anyresidence rules for directors, company secretary orholding company meetings in Liberia. Notsurprisingly there is no requirement to pay tax.

The benefits of secrecy allowed by Liberian lawscan extend even to ships registered under other flagsof convenience. In December a ship called theErika sank off the French coast spilling its cargo of oilinto the sea and onto the French beaches. The shipwas registered in Malta, another Flag ofConvenience. The Maltese registry does not allowdirectors and shareholders of shipping companies toremain unidentified but there are ways round this inwhich Liberia featured heavily. The Maltese companyset up to own the ship had two shareholders, both

Liberian companies, and Liberian law guaranteessecrecy for directors and shareholders. Despite amassive investigation by the French government andthe European Commission, as well as the frenetic andwell resourced efforts of the French media to find thereal owners of the Erika, it was not possible topenetrate the veil of secrecy guaranteed by theLiberian law or system. (The mystery was onlyresolved after some weeks, when the real ownersvoluntarily came forward.)

Ship owners from all over the world haveregistered their vessels in Liberia rather than undertheir own national flag (see table ). % of the fleet onthe Liberian register is owned by American, German,Greek, Japanese and Norwegian shipping companies.With around , vessels registered under its flag,Liberia, one of the poorest countries in the world,currently has the world’s second largest maritime fleetin shipping tonnage ( million gross tonnes). Notablyabsent from the nationality list of vessels on theLiberian register are any Liberian-owned ships.There are almost no Liberian seafarers on these ships.

For many years the Liberian register had thelargest shipping fleet in the world in terms oftonnage. The bad publicity generated by the civil warled some owners to decide to transfer to another FoC.But even then Liberia only slipped to number two(Panama, which faces its own corruption problems,now has first place). The Taylor government,however, has vowed to restore the register to itsformer level.

The register traditionally has a high proportion oftanker tonnage. In January Liberia accounted intonnage for % of all the world’s oil tankers. Thereare also a large number of bulk carriers, as well as anumber of Liberian registered cruise ships.

Shipping companies protected by secrecy


Funding a pariah State

Liberia’s traditional status at the quality end of theshipping market has meant that foreign shippingcompanies are prepared to pay relatively high fees forthe benefits of the flag. As an example, the cost forregistering a Liberian company is USD ,. Non-resident companies pay zero tax.

Faced with shipowners’ increasing concerns aboutthe register in the aftermath of the change inmanagement contract, a price war with otherregisters has been launched. A new scale of fees wasintroduced for ships entering the register after July and all initial registration fees are waived fromthen until the end of .

Initial registration fees (worth up to about $, per ship)

● USD . / net ton, up to a maximum of USD,, plus lump sum of USD ,

● Administrative fee USD ,

● Certification fee, approx. USD

● Mortgage fee (if necessary) USD

Annual tonnage tax

● USD . / net ton

● Lump sum of USD ,

● IMO charges of USD . / net ton plus lump sumof USD ,

● Inspection charge of USD ,

These fees are collected by the US companyadministering the register. By the year theLiberian registry was netting an average of some $– million per year for Charles Taylor’sgovernment. Such a regular and automatic flow ofincome takes a lot of pressure from the governmenteven though Liberia’s domestic economy is near totalcollapse. Analysing government budget figures isnever easy, and with a pariah State like Liberia it iseven harder, but it has been estimated that between – % (and at times %) of the entire nationalrevenue of Liberia, from legitimate sources, comesfrom its ship registry. Even the government hasadmitted to the ITF that at least % comes from theregister. It is well known that additional sums comefrom diamond and timber exports, but these are notso easy to identify.

The Taylor government is funded by theinternational shipping industry and its mostimportant tax collector is LISCR. The company’scontract with the government signed on December appoints it as “the exclusive agent ofgovernment” to perform “Collection of AnnualTonnage Taxes” and ship registration fees. There islittle evidence that this money is being used to benefitthe people of Liberia.

Conflict and atrocities

Flags of Convenience like Liberia are frequently usedby shipowners to avoid national tax, safety and socialrules. Although some international rules have beenestablished which all ships are in theory bound by,enforcement of these rules is usually by the portStates where the ships call. If a flag state gets tough, itloses business. Faced with the proliferation of FoC

registers and the unwillingness of states to take theirresponsibilities seriously, there is a growing move totighten up the rules on how flag states work. Liberiais, of course, only one of at least countries whichoffer FoC facilities to the shipping industry, and it isrun by a US company. So why should the Liberianship register cause particular concern?

The fact that Liberia is regarded as a “pariahstate” by the international community, and iscurrently subject to UN sanctions and that fact that itgets a substantial share of its hard currency incomefrom its maritime flag, shows clearly the hypocrisy ofthe system. When Liberia wants to distance itselffrom the register, it claims it is a private US business.But whenever national political influence is needed, itis suddenly a sovereign flag.

On May , because of the Taylorgovernment’s active destabilisation of its neighbourSierra Leone, Liberia became one of the fewcountries subject to international United Nationssanctions. The war in Sierra Leone has been markedby particular brutality including the hacking off oflimbs of women and children. Shipping companiescannot claim the sovereign protection of the Statewhen it suits them, and then dissociate themselvesfrom everything the State does in practice.

The UN Security Council stated on March ,“that the active support provided by the governmentof Liberia for armed rebel groups in neighbouringcountries, and in particular its support for the RUF inSierra Leone, constitutes a threat to internationalpeace and stability in the region…” (S/RES/)

The Liberian ship registry is a key source ofearnings for the government. The United Nationsaccuses the Taylor government of providing funds tothe RUF guerrillas in Sierra Leone. In December a Report of the UN panel of Experts on SierraLeone cited the Liberian Maritime Programme asfacilitating the flow of arms to guerrillas in SierraLeone. It is hard to believe that such a major sourceof income does not have an influence on suchfunding.

This subject came to unexpected public attentionin May when the old register company IRI suedthe new company LISCR in New York. While thewrit they issued mainly deals with the commercialside of the settlement agreement between them, italso alleges that LISCR ‘is a major source of Liberia’sincome for such activities (financial and military aidto rebels) and a handy honeypot for lining the pocketsof Liberia’s current dictator, Charles Taylor.’

IRI also alleges that “Up to one third of all thecash from the flag goes straight into the pockets ofpresident Charles Taylor…Much of the money isdiverted to financial and military aid to rebels intenton overthrowing the government of Sierra Leone”.

