Positive developments continued. President Johnson-Sirleaf submitted first annual budget for parliamentary approval, and parts of Monrovia received first electricity and running water in 15 years. Former President Taylor appeared before Special Court for Sierra Leone, relocated to The Hague, on 21 July for first pre-trial hearing.

Positive signs of stabilisation continued. UN Security Council lifted timber but maintained diamond sanctions, acknowledging increased fiscal control over resource industries but seeking further reforms; also partially lifted arms embargo to equip new national police and security forces. Truth and Reconciliation Commission began to investigate human rights violations in 14-year civil war 22 June.

Demonstration by armed men, many ex-combatants, in Ganta forced inhabitants to flee, after rumours ethnic Mandingo refugees would return to Nimba county and reclaim lands by force. UNMIL forces intervened to stem further unrest. Government reported improvement in fiscal management as part of crackdown on corruption. ECOWAS called for UN to lift sanctions on diamonds and timber.

President Johnson-Sirleaf called upon Nigeria to extradite former President Charles Taylor to face war crimes charges before Special Court for Sierra Leone. Taylor fled but captured 29 March and transferred to Sierra Leone. Tribunal requested trial be held in Hague in interests of regional security. Johnson-Sirleaf visited EU, U.S. and UN to garner support for ambitious reform agenda, expressing hope UN sanctions on timber and diamonds would be lifted. UN Security Council approved extended UN mission mandate to 30 September; UNSG Annan had recommended 1-year extension for 16,000-strong mission with fewer troops and more police.

New President  Johnson-Sirleaf inaugurated  7- member Truth and Reconciliation Commission to investigate crimes committed during 24-year civil war and launched anti- corruption drive with overhaul of finance ministry. Nominations to cabinet and other top posts nearly complete: controversy over appointment of Nigerian to head restructuring of army and former elections commission chief as justice minister. Workers at Firestone rubber plantation went on strike demanding better wages and work conditions.

Cautious optimism after inauguration of President Ellen Johnson-Sirleaf and her appointment of first 9 of 22 new ministers 16 January. New legislature elected Edwin Snowe, former son-in-law of Charles Taylor, as speaker of House of Representatives. Snowe and 3 other parliamentarians blocked from leaving country earlier in month in enforcement of UN travel ban on those with ongoing ties with Taylor. Parliament approved measures for audit of transitional government andtravel block on senior officials until audit completed. Recruitment drive for new national army began 18 January.

Defeated presidential candidate George Weah dropped legal challenge to official results of November vote. Weah had claimed presidency - sparking Monrovia riots - despite electoral commission affirmation of results. President- elect Ellen Johnson-Sirleaf met international and U.S. officials including U.S. Sec. State Rice and UNSG Annan on U.S. visit. UN Security Council extended ban on diamond and timber exports, arms embargo and targeted travel restrictions; set next review for June 2006.

Ellen Johnson-Sirleaf confirmed first female elected head of state in Africa 23 November after 8 November run-off vote. Announcement delayed 2 weeks as elections commission investigated fraud claims by opponent George Weah. International observers said vote, with 60% turnout, was free, fair and transparent. Johnson-Sirleaf received 59.4% of vote; Weah 40.6%. In days following election, peacekeepers used tear gas after violent clashes between Weah supporters and security forces; government banned unauthorised street protests. Month ended with general calm as formal inquiry into fraud allegations continued.

Massive  turnout  for  largely  peaceful  11  October presidential vote. With 22 candidates, football legend George Weah received 28.9% of vote; former finance minister Ellen Johnson Sirleaf came second with 19.7%: run-off on 8 November. Accused war criminals amongst likely new parliamentarians. UN mission (UNMIL) warned will “react robustly” against threats to election officials. U.S. circulated draft Security Council resolution authorising UNMIL to apprehend and transfer former President Taylor to Sierra Leone special court if he returns to Liberia; court promised “new mechanism” to prevent Taylor escaping trial by remaining in exile. Demobilised soldiers protested in capital demanding severance pay.

Positive development as government approved long- awaited Governance and Economic Management Assistance Programme 14 September following pressure from donor countries. Last-minute Supreme Court ruling on registrations of 2 candidates put 11 October date for presidential elections into doubt. UN Security Council extended UNMIL mandate until 31 March 2006, rejecting UNSG Annan’s recommendation for 12-month extension. Presidential candidate George Weah said UN military presence needed until 2010.