Billiton in the Kitoma iron ore mines in Grand Bassa and Nimba Counties and similar operations by Mano River Resources in the Putu iron ore range in Grand Gedeh County. When one of the six companies that are involved in the rebidding process is chosen before the middle of this year, we expect the start up of operations in the Western Cluster iron ore mines of Bomi and Gbarpolu counties.

We are pleased to report significant progress in our oil exploration program. Three dimensional seismic surveys, which are more detailed have started by the five companies which obtained ratified Production Sharing Contracts. A second bid round for three blocks were concluded during the year under review. Anadarko of the United States and Hong Kong Tong-Tai Petroleum Corporation of Hong Kong were successful in this bid. Production Sharing Contracts for this next phase of exploration will be forwarded for your review and ratification when negotiations are concluded.

Several other investment are underway or under consideration in the service sector – construction, housing, and hotels. Notably among these is the Robert L. Johnson / OPIC US$30 million to support Liberian businesses and the soon to be launched construction of two new housing estates; a 1,200 unit on the Robertsfield highway by Broad Cove/OPIC of the United States and a 10,000 unit by Haiman Century Investment of China. We are aware that there is need to rehabilitate or complete several public buildings in Monrovia and in other counties. There is also urgency in restoring the nation’s seat of Government – the Executive Mansion. Effort is underway to mobilize the significant resources required to achieve this objective.

The National Investment Commission (NIC) also reports that during last year, a total of eighteen investment contracts were signed for an aggregate value of US$132.5 million and creation of 2,287 jobs. In the area of commerce, total trade continue to expand with exports at a value of US$181.05 million and imports US$856.81 million. This trend is matched by the increase in the number of businesses registered, 7,569 in 2008 compared with 6,764 in 2007. Yet we have not seen the expected growth in Liberian businesses, nor have we been able to take advantage of our eligibility for the African Growth and opportunity Act. Moreover, we continue to be concerned about the continued high prices of commodities on the market, relating not only to world market prices but to high taxes, profiteering, theft and inefficiency at the port of Monrovia. The Ministry of Commerce which has taken bold steps recently to address these issues give assurance that we can expect progress in responding to these concerns in this year.

Honorable Members of the Legislature, as a part of our economic reform agenda, appropriate steps are being taken to develop a comprehensive corporate governance framework with the goal of improving the efficiency and increasing the productivity of state owned enterprises and public parastatals.

We want to recognize improvements made by some Public Corporations/State-Owned Enterprises (SOEs) attributable in part to technical assistance under the GEMAP Program. Notwithstanding, current experiences show that some SOEs are not efficiently utilizing their assets to maximize their productivity; that poor financial and economic performance as well as inadequate board oversight has rendered these SOEs liabilities to government. We therefore acted with immediacy to remove all non-statutory members from the boards of public corporations for lack of proper supervision. And we instructed all boards to constitute audit committees that will work closely with internal auditors to ensure the protection of corporate assets. A reconstitution of the Boards will be undertaken within the next two weeks.

We are presently assessing the current practice in relation to good corporate governance and developing strategic actions to reverse this trend. As part of an overarching corporate governance reform strategic action, we will institute a wide range of actions in the current year which includes:

1. We will ensure the active existence of an entity that will exercise the public ownership rights of SOEs. It will be strengthened and adequately resourced with a clear mandate to monitor the functioning of boards, ensure adherence to a comprehensive corporate governance policy, and report to the full cabinet. This will enable the government to act as an informed, accountable and active owner of SOEs;

2. Conclude empirical studies, using objective criteria to determine which SOEs to be fully divested; establish Public-Private-Partnership, Build Operate and Transfer, or adopt other forms of organizational reconfiguration;

3. Develop a firm government policy on board nomination processes; ensure that boards carry out their fiduciary responsibilities subject to established guidelines within the corporate legal framework;

4. Require that all senior staff of SOEs are recruited through a competitive process and work based on term contracts, reviewable periodically; and,

5. Given the significant and unregulated differentials in compensation of board and senior management at state owned enterprises, a compensation package will be developed to standardize all public corporations, with the objective to attract, retain, and motivate excellent people, reward performance in both the short and long-term with a decided emphasis on long-term returns, and will be fair to the public shareholders, senior management, employees, and other stakeholders.

In these undertakings, we shall proceed with caution, knowing that improper actions may result in creating more problems than we wish to solve. There will be a clear, transparent, and comprehensive strategy to achieve targeted milestones. Appropriate legislations will be forwarded for your consideration.

GOVERNANCE AND THE RULE OF LAW

Honorable Legislators:
Under the third pillar of the PRS, Governance and the Rule of Law, we seek to reform the civil service, decentralize governance, strengthen the rule of law and respect for human rights, promote a strong and responsible civil society including the media, encourage broad participation in governance and reduce corruption.

We are pleased to report that consistent with our goals, we have county development agendas, linked to the Poverty Reduction Strategy, for all fifteen counties. This represents the first such local development plans which were prepared under the guidance of the Ministry of Internal Affairs with the participation of local authorities and representatives of the society at large.

Currently under review by the Cabinet are several documents completed by the Governance Commission – the National Public Sector Policy statement, a Report on the Rationalization and Restructuring of Ministries and Agencies of Government, a National Policy on Decentralization. Draft legislation where applicable including that which establishes a Law Reform Commission will be submitted to you within the next few months.

