MONROVIA: Since the incumbency of Liberia’s new administration, headed by veteran politician, Joseph Nyuma Boakai, over 7 months ago, critics are of the opinion that scores of financial and administrative malpractices have been uncovered under his leadership with little or nothing practically done to correct the such situation.
The Boakai-led administration came to state power with a mission to decisively battle corruption and its related vices, which many past leaders of the Liberian Nation characterized as “systemic, endemic, vampire, and public enemy number one.”
However, according to critics of the new regime, some of Boakai’s officials are in bed with the bitting corruption menace with little or nothing practically done to halt the practice.
While over 60% of the population survived on less than US$2.00, many ‘Rescue Mission’ officials seem busy with wealth accumulation and living in luxury as exemplify by their demonstrated affluence lifestyles, such as purchasing posh, flashy, and capital-intensive vehicles.
For the past eight months since the ascendency of President Boakai to state power, an increasing number of the new state officials are suspected to be connected to apparent shady deals, a situation which seems to be triggering public dissatisfaction and multiplying criticisms.
Critics are even emerging from among some of the die-hard supporters of the ruling Unity Party (UP), some of whom have come out publicly, demanding for jobs from the President.
For instance, reports had it that the Minister of State for Presidential Affairs, Sylvester Grigsby, was said to be implicated in deal involving purchase of about five luxurious vehicles, valued thousands of United States dollars, during the initial stage of the current administration.
However, Minister Grigsby has categorically rejected any wrong-doing, although the matter has not been thoroughly and independently investigated.
Another key official of the new administration, the Minister of State Without Portfolio, Madam Mamaka Bility, came under public spotlight over the questionable acquisition 280 earthmoving equipment, locally styled as ‘Yellow Machines’ from an unknown source.
To date, circumstances leading to the importation of several of the ‘yellow machines’ remain unclear in the public domain, although some of the machines arrived in the country via the National Port Authority and they are being kept at one of the nation’s key military barracks.
The intensity of the public outcry relating to the controversial importation of the earthmoving equipment, and in an attempt to calm the situation, according to keen observers, President Boakai formally wrote the National Legislature, telling Lawmakers that the machines’ acquisition was based on ‘Gentlemen Agreement.’
Interestingly, few of the yellow machines were later paraded in the principal streets of Monrovia, and its environs.
Another critical issue that raised public interest and concern relates to the much-talked-about alteration of the country’s national budget after it was passed into law. Initially, the Speaker of the House of Representatives, Cllr. Jonathan Fonati Koffa, raised qualm over the reported budget alteration, during which, reports said, his official signature was forged. He later constituted a Special Investigation Committee which investigated the alleged budget tempering, and officially reported that the National Budget was questionably recalled from the Executive Mansion, which hosts the Offices of the President of Liberia.
The report indicated that the unquestionable withdrawal of the budget was carried out by the Deputy Chief Clerk of the House of Representatives.
So far, the public has not been informed if any disciplinary action has been carried against those responsible for the illegal withdrawal of the national budget from the Executive Branch of government as well as those who are connected to its alteration.
Interestingly, the ‘fingering of the National Budget’ debate lasted for nearly two months without any intervention from the President of Liberia.
Again, the Economic Advisor to President Boakai, Mr. Morley Kamara, was said to have been connected to a whopping US$95,000 questionable deal with a local bank, something which many Liberian financial experts, including former Auditor General of Liberia, John S. Morlu, vehemently criticized.
The reported deal with the local bank by the President’s Economic advisor is yet to investigated for public knowledge.
Another scandal that involving the Liberia Telecommunications Authority (LTA’s) Acting Chairman, Mr. Abdullah Kamara implication of his private company, styled as ‘TAMMA Corporation’ in financial malpractices is worrisome. Failure on the part of President Boakai to suspend Mr. Kamara and subject him to investigation would send a dangerous message to those the President wants to prosecute for alleged corruption. Although, Kamara was not at LTA when his TAMMA Corporation along 231 collected millions of dollars for services they do not provide, according the General Auditing Commission.
Now, two leading entities of the government’s economic team; Ministry of Commerce and Industry and Liberia Revenue Authority (LRA), are said to be embroiled in a deal purportedly bordering on the purchase of a vehicle for the Minister of Commerce, valued thousands of the USDs.
In an attempt to prove the Commerce Minister, Amin Modad, innocent, the Liberia Revenue Authority (LRA), issued a formal statement, dated September 23, 2024, saying “The attention of the Liberia Revenue Authority (LRA) has been drawn to recent media reports concerning the purchase of a vehicle for the Ministry of Commerce & Industry (MOCI) and various other allegations. The LRA provided the following clarifications:
Firstly, the LRA clarifies that it has not purchased a vehicle, valued at US$150,000, as reported.
However, LRA confirms the approval of the MOCI’s request in early May 2024 for US$96,000.00 vehicle from its Customs Capacity Building Fund, under the Destination Inspection (DI) Contract held with MEDTECH Scientific Limited (MTS) for the purchase of vehicles to support the MOCI.
According to LRA, these vehicles are intended for trade-related activities in collaboration with Customs.
LRA statement added that “The specifications of the vehicles, as well as their deployment within MOCI, are determined by the MOCI, not the LRA.”
The LRA clarification stated that “It is important to note that in accordance with Section 1822 of the Liberia Revenue Code as amended (the Code), the LRA is authorized to collect customs service fee (which is separate from custom duty) for the performance of custom services (handling of documents, cargo inspection, etc.) and the hiring of any third-party inspection service provider.
