VZCZCXRO1230
RR RUEHMA RUEHPA
DE RUEHMV #0070/01 0211003
ZNR UUUUU ZZH
R 211003Z JAN 09
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 0707
INFO RUEHZK/ECOWAS COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 1593
RULSJGA/COMDT COGARD WASHINGTON DC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUENAAA/SECNAV WASHDC
RUEATRA/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEHAAA/NSC WASHDC
RUEHFN/USDAO FREETOWN SL
RUEHAB/USDAO ABIDJAN IV
RUEHAR/USDAO ACCRA GH

UNCLAS SECTION 01 OF 04 MONROVIA 000070 
 
COGARD FOR IPSLO ACTIVITIES EUROPE ADAM SHAW 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: ECON EWWT EFIS PHSA SENV LI
SUBJECT: LIBERIA: A NEW, ASSERTIVE BUREAU OF MARITIME AFFAIRS 
 
REF: A) 07 MONROVIA 1293, B) 08 MONROVIA 751 
 
¶1. (SBU) Summary:  Recently appointed Liberian Bureau of Maritime 
Affairs (BMA) Commissioner Binyah Kesselly is seeking to assert 
tighter control over the country's outsourced shipping registry and 
has embarked on an ambitious program to transform Liberia into a 
"maritime nation" by expanding BMA authority beyond the ship 
registry into other maritime services.  Kesselly told the Ambassador 
January 9 that negotiations with the current registry agent, 
Virginia-based LISCR, LLC, would restart this month, but he also 
hinted that the GOL may have other alternatives to renewing with 
LISCR if an agreement proves elusive or recent corruption 
allegations prove too serious to overcome.  Kesselly outlined his 
priorities for the BMA, including leadership of Liberia's efforts to 
meet International Ship and Port Facility Security (ISPS) Code 
requirements at the Port of Monrovia, the creation of a Regional 
Coordinating Center for Maritime Search and Rescue, the 
re-establishment of a Liberian Maritime Training Institute (LMTI), 
coordination with the Ministry of Defense for the formation of a 
Liberian Coast Guard, and ratification of a backlog of International 
Maritime Organization (IMO) Conventions.  End Summary. 
 
----------------- 
A NEW DAY FOR BMA 
----------------- 
 
¶2. (U) The Liberian Bureau of Maritime Affairs (BMA) is an 
autonomous agency within the Executive Branch charged with enforcing 
maritime law and other international conventions and administering 
the world's second-largest international ship registry which 
generates significant revenues for government.  Apart from handling 
some national elements of the maritime regime - such as small craft 
registry and local regulations - the BMA has historically been 
primarily a political organization that represents the GOL in the 
international maritime sector, primarily the International Maritime 
Organization (IMO). 
 
¶3. (SBU) Commissioner Kesselly was appointed in April 2008 and has 
embarked on an ambitious program to transform the ship registry into 
a "Best in Class" service and transform Liberia into a "maritime 
nation" by expanding BMA authority beyond the ship registry and into 
ecotourism, fisheries, marine services, merchant marine training, 
and even shipbuilding.  Kesselly told the Ambassador January 9 that 
his initial focus is on increasing revenues from the registry, 
engaging private management for the renovation and administration of 
the Liberia Maritime Training Institute (LMTI) and catching up on 
the ratification of IMO conventions (see paragraph 17 for a list of 
conventions).  As an illustration of the BMA's new assertiveness, 
Liberia also co-sponsored UN Resolution 1851 on piracy last December 
and is drafting domestic laws that would allow for the prosecution 
of pirates according to Liberian law. 
 
