Liberia: Senate Committee Calls for Review or End of Medtech Contract

Monrovia — A special Ad-hoc Committee set up by Senate Pro-tempore, Nyonblee Karnga-Lawrence, to investigate the contract between the Liberian government and MedTech Scientific Dubai Limited, has presented ten-count recommendations to the Senate plenary. The committee is calling for an immediate contract review and renegotiation or cancellation due to several “violations” of Liberian law by the company.

In early 2024, Pro-temp Karnga-Lawrence appointed the committee, headed by Gbarpolu County Senator Amara Konneh, who also chairs the Senate Committee on Public Accounts and Audit, to undertake a thorough review of two significant contracts affecting commerce and industry.

The committee was tasked to investigate the Destination Inspection (DI) services provided by MedTech Scientific Limited, and the Container Tracking Notes (CTN) services offered by Global Tracking and Maritime Solutions (GTMS) Incorporated.

On June 26, 2024, the committee submitted its report on the GTMS Contract to the Senate Plenary, outlining broad findings of the DI Contract’s compliance with Liberian laws, including the Liberian Constitution, the Public Procurement and Concession Commission (PPCC) Law, the Public Financial Management (PFM) Act, the performance of the contract, and recommendations.

The Ad-hoc Committee aimed to ensure transparency, assess compliance and performance, financial oversight, and legal and regulatory compliance. Its investigative methodology included sending letters to the entities named, collecting documents, and verifying information to validate the legal operations and services provided by the companies concerned.

Before presenting its recommendations to the plenary session on September 19, 2024, the committee reported damaging findings, stating that there was no evidence of the establishment of the LRA Concession Committee as required under Section 77 of the Public Procurement and Concessions Act. However, joint ministerial meeting minutes attended by the National Investment Commission, Ministry of Justice, and Liberia Revenue Authority were found.

The committee revealed that it 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.

Additionally, the committee was unable to verify the domestic ownership of MedTech Scientific Dubai through their representatives in Liberia. “MedTech, in their response through their law firm HPA, referred us to its parent company MedTech Scientific Dubai, a registered company in the United Arab Emirates,” the findings noted.

The investigation found that MedTech Scientific Liberia Ltd. was incorporated on August 3, 2018, with 100% ownership by Abdodakpi Agnes, a Ghanaian national. A separate company, MedTech Scientific Inspection Services Ltd, was later incorporated to execute the DI Contract while the owners of MedTech Scientific Liberia Ltd were undergoing arbitration to settle a dispute on financial management in Liberian courts.

The lengthy report also highlighted issues with the Transitory Account (TA) established by the Government of Liberia (GoL) and MedTech Scientific Limited, where payments from importers and exporters were to be made. Contrary to the contract and the MOU, the LRA instructed MedTech Scientific Limited to open a separate bank account to manage the GoL’s 20 percent revenue for LRA’s capacity-building activities outside of the established GoL public financial management framework.

The committee was unable to receive a detailed financial report for the DI Contract and found no evidence of payment of GoL’s 20 percent share to the Transitory Account. “The Committee was also unable to receive performance reports for the period since the DI Contract was consummated, and no administrative note from LRA regarding the procurement process,” the report stated.

Reading the recommendations on behalf of the Ad-hoc Committee, the Secretary of the Senate, Nanborlor Singbeh, urged the Executive to work with MedTech Scientific Liberia Limited’s partners to resolve their dispute in court to allow for transparent renegotiation.

The committee recommended that in the event of a cancellation, the Executive must inform the Legislature of the potential costs of external arbitration. These steps are meant to ensure compliance with Liberian laws and protect the doctrine of contract enforcement to improve Liberia’s reputation as a destination for doing business.

The recommendations contained in the report found MedTech Scientific Limited accountable for its management of the Transitory Account and specifically called for the company to immediately remit all funds held on LRA’s behalf that were required to be deposited into the Government of Liberia’s Transitory Account at Ecobank Liberia, as explicitly required by the contract.

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Additionally, the committee called for a full reconciliation of all accounts related to the DI contract, which should be undertaken by the General Auditing Commission. It also wants the General Auditing Commission (GAC) to conduct a comprehensive audit of all funds managed by MedTech.

“It is recommended that this account be opened immediately with all revenues from inspections deposited therein, and that the Senate enforces strict adherence to the Public Procurement and Concessions Act (PPCA) in all future contracts,” the recommendations read.

The committee called for the establishment of stricter procurement oversight mechanisms within the Public Procurement and Concessions Commission (PPCC) and the Inter-Ministerial Concession Committee (IMCC).

According to our legislative reporter, following the reading of the full report, including its findings and recommendations, the plenary adopted the report following a motion on the floor by Grand Kru County Senator and former Senate Pro-Tempore, Albert T. Chie. “I move if I may obtain a second that the committee’s report be received, endorsed and be given urgent attention by the plenary to review all recommendations to take further legislative actions.”

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