LISCR strongly denies these allegations, whichcome from a commercial rival. Yet there will be fewpeople with more inside knowledge of the Liberianregister than IRI. According to the respectedshipping journal Lloyds List ( May ) westernintelligence sources say that “the balance ofprobabilities is that IRI’s claims do stack up”.

It is perhaps not surprising that when the UnitedNations issued a travel ban under Security CouncilResolution () against named Liberiannationals earlier this year, these include several keyfigures concerned with its maritime affairs. On the listis:


Gerald Cooper, Liberian Maritime Registry Liaison toIMO;

Wisseh Denis, Consultant to Commissioner of theBureau of Maritime Affairs;

Samir Nasr, alias Sanjivan Ruprah, DeputyCommander of Maritime Affairs;

Agnes Reeves-Taylor, Ex-wife of President Taylorand Liberian Permanent Representative to the IMO,Senior member, Government of Liberia;

Benoni Urey, Commissioner of Maritime Affairs.Cooper was also declared persona non grata by the UKgovernment after his refusal to answer questionsconcerning his involvement in an alleged infringement ofthe UN arms embargo against Liberia.

There may even be other aspects of the Liberianmaritime infrastructure which have helped Taylor in hiscampaign to overthrow the Sierra Leone government.The UN experts panel on Sierra Leone accuses theLiberian ship registry of using its secrecy rules tofacilitate the operation of shell companies used to tradein notorious “conflict diamonds”.

Reflagging is easy

It is time for shipowners who believe that the Liberianflag has nothing to do with the Liberian government tothink again. From being a quality flag, Liberia has nowbecome a major embarrassment. No shipowner isobliged to use the Liberian flag or owes any loyalty to thegovernment. In fact the system’s primary selling point isthe convenience with which flags can be changed. Anyowner who feels himself part of the internationalcommunity should cut links with Liberia as soon aspossible.

This would be in line with the sentiments expressedin the United Nations Declaration on the Right andResponsibilities of Individuals, Groups and Organs of

Society to Promote and Protect UniversallyRecognized Human Rights and FundamentalFreedoms (A/RES//), which was adopted atthe rd session of the General Assembly andprovides, in Article , “Individuals, groups,institutions and non-governmental organizations havean important role to play and a responsibility insafeguarding democracy, promoting human rightsand fundamental freedoms and contributing to thepromotion and advancement of democratic societies,institutions and processes.”

Reflagging is easy and can be completed withoutdisrupting business or prejudicing the crew. There areplenty of alternatives available and a growingnumber of genuine national flags which areintroducing measures making them more attractive toshipowners. The weakening or disappearance of theLiberian flag from the world’s oceans will have noimpact on international trade but will show simplythat governments have a responsibility for ‘their’ shipsand that this cuts both ways. It will also depriveCharles Taylor of a substantial supply of cash andmake his interference in Sierra Leone much harder.

Of course for some owners, changing the registerwould mean some extra trouble and expense. Wherethere is a mortgage on the ship, some legal fees maybe needed. Most other shipping registers alreadycharge lower fees than Liberia, and those which arerecognized in the industry as aiming for qualityshipowners have already started offering special dealsto shipowners wanting to transfer. Certainly movingfrom the Liberian register will also not have anysignificant impact on the seafarers concerned. It willhave the positive benefit of putting the seafarersunder the jurisdiction of a flag state, which has afunctioning judiciary and which is not classed as a‘pariah state’ It is likely that any short term costs forowners will be substantially offset by the long termbenefits of breaking connections with the murderousregime of Charles Taylor.

Liberia has the world’s second largest shipping fleet


Conflict Diamonds and theLiberian International Ship andCorporate Registry

“Taking note of the findings of the Panel ofExperts that diamonds represent a major andprimary source of income for theRevolutionary United Front (RUF), that thebulk of RUF diamonds leave Sierra Leonethrough Liberia, and that such illicit tradecannot be conducted without the permissionand involvement of Liberian Governmentofficials at the highest levels, and expressingits deep concern at the unequivocal andoverwhelming evidence presented by thereport of the Panel of Experts that theGovernment of Liberia is actively supportingthe RUF at all levels,…”

United Nations Security Council Resolution,S/2001/1343 Imposing Sanctions Against Liberia,March 7, 2001

At the heart of the bloody strife in Liberia’s neighbourSierra Leone is an illicit trade in diamonds. So much doesthis trade fuel the war by providing the funds for armsthat the UN labels these as “conflict diamonds”.The rebelarmy of the Revolutionary United Front (RUF) controlsdiamond producing areas in Sierra Leone.The UNbelieves that the RUF is effectively controlled by CharlesTaylor.According to a UN Security Council mission toSierra Leone in October 2000:“Most of the Mission’sinterlocutors, including those at the most senior levels,had no doubt that President Taylor exercised stronginfluence, even direct control over the RUF. In theassessment of many, the main objective of the RUF was tomaintain control of the diamond producing areas….”(page 5 of the Report of the Security Council Mission toSierra Leone S/2000/992, October 16, 2000). Diamondswere able to fund both the Taylor government’s “interestin profits from diamonds mined in Sierra Leone” and armsfor the RUF.

UN investigators believe that diamonds are takenfrom RUF controlled areas of Sierra Leone to Liberia andthen traded on the international markets as though theywere from Liberia.Antwerp is the world centre for roughdiamonds.The figures for diamond imports to Belgiumfrom Liberia far outstrip the entire diamond productioncapacity of Liberia.The highest estimates of currentLiberian production capacity do not exceed 150,000carats per year.According to Belgian diamond traderecords an average of over 6 million carats per year isbeing imported from Liberia.

According to the UN expert panel on Sierra Leone,Liberia’s ship registry plays a direct role in facilitating thisillicit trade.After Charles Taylor came to power in 1997 anew company, Liberian International Ship and CorporateRegistries (LISCR), was set up to run the registry.Thismeant the canceling of the contract of the company,which had been administering the registry up until then,International Registries Inc (IRI).

In January 2000 LISCR took over the registry from IRI.This put the Liberian ship registry directly into the handsof close associates of Charles Taylor. One of these is a USlawyer called Lester Hyman.According to reports in themaritime press Hyman was instrumental in clearingTaylor’s long standing arrest warrant stemming from his1985 escape from a Massachusetts jail while facing

extradition to Liberia on a $1 million embezzlementcharge (Lloyds List 16.5.01).A colleague of Hyman’s,Yoram Cohen, is the current chief Executive of LISCR.

