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— MACs of the GOL owes over US$18M, outgoing CEO Captan reveals
As Monie R. Captan’s tenure as CEO of the Liberia Electricity Corporation (LEC) comes to a close, the state-owned power utility faces a continuing crisis: a mounting debt owed by Ministries, Agencies and Commissions (MACs) of the government.
Despite significant strides made in expanding access to electricity and improving financial performance, the corporation’s ability to move forward and maintain its progress remains at risk due to the failure of entities of government to settle their arrears with the corporation.
Captan, who has led LEC for the past two and a half years, departs at a time when the utility has made noteworthy gains but continues to struggle with one of its most pressing challenges: the government’s outstanding electricity bills. These debts, which have accumulated to over $18,975,049 as of October 31, 2024, threaten the corporation’s ability to operate effectively and meet its financial obligations.
“The Government of Liberia is the largest consumer of the electricity supplied by LEC, which accounts for approximately 14% of all energy sold. Currently, the government is indebted to LEC in the amount of $18,975,049 as of October 31, 2024.” He continued, “the LEC management and the Board of Directors have engaged the government through the Ministry of Mines and Energy and the Ministry of Finance and Development Planning to ensure that beginning 2025, budgetary allocations will be made to pay for the energy consumption of each government entity through prepay metering service.”
According to Captain, the payment of energy bills by the government will improve LEC’s capacity to pay for energy imports and the maintenance of its electrical network, thus improving service delivery to the general public.
Speaking further at a farewell press conference recently at his LEC Head Office in Waterside, Captan acknowledged the remarkable improvements LEC has made under his leadership, particularly the 88.79% increase in electricity supply and the 183% growth in revenue.
He said, “As I draw down to the end of my service, I take this opportunity to thank all the employees and staff of LEC for their unparalleled support, hard work, and professionalism in realizing these achievements which I have enumerated. LEC is a national success story in Liberia and the energy sector. We only need to look back and see where we have come from. The numbers do not lie, and that is why I have taken the time to provide the data of our success in this public manner.”
However, he was quick to point out that these successes come with significant caveats, primarily the ongoing debt burden, which he says continues to impede LEC’s capacity to grow and deliver on its mandate to provide reliable and affordable electricity to all Liberians.
“We have made impressive strides in expanding access to electricity, but the financial sustainability of LEC is still fragile,” Captan explained. “The Liberian government’s arrears to LEC remain a major concern. Despite our best efforts to manage the situation, the growing debt has put us in a difficult position, one that threatens the progress we’ve made.”
According to Captan, the Liberian government owes LEC a staggering amount in unpaid electricity bills. The arrears have been accumulating for years, and although discussions between the LEC management and the government have been ongoing, there has been little progress in clearing the debt. This financial shortfall has made it difficult for LEC to pay for essential services, such as fuel for power generation, payments to contractors, and regular maintenance of the power infrastructure.
“The impact of this debt is not just on LEC, but on the entire energy sector,” Captan said, expressing his frustration. “When the government does not meet its financial obligations, it affects our ability to procure fuel, which is critical for generating electricity. It also hampers our ability to pay contractors and staff, which ultimately disrupts the continuity of service to our customers.”
The debt issue is compounded by the widespread problem of electricity theft, which remains one of LEC’s most significant challenges. Despite efforts to reduce power theft through the installation of smart meters and the implementation of stricter monitoring systems, the problem persists. Captan revealed that approximately 25% of LEC’s generated electricity is lost to illegal connections, further straining the utility’s financial position.
“We’re doing everything we can to address power theft,” Captan said. “But the truth is, it’s an ongoing issue that needs a collective effort from both LEC and the communities we serve. Until we get a handle on power theft, we will continue to lose revenue and struggle to cover our operating costs.”
Despite these challenges, Captan remains optimistic about the future of Liberia’s energy sector, particularly in terms of the progress made in increasing access to electricity in underserved regions. Under his leadership, LEC expanded its grid and connected more homes, businesses, and institutions to the national power supply. Captan also oversaw the installation of several new transformers and substations in rural areas, marking a significant achievement in the country’s long-standing efforts to improve energy access.
“We’ve made great strides in bringing electricity to areas that were once in the dark,” he stated proudly. “Today, more Liberians have access to electricity than ever before. This is a testament to the hard work and dedication of our team, and the support we’ve received from our international partners. But we need to build on this progress. That’s why the financial sustainability of LEC is so critical.”
Captan also credited the improvements in LEC’s revenue generation, which have been largely driven by the corporation’s expanded customer base and increased tariffs. The revenue growth of 183% over the past two years, he said, is an encouraging sign that LEC is moving in the right direction. However, he stressed that these gains will be meaningless unless the debt problem is addressed.
“We can’t continue to operate on borrowed time,” Captan remarked. “The revenue we’re generating is important, but it’s not enough to offset the debt we’re carrying. Without a new financial model and a clear commitment from the government to meet its obligations, we will continue to face serious challenges.”
In his final remarks, Captan urged the incoming leadership to focus on financial sustainability and work closely with the government to resolve the outstanding debts. He also emphasized the need for greater accountability and transparency in the management of the country’s energy sector. For Liberia to achieve its goal of universal access to electricity by 2030, Captan said, the government must prioritize the energy sector and fulfill its financial commitments.
“The energy sector is critical to Liberia’s development,” he said. “Without electricity, there can be no economic growth, no job creation, and no improved living standards for our people. The incoming leadership must take bold steps to ensure that LEC can continue to grow and meet the needs of the Liberian people.”
As the search for a new CEO continues, Captan’s legacy is expected to be defined by both the achievements and the challenges faced during his tenure. Under his leadership, LEC has made significant progress in expanding access to electricity, but the unresolved issues of government debt and power theft continue to threaten the utility’s ability to sustain its progress.
The next CEO of LEC will inherit a utility that has made significant strides, but also faces an uncertain future. The key question, Captan said, is whether the government will prioritize the energy sector and work with LEC to ensure its financial viability.
“LEC has the potential to be a catalyst for economic growth and development in Liberia,” he concluded. “But that potential can only be realized if we solve the financial issues and ensure that LEC can continue to operate efficiently and sustainably. I hope the next leadership will build on the foundation we’ve laid and address the challenges that remain.”