---------------------------------- 
SHIP REGISTRY MANAGEMENT UNCERTAIN 
---------------------------------- 
 
¶4. (SBU) Liberia's ship registry, with over 2,978 Liberian-flagged 
vessels as of December 2008, is the second-largest in the world.  In 
1999, the GOL appointed the Liberia International Ship and Corporate 
Registry, LLC (LISCR) to manage the registry, including the 
collection of taxes, fees, charges and other amounts due to the GOL. 
 LISCR is a purpose-made limited liability company registered in 
Delaware and based in Virginia.  The legal basis for LISCR's 
appointment is an Act of the Liberian Legislature, an unusual 
measure intended to provide security to the LISCR investors who are, 
as per the statute, exclusively U.S. nationals.  The Act expires 
December 31, 2009. (Note: Discussions of the ship registry 
negotiations are business-proprietary and are for USG use only.  End 
note.) 
 
¶5. (SBU) After LISCR's appointment, the BMA largely lost touch with 
the management and affairs of the ship registry.  Moreover, weak 
professional capacity at the BMA and poor overall governance during 
the initial years of the appointment encouraged LISCR to take 
increasing authority for other BMA responsibilities in order to 
reduce the risks to the registry.  By 2006, LISCR, LLC played a 
primary role in dealing with ship-owners worldwide and, apart from 
involvement of an accredited diplomat to the IMO in London, was seen 
as the face of Liberia in the international maritime community. 
 
MONROVIA 00000070  002 OF 004 
 
 
Commissioner Kesselly has already moved to re-exert direct BMA 
control over non-registry related maritime matters and to more 
tightly control registry oversight. 
 
¶6. (SBU) While the GOL ultimately would like to manage the registry 
directly in order to cut out the agent, the President reportedly 
decided in 2008 to renew LISCR's contract in order to avoid any 
potential defections by ship owners.  Negotiations were set to begin 
last July but were sidelined over a corruption scandal involving 
LISCR CEO Yoram Cohen and members of the President's internal circle 
(ref. B).  Kesselly told the Ambassador June 9 that negotiations 
with LISCR would restart this month, but he has also hinted that the 
GOL may have other alternatives to renewing with LISCR if an 
agreement cannot be reached.  Kesselly added that the new agreement 
would be a management contract rather than a law. 
 
¶7. (U) (Note: The GOL-commissioned report of the corruption scandal 
recommended January 12 that the GOL not reappoint LISCR as Agent for 
the registry, saying, "the Government of Liberia's resolve to renew 
the LISCR contract though understandable, seems not to have been the 
best procedure to adopt in light of scandals involving certain LISCR 
executives including the allegations of gunrunning in Liberia and 
other parts and the possible concealment of revenues that should 
have accrued to Liberia from the maritime program." End note.) 
 
¶8. (U) The BMA's operating budget of approximately $900,000 is 
funded directly from registry revenues, and the salaries and 
benefits of all the BMA personnel, including those working outside 
Liberia, are not constrained by Civil Service regulations (and are 
not subject to scrutiny in the same way as other GOL expenditures 
and decisions made in the context of GOL finances as a whole). 
Gross revenues to LISCR were $36 million in 2004 (the last year 
financial statements were audited), from which management and agent 
fees ($11 million), administrative costs ($10 million) and IMO 
dues/fees ($3 million) were extracted to leave a roughly $13 million 
contribution to the GOL budget.  GOL revenues fell to $10.8 million 
in (calendar year) 2006, but have risen back to $13.1 million in 
2007 and $14.6 million in 2008, according to Kesselly.  In 2007, 
LISCR revenues account for approximately 6% of the total GOL budget. 
 
 
¶9. (U) In addition to the shipping registry, LISCR also manages a 
Liberia offshore Corporate Registry for non-resident corporations 
and other non-resident entities/associations.  While the principal 
use of this service is for ship owners to create dummy corporations 
in order to flag the vessels, other entities, such as international 
investment companies and traders, incorporate in Liberia to take 
advantage of the beneficial tax environment in effect for 
non-resident corporations.  Responsibility for the Corporate 
Registry is vested in the portfolio of the Minister of Foreign 
Affairs. 
 