LISCR claims it is a private company “completelyindependent of the Liberian government”.Yet it is hard toavoid the conclusion that the main reason for the changein contracts was to put the registry more effectively underLiberian government control. Ella Dodson, a partner inthe New York law firm Baer Marks and Upham LLP wrotean article published in the trade journal The Baltic in May1999, under the heading “Liberia’s new clothes”. In heropinion: ‘Based on the contract between LISCR and theGovernment of Liberia (GOL) and based on recentlegislative actions, it is clear that the professional,independent management of Liberia’s corporate andmaritime programmes will be replaced by a LISCRadministration under the effective and complete controlof the GOL. Even a cursory review of the contractbetween LISCR and GOL reveals the relative weakeningof the administrative agent’s position and the GOLsassertion of substantial control over the day to dayadministration of the corporate and maritimeprogrammes, as well as their long-term direction.Throughthe use of a newly-created position, the deputycommissioner of financial affairs, GOL controls the purse-strings.”

This view is echoed in the writ issued by IRI againstLISCR in May 2001, which alleges, among other things,that LISCR, while nominally owned by Lester Hyman anda group of friends and operated by Yoram Cohen, is infact controlled by Charles Taylor.According to the writ“Taylor’s oversight is so tight that he acts in effect as oneof LISCR’s senior partners and is intimately involved in allaspects of its management, personnel assignments,distribution of funds, salaries and foreign offices.”

It was soon after these changes that the ship registryallegedly became a link in the illicit diamond trade, whichbrings huge amounts of money for arms to the RUF indefiance of a UN embargo.When the UN expert panelon Sierra Leone checked the invoices of companies whichpurported to be Liberian diamond companies exportingto Belgium, they found that:“A physical check of theMonrovia street addresses given by most of these firmsrevealed that there were no such companies, and no suchaddresses. Courier firms in Monrovia, however, have in thepast been instructed to route correspondence for theseaddresses to the International Trust Company, (ITC) whichin January 2000 changed its name to the InternationalBank of Liberia Ltd. Since then, mail addressed to thecompanies in question has been forwarded to the newly-established Liberian International Ship and CorporateRegistry (LISCR) which now handles the Liberianmaritime registry.This means that if the companies inquestion are more than shells, they are not physicallypresent in Liberia, and none of the diamonds in questionwere either mined in, or passed through Liberia. It alsomeans, however, that there is an intimate Liberianconnection with these deceptive diamond transactions.”(Report of the Panel of Experts Appointed Pursuant toSecurity Council Resolution 1306 (2000),Paragraph 19, inRelation to Sierra Leone S/2000/1195, December 20,2000).

The panels’s report also names Sanjivan Ruprah,described as a well known arms dealer, who travels usinga Liberian diplomatic passport in the name of Samir MNasr and “carries additional authorisation from theLiberian International Ship and Corporate Registry”.TheUN Panel report condemns the Taylor government for“the improper use of its maritime registry” (our emphasis).


Unprotected crewsThe Liberian register allows shipping companies to fly theLiberian flag irrespective of where the vessel is owned,with minimal formalities, and to operate their ships withcrew members of any nationality and under anyconditions of employment.This means that shipownerscan shop around the world for the cheapest labour.Thebulk of the crew come from countries such as thePhilippines, China, Ukraine and India. 34 per cent of crewmembers on Liberian registered ships are from thePhilippines.This is a major cost saving for the shippingcompanies.

There are currently an estimated 40,000 seafarersfrom more than 40 countries working on board Liberianregistered ships. It is hard to track down a Liberianseafarer on board any of the ships on the Liberianregister.

Under the United Nations Convention on the Law ofthe Sea, UNCLOS (1982) ships flying the Liberian flag arepart of Liberian territory.The Liberian government isresponsible for ensuring the welfare and rights of all the40,000 crew members of all nationalities working onboard ships on the Liberian register.Article 94 of theConvention states that the flag state “shall effectivelyexercise its jurisdiction and control in administrative,technical and social matters over ships flying its flag”.

Seafarers, working at sea away from home and out ofsight of any regulatory authorities, are particularlyvulnerable to abuse by employers.The InternationalCommission on Shipping, chaired by Peter Morris former

Australian shipping minister produced a report last yearwhich concluded that “Life at sea for many seafarersinvolves much abuse. Physical abuses include beatings andsexual assault, inadequate medical treatment, substandardaccommodation, and inadequate food….Non payment ofwages, delays in paying entitlements to families and evenabandonment are additional abuses….” (ICONS, Inquiryinto Ship Safety: Ships Slaves and Competition, 2000).

Seafarers living and working on board Liberian-flaggedships - effectively Liberian territory - are, according tointernational law, dependant upon the protection of theLiberian courts against shipowners for injury ornegligence, breaking of an employment contract, physicalabuse, or other similar issues concerning their basic socialrights.

Such protection is non existent in Liberia.The Liberiancourt system simply does not function.According to areport by the US State Department in February 2001,“All levels of the court system in Monrovia, including theSupreme Court, functioned sporadically”.The samereport noted,“The judicial system, hampered by politicalinfluence, economic pressure, inefficiency, corruption, lackof resources, was unable to ensure citizens rights to dueprocess and fair trial”.

The ugly human rights record of the Taylor regimewould inspire little enough confidence in the availability ofjustice for foreign seafarers. Nevertheless the fact is thatthe state with the world’s second largest merchant fleethas no properly functioning court system to protect thetens of thousands of seafarers under its responsibility inaccordance with international law.

Filipino crew members of the Maria SJ a ship registered in Liberia who sought assistance from the ITF in the port of Copenhagenafter they had been on board the ship for months receiving wages well below what the ITF regards as an acceptable minimumstandard. As a result of action from Danish dockworkers, the owner was forced to pay $, owed to the crew members. TheITF repatriated the crew back to the Philippines. The ITF maintains a worldwide network of inspectors who check on conditions forseafarers on board flag of convenience ships.


The ITF believes that there is strong evidence and cause forconcern that:

● The revenues obtained through the lawful businessof the Liberian ship registry provide a significantand consistent source of funds to the Taylorregime, which is accused by the UN of using itsrevenues to fund the RUF guerrillas in SierraLeone in defiance of a UN arms embargo.

