Milele Energy, the DFC, and US Embassy in Sierra Leone's Corrupt Energy Sector

About a month ago, the United States International Development Finance Corporation’s (DFC) Deputy Chief Executive Officer, Nisha Biswal, attended a ceremony in Freetown to launch the “construction of an electricity infrastructure” in Freetown’s Kissy Dockyard, 4km east of the city center.  US Ambassador to Sierra Leone, Bryan David Hunt and DFC executives described the launching ceremony as “a seminal development for Sierra Leone and an unprecedented one for the US government.” They stated that the proposed energy power plant is going to be the “largest increase in energy capacity in a single country of any prior DFC project.”  DFC is a US-government run “development finance institution,” established in 2019 as part of the Better Utilization of Investments Leading to Development Act (BUILD) 2018, which combined the Development Credit Authority Agency with the Overseas Private Investment Corporation, both formerly part of the US State Department Agency for International Development (USAID). DFC reports directly to the US Congress.  Several months ahead of Freetown launching ceremony, DFC executives and US Embassy staff in Sierra Leone have been repeating that up to $412 million in loans and risk insurance have been approved by the US government to provide finance and risk insurance for the project. Two foreign companies, Milele Energy and TCQ Power Limited are listed as co-sponsors and joint recipients of the $412 million loan (including $120m in risk insurance) for the construction of the said electricity infrastructure project. TCQ Power’s controversial presence and involvement in Sierra Leone’s energy sector dates to the early 2010s, but Milele Energy is a newcomer, arriving in Sierra Leone after the election of Julius Maada Bio in 2018.  In public communication documents, the DFC and the US Embassy in Sierra Leone present Milele Energy as an independent Kenyan-based power generation company, failing to reveal complete details of the company’s profile and real ownership; details that are required to enable public scrutiny of Milele Energy’s track record and whether it has a proven capacity to deliver on its contractual responsibilities. Corporate records reviewed by Africanist Press shows that Milele Energy's corporate shareholders include Gemcorp Fund (GP) Limited, a company registered in George Town, Cayman Islands, holding the majority 80% shares in Milele Energy; Verkanda LLC registered in Delaware, US, also holding 10% shares in Milele Energy; JWI III LLC also registered in Delaware, US, holding 5% shares in Milele Energy; and Empower Africa Consulting Limited registered in Tortola, British Virgin Islands, holding 5% shares in Milele Energy. There is no record of any competitive bidding and public tender process that Milele Energy and DFC went through to take over the Western Area Power Generation Project. Worse, Sierra Leoneans are also unaware of the loan conditions, including the interest rates attached to DFC’s development finance loans. DFC is yet to disclose the process used to issue the $412 million debt to the US owned company Milele Energy for the alleged purpose of building an electricity infrastructure in Sierra Leone.  In this episode, we examine Milele Energy’s corporate ownership and the DFC’s takeover of the Western Area Power Generation Project.  We ask whether the DFC's operations in Sierra Leone complies with the provisions of the US BUILD Act of 2018? We also highlighted the need for oversight agencies of the US government (Congress and Senate Foreign Affairs Committee) to institute an independent investigation to help determine how Milele Energy and DFC took over the Western Area Power Generation Project, and the role played by the United States Embassy in Freetown in these corporate developments in Sierra Leone. This episode is part of the VOICE FROM EXILE commentary series of the Africanist Press.