Liberia: Corruption Scares Away Investors

Monrovia — The U.S. Department of State’s 2024 Investment Climate Statements cite corruption as the reason few investors come to Liberia, jobs are not being created, and instability is a risk.

The U.S. Department of State noted that the Liberian government does not implement the anti-corruption laws effectively or apply them in a non-discriminatory manner.

“Liberia has laws to combat corruption, bribery, and economic sabotage by public officials, but the government does not implement the laws effectively or apply them in a non-discriminatory manner,” the State Department said.

The U.S. noted that these laws generally do not extend to family members of officials or to their political parties except in cases where these auxiliaries benefit from the proceeds of corruption.

The statement added that the government does require private companies to establish internal codes of conduct that prohibit bribery of public officials.

The Department of State reports that Liberia suffers from corruption in both the public and private sectors, which is widely viewed as the primary reason Liberia’s democracy and economy are not strengthening.

It continued that corruption is why few investors come to Liberia, why jobs are not being created, and why instability is a risk.

“Private companies do not have generally agreed and structured internal controls, ethics, or compliance programs to detect and prevent bribery of public officials,” the Department of State said.

It acknowledged that there are laws and regulations, such as the Public Procurement and Concessions Act, to counter conflicts of interest in government procurement, but these are not always effectively enforced.

Liberia is a signatory to the Economic Community of West African States (ECOWAS) Protocol on the Fight against Corruption.

It is also a signatory of the African Union Convention on Preventing and Combating Corruption, and the UN Convention against Corruption.

However, the U.S. said Liberia’s association with these conventions has done little to reduce rampant government corruption.

No laws explicitly protect NGOs that investigate corruption, and even long-established local and international NGOs report being extorted by government officials through the solicitation of bribes, threats to cancel employment and resident visas, and other unfounded legal allegations.

Foreign investors, including U.S. firms, have identified corruption as an obstacle to foreign investment in Liberia.

“They report that corruption is most pervasive in government procurement, contract and concession awards, customs and taxation systems, regulatory systems, performance requirements, and government payments systems,” the report said.

It indicated that multinational firms often report paying fees not stipulated in investment agreements. Anecdotal reports indicate that foreign investors face instances of extortion and bribery by government officials at all levels.

On December 9, 2020, the United States Treasury Department sanctioned Liberian senator and prominent lawyer Varney Sherman for judicial bribery.

On December 9, 2021, the Treasury Department sanctioned Nimba County Senator Prince Yormie Johnson under the Global Magnitsky Act for personally enriching himself through pay-for-play funding schemes with government ministries and organizations.

On August 15, 2022, the Treasury Department sanctioned then-Minister of State for Presidential Affairs, Nathaniel McGill, the Solicitor General and Chief Prosecutor of Liberia, Sayma Syrenius Cephus, and the Managing Director of the National Port Authority, Bill Twehway.

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They were sanctioned for ongoing public corruption. On December 12, 2023, the State Department sanctioned then-Minister of Finance and Development Planning Samuel Tweah, Senator Albert Chie, and Senator Emmanuel Nuquay under Section 7031(c) for their involvement in significant corruption.

They were accused of abusing their public positions by soliciting, accepting, and offering bribes to manipulate legislative processes and public funding.

On December 8, 2023, the U.S. Treasury Department sanctioned then-Monrovia City Mayor Jefferson Koijee under Executive Order 13818 for engaging or having been a leader of an entity that had engaged in serious human rights abuse and corruption.

Liberians have strongly supported these sanctions and urged that more be done to hold public officials to account.

However, the U.S. noted that no formal investigations have been launched since the announcement of any of these sanctions.

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