● The UN panel on Sierra Leone further allegesthat those aspects of the ship registry whichfacilitate the operation of shell companies mayhave been used in the illicit export of “conflictdiamonds” from Sierra Leone through Liberia.

The ITF believes that a number of immediate actions can betaken by companies and by governments, in support of theUnited Nations, to ensure that there is no chance that the threatto regional stability posed by the Taylor regime is beingsustained by the Liberian ship registry:

● Shipowners should break all links with theLiberian flag as soon as practicable

● The United Nations travel ban should beextended to any Liberian national connected to itsmaritime affairs, including all their personnelbased at the International Maritime Organisation(IMO) in London.

● The United Nations Security Council shouldextend sanctions against Liberia to include itsshipping register and give notice after which allmember States of the UN should deny entry totheir ports to all vessels flying the Liberian flag.

Time to lower the flag

LISCR and the Liberian Shipowners Council (basedin New York) have responded to the attentionFocussed on the Liberian shipping register with ratherpredictable claims that the ship register should not bepunished for the transgressions of the Liberiangovernment. Yoram Cohen chief executive ofLISCR complains that LISCR “is completelyindependent of the Liberian government.” (Journalof Commerce, US, ..). Yet, as we have seen it isthe appointed agent of the government, and its maintax collector. As one shipping journalist has pointedout the connection between the flag State operationsand the country is fictitious then what is Liberiadoing at the table in the International MaritimeOrganisation?

A number of shipping companies have becomeincreasingly concerned at the alleged links betweenthe Liberian shipping register and the funding ofguerrilla atrocities in Sierra Leone. The leadingshipping journal Lloyds List noted on May this year,reporting on the allegations against LISCR, that:“never has the proposition that shipowners bear nomoral responsibility for what flag States get up tolooked so flimsy”.

The ITF believes that, when there is so muchblood on the flag, it is time to lower the flag. Althoughoperated from the territory of the United States, theLiberian shipping registry has become a major sourceof revenue for a government which is subject tostrong UN sanctions for its violation of internationallaw.

The Liberian shipping register

State Number of ships Percentage of Liberia Registered ships

Argentina 16 0.9

Austria 13 0.8

Belgium 13 0.8

Brazil 13 0.8

Chile 17 1.0

China 76 4.4

Croatia 10 0.6

Denmark 15 0.9

Germany 335 19.6

Greece 172 10.1

Hong Kong 91 5.3

Japan 140 8.2

Latvia 20 1.2

Liberia 0 0.0

Monaco 18 1.1

Norway 141 8.3

Russia 65 3.8

Saudi Arabia 25 1.5

Singapore 34 2.0

Sweden 23 1.3

Switzerland 13 0.8

Taiwan 20 1.2

UAE 10 0.6

UK 45 2.6

USA 247 14.5

Other 88 5.1

Missing / unknown 49 2.9

TOTAL 1,709 100

(Lloyds Annual Statistics 2000)


Conclusion

CHARLES TAYLOR has comeunder intense international pressurethrough the UN Sanctions regime,and is trapped by the patronagesystem he has built around himself

and is now virtually entirely dependent on therevenues from logging and the shipping register. Evenif UN sanctions are extended to these remainingincome sources it is likely that Taylor will still enjoythe support of various powerful friends, such asLibya’s Colonel Gaddaffi. However, the extension ofsanctions to include Liberian timber and shippingregistry, will provide the Sierra Leonean peaceprocess with the breathing space it needs to ensurethat the RUF achieve total disarmament. Currentlythe RUF’s best weapons and commanders remain inLiberia, waiting to see which way the wind blows. Ifthey perceive Taylor’s position to be deterioratingthen they are more likely to desert him. Furthermore,sanctions will deny Taylor the funds he requires tocontrol regional resource extraction, and they willdeny him the international credibility he craves. Theblame for Liberia’s pariah status can be laid atTaylor’s door.

Taylor can, of course, help himself. If hegenuinely addresses the concerns of the UNSC thensanctions will be removed. If he addresses the issuesof human rights abuses and corruption, then Liberiawill be in line for € million of EU developmentaid. In short, if his governance improves, then hecould become a positive force in Liberia, rather than

be remembered as the man who not only failed tobring any development at all since he came to power,but destroyed one of the country’s most valuablenatural resources and most valuable natural heritage.Most observers do not believe that Taylor can or willreform, but the choice is his.

However, to act impartially, the internationalcommunity must also put pressure on Guinea’sPresident Conté to bring an end to his support for thecross border attacks into Liberia. This would hastenregional peace and remove Taylor’s argument that heneeds arms to repel these attacks. In addition tocontrol of resources, the personal animosity betweenthe two leaders is a significant reason for this conflictand all efforts must be made to place regional peaceabove warlord politics.

As discussed in this report, by exploiting thecountry’s natural resources Taylor is responding tointernational demand and is being facilitated, andused, by the logging industry; OTC in particular. Infact, ironically, Taylor is himself being exploited byforces more manipulative than he. Like otherinternational logging companies, when they haveexhausted the forest, OTC will move on elsewhereand will continue to prosper at the expense ofanother country and another people. Liberia will bethe poorer for it, and Taylor’s personal wealth willnot buy him a safe haven either in Liberia, or in exile:he has made too many enemies for that.

As Taylor is unlikely to come to this sameconclusion, only international pressure can preventhim from fuelling regional conflict, and the extensionof the sanctions regime to cover timber exports andthe Shipping Registry is the best method to achievethese aims.

OTC logs, Italy; mid-

© G

reenpeace


Appendices

Logging companies in Liberia & timber production by company, January-June 2000

Company Production (m3)

OTC Oriental Timber Corporation 384,562.253

MWPI Maryland Wood Processing Industries 40,250.516

MGC Mohammed Group of Companies 37,302.544

BIN BIN Liberia 32,981.595

ULC United Logging Company 31,491.309

RTC Royal Timber Corp 30,833.744

FORUM 21,324.308

ILC INLAND Logging Company 17,613.746

LWMC Liberian Wood Mgt. Corp. 12,810.062

LLWPC Liberian Logging and Wood Processing Corp. 12,002.720

DLWPC DABA Logging & Wood Processing Corp. 10,181.494

ILFC IBERIC Liberian Forestry Corp. 9,451.946

TTC Togba Timber Company 9,035.015

XL Xoanon Liberian Ltd. 5,737.165

CTC Cavalla Timber Company 4,890.100

CTC Cestos Timber Company 3,999.016

YLI Yekepa Logging Ind. 3,026.809

FHC Forest Hill Corp. 2,926.844

RLC Rivercess Logging Company/STI 2,354.339

ATI AKKARI Timber Inc. 2,280.114

AWPC American Wood Processing Company 1,558.850

NELCO 1,124.094

FAPCO 950.425

RETCO 312.416

LLWPS/WARCO 250.952

Total 679,352.376

Source FDA Semi-Annual report, January–June 2000.

