The Liberian government is facing severe backlash after reportedly reneging on its commitment to share an estimated $25 million in benefits with communities affected by industrial logging, while a policy decision cost the country over $300 million in forestry earnings.
The government’s failure to honor this obligation, mandated by the National Forestry Reform Law (NFRL), has left local communities grappling with the consequences of their loss while raising concerns about the future of the forestry sector and local development, a new report by Forest Trends has revealed.
According to the NFRL, enacted two decades ago during the nation’s post-war recovery phase, 30 percent of land rental fees from logging concessions is to be allocated to the communities directly affected by industrial logging.
Initially, these communities were expected to receive upwards of $123 million based on anticipated land rental payments that amounted to $410 million over 25 years. However, they have seen little to no benefits materialize, with communities reportedly receiving only about $4 million of what they are owed, the report said.
In a significant policy shift in 2013, the government removed the competitive bidding process for logging concessions, resulting in lost revenue that exceeded $300 million, with approximately $90 million that should have been allocated to local communities now unaccounted for.
In the last 15 years, the government has reportedly collected more than $43 million in land rental fees yet has only distributed a fraction of this amount.
The current administration, under President Boakai, has an opportunity to reaffirm its commitment to the law and the communities who rely on these funds, Forest Trends recommended.
Activists and community leaders are calling for urgent action, urging the government to make good on the $9 million already collected but not yet distributed. They argue that the failure to share these benefits undermines not only local governance and transparency but also jeopardizes the livelihoods of those who live in the forest areas.
The World Bank has identified two primary reasons for this shortfall: logging companies failing to meet their contractual payment obligations and delays or failures by the Liberia Revenue Authority and other governmental bodies to forward payments due to communities.
The challenges posed by this ongoing issue are calling for demonstrable leadership from both the government and the logging companies. The Forest Trends 2020 report highlighted the need for better public accountability regarding payments made by logging companies, emphasizing the importance of annual audits and transparent public reporting.
Community representatives are urging the government to not only address the existing arrears but also explore opportunities to facilitate further payments for impacted communities as part of future logging agreements, potentially integrating these payments into broader natural resource management practices.