------------------------------- 
BMA TAKES LEAD ON PORT SECURITY 
------------------------------- 
 
¶10. (SBU) The U.S. Coast Guard International Port Security Team 
conducted a review March 2007 of port security measures relating to 
the International Ship and Port Facility Security (ISPS) Code in 
place in Liberia and found that the Port of Monrovia did not meet 
ISPS Code requirements.  (Note: Firestone Liberia maintains a 
self-contained ship-to-port interface at the Port of Monrovia that 
is ISPS compliant and the USCG has granted Firestone a waiver for 
its vessels traveling between Monrovia and the United States.  End 
note).  Follow-up visits in March and August 2008 found only minimal 
progress on implementing the ISPS Code, with notable problems in the 
areas of access control, monitoring the facility, anchorage and 
berthing areas, monitoring restricted areas, supervising the 
handling of cargo and ship's stores, and, communication of security 
information.  The USCG also confirmed the GOL still had not 
established a Designated Authority (DA) for ISPS compliance. 
 
¶11. (SBU) Since August 2008, the GOL has established a multi-agency 
Port Security Technical Team, led by the BMA, to pursue ISPS 
compliance.  Kesselly told the Ambassador January 9 that the 
President had issued an appointment letter (though not an Executive 
Order) naming the BMA as the Designated Authority for ISPS.  He also 
said the BMA has drafted an initial Port Facility Security 
Assessment (PFSA) and developed a Port Facility Security Plan 
 
MONROVIA 00000070  003 OF 004 
 
 
(PFSP), though implementation remains uncertain and unproven ahead 
of the next formal USCG visit in March 2009 to assess compliance 
with the ISPS Code. 
 
¶12. (U) The BMA, through LISCR, also monitors ISPS compliance aboard 
Liberian-flagged vessels, requiring all ships subject to the ISPS 
Code to complete Ship Security Assessments (SSAs) and Ship Security 
Plan (SSPs) and submit them to an approved Recognized Security 
Organization (RSO) for review and approval.  The BMA/LISCR also 
conducts flag-state inspections aboard all Liberian-flagged ships to 
verify ISPS Code compliance. 
 
----------------- 
MARITIME TRAINING 
----------------- 
 
¶13. (U) The BMA has initiated plans to re-establish the Liberian 
Maritime Training Institute (LMTI) near Marshall, just south of 
Roberts International Airport.  The BMA hopes to develop a national 
maritime workforce with the goal of providing qualified and 
competent Liberian seafarers to the international shipping industry. 
 LMTI's facilities and infrastructure were destroyed during the war 
and there are currently few qualified instructors.  The BMA has 
engaged the IMO as well as the domestic seafarers union(s) as 
potential cooperative partners for the LMTI, and is considering a 
contract to outsource the rehabilitation and management of the 
institute. 
 
-------------------------- 
MARITIME SEARCH AND RESCUE 
-------------------------- 
 
¶14. (U) The IMO selected Liberia in 2007 to serve as the Regional 
Coordinating Center for Maritime Search and Rescue in West Africa 
Region, comprised of Ghana, Cote d'Ivoire, Guinea and Sierra Leone. 
The Liberian Legislature passed two bills for the creation of a 
Maritime Search and Rescue Center and for the ratification of the 
International Search and Rescue Convention of 1979.  In 2008, the 
BMA signed a Memorandum of Understanding (MOU) with Firestone for 
maritime capacity building and with the Ministry of Defense for the 
establishment of a Search and Rescue Communications Center (SRCC). 
Construction of the SRCC started in August 2008 and is expected to 
be completed in April 2009.  The facility, which is located on the 
north side of the Port of Monrovia, will also house the Liberian 
Coast Guard. 
 
--------------------------------- 
MARITIME SURVEILLANCE AND CONTROL 
--------------------------------- 
 
¶15. (U) According to a recent USCG survey and a 2005-2006 regional 
study, it is estimated that 250-300 illegal fishing boats regularly 
operate in Liberian waters.  Liberia's coastline measures 
approximately 360 miles (579 kms) and the country claims both a 
territorial sea and an exclusive economic zone of 200 nautical miles 
(370 kms).  Exercising control over the country's entire territorial 
sea and exclusive economic zone, an area encompassing 1,900 sq 
miles, is a task beyond the near-term economic resources of the 
country. 
 