Importers of Liberian timber by value (cif), 1996-2000 (US$ millions)

1996 1997 1998 1999 2000

China 0 0 0 0 34

Indonesia 0 0 0 0 2

Turkey 0 0 2 4 4

Belgium 0 0 0 0 0

France 3 7 18 18 33

Germany 0 0 1 1 2

Greece 0 0 1 1

Italy 0 0 4 9 16

Netherlands 0 0 0 0 2

Portugal 0 1 1 2 3

Spain 0 0 2 1 3

UK 0 0 0 0 1

Total 4 9 29 36 106

Importers of Liberian timber by volume, 1996-2000 (’000m3 RWE)

1996 1997 1998 1999 2000

China 0 0 0 0 290

Indonesia 0 0 0 0 13

Turkey 0 0 1 3 0 4

Belgium 0 0 0 2

France 9 26 61 75 168

Germany 1 0 5 6 12

Greece 0 0 3 2 24

Italy 0 1 16 36 79

Netherlands 0 0 0 1 22

Portugal 1 4 3 9 13

Spain 0 0 7 7 15

UK 0 0 0 0 3

Total 11 30 97 139 646

Source World Trade Atlas.

United Nations Security Council

Distr.: General March

Resolution ()

Adopted by the Security Council at its thmeeting, on March

The Security Council,

Recalling its resolutions () of October , () of June , () of July and its other resolutions and statements of its Presidenton the situation in Sierra Leone and the region,

Welcoming General Assembly resolution A/RES// of December , inparticular its call for measures engaging all concerned parties including diamondproducing, processing, exporting and importing countries as well as the diamondindustry to break the link between diamonds and armed conflict, and its call uponall States to implement fully Security Council measures targeting the link betweenthe trade in conflict diamonds and the supply to rebel movements of weapons, fuelor other prohibited materiel,

Taking note of the report of the United Nations Panel of Experts establishedpursuant to paragraph of resolution () in relation to Sierra Leone(S//),

Taking note of the findings of the Panel of Experts that diamonds represent amajor and primary source of income for the Revolutionary United Front (RUF),that the bulk of RUF diamonds leave Sierra Leone through Liberia, and that suchillicit trade cannot be conducted without the permission and involvement ofLiberian government officials at the highest levels, and expressing its deep concern atthe unequivocal and overwhelming evidence presented by the report of the Panel ofExperts that the Government of Liberia is actively supporting the RUF at all levels,

Recalling the Economic Community of West African States (ECOWAS)Moratorium on the Importation, Exportation and Manufacture of Small Arms andLight Weapons in West Africa adopted in Abuja on October (S//,annex),

Taking note of the measures announced by the Government of Liberia since thepublication of the report of the Panel of Experts established pursuant to resolution (), and welcoming the intention of ECOWAS to monitor theirimplementation in close cooperation with the United Nations and to report thereonafter a period of two months,

Recalling its concern already expressed in resolution () at the roleplayed by the illicit diamond trade in fuelling the conflict in Sierra Leone and atreports that such diamonds transit neighbouring countries, including Liberia,

Reiterating its call made in the statement of its President of December

(S/PRST//) on all States in West Africa, particularly Liberia, immediatelyto cease military support for armed groups in neighbouring countries and preventarmed individuals from using their national territory to prepare and commit attacksin neighbouring countries,

Determining that the active support provided by the Government of Liberia forarmed rebel groups in neighbouring countries, and in particular its support for theRUF in Sierra Leone, constitutes a threat to international peace and security in theregion,

Acting under Chapter VII of the Charter of the United Nations,

A

Recalling its resolutions () of November and () of

April ,

Noting that the conflict in Liberia has been resolved, that national elections havetaken place within the framework of the Yamoussoukro IV Agreement of

October (S/, annex) and that the Final Communiqué of the informalconsultative group meeting of ECOWAS Committee of Five on Liberia issued inGeneva on April (S/) has been implemented, and determining thereforethat the embargo imposed by paragraph of resolution () should beterminated,

. Decides to terminate the prohibitions imposed by paragraph of resolution () and to dissolve the Committee established under resolution ();

B

. Demands that the Government of Liberia immediately cease its support forthe RUF in Sierra Leone and for other armed rebel groups in the region, and inparticular take the following concrete steps:

(a) expel all RUF members from Liberia, including such individuals as are listedby the Committee established by paragraph below, and prohibit all RUFactivities on its territory, provided that nothing in this paragraph shall oblige Liberiato expel its own nationals from its territory;

(b) cease all financial and, in accordance with resolution (), militarysupport to the RUF, including all transfers of arms and ammunition, all military

training and the provision of logistical and communications support, and take stepsto ensure that no such support is provided from the territory of Liberia or by itsnationals;

(c) cease all direct or indirect import of Sierra Leone rough diamonds which arenot controlled through the Certificate of Origin regime of the Government ofSierra Leone, in accordance with resolution ();

(d) freeze funds or financial resources or assets that are made available by itsnationals or within its territory directly or indirectly for the benefit of the RUF orentities owned or controlled directly or indirectly by the RUF;

(e) ground all Liberia-registered aircraft operating within its jurisdiction until itupdates its register of aircraft pursuant to Annex VII to the Chicago Convention onInternational Civil Aviation of and provides to the Council the updatedinformation concerning the registration and ownership of each aircraft registered inLiberia;

. Stresses that the demands in paragraph above are intended to lead to furtherprogress in the peace process in Sierra Leone, and, in that regard, calls upon thePresident of Liberia to help ensure that the RUF meet the following objectives:

(a) allow the United Nations Mission in Sierra Leone (UNAMSIL) free accessthroughout Sierra Leone;

(b) release all abductees;

(c) enter their fighters in the disarmament, demobilization and reintegrationprocess;

(d) return all weapons and other equipment seized from UNAMSIL;