As stated earlier, during the year in review, we increased the minimum salary for civil servants to US$70 representing a composite 400 percent increase during this administration. We still have inherited arrears totaling nearly US$17 million representing over 18 months salaries to civil servants which will be fully retired during the course of this year while we finalize plans to address long standing and substantial Foreign Service arrears. A comprehensive Civil Service Reform Strategy is now concluded covering compensation and pension to improve service delivery and to use performance as the main criterion for recruitment, selection and promotion. Additionally, we have in place three incentive programs under which some 150 nationals at home and abroad bring added capacity and professionalism to public service. Several now serve in our local governance system in the rural areas bringing significant added value to the rural civil service outreach program that was launched during the year.

The final draft of Liberia’s first National Employment Policy including proposal for the establishment of a National Bureau of Employment is in the final review process. In the interim, short term job initiatives by the Ministry of Labour have created close to 35,000 short term job opportunities in various sectors especially waste management, sanitation and public works. The final draft of a revised Labor Code is also under review and we expect to propose a new minimum wage for the private sector before the end of this year.

I should also note that the merger of the two labor centers – the Liberia Federation of Labour Unions (LFLU) and the Congress of National Trade Unions of Liberia (CONATUL) into the Liberia Labor Congress (LLC) will facilitate consultation and enable the labor union to play a more effective role in enhancing labor rights, in improving the terms and conditions of work for employees and in the settlement of disputes.

We commend, and we believe you share this sentiment, the Firestone Agricultural Workers Union (FAWUL) for the prestigious George Meany-Lane Kirkland Human Rights Award which they received last year from the American Federation of Labor Union (AFL-CIO).

Mr. Speaker, Honorable Members of the Legislature:
Under guidance of the Supreme Court and with the participation of the Ministry of Justice as appropriate, our judicial system is undergoing long needed reform. Judges, Magistrates, County Attorneys and other judicial officials now enjoy higher levels of compensation and better working conditions.

Several challenges remain. The Court system seems excessively slow in its processes and dispensation of justice – ultimately judgment. For example, we continue to receive complaints that prisoners are incarcerated without trial for periods as long as and over a year. The Jury system also gives concerns as persons considered professional jurors with compensation as prime motivation move from one court to the other.

To enhance the Justice system, the Ministry of Justice collaborating with the Judicial Branch, has organized a judicial setting at the Monrovia Central Prison where Magistrates will dispose of cases thereby reducing the high level or number of unindicted prisoners. There has also been established a Criminal Court E which will commence work in February to deal exclusively with gender based violence and the unacceptable high level of rape cases stemming from the violation of young girls, sometimes babies, by cowardly and mentally deranged sex fiends.

The Ministry of Justice has also established a Special Legal Task Force to speed up the prosecution of those charged with corruption and is working through the Anti Corruption Commission to obtain order from the court to freeze the assets of persons being investigated or tried for corruption. To its credit, the Ministry has compiled most of the laws passed by this Legislature and opinions handed down by this Supreme Court with the intent to edit and publish these works during this year.

Honorable Legislators, I am aware that despite strong political will and commitment of this Government, the Executive will face a serious challenge in sustaining the gains made in combating corruption given recent public outcry and media reports on perceived corruption in the public sector. Overcoming this challenge will require the collective effort and political will not only on the part of the Executive but by all three branches of Government.

Our effort to promote gender equity and enhance the role and participation of women made significant progress during the past year. For the first time, Liberia’s report on national progress in compliance with UN Resolution on the Convention to Eliminate All Forms of Discrimination Against Women was completed. A National Rural Women Program was launched and a project commenced to build safe homes and establish micro credit operations for women in five counties.

Two innovative interventions will enhance our gender initiative – a US$22 million equivalent grant proposal by the Danish Government to support a program that would make Liberia a model country for the achievement of Millennium Development Goal #5 and a Nike Foundation/World Bank Economic Empowerment of Adolescent Girl project that seeks to train 1,500 young women for direct employment placement in our country’s private sector.

Honorable Legislators, we are also pleased to note that The Liberia Education Trust (LET) and the Sirleaf Market Women Fund (SMWF) continue to expand operations in providing scholarships for girls, promoting literacy programs for market women and building schools and markets throughout the country. Resources mobilized for these projects total over US$6 million, contributed solely by private institutions, foundations and individuals in response to my personal appeal and my participation in fund raising events. The Minister of Gender and Development and the Chair person of the African Women Development Fund, Dr. Thelma Awori have been very instrumental in our success under these two interventions.

Mr. Speaker, Mr. President Pro Tempore, we must continue to identify measures that respond to our youths who comprise over 45 percent of our population. We are pleased to note that during the year some 1,306 youths benefited from internships and apprenticeship programs primarily in Montserrado and Grand Bassa Counties. A vacation program, the National Youth Volunteer Service which was launched in 2006 completed a first phase this year with 67 youths serving for six months in rural areas in the health and education sectors.