This is the basis for the DI contract with MEDTECH, under which LRA is entitled to 20% share of the fees collected. Upon the inception of the new LRA administration in March 2024, the LRA’s share under the DI Contract was held and managed by MEDTECH based on a previous arrangement between the former LRA’s leadership and MEDTECH.
The request from the Ministry of Commerce for logistical support and LRA’s subsequent approval were done at the time this fund was still held and managed by MEDTECH.
The LRA also asserted that it is important to note that the Supreme Court of Liberia placed a stay order on MEDTECH’s account in July 2023 and lifted it in June 2024.
“Immediately thereafter”, the LRA formally requested the Ministry of Finance and Development Planning (MFDP), as required by the Public Financial Management (PFM) Act, to open an escrow account for depositing this 20% share which at the time had accumulated to US$3,381,035.99.
The escrow account was opened on July 8, 2024, at Ecobank, and the funds were transferred from MEDTECH to the new account on July 11, 2024.
Since then, the LRA’s share has been deposited into the escrow account monthly. As of August 31, 2024, the balance in the account stood at US$3,457,718.34.
According to the LRA, the allocation of resources from the Customs Capacity Building Fund to the MOCI has been a standard practice for over eighteen years, spanning multiple customs inspection service contracts.
This allocation, the release added, “plays a critical role in facilitating trade, where MOCI serves as the lead government agency for trade policy. The LRA remains committed to this long-standing collaboration in a transparent and accountable manner as it works to increase revenue collection to billions. Additionally, over the years, the LRA has similarly provided support to various government agencies that are involved with revenue mobilization, including the Ministries of Foreign Affairs, Transport, Mines and Energy, Labor, as well as the Liberia Immigration Service, Liberia National Fire Service, and the National Legislature, among others. These collaborations have, in part, contributed to revenue increase of over US$53 million as of August 31, 2024, compared to the same period in 2023.
Regarding the allegation that the LRA granted Minister Amin Modad duty-free clearance for a yacht or boat, the LRA maintains that no such duty-free clearance occurred.
LRA: “Our records show that in July 2024, Minister Modad cleared a ‘motor vessel’ (boat) and paid the required duties.”
Concerning allegations of bribery, the LRA firmly denies any involvement with bribes from MEDTECH or any other business or individual.
The LRA release, signed by LRA’s Communications and Public Affairs Manager, D. Kaihenneh Sengbeh, said while the LRA welcomes public scrutiny to promote transparency and accountability, the Authority encouraged media outlets to verify information before publication to prevent the spread of misinformation and disinformation that has the propensity to undermine revenue collection.
“The LRA remains committed to collecting lawful revenue for the Government and people of Liberia in a professional and transparent manner,” the release indicated.
Meanwhile, Margibi County Senator, Nathaniel F. McGill, has added his critical voice to the controversial purchase of a luxurious vehicle allegedly by Commerce Minister Modad.
Senator McGill, in his view, indicated that the Liberia Revenue Authority (LRA), being a revenue collection institution of the State does not have the right to buy vehicles for government officials.
Senator McGill who disclosed his decision and resolve to submit a formal communication to the Senate Plenary called on the LRA to launch an immediate investigation into the allegations of fraud, abuse of power, and corruption involving the Minister of Commerce, Amin Modad.
Senator McGill, on his official Facebook page indicated that his communication to the Senate Plenary, calling for investigation into the matter is to determine how the Minister of Commerce who served as a Board Member has failed to settle a debt of US$400,000 owed to the former First International Bank, now SIB.
According to the Margibi County Senator, the Commerce Minister’s failure to pay the debt has contributed to the bankruptcy of the FIB, now SIB.
He added that Minister Modad who has failed to pay the bank debt was able to acquire for himself a yacht comparable in cost to the one purchased by former President of Liberia, Williams V.S. Tubman (late).
However, the Minister of Commerce, in a swift response to Senator McGill and others claim of his alleged purchase of vehicle, cost US$150,000 through the LRA, categorically refuted the allegations levied against him.
Minister Modad stated that Senator McGill was shifting focus from his own controversial past, and his placement on the United States government sanctions list for alleged corruption and human rights abuses.
The Commerce Minister admitted to seeing Senator McGill’s Facebook post but highlighted that it is sad.
He called on the Senator to search for both of them names and see who is on sanctions and has dirt on their integrity.
“His name is linked to everything wrong with the last administration, from corruption and human rights issues to poor governance and ineptitude,” Minister Modad said.
The Minister of Commerce also rejected any personal wrongdoing.
He stressed that the vehicle in question was purchased for the Ministry of Commerce and payments was made directly to the vendor and no funds was passed through his Ministry or personal accounts.
Minister Modad added that the vehicle was not custom-made and was certainly not purchased for US$150,000, as it has been falsely claimed.
“I have been using my personal vehicles including S-Class Mercedes, since I took office eight months ago, and I cover the costs of fuel and my driver’s salary,” he bragged.
Minister Modad maintains that his integrity is intact and commitment unwavering, haven’t been a successful businessman for more than 25 years.
He contended that there are public records that he has owned boats, a beautiful home, and luxury cars for decades before becoming Minister of Commerce.
The Liberian Commerce Minister added that the photos that are being posted, via social media, portraying the vehicle in question are photos of the vehicle of United States former President, Donald Trump vehicle, and not his.
