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Ousted Taylor keeps tight grip on Liberian economy

"For someone who's stolen hundreds of millions, what's a couple of million more?"

Jacques Klein, UN envoy to Liberia

Charles Taylor used fear, patronage and state monopolies to control what diplomats and business leaders estimate amounted to 90 percent of Liberia's economy -- everything from the imported rice that feeds the country to fortunes in diamonds, timber and lucrative shipping registry fees.

Tracking that money, and breaking Taylor's control of what's left, is crucial to rebuilding war-ruined Liberia. But diplomats say Taylor, working the phone from his new villa in exile in the jungles of southern Nigeria, isn't letting go easily.

These officials, citing intelligence reports, paint this picture of the ousted warlord-president's attempts to keep his hand in the pot:

Within days of his Aug. 11 acceptance of asylum in Nigeria, Taylor began making multiple calls each day to his successor, Moses Blah, and to Foreign Minister Lewis Brown. He also is trying to collect debts from Liberian business figures still in Monrovia and attempting to solicit donations by phone for unknown purposes.

"We don't know why he's raising money. What's clear is that he's keeping contact with the remnants of his government," Geoff Rudd, the EU's top diplomat in Liberia, told reporters.

Taylor, a longtime rebel leader who won the presidency in 1997, yielded power and flew out in a Nigerian presidential jet last month, bowing to pressure from the US, African leaders and rebels laying siege to his capital. He left behind a country in ruin from 14 years of power struggles under Taylor.

Liberia, once sub-Saharan Africa's most prosperous nation, today has no electrical system, a train system that runs on back-powered hand carts, and a water plant operated as a charity by the EU.

Taylor never made good on repeated promises to repair Liberia. But it wasn't for lack of funds, Liberians and Western diplomats say.

"Taylor was into everything," says Rudd.

Taylor's regime had dealings in gold, diamonds, gas and rice imports, timber exports, printing and Liberia's shipping registry business, which is among the world's largest. Diplomats and Liberian business figures describe a system in which six or seven prominent business figures close to Taylor control all but 10 percent of Liberia's export and import businesses and through that, the economy.

The Liberians are speaking out now with Taylor's departure, but still insist on anonymity for fear of retribution. Longtime international officials in Monrovia, also unwilling to give their names, confirm the accounts.

Gasoline -- an essential commodity powering generators in a country without electricity since 1992 -- is offloaded at the government-controlled port for less than US$1 a gallon (3.78 liters). At the pumps, one gallon (3.78 liters) is sold at the state-dictated price -- around US$3.20.

Rice -- Liberia's staple -- is charged import duties and other taxes totaling US$5.50 per 50kg sack, much higher than in other West African countries, according to Georges Haddad, a Lebanese businessman who Liberians say is the nation's sole rice importer.

Haddad says he imports about 1 million bags of rice a year, but insists he doesn't run a monopoly.

Taylor at one point assumed 52 percent of the country's sole printing company -- getting it for free, diplomats say. "He made them an offer they couldn't refuse," says the EU's Rudd, without elaborating.

Seventy percent of the world's container ships fly Liberia's star and striped banner under a so-called "flag of convenience" arrangement that lowers shipping lines' taxes. Diplomats say that brings Liberia about US$24 million annually.

"Which bank account is that money going into? We'll need to figure that out," Jacques Klein, an American serving as the UN envoy to Liberia, told reporters.

Klein said he was checking into rumors that Taylor also left for Nigeria with US$3 million meant for disarmament in Liberia. The money was allegedly given to him by an unnamed Asian nation.

"For someone who's stolen hundreds of millions, what's a couple of million more?" Klein said. "There's nothing left in the treasury of Liberia, and that's going to be a major problem as we try to rebuild the country."

How much the country's mineral and natural reserves netted Taylor's government may never be known. One businessman said anyone who spoke about Taylor's take from gold and diamonds might not live long.

For years, Liberians watched Taylor accrue lavish mansions and plantations. With Taylor's forces specializing in torture and summary execution, according to rights groups, few dared speak out -- or even dared say Taylor's name. With Taylor gone, they're starting to.

"We're endowed with such great resources," says Philip Wesseh, publisher of Liberia's The Inquirer newspaper. "It's in the way it is managed. We shouldn't be a poor country," Wesseh says.

According to a EU study, Liberia took in about US$172 million in revenues in 2002. That year, the government had budgeted expenditures of US$62 million -- but never received even 45 percent of that amount, according to the study.

"Where the balance went, we don't know," says Rudd. Taylor refused outside audits of government ledgers.

It is not known how much money is in Taylor's bank accounts in Switzerland, although guesses range from only a few million US dollars to US$1 billion.

Switzerland promised in June to freeze all of the assets linked to the indicted war-crimes suspect, who likewise was the target of UN arms, travel and timber sanctions.
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