Emphasis on the training and employment of youth remain a Government priority. I would therefore like to assure our young citizens that the Youth Policy document which was completed during the year can be launched immediately. Our delay and concern regard the generality of the provisions of that document. Realistically, only specific elements of that policy can be carried forward into law that is enforceable. I therefore appeal to the youth representatives, particularly the Federation of Liberian Youth to appoint representatives who will work with us to achieve the objectives of finalizing a direct Act whose provisions can be respected and enforced.

We are equally pleased to report that Liberia won the championship for the second Amputee African Nations Cup and the second place in the Guinea ECOWAS cycling tour for peace. We also witnessed and participated in a successful county Meet which saw Sinoe and Rivercess win the basketball and kickball competition. Bomi County successfully competed with River Gee County, to win the football competition. I am also pleased to note Liberia’s participation the Beijing Olympics.

Government continues to strengthen its information dissemination and public awareness apparatus. Although the challenges are many, we have made a number of strides in this regard. We held a country-wide competition to solicit names for our Poverty Reduction Strategy, and at the end of a two-week naming search, my Cabinet and I settled on the name ‘Lift Liberia,’ suggested by Dr. Shadrack Bryant, a Liberian residing in Gardnesville. This was just the beginning of branding our national development agenda. The Ministry of Information, in collaboration with the Executive Mansion, has developed a comprehensive Communications Strategy for the PRS that includes a number of non-conventional tools for engagement. This is now in the implementation phase and will require a mass effort by all of us to fund the Strategy. The Ministry of Information has also collaborated with media development agencies and the Press Union of Liberia to draft and submit three acts to the Legislature establishing an independent commission to regulate broadcast media, making freedom of information a law, and establishing a public broadcasting entity. We ask your early action in passing these Acts into Law.

MICAT has also established a “war room” to gather, analyze and respond to reports in the media that require clarification or follow up; revitalized the Liberia News Agency (LINA); re-stocked artifacts at the National Museum; and established the Bai T. Moore research room as a center for learning and appreciation of Liberia’s rich cultural heritage; and revamped the New Liberia Newspaper and its website, (www.newliberia.com.lr ). In continuance of MICAT’s mandate to harness public information dissemination, ministries and autonomous agencies continue to strengthen relations with the independent media through weekly press briefings and regular interactions.

New news is provided on a daily basis on our Executive Mansion website (www.emansion.gov.lr), whose hits increased from 5 million in 2007 to 8 million in 2008, the Executive Mansion. Because we understand the fundamental importance of information dissemination as a tool of empowerment, fourteen Government ministry websites are now accessible and fully stocked with customized information related to the PRS. A number of autonomous agencies are also online, and we will continue to work to bring ‘Government to the people’ via the World Wide Web.

INFRASTRUCTURE AND BASIC SERVICES

My. Vice President, Mr. Speaker, Honorable Legislators, the key objectives of our fourth pillar, Infrastructure and Basic Services, are to rebuild the physical and social infrastructure that were totally destroyed over the past several years. Those include roads, ports, telecommunications, electricity generation, water and sanitation, schools and health care facilities. We also seek improved service delivery to an increasing number or citizens.

In clear priorities set by the majority of our citizens during the PRS consultations, the reconstruction of roads and bridges remain our focus. We are therefore always questioned by you and the public at large as to why it is taking so long to respond to this critical need. The truth is we have not waited but have worked hard to mobilize the resources for this high capital cost activity. We have also had to respect the procedures and competitive processes required by our own laws and that of our partners.

As you can now see, the process is on. Rehabilitation of Tubman Boulevard and the ELWA to RIA road are nearing completion and the contractor is expected to commence work on the next segment of the Cotton Tree to Buchanan road. Design for other primary roads is underway in preparation for the start of rehabilitation as soon as the funds are mobilized. Work on our Monrovia city streets, which have gone for many years without maintenance, will start in two weeks when the contractor is fully mobilized and in two years all of the city streets will be fully rehabilitated. Demolition of the old and construction of the new Vai Town Bridge will start within two weeks to be fully completed next year. There is no shorter cut to getting the job done well.

During the year, we concluded the rehabilitation of 380 miles of roads in 12 counties and are continuing to work on community roads in the Monrovia area as well as critical primary and secondary roads in the counties. Our learning experience on the Jallah Town road proved to be an important reality check leading us to conclude a contractual arrangement for an upgrading of that important roadway.

Roads to the Southeast of the country that will stand all weather conditions remain a challenge which we have begun to tackle and hope to have fully resolved before the end of next year. The Engineering Contingent of UNMIL continues to be helpful to us in this regard.

The conditions of our five national ports are dismal, despite the progress in improving service efficiency. The need to remove sunken vessels, to repair badly damaged piers and to undertake dredging is critical to meeting international standard with implications for freight costs which are reflected in commodity prices on the local market. Given the Government’s resource constraints, we have started the process that will lead to the development and management of several of our ports through the Build, Operate, Transfer (BOT) scheme. For some, such as the Buchanan and Maryland ports it may be the case of similar arrangements with major users. Until such arrangements are fully in place, we will need to meet the challenges of control of theft, particularly at the port of Monrovia, by rigorous action in staff changes, transfer and dismissals.

