The Liberia Electricity Corporation (LEC) and the Government of Liberia are facing a major legal showdown with the judiciary as the Debt Court considers contempt proceedings that could expose LEC Managing Director Mohammed Sheriff and Minister of Finance and Development Planning Augustine Kpehe Ngafuan to fines, arrest, and possible imprisonment over the failure to satisfy a US$415,327.08 court judgment.
The potential sanctions arise from an alleged refusal by LEC and relevant government authorities to enforce a final and binding judgment awarded in favor of ELTEL Network Liberia, the Liberian subsidiary of Swedish infrastructure company Eltel Group.
The matter intensified Wednesday when the Debt Court heard arguments on a Bill of Information filed by ELTEL seeking judicial intervention to compel payment of the outstanding judgment.
At the center of the dispute is a 2016 agreement between LEC and ELTEL for the supply of low-voltage (LV) electrical materials intended to strengthen LEC’s electricity distribution network.
According to court records, ELTEL supplied the materials and provided related technical services under the contract, but LEC allegedly failed to settle the resulting invoices, leading to a prolonged dispute that lasted nearly eight years.
In June 2024, ELTEL, through its Attorney-in-Fact, British national Hans Armstrong, filed a lawsuit before the Debt Court seeking recovery of unpaid obligations for equipment and technical services provided to LEC.
Court documents indicate that an arbitration panel appointed during the proceedings reviewed relevant records, including invoices, purchase requests, delivery notes, and service reports, and determined that LEC was liable for the outstanding debt.
During subsequent hearings earlier this year, LEC reportedly acknowledged its obligation to ELTEL.
Following a hearing held on February 3, 2026, the Debt Court issued a Payment Order dated February 4, 2026, entering final judgment against LEC in the amount of US$415,327.08.
The court clarified that the amount consisted of the original arbitral award of US$364,322.00, along with statutory interest, attorney’s fees, and court costs.
The Debt Court noted that although LEC admitted liability during the proceedings, the corporation failed to present any structured repayment plan to satisfy the judgment.
Rather than paying the judgment, court records show that LEC sought executive intervention through the Ministry of Finance and Development Planning, requesting assistance to settle the obligation.
ELTEL’s legal team told the court that the matter was later brought before President Joseph Nyuma Boakai, Sr., who on July 3, 2026, instructed the Ministry of Finance to facilitate payment through executive action.
However, ELTEL’s lawyers argued that the presidential directive has yet to be implