The Chairman of the National Investment Commission (NIC), Molewuleh B. Gray, has distanced himself from Fouani Brothers Corporation’s importation of vegetable oil on duty-free, stating that he knows nothing about how Fouani got the authority if they are doing so.
Chairman Gray disclosed that, in 2021, Fouani Brothers only applied for duty-free to import jerrycans to contain their imported vegetable oil for onward distribution on the Liberian market.
He made the disclosure on Monday, October 30, 2023 when he appeared, along with Deputy Minister Samora P.Z. Wolokollie, before the Senate Committees on Concessions and Judiciary to defend the Executive branch’s position for sending the Fouani Brothers Corporation Investment Agreement for passage.
The Hot Pepper investigation has confirmed that Fouani Brothers Corporation holds a valid certificate of special tax incentive up to April 18, 2025; however, attached to the certificate is a list of items (considered raw materials) that the Ministry of Finance and Development Planning exempted from general service tax (GST) and import duties. The list contains the following: specialized vehicles, capital spare parts, as well as cartons, boxes, cases, bags and other packing containers, of paper, paperboard, letter trays and similar brands used in offices, shops or the like. In addition, they were granted to import, duty free, palm oil and its fractions, whether or not refined, but not chemically modified.
Unfortunately, vegetable oil is not mentioned throughout the document, but Fouani stands accused of criminally hiding behind the special tax incentive to import processed vegetable oil, which they only bottle and name-stamp at the Freeport of Monrovia and sell at a high cost on the Liberian market.
An importer (name withheld) has told the Hot Pepper that Fouani Brothers do not have duty-free on the vegetable oil they are importing, but have smartly inserted a clause in their incentive agreement to allow them import it as raw material on a duty-free basis.
Corroborating the importer’s claim, Section 10.1 (c) clearly states, “If raw materials shall include vegetable oil, investor shall pay GST and not duties.”
According to the importer, if the Fouani investment agreement is passed, they will then have the legal authority to import vegetable oil on duty-free, which will put all their competitors out of business and monopolize the commodity.
The businessman however called on the relevant government authorities to investigate whether or not Fouani Brothers Corporation is sinisterly importing vegetable oil into the country without permission.
The importer, too, warned the National Legislature about the danger in passing the Fouani agreement, stating that the bill is more harmful than helpful to the country.
Meanwhile, lawmakers in the Lower House are insisting that the Speaker of the House of Representatives, Dr. Bhofal Chambers, recalls the bill from the Liberian Senate in order that they may correct the wrongs.
Recently, River Gee County’s district #3 Representative, Francis Saidy Dopoh, II, wrote Speaker Chambers to recall the investment agreement of Fouani Brothers Corporation that was forwarded to the Liberian Senate, in order that they may correct an oversight of the House.
Representative Dopoh emphasized that the huge investment in palm oil plantation in Liberia by GVL, MOPP, etc., will be destabilized if Fouani Brothers is given duty free for the importation of finished oil in Liberia. “I pray that your leadership and this Honorable Body take legislative notice of my motion in the best interest of Liberia,” he observed.
It was expected that Representative Dopoh’s letter would be deliberated in House plenary on Tuesday, October 31, 2023, but the paper was informed that session could not be held because the lawmakers in attendance did not constitute a quorum.