Honorable Legislators, the Cabinet now has under review a National Energy Policy which will guide our choice of the several options that exist in the energy sector. During the past year, we increased the generation of electricity to 7.8 mega watts enabling us to service street lights and customers in Bushrod Island, Central Monrovia, Sinkor and Congo Town. We should be able to reach many more individual and institutional users when ongoing efforts to expand the transmission and distribution systems are realized. “With the support of our development partners and in collaboration with the West Africa Power Pool WAPP, we continue to make progress in our commitment to bring modern energy services to our rural citizens. The Cross-Border Power Supply Project, coordinated by the West African Power Pool (WAPP) and funded by the European Union, the Government of Cote d’Ivoire and the Government of Liberia will facilitate the supply of electricity from our neighbor Cote d’Ivories to 18 Liberian rural border towns, cities. These 18 communities are as follows:

• Nimba County: Logatou, Duoplay, Karnplay, Sanniquellie, Ganta, Tappitta, Diala and Yekepa;
• Grand Gedeh County: Toe Town, Zleh Town and Zwedru;
• River Gee County: Fish Town;
• Maryland County: Cavalla, Harper, Whole Graway, Rock Town, Fiah Town and Pleebo

The LEC has completed mapping of these towns and bids tendering for implementation is expected in March. The Liberian Government has thus far contributed US$201,000.00 to support the LEC full participation in this project and contributed over US$500,000.00 to WAPP Secretariat towards this project implementation. We thank you for approval of these funds in the budget and we are hopeful of the impact completion of this project will have on these rural communities.

The pilot solar power projects funded USAID and implemented through the Liberia Electricity Assistance Program (LEAP) has already covered Bong, Grand Cape Mount, Grand Gedeh, Lofa, Nimba, Sinoe and Rivercess counties with various solar technologies at clinics, schools, community centers, small businesses and for street lights. With the recorded satisfactory success of the pilot projects, we will now move along quickly to complete the remaining pilots in other counties and launch full scale implementation around the country.

Our government’s commitment to expanding access to quality education remains undaunted. National enrollment now stands at close to 1.3 million. As a result of implementation of the Free and Compulsory Primary Education Policy, Primary enrollment increased from 375,277 during Academic 2004/2005 to 1,107,271 over the period of this Administration, representing an impressive 195% increment. Similarly, secondary enrollment increased from 89,746 to 158,242 over the same period under review, representing about 76 percent.

At the tertiary level, total enrollment for the recognized seven baccalaureate degree granting institutions currently stand at 29,545 with the University of Liberia accounting for 18,615, representing about 63 percent.

In recognition of the important role of education we have provide a significantly higher level of support to the University of Liberia. The subsidy to the University in 2008/2009 of over US$4 million approved by you represents 54 percent of the University’s budget of US$7.4 million. The subsidy enables the institution to serve the needs of 17,467 undergraduates students in six colleges and 1,200 students in four graduate and tree professional schools. About 26 percent of the university total enrollment is female. A standing faculty of 318, represents a faculty student ratio of 1 to 56. Perhaps of more consequence to the quality of instruction is the restoration of facilities at the Fendall campus. Works on dormitories and teachers housing are now underway with dedication and occupancy expected by the end of 2010.

The challenges at our Nation’s only institution of higher learning remain daunting. A slack admission policy has led to an excessive student population on facilities meant to serve much fewer numbers. The lack of sufficient qualified and tenured professors and instructional materials such as books and good laboratory equipment undermines our goal of quality education.

We expect some of these problems to be tackled by the new President of the University, Dr. Emmet Dennis who was selected during the course of last year and is to take office the 1st of February. At the same time, we commend Dr. Al-Hassan Conteh for his significant contribution and service to the University and are pleased that he will continue to serve his country in the important post of Ambassador to the Federal Republic of Nigeria.

In terms of educational facilities, we completed throughout the country the renovation of 54 primary schools, constructed an additional 115 new ones with designing and construction of another 40 underway. The renovation and construction of 11 high schools are also underway as is the $20 million Fendall facility for the University of Liberia. Our success in advocating support from the Government and religious institutions of Italy is now realized as the Dogliotti Medical College will be rehabilitated. Through our own budget support, renovation work has started on the WVS Tubman Technical College in Harper for an opening in September 2009 and full operations in 2010. We are pleased to commend the return of our own daughter, Dr. Elizabeth Davis-Russell who left a Deanship at a U.S. University to make sacrificial service by assuming the Presidency of the College.

We also note with satisfaction that the rehabilitated rural teacher training institutions at Kakata and Zorzor are now in full operations as we conclude arrangements for similar work at the institution in Webbo.

Honorable Legislators, the pledge made by former U.S. President George Bush when he visited Liberia in February 2008 has been met. Some 10,000 pieces of furniture and 600,000 books were distributed to schools. We are pleased that USAID has changed procedures so that the remaining 400,000 supply of text books will be produced along with Government’s order of books that conform to our curriculum. Through Governments own budgetary resources, 200,000 sets of primary school textbooks and 5000 sets of teachers’ guides will be available for distribution to schools throughout the country this year. Several improvements to our educational system will be enhanced by the establishment of the Liberian Education Pool Fund intended to better harmonize partnership support to the sector.

