Liberia: Senate Committee Unveils ‘Damaging Report’ On Awarding Of Port Contract

A Special Senate Ad Hoc Committee constituted to investigate the Destination Inspection Contract, between the Government of Liberia and MedTech Scientific Limited, is recommending the immediate review and renegotiation or cancellation.

“The Executive should immediately seek the opinion of the Attorney General on the legality of the DI Contract to determine if it should be reviewed and renegotiated to ensure conformity with Liberian laws or canceled considering the violations the Committee has uncovered,” the eight-member committee chaired by the Senate Committee on Public Accounts, Gbarpolu County Senator Amara Mohamed Konneh, noted in its final report, among several others.

Consistent with the objectives of the investigation, the Committee is recommending to the Executive that any renegotiation must be subject to additional conditions; such as the Government working with MedTech Scientific Liberia Limited’s partners to resolve their dispute in court to allow for renegotiation to proceed.

The Committee in its comprehensive investigation, highlighted the materiality of the transactions and processes that characterized the initiation and execution of the procurement and financial management of the services of MedTech Scientific Limited during the period under review.

During the exercise, the committee noted that it reviewed documents presented by GOL stakeholders and publicly available documents on the DI Contract.

The Committee noted that it did not see any evidence of the establishment of the Liberia Revenue Authority Concession Committee as called for under Section 77 of the PPCA. “However, there is a joint ministerial meeting minutes attended by NIC, MOJ, and LRA.”

During its investigation the Committee could not establish evidence of the submission of a request by the Liberia Revenue Authority for the initiation of the concession process according to Sections 87 (3) and 88 (1) of the PPCA; neither is there “evidence of a Public Private Partnership (PPP) Concession Certificate as stipulated in Section 88 (2) of the PPCA.”

With respect to the formation of an IMCC, the Committee states that there is evidence of a Letter (MOS-RL/NFM-COS/0701/2018) dated September 25, 2018, from the Office of the President establishing an Inter-Ministerial Concession Committee for the DI Contract negotiations, signed by former Minister of State Nathaniel F. McGill, fulfilling Section 83 (2) of the PPCA.

The findings further show that the LRA failed to display evidence of the draft procurement Plan for the concession, violating Section 79 of the PPCA.

The report shows that MedTech Scientific Limited and the Government of Liberia (GOL) represented by the late Thomas Doe Nah, Commissioner-General of the Liberia Revenue Authority (LRA); Molewuleh Gray, Esq., Chairman, National Investment Commission; Mawine Diggs, Minister of Commerce and Industry (MOCI); and Samuel D. Tweah, Minister of Finance and Development Planning (MFDP) signed a DI Contract on July 1, 2021 that was attested to by Cllr. Frank Musa Dean Jr., Minister Justice. “The revenue sharing ratio was 20 percent for the GOL and 80 percent for MedTech Scientific Limited.”

Legislative ratification applies to PPP contracts above US$10 million with tax exemptions: “The MedTech Scientific Limited contract is well above the USD 10 million threshold and subject to the granting of investment incentives (tax exemptions). Section 10.2 of the signed DI Contract grants tax and duties exemptions to MedTech Scientific Limited under Section 9 of the Liberia Revenue Code of 2000, necessitating Legislative ratification.”

The Committee report notes it could not establish that the National Legislature ratified the contract. However, in a Ministry of Justice’s Legal Opinion issued on November 19, 2020, the Attorney General opined that “There are no general legal requirements for the ratification of concession agreements valued above 10 million United States Dollars.” See the MOG’s opinion in the exhibits. See Appendix 6.

Sen. Konneh Excited over Leading the Process

In a statement shared on his official Facebook page, Senator Konneh expressed his gratitude for leading the investigation. “I am honored to have chaired this important committee, which sought to ensure that all procurement and execution of contracts comply with legal and regulatory requirements,” he stated.

The investigation revealed significant concerns, prompting the committee to recommend immediate actions that could reshape Liberia’s legal framework, commerce, and customs revenue management. The report includes ten recommendations directed at President Joseph Boakai and the Executive Branch, primarily focusing on the review and possible renegotiation or cancellation of the DI contract.

Among the critical recommendations, Senator Konneh emphasized the necessity for the Executive Branch to consult the Attorney General regarding the contract’s legality. “It is imperative that the Executive seeks legal advice to determine if the contract should be reviewed and renegotiated or canceled altogether due to the alleged violations uncovered by the committee,” he stated.

The committee also called for the current Attorney General to reassess a legal opinion from November 19, 2020, issued by his predecessor. This opinion asserted that “there are no general legal requirements for legislative ratification of concession agreements valued above 10 million United States dollars,” despite Section 10 of the contract granting tax exemptions to MedTech.

Another significant finding was the failure to establish a Transitory Account, which the contract mandated. “The lack of a Transitory Account has led to potential mismanagement of revenue. We recommend that this account be opened immediately, with all revenues from inspections deposited therein to ensure transparency,” Senator Konneh urged.

Additionally, the committee discovered that MedTech Scientific Limited has operated as a spending entity on behalf of the Liberia Revenue Authority (LRA) without proper oversight.

The report calls for a comprehensive audit by the General Auditing Commission (GAC) to assess all revenues and expenditures managed by MedTech. “This audit is crucial to verify whether MedTech’s spending aligns with the Public Financial Management (PFM) Act and to clarify how the government’s share of collected revenues has been utilized,” Konneh explained.

As discussions about the report’s findings begin, Senator Konneh expressed optimism for the future. “We look forward to the President implementing the recommendations, as upholding Liberia’s laws and ensuring financial accountability in government contracts is paramount,” he concluded.