——- As possible Inflation rumble on the Horizon

IPNEWS:  Amidst continuing uncertainties over the availability of rice on the Liberian market due to several factors outlined by the rice importers during a recent meeting with the Legislature joint committee, especially disparities in the payment of subsidies promised by the government of Liberia, IPNEWS has gathered that the Weah-led administration has begun payment of major rice importers with millions of Liberian dollars.

Earlier, the importers had demanded that unless the government lives up to its pledge to pay them subsidies, they would not import a new consignment of rice.

According to impeachable sources tell IPNEWS that last week amidst visible scarcity of the commodity the Liberian government was forced to begin payment subsidies to some rice importers.

However, the move by the government to begin payment of subsidies to rice importers is laudable, yet the move might be just another ‘catch-22’ for major rice importers who really need United States Dollars to import the commodity.

A veteran Economist tells IPNEWS that the payment of such a huge quantity of Liberian Dollars to rice importers who actually need United States Dollars is another cause for concern for a possible inflation of the newly introduced Liberian banknotes and further delay rice imputer’s ability to source United States dollars on the black market.

Sources within the Ministry of Finance revealed to IPNEWS that checks were written to the central bank of Liberia (CBL) for payment in huge Liberian Dollars to the Rice importers last week.

“The move by the government to issue millions of Liberian dollars, to rice importers is just another bad decision that will not only delay and undermine the government quest for speedy supply of the commodity on the Liberian market even the political significance but has the propensity to cause serious inflation resulting that may lead to a weak Liberian dollar trading pattern against the United States dollars.” A veteran Liberian Economist hinted.

It is not clear what benchmark was used to pay subsidies to importers in millions of Liberian dollars. However, some Liberians are calling on the government to publish the list of how much was paid to the rice importers in order to get a clear understand of the balances on the subsidy scheme.

Meanwhile, business experts have blamed the underperformance of the Minister of Commerce, Marwaine Digg, for causing embarrassment to President George Weah, especially the continuous scarcity of Liberia’s stable food rice.

Recently upon arrival from the United Nations General Assembly (UNGA), the Liberian President was faced with one of his biggest ever embarrassment when he spoke about the availability of the country’s staple food, but shortly after realized that there was a scarcity of the commodity shortly upon return from the United Nations General Assembly; when in reality, the commodity was not available on the local market.

As of this report, rice is still not available on the Liberian market as yet. But it appears, the Liberian leader’s comment was based on misinformation he might have received from his Minister of Commerce.

In all indications, the underperformance of Minister Marwaine Diggs was the main factor that was responsible for the embarrassment caused to the president in wake of the continued rice crisis in the country.

According to the investigation, the ministry of commerce and industries receives weekly stock reports from all importers of rice every Monday.  This report shows the opening balance of stock from the previous week’s quantity of rice sold, and the closing balance for the weekend. This is while it was shocked that the rice warehouses would go dry without the ministry of commerce acting.

Furthermore, Information gathered by IPNEWS revealed that shortly after taking over as Minister of Commerce, Madam Marwaine Diggs removed all statutory functions of a few ministers, and seconded it to her office, including the hiring of inexperienced friends as consultants.

For instance, sources tell IPNEWS that one major problem at the Ministry of Commerce which has grossly undermined monitoring and compliance is the hiring of a man in dotage who has been serving as a consultant for the Ministry of Commerce for the last 40 years.

Our sources say Minister Diggs has been using this man in dotage to play the roles of presidential appointees at the Ministry of Commerce.

“The failure to collect statistics from the importers on a weekly basis was the main reason that led to the misinformation provided to President Weah.  More besides, the buddying policy by the Minister is also contributing to the underperformance of the ministry of commerce.” A source at the Ministry of Commerce told IPNEWS.

Meanwhile, some Liberian citizens have called on the national legislature committee on commerce and trade to become more proactive engagement in its oversight responsibility on commerce to avert future occurrences of rice shortages in the Liberian market.

“Given the serious embarrassment caused by Minister Diggs misinformation on the availability of rice, was not just to the President, but Liberians in general, and Mr. President needs to take immediate administrative action against the Minister of commerce for glaring ineptitude.” A major Importer told IPNEWS.