The issue of qualified teachers is a continuing challenge as we will have to retire, with benefits totaling almost US$1.1 million, the majority of the 7056 volunteer teachers who did not meet the requisite qualification to continue to teach at the level they have been doing in our schools. At the same time, our policy of shifting priority from foreign training to development of local training institutions remains on course as we provided scholarships to 2,344 students at local institutions at a cost of about US$500,000. Nevertheless, through scholarships provided by bilateral partners and foreign institutions, we have over 200 students pursuing studies in ten friendly countries.

Honorable Legislators, we are pleased to report that a strong signal of partnership and security was sent to the world by the return of the U.S. Peace Corps and the opening of the American International School (AIS). We must now address the questionable judicial action that now risks the closure of AIS.

Mr. Vice President, Mr. Speaker, Honorable Legislators, our country’s health sector continues to make progress toward fulfillment of our primary goal of increasing the basic package of health services to an increasing number of the population. In pursuit of this goal we increased to 91 percent the number of our children immunized. Liberia was thus declared polio free by the African Regional Certification Committee of the World Health Organization.

Medical service to other groups in the society expanded, with 550,000 prenatal mothers and 650,000 children immunized against measles, neonate tetanus, and other deficiency. The distribution of 871,000 treated mosquito bed nets continues our overall fight against malaria which remains a major health hazard. Progress in the containment of HIV/AIDS is notable resulting from expansion in counseling and testing treatment sites.

As reported last year, fifteen county hospitals are now functioning including the renovated and expanded Telewoyan Hospital in Voinjama, which includes residential houses for doctors. The hospital will receive additional support from the Swiss government for operational cost for the next three years. We have also started the renovation of clinics, eight completed during the past year, and the establishment of midwifery schools, two established in Zwedru and Zorzor during the year. With the participation of some of you, Honorable Legislators, we broke grounds for construction of a US$10 million hospital in Tappita; and we expect to complete construction of the Foya Health Center and the CB Dunbar hospital in Gbarnga before the end of this year.

The positive trends of progress in the health sector are not matched by programs of assistance to the physically challenged and by an adoption program that has gone amok. We must do more to improve the living and training conditions for our disabled and I will ask for your support in this regard in the next fiscal year budget.

The gross mismanagement of the adoption program (which aims primarily at placing orphans in homes in the United States), by both Liberian and U.S. personnel in the concerned NGO is the subject of a report by a Special Committee which I appointed for this purpose. Essentially, we have discovered that many of the children in these orphanages are not in fact orphans but children taken from their living parents on the promise of support and a good life in America. Moreover, we found that young children were being sexually abused at some of these orphanages, while others including officials of government, have used the program to extort money from potential adoptors. We have thus suspended the adoption program until laws, policies and proper guidelines have been established and we have asked our concerned friends and partners in the United States to be patient as we try to correct the serious malpractices which exist. We expect the National Social Welfare Policy and National Adoption Act which will be submitted to you during the course of the year, will provide guidance and prevent such abuses in the future.

Honorable Legislators, the Ministry of Health has made the most progress in the establishment of financial management systems. In recognition of this achievement, the Pool Fund established last year for the sector attracted the support and the praise of several of our development partners.

Honorable Legislators, despite the continued low capacity of the White Plains Treatment Plant, water supply to the Greater Monrovia area increased by 40 percent reaching several new communities in Clara town, New Kru town, S.K. Doe, and is expanding to thousands of new customers. The Mamba Point high enclave area should be served after commissioning of the facilities early next month. We are also pleased to note that pipe borne water has been restored to Kakata and efforts are under way to restore supply to Zwedru, Voinjama, Robertsport, Greenville and Buchanan. Other rural cities will be targeted with success in our mobilization effort.

Access to sanitation facilities remains a challenge as the Monrovia sewage system is largely inoperable since its four main lift pumps stations and pipelines, were looted and vandalized during the years of conflict. However, with extraordinary support for its Government of Turkey through our Ambassador in Washington DC, we have addressed the problem of sewage spilling on to the street. Until our sanitation facilities are restored, the public continues to rely on personal septic tanks and on government constructed public toilets.

After a long period of planning and resource mobilization, the Liberia Telecommunication Corporation is now ready for business in providing a wide range of service including the restoration of fax facilities. They will compete in certain categories with the four GSM companies that operate. We are also pleased to report that in keeping with the Telecommunications Act which you passed last year, we have made significant progress in negotiating the standardization of licenses for Lone Star and Libercell. This is a clear victory for the national interest consistent with the practice in other African countries. Many of you may recall that licenses were granted to all GSM companies for US$50,000 per annum for variable tenures ranging from ten to fifteen years. They will now be standardized at a fee of US$15 million each with rights over a fifteen year period. Appropriate measures are now being considered to ensure compliance by the other two GSM companies.

Honorable Legislators, we expect that with the completion of the National Transport Policy the Government will be better positioned to coordinate and ensure regulation of our road and air transport systems with proper attention to be paid to the development of a much needed sea transport system. In the meanwhile, we note the progress made at Robert International Airport and at James Sprigs Field Airfield under the Liberian Domestic Airport Agency. At both facilities we have witnessed an increased level of passengers and freight and a resumption of commercial flights from Sprigs to several domestic locations. We are also pleased to note that the Liberia Civil Aviation Agency (LCAA) has been successful in retuning to Liberia the Flight Information Regional (FIR) Center and in concluding, arrangement for direct flights from the United States to Liberia by Delta Airways starting in June this year. The LCAA has also been instrumental in start up of negotiations with the Lockheed-Martin Corporation of the United States for the development and management of Roberts International Airport.