¶16. (SBU) Kesselly explained that the BMA has begun to train a 
31-member Maritime Security Team that will eventually become a 
land-based "Maritime Police" force to enforce BMA regulations. 
Meanwhile, the USG (through the USCG and the Office of Security 
Cooperation) is assisting the GOL with the establishment of a 
Liberian Coast Guard.  To date 44 Armed Forces of Liberia personnel 
have been selected to start up the Coast Guard; training will start 
in early 2009.  The OSC also helped revamp Liberia's Automatic 
Identification System (now called Maritime Safety and Security 
Information System - MSSIS) for monitoring ship traffic in Liberia's 
EEZ in 2008.  The system is controlled out of the Ministry of 
Defense, but Kesselly is seeking to base the system at BMA. 
 
¶17.  (SBU) Comment: Despite Kessely's hope that the government can 
take over the ship registry directly, this is likely to be a long 
way off.  Since LISCR has a firm grip and ultimate control over the 
current direction of the registry, and possession of the registry 
records, it would be very difficult to wrest control from LISCR 
while at the same time continuing to operate the registry 
 
MONROVIA 00000070  004 OF 004 
 
 
satisfactorily.  Further, despite the allegations of impropriety by 
LISCR to maintain its contract, the firm has enhanced the reputation 
of the Liberian registry and increased the number of flagged ships. 
As a result, the ship registry has become an important part of 
Liberia's revenues; revenues that now flow directly and 
transparently into the government budget.  In contrast, one of 
Kessely's predecessors, Benoni Urey, was so effective in siphoning 
off funds for Charles Taylor and himself that he now is on the UN 
Travel Ban and Assets Freeze lists.  The GOL should ensure that 
transparency and accountability are reinforced as part of any new 
agreement in order to prevent future temptations for abuse.  End 
comment. 
 
------------------------------------ 
GOL RATIFIES SEVERAL IMO CONVENTIONS 
------------------------------------ 
 
¶18. (U) Following is a list of Maritime Conventions ratified by the 
Liberian Legislature in 2008: 
 
-- The International Convention on Civil Liability for Bunker Oil 
Pollution Damage, 2001 
 
-- The International Convention on Control of Harmful Anti-Fouling 
System on Ships (AFS), 2001 
 
-- International Convention for the Control and Management of Ships 
Ballast Water and Sediments, 2004 
 
-- Convention on Limitation of Liability for Maritime Claims (LLMC), 
1976 as amended by the 1996 protocol 
 
-- The Oil Labor Convention, 2006 
 
-- International Convention on Liability and Compensation for Damage 
in Connection with the Carriage of Hazardous and Noxious Substances 
by Sea (HNS), 1996 
 
-- Protocol on Preparedness Response and Cooperation to Pollution 
incidents by Hazardous and Noxious Substances (OPRC/HNC), 2000 
 
-- International Convention on Salvage, 1989 
 
-- 1994 Amendments to the Convention on International Maritime 
Satellite Organization, 1976 
 
-- Torremolinos Convention for the Safety of Fishing Vessels, 1997 
and 1993 protocol 
 
-- United Nations Convention on the Law of the Sea (UNCLOS), 1982 
 
---------------------- 
BIOGRAPHIC INFORMATION 
---------------------- 
 
¶19. (U) BMA Commissioner Binyah C. Kesselly is the son of Edward 
Binyah Kesselly, a former Minister of Defense after whom Liberia's 
primary military base is named.  Prior to joining the BMA, Kesselly 
was a Director of Enterprise Improvement at McNeil Consumer 
Healthcare in New Brunswick, New Jersey.  He has held various other 
strategic management positions in pharmaceutical and biotechnology 
industries as well as management consulting firms. 
 
THOMAS-GREENFIELD