. Demands that all States in the region take action to prevent armed individualsand groups from using their territory to prepare and commit attacks onneighbouring countries and refrain from any action that might contribute to furtherdestabilization of the situation on the borders between Guinea, Liberia and SierraLeone;

. (a) Decides that all States shall take the necessary measures to prevent the saleor supply to Liberia, by their nationals or from their territories or using their flagvessels or aircraft, of arms and related materiel of all types, including weapons andammunition, military vehicles and equipment, paramilitary equipment and spareparts for the aforementioned, whether or not originating in their territories;

(b) Decides that all States shall take the necessary measures to prevent anyprovision to Liberia by their nationals or from their territories of technical trainingor assistance related to the provision, manufacture, maintenance or use of the itemsin subparagraph (a) above;

(c) Decides that the measures imposed by subparagraphs (a) and (b) above shallnot apply to supplies of non-lethal military equipment intended solely forhumanitarian or protective use, and related technical assistance or training, asapproved in advance by the Committee established by paragraph below;

(d) Affirms that the measures imposed by subparagraph (a) above do not apply toprotective clothing, including flak jackets and military helmets, temporarilyexported to Liberia by United Nations personnel, representatives of the media andhumanitarian and development workers and associated personnel, for theirpersonal use only;

. Decides further that all States shall take the necessary measures to prevent thedirect or indirect import of all rough diamonds from Liberia, whether or not suchdiamonds originated in Liberia;

. (a) Decides also that all States shall take the necessary measures to prevent theentry into or transit through their territories of senior members of the Governmentof Liberia and its armed forces and their spouses and any other individualsproviding financial and military support to armed rebel groups in countriesneighbouring Liberia, in particular the RUF in Sierra Leone, as designated by theCommittee established by paragraph below, provided that nothing in thisparagraph shall oblige a State to refuse entry into its territory to its own nationals,and provided that nothing in this paragraph shall impede the transit ofrepresentatives of the Government of Liberia to United Nations Headquarters toconduct United Nations business or the participation of the Government of Liberiain the official meetings of the Mano River Union, ECOWAS and the Organizationof African Unity;

(b) Decides that the measures imposed by subparagraph (a) above shall not applywhere the Committee established by paragraph below determines that suchtravel is justified on the grounds of humanitarian need, including religiousobligation, or where the Committee concludes that exemption would otherwisepromote Liberian compliance with the demands of the Council, or assist in thepeaceful resolution of the conflict in the subregion;

. Further decides that the measures imposed by paragraphs and above shallcome into force at . Eastern Daylight Time two months after the date ofadoption of this resolution, unless the Security Council determines before that datethat Liberia has complied with the demands in paragraph above, taking intoaccount the report of the Secretary-General referred to in paragraph below,inputs from ECOWAS, relevant information provided by the Committeeestablished by paragraph below and the Committee established pursuant to


resolution () and any other relevant information;

. Decides that the measures imposed by paragraph are established for

months and that, at the end of the period, the Council will decide whether theGovernment of Liberia has complied with the demands in paragraph above, and,accordingly, whether to extend these measures for a further period with the sameconditions;

. Decides further that the measures imposed by paragraphs and above areestablished for a period of months, and that at the end of this period the Councilwill decide whether the Government of Liberia has complied with the demands inparagraph above, and, accordingly, whether to extend these measures for a furtherperiod with the same conditions;

. Decides also that the measures imposed by paragraphs to above shall beterminated immediately if the Council, taking into account, inter alia, the reports ofthe Panel of Experts referred to in paragraph below and of the Secretary-General referred to in paragraph below, inputs from ECOWAS, any relevantinformation provided by the Committee established by paragraph below and theCommittee established pursuant to resolution () and any other relevantinformation, determines that the Government of Liberia has complied with thedemands in paragraph above;

. Requests the Secretary-General to submit a first report to the Council by

April and thereafter at -month intervals from that date, drawing oninformation from all relevant sources, including the United Nations Office inLiberia, UNAMSIL and ECOWAS, on whether Liberia has complied with thedemands in paragraph above and on any progress made towards the objectives setout in paragraph above, and calls on the Government of Liberia to supportUnited Nations efforts to verify all information on compliance which is brought tothe United Nations notice;

. Requests the Secretary-General to provide to the Council six months from thedate of the adoption of this resolution:

(a) a preliminary assessment of the potential economic, humanitarian and socialimpact on the Liberian population of possible follow-up action by the Council inthe areas of investigation indicated in paragraph (c) below;

(b) a report on the steps taken by the Government of Liberia to improve itscapacity in air traffic control and surveillance in accordance with therecommendations of the Panel of Experts established pursuant to resolution

() and any advice which may be provided by ICAO;

. Decides to establish, in accordance with rule of its provisional rules ofprocedure, a Committee of the Security Council, consisting of all the members ofthe Council, to undertake the following tasks and to report on its work to theCouncil with its observations and recommendations:

(a) to seek from all States information regarding the actions taken by them toimplement effectively the measures imposed by paragraphs to above, andthereafter to request from them whatever further information it may considernecessary;

(b) to consider, and to take appropriate action on, information brought to itsattention by States concerning alleged violations of the measures imposed byparagraphs to above, identifying where possible persons or entities, includingvessels or aircraft, reported to be engaged in such violations, and to make periodicreports to the Council;

(c) to promulgate expeditiously such guidelines as may be necessary to facilitatethe implementation of the measures imposed by paragraphs to above;

(d) to give consideration to and decide upon requests for the exemptions set outin paragraphs (c) and (b) above;

(e) to designate the individuals subject to the measures imposed by paragraph above, and to update this list regularly;

(f) to make information it considers relevant, including the list referred to insubparagraph (e) above, publicly available through appropriate media, includingthrough the improved use of information technology;

(g) to make recommendations to the Council on ways of increasing theeffectiveness of the measures imposed by paragraphs to above and on ways tolimit unintended effects, if any, of these measures on the Liberian population;

(h) to cooperate with other relevant Security Council Sanctions Committees, inparticular that established pursuant to resolution () and that establishedpursuant to resolution ();

(i) to establish a list of RUF members present in Liberia as referred to inparagraph (a) above;

. Calls upon the Government of Liberia to establish an effective Certificate ofOrigin regime for trade in rough diamonds that is transparent and internationallyverifiable and has been approved by the Committee established by paragraph

above, to come into operation after the measures imposed by paragraphs to above have been terminated in accordance with this resolution;