Mr. Speaker, we commend the significant progress made in public transport in Monrovia and its environs by the new Managing Director Mr. Senwan Wiah and his team at the Monrovia Transport Authority (MTA). MTA commuted over a million residents during the reporting period and is set to expand its service when the ongoing process to purchase 40 buses is concluded. Establishment of the National Transport Authority will facilitate the extension of public transport service to several other counties.

Mr. Speaker, we are pleased to report that Liberia’s voting rights at the Universal Postal Union and the International Telecommunications Union (ITU) have been restored, and that these institutions are providing support to our Ministry of Post and Telecommunications in expanding services and building our ITC Training Center in Voinjama. The Ministry has also constructed or rehabilitated 23 post offices nationwide including several in Montserrado, Bomi, Grand Bassa, Margibi, Bong, Grand Gedeh, Nimba and Lofa. Inbound and outbound mail delivery has increased significantly. Supported by a grant from the U.S. Trade and Development Agency, a feasibility study is being conducted for the construction of a fiber optic network in Monrovia and its environs.

PARTNERSHIP
Mr. Vice President, Mr. Speaker, our nation continues to enjoy strong partnership from all over the world. In our own region and continent, sisterly states of Nigeria, Ghana, Benin, Rwanda assist in providing logistics and training in our security sector. Morocco, Egypt and Namibia support our training initiatives. On the bilateral side, our key partner is the United States joined by China, Germany, Norway, Denmark, Sweden, France, Japan, Ireland, Switzerland, the United Kingdom and the European Union. The support from these partners is directed at all sectors and are increasingly harmonized and coordinated toward support of the development agenda set forth by the PRS. This coordinated approach will guide the allocation of some US$300 million to support the Health and Education Pool Funds as well as to the Liberia Infrastructure Fund which was established at the June Berlin Meeting and has a current commitment of approximately US$127 million.

Our multilateral partners, which include the World Bank, the International Monetary Fund, the Africa Development Bank and the United Nations System are equally supportive and active. The World Bank has provided support of nearly US$100 million for economic governance, rehabilitation of infrastructure and urban waste management and agriculture development. The IMF through the Poverty Reduction and Growth Facility approved in December will provide US$10 million worth equipment in support of the capitalization of the Central Bank while the Africa Development Bank has provided support of US$39 to support institutional capacity building and infrastructure development, particularly road rehabilitation. The United Nations System which serves as a financial interceptor and manager for other multilateral funds provided through its several agencies and funds, an estimated additional US$150 million. This does not include allocation for the operations of UNMIL which is correctly estimated at US$600 million annually.

Honorable Legislators, we are pleased to report that while previously the vast majority of external support was channeled through NGOs and contractors, the year 2008 saw a significant increase in donor support to the Government’s budget. We thank the Government of France for US$1.2 million; the Government of China for US$1 million, both sums already allocated in the 2007/2008 supplemental budget. We now expect US$5 million from the World Bank and US$18 million from the Africa Development Bank which will cover expected revenue shortfall and cover specific expenditure items.

We continue to enjoy the confidence and support from non official partners. The Soros Foundation and Open Society Initiative has provided support on the order of US$20 million for our Education Pool Fund, our economic and legal advisory services, our Senior Executive and Capacity Development Program. The McCall MacBain Foundation has committed over US$10 million in eleven grants to support our urban transport program with ten buses to the Monrovia Transit Authority, construction of children playgrounds in Montserrado, Maryland, Sinoe and Grand Gedeh through the NGO Right to Play, the construction of the Midwifery School in Zwedru, and the biomass Power Plant whose concession agreement is before you. There is also the Scott Family Fellowship which provides funding of US$1 million to support six young professionals to serve in the public service over a period of three years. The program has been expanded to nine additional fellows with support from the Soros Foundation. They add great value to our capacity development. We also continue to receive support from several foundations, institutions and individuals for programs under the Liberia Education Trust and the Sirleaf Market Women Fund.

In September last year, we organized in New York, with philanthropist George Soros a first Foundation Partnership Meeting intended to achieve more harmony and coordination of programs by our foundation partners. A Secretariat has been established in our Liberia Reconstruction and Development Committee (LRDC) to follow up and institutionalize this coordination.

INTERNATIONAL RELATIONS
Honorable Legislators, the guiding principles of Liberia’s foreign policy is the maintenance of national security for the protection of our territorial integrity and sovereignty, the promotion of peace and harmony and unity among nations in our region, continent and the world. There are currently eighteen diplomatic missions resident in Monrovia, twenty eight non resident Ambassadors accredited to the Republic, one Honorary Consul and one Consulate General. An additional six Ambassadors have received their Agrement and await presentation of their letters of credence.

Liberia maintains abroad twenty-two diplomatic missions, including the mission to Senegal opened last year, and two consular posts. We are pleased that our foreign envoys, charged with promoting the principle of economic diplomacy, now enjoy a better level of compensation which as at home, is paid on time. We are also pleased that Liberia has regained its place in pride and reputation throughout the world. We expect a further enhancement of this image when the new passports that are ready for issuance commencing June of this year, bring to an end the use of our passport by those who obtained same through fraudulent means.

We should also report that significant progress was made during last year in the legal step being taken to reclaim government properties in Paris, Nairobi and other places that were sold or pledged against personal loans by unscrupulous officials of the past who will be exposed as soon as those cases have been concluded. We must also note that we are pursuing legal action against certain of our current official serving abroad who continue to engage in corrupt practices in collusion with officials at home.

Honorable Members of the Legislature, I am pleased to report that as a result of a positive image abroad and significant development progress at home we continue to attract the visit of high level personnel to our country. During the course of the year we received several such persons. This includes US President George Bush, the first in twenty years to visit Liberia, President John Kufuor of Ghana, Former Presidents Jerry Rawlings, Nicephore Soglo, Joaquin Chissano, Ketumile Masire and Sam Nujoma of the Africa Forum; World Bank President Robert Zoellick, Former President of Finland Maarti Ahtisaari, FAO Director General Jacques Diouf, UNICEF Executive Director, Ann Veneman, US Congressional Delegation Head Senator Bill Nelson, Chairman of RLJ Companies, Robert Johnson; Soros Foundation Chairman George Soros, Millennium Village Founder, Professor Jeffery Sachs.

I was privileged to pay state visits to our Sisterly Republic of La Cote d’Ivoire and to the Republic of Namibia. I also had the opportunity to visit US President George Bush for the third and last time and to meet with former President Nelson Mandela and officials of the South African Government when I gave the 6th Annual Nelson Mandela Lecture in July as part of the celebration of President Mandela’s 90th birthday.

Other travels abroad aimed at participation in ECOWAS and African Union Meetings in Burkina Faso, Algeria, Egypt, the United Nations General Assembly in New York, the Progressive Governance Summit in London, the Aid Effectiveness Forum in Accra, following which several Development Ministers from major partners visited Liberia, and the MDCB Conference in Copenhagen. I was also privileged to give commencement addresses at the Harvard University Kennedy School of Government and to three U.S. Universities – Brown and Indiana Universities and at Dartmouth College where I received Honorary Doctorate Degrees. I also gave the Commencement address and received an Honorary Degree from one of our own African Methodist University and was honored with prestigious award from four other international institutions including the International Crisis Group.

I am particularly pleased to report that under Liberia’s Chair of the Mano River Union (MRU), we witnessed the expansion of the Union in May last year with the accession of la Cote d’Ivoire as the fourth member state. Subsequently, at a summit of Heads of State in December in Sierra Leone in which President Gbagbo was personally in attendance. A plan of action which places emphasis on the agriculture and security sectors was agreed.

The Union continues to be faced with challenges, most recently the developments in the wake of the death of President Conteh of Guinea which the MRU countries are trying to manage.

V. OBITUARY
Honorable Legislators, during last year, several current and former Government officials, prominent and law abiding colleagues were called to the great beyond. Among those were:
• Honourable Isaac Johnson, former Senator, River Gee County;
• Honourable Isaac Charyien Nyeplu, former Minister of Justice & Attorney General;
• Counsellor Lawrence Alford Morgan, Former Senator Grand Bassa County;
• Honourable Kebbeh Ballah Zuku Freeman, former Member of the House of Representatives Montserrado County;
• Honourable James Kla Giko, former Member and First Deputy Speaker, Transitional Legislative Assembly (TLA);
• Honourable John D. Lasana, Sr. Stipendiary Magistrate of Arthington City, Montserrado County;
• Honourable Isaac Saye Mussah, former Member of the House of Representatives of the Second National Transitional Government of Liberia;
• His Excellency Mr. Francis Alphonso Dennis, Sr., former Ambassador Extraordinary and Plenipotentiary;
• Honourable J. Sabto-Wiah, former Minister Counsellor/Press Attaché;
• Rev. Nathaniel T. Dixon, former Press and Financial Attaché;
• Rev. Dr. Advertus Arthur Hoff, Sr., former Minister of Education;
• Honourable Nora Lovo Korvah, former Deputy Minister for Operation, Ministry of Gender & Development;
• Honourable Joseph K. Yourwatei, Sr., former Deputy Minister Operation, Ministry of Internal Affairs;
• Honourable Nathaniel Reginald Richardson, Jr., former Director, Liberian Geological Survey;
• Honourable Frederick Russell Deshield, Sr., former Deputy Minister for Administration, Ministry of Information, Culture & Tourism;
• Honourable Ambrose Mohammed Kromah, former Senior Communication Officer/Ministry of Commerce & Industry.

The list also included:
• Honourable Julu Mah Johnson, former Acting Minister of Lands, Mines & Energy,
• Honourable Sewell Telfore Prout Brewer, Sr., former Chief Engineer, Liberia Telecommunications Corporation (LTC);
• Honourable Oliver Bor-Yee Toe Swen, Sr., Attorney-At-Law, Chief Prosecutor for Government;
• Honourable Jeremiah Bishop Johnson, Sr., former Development Superintendent, Grand Bassa County;
• Honourable Charles V. Dormeyan, Sr., former Development Superintendent, Bong County,
• Mother ADA Amorette Phebean Decker Goodings, former District Supervisor of Schools, Margibi County;
• Honourable Francis Dugbe-Nmeh Pelenah, Sr., Defense Counsel of Grand Kru County;
• Professor Victor-Emmanuel Larteyvi Lawson, former Chairman, Department of English and Literature, Liberia College, University of Liberia;
• Mr. Lafayette Henry Montgomery, Sr., Proprietor of Montgomery’s One Hour;
• Mrs. Louise Ether Barnard-Reeves, former Member of the House of Representatives, Grand Bassa County;
• Mrs. Matee Mardea Cephas-Cooper, Widow of the late Willie G. Cooper, Butler to former President; and
• Mrs. Farmatta Lucretia James-Snetter, Widow of former Ambassador Charles A. Snetter, Sr.

May their souls rest in perfect and everlasting peace.

Mr. President of the Senate, Mr. Speaker, Honorable Members of the Legislature, let me now address a few issues that have serious implication for our national development effort.

ARMY WORM INVASION
I know that we all share the alarm and the deep concern over the emergence of the army or tent worms which have invaded our county with the potential to set back our progress in the production of food and export crops. Ongoing investigation show that 62 communities in Bong and some parts of Lower Lofa and Gbarpolu counties involving some 350,000 inhabitants many have already been affected. Five of the twenty-eight affected communities in Zota District of Bong County are bordering neighboring Guinea and there are indications that several villages in Guinea are now experiencing similar invasion.

This is indeed a crisis and I hereby declare a state of National Emergency with particular emphasis on the existing and potentially affected counties.

The government has taken immediate initial steps to respond to the crisis. A Task Force under the Ministry of Agriculture with support of the Ministry of Health has been established. The technical team has identified and classified the species and has commenced spraying in the affected areas. Water and food are being supplied to the most vulnerable and displaced. Meetings have been held with our partners and several international organizations have responded to our appeal and will be sending experts and supplies to supplement our effort.

More effort and more resources are required if we are to be successful in containing this problem. I have therefore instructed the Minister of Finance to identify budgetary resources from any source possible that can be used to meet the needs that are required. He knows that this will not be the time for long procurement procedures and bureaucratic hurdles.

I have also called upon our partners for urgent response to our appeal and I expect to review the effectiveness of our combined response when I meet with them on Wednesday.

CORRUPTION

Perhaps the greatest challenge faced the government over the past several months is corruption. It is a national malaise, long standing and deeply entrenched in all levels of society. It stems from years of depravation, poor salaries, lack of a pension scheme at the lower levels, and an environment of impunity and tolerance of greed at higher levels.

The fight against corruption has started. Through investigations, auditing and whistle blowing, we are uncovering and exposing acts of corruption. Officials have been suspended, fired and turned over to the Ministry of Justice for prosecution and/or restitution of government assets. At the same time, we have increased the compensation and pension for civil servants, concluded the biometric program for civil servants, removed ghost names from the payroll, strengthened the Government Auditing Commission, adopted an Anticorruption Policy and Strategy, established an Anticorruption Commission, and established the Liberian Extractive Industries Transparency Initiative going beyond the required to include revenues from forestry operations.

Honorable legislators, I am happy to note that for once in the history of our country, the fight against corruption has been elevated to a pedestal of prominence and widespread public concern which bears testimony to the success of our strategy. Now unlike in the past, we have a capacitated the Auditing Commission and audit reports are now being received. Now, unlike in the past, we have an Anti-Corruption Commission that will be playing a frontal role in the investigation of corruption. Now, unlike in the past, we have a free press that is not intimidated by big powers when alleged acts of corruption are reported, even though the press themselves sometimes get their facts wrong. Now unlike in the past, the man in the street can call on a talk-show and freely express himself on issues of corruption. That corruption has gained such a prominence in our national debate, is in itself a commendable achievement of this regime. For one way to deal with a chronic sore is to expose it to sunshine. Unfortunately however, our success in exposing this menace to the sunshine has yielded unintended consequences as it has led to the mistaken belief in some quarters that corruption is on an upward swing just because the reportage of corruption has increased today as compared to the past. Nothing could be further from the truth.

Honorable legislators, the fight against corruption does not come to an end with the mere exposure of corruption. We must act. The Executive, the Legislature, and the Judiciary must act decisively and collaboratively to deal with the scourge. On the side of the Executive we have taken some actions are will take other drastic actions in the coming weeks and months. However, we must act methodically, maturely, and judiciously, and not haphazardly just to satisfy the whims of a critic.


The steps we have taken thus far in the war against corruption helped us move up in the rankings and was recognized by the World Bank and the Mo Ibrahim governance indicators as one of the countries having made best progress in fighting corruption.

Yet, Honorable Legislators, serious challenges still remain in this battle for which we have been criticized. This largely has to do with the slow process involved in the prosecution of those who have violated the public trust. This is a matter of justice and of judicial process which we have to respect. Unfounded and misdirected accusations will only undermine the government’s effort and discourage the investors we need to expand our economy with benefits to all segments of society. We also know that all of these measures and progress will not produce the truly sustainable results which we seek unless there are systems improvements, and professional and apolitical financial audits.