. Urges all diamond exporting countries in West Africa to establish Certificateof Origin regimes for the trade in rough diamonds similar to that adopted by the

Government of Sierra Leone, as recommended by the Panel of Experts establishedpursuant to resolution (), and calls upon States, relevant internationalorganizations and other bodies in a position to do so to offer assistance to thoseGovernments to that end;

. Calls upon the international community to provide the necessary assistance toreinforce the fight against the proliferation and illicit trafficking of light weapons inWest Africa, in particular the implementation of the ECOWAS Moratorium on theImportation, Exportation and Manufacture of Small Arms and Light Weapons inWest Africa, and to improve air traffic control in the West African subregion;

. Requests all States to report to the Committee established by paragraph

above, within days of the promulgation of the list referred to in paragraph (e)above, on the actions they have taken to implement the measures imposed byparagraphs to above;

. Requests the Secretary-General to establish, within one month from the dateof adoption of this resolution, in consultation with the Committee established byparagraph above, a Panel of Experts for a period of six months consisting of nomore than five members, drawing, as much as possible and as appropriate, on theexpertise of the members of the Panel of Experts established pursuant to resolution (), with the following mandate:

(a) to investigate any violations of the measures imposed by paragraphs to above;

(b) to collect any information on the compliance by the Government of Liberiawith the demands in paragraph above, including any violations by theGovernment of Liberia of the measures imposed by paragraph of resolution

() and paragraph of resolution ();

(c) to further investigate possible links between the exploitation of naturalresources and other forms of economic activity in Liberia, and the fuelling ofconflict in Sierra Leone and neighbouring countries, in particular those areashighlighted by the report of the Panel of Experts established pursuant to resolution ();

(d) to collect any information linked to the illegal activities of the individualsreferred to in paragraph below and to any other alleged violations of thisresolution;

(e) to report to the Council through the Committee established by paragraph

above no later than six months from the date of adoption of this resolution withobservations and recommendations in the areas set out in subparagraphs (a) to (d)above;

(f) to keep the Committee established by paragraph above updated on theiractivities as appropriate; and further requests the Secretary-General to provide thenecessary resources;

. Requests the Panel of Experts referred to in paragraph above, as far aspossible, to bring any relevant information collected in the course of itsinvestigations conducted in accordance with its mandate to the attention of theStates concerned for prompt and thorough investigation and, where appropriate,corrective action, and to allow them the right of reply;

. Calls upon all States to take appropriate measures to ensure that individualsand companies in their jurisdiction, in particular those referred to in the report ofthe Panel of Experts established pursuant to resolution (), act inconformity with United Nations embargoes, in particular those established byresolutions (), () and this resolution, and, as appropriate, take thenecessary judicial and administrative action to end any illegal activities by thoseindividuals and companies;

. Calls upon all States and all relevant international and regional organizationsto act strictly in accordance with the provisions of this resolution notwithstandingthe existence of any rights or obligations entered into or any licence or permitgranted prior to the date of adoption of this resolution;

. Decides to conduct reviews of the measures imposed by paragraphs to above not more than sixty days after the adoption of this resolution, and every sixmonths thereafter;

. Urges all States, relevant United Nations bodies and, as appropriate, otherorganizations and interested parties to cooperate fully with the Committeeestablished by paragraph above and the Panel of Experts referred to inparagraph above, including by supplying information on possible violations ofthe measures imposed by paragraphs to above;

. Decides to remain actively seized of the matter.



References

Log indicative values, Hardwood Markets.com, Volume , No. ;April .

Central Bank of Liberia, Annual Report; .

OTC Notes, anon document; .

R Repetto and M Gillis, ‘Public policies and the misuse of forestresources’;

World Trade Atlas; .

United Nations Human Development Index; .

The Inquirer Newspaper; rd July .

Interview with journalist, Côte d’Ivoire; August .

Global Witness investigations in European and Asian ports; .

Pers comm. Various diplomatic sources; .

Global Witness research and investigations.

Anonymous source in a message to Global Witness; July .

Anonymous source, Harper Port; May .

Lloyds Maritime Register; July .

Global Witness interview with government official, Freetown,Sierra Leone; July .

Fax from anonymous source; .

Ian Traynor, ‘The International Dealers in Death’, The Guardian;th July .

Fax from Erkki Tammivuori to Leonid Minin; th March .

Fax from Erkki Tammivuori to Leonid Minin; rd March .

Agreement, MET Turkey Lausanne office; th June .

Excusive Frame Consultancy Agreement, Karor Trading SA.

Fax to the Ukraine Energy Corp Odessa from Erkki Tammivuori;th July .

Purchase Contract between China National Aero-TechnologyImport and Export Corporation; undated.

UN New Task: Handling Agents of Horrors (Editorial), ThePerspective; th February, .

Fax from Limad Beijing to Leonid Minin, Limad AG; th May.

Fax to Leonid Minin from his representative (unnamed) inMonrovia; th May .

Fax from Limad AG to unknown recipient; th March .

Côte d’Ivoire End User Certificate No./PR, signed byPresident Robert Guei; th May .

Anonymous Liberian source; August .

The Inquirer Vol. No. ; th May .

Interview with Alan Doss, UNAMSIL; th July .

Interview with Diplomatic source, Freetown, Sierra Leone; July.

Anonymous Sierra Leone government official.

‘RUF rebels captured in conflicting reports on Lofa fighting’, New

Democrat, th August .

Document provided by anonymous Sierra Leone governmentofficial dated th June .

Document provided by anonymous Sierra Leone governmentofficial.

Document provided by anonymous Sierra Leone governmentofficial dated May/June .

Document provided by anonymous Sierra Leone governmentofficial dated th October .

Document provided by anonymous Sierra Leone governmentofficial dated May .

Press release by the Embassy of Sierra Leone, dated thFebruary .

Liberian Ministry of Finance, Annual Report; .

‘Timber Association Accuses FDA’, The Poll Watch; -th July.

Mr D Conmany Wesseh as quoted in George H Nubo, ‘A call for‘biting’ sanctions on Liberia-Interview’, The Perspective; thFebruary .

Mr. Qian Bo of Chinese permanent mission to the UN, in aninterview with Global Witness; th July .

Unnamed French member of the permanent mission to the UNin an interview with Global Witness; th July .

For more information:www.oneworld.org/globalwitness/oil/oil_angolagate.htm

Marchés Tropicaux, . Cited in the Economist Intelligence Unit, ,, p., London.

Pierrick Mangeais, buyer with Pinault in a telephone interviewwith Global Witness; nd April .

UN Panel of Experts Report, , Para. .



Pers. Comm. with anonymous source; July

UN Security Council Resolution () paragraph in relation to

Sierra Leone, para .

‘Drugsbende kreeg hulp uit Liberia’, Het Parool; th December.

The News, Vol No. , th April .

Inquirer Newspaper, Vol No. ; th April .

STAR Radio News. Local news bulletin aired in Monrovia onSunday th September .

STAR Radio News. Local news bulletin aired in Monrovia onTuesday th November .

STAR Radio News. Local news bulletin aired in Monrovia onMonday, th January .

NECOLIB Conference to identify the bases of an over-archingenvironmental policy framework. Presentations and discussion bythe Participants, including representatives from the Association ofLiberian Loggers, Senators and members of FDA and NECOLIB,Monrovia; April .

The Inquirer; May .

The Journalist; April .

Ivan Watson, ‘Liberia’s rain forest vanishes as foreign loggingexpands’, Boston Globe; th May .

Africa Confidential.

Peter Beaumont, ‘How a tyrant’s ‘logs of war’ bring terror toWest Africa’, The Observer, th May and recent AmnestyReport.

Anonymous Liberian source in an inerview with Global Witness;August .

‘In Grand Gedeh company denies citizens right to employment’,Monrovia Guardian; th August .

Sidya Touré Guinea, ex Prime Minister and head of theopposition party UFR (Union des Forces Républicains).

Anonymous source.

The Perspective, th March .

Concord Times, Freetown newspaper.

BBC news, th August .

Stephen Ellis, The Mask of Anarchy.

The abandoned home of Foday Sankoh, infamous former RUF leader, Freetown,Sierra Leone; July .


Global Witness’ previouspublications

also available on our website: http://www.globalwitness.org

“The Credibility Gap — and the Need to Bridge ItIncreasing the pace of forestry reform”

published May 2001

“Conflict Diamonds — Possibilities for the Identification,Certification and Control of Diamonds”

published June 2000

“Chainsaws Speak Louder Than Words”published May 2000

“Timber Takeaway — Japanese Over-comsumption — theForgotten Campaign”

published March 2000

“The Untouchables —Forest crimes and the concessionaires—can Cambodia afford

to keep them?”published December 1999

“A Crude Awakening — The Role of the Oil and Banking Industries in Angola’s Civil

War and the Plundering of State Assets”published December 1999

“Made in Vietnam — Cut in CambodiaHow the garden furniture trade is destroying rainforests”

published April 1999

“Crackdown or Pause — A Chance for Forestry Reform in Cambodia?”

published February 1999

“A Rough Trade — The Role of Companies and Governments in the Angolan

Conflict”published December 1998

“Going Places — Cambodia’s Future on the Move”published March 1998

“Just Deserts for Cambodia — Deforestation & the Co-Prime Ministers’ Legacy to the

Country”published June 1997

“A Tug of War — the Struggle to Protect Cambodia’s Forests”published March 1997

“Cambodia,Where Money Grows on Trees — Continuing Abuses of Cambodia’s Forest Policy”

published October 1996

“RGC Forest Policy & Practice — the Case for PositiveConditionality”

published May 1996

“Corruption,War & Forest Policy — the Unsustainable Exploitation of Cambodia’s Forests”

published February 1996

“Thai-Khmer Rouge Links & the Illegal Trade in Cambodia’sTimber”

published July 1995

“Forests, Famine & War — the Key to Cambodia’s Future”published March 1995

Global Witness is a British based non-governmentalorganisation which focuses on the links betweenenvironmental and human rights abuses, especiallythe impacts of natural resource exploitation uponcountries and their people. Using pioneeringinvestigative techniques Global Witness compilesinformation and evidence to be used in lobbyingand to raise awareness. Global Witness’ informationis used to brief governments, inter-governmentalorganisations, NGOs and the media. GlobalWitness has no political affiliation. Global Witnessreceives no funding for this project from anygovernment or public funds.

AcknowledgementsThis report would not have been possiblewithout the support of many courageousLiberian colleagues and contributors, both insideand outside Liberia.Thanks are also due toGlobal Witness’ volunteers and staff, manyanonymous helpers, Greenpeace Spain,Greenpeace International, Nepenthes(Denmark), and to Global Witness’ loyal funders,in particular the Open Society Institute whosesupport enabled the research for this report totake place.

Design by Dan Brown ([email protected]).Cover concept: Dean Bond.

All photographs copyright © Global Witnessexcept where indicated.Front cover photos: Charles Taylor © J. Hartley /Panos Pictures; soldiers © Teun Voeten / PanosPictures.

Printed on 100% unbleached recycled paper.

ISBN 1 903 304 04 0

Global Witness LtdP O Box 6042, London N19 5WP, United Kingdom

telephone: + 44 (0)20 7272 6731 fax: + 44 (0)20 7272 9425

e-mail: [email protected]://www.globalwitness.org/

International Transport Workers Federation ITF House, 49-60 Borough Road, London SE1 1DS, United Kingdomtelephone: +44 (0) 20 7403 2733 fax: +44 (0) 20 7357 7871e-mail: [email protected] http://www.itf.org.uk

“To save this country, I thinkwe need an embargo on timberexport.This is immoral.We aredestroying our country andmaking a desert land for thefuture.And what benefits are wereally getting? Even if we werethis is obscene.This will denudethe whole country.”

Archbishop Michael Francis ofLiberia’s Roman Catholic Church

Global Witness LtdP O Box 6042, London N19 5WP,United Kingdom

telephone: + 44 (0)20 7272 6731fax: + 44 (0)20 7272 9425e-mail: [email protected]://www.globalwitness.org/

International Transport Workers Federation ITF House, 49-60 Borough Road,London SE1 1DS, United Kingdom

telephone: +44 (0) 20 7403 2733 fax: +44 (0) 20 7357 7871e-mail: [email protected] http://www.itf.org.uk

Blackboard jungle. A Monrovian avoids press censorship:“UN sanctions bomb hangs over timber. Says S. Leone rebel[s] (RUF)

still chopping. Who is worrying? Timber families worry.”

ISBN 1 903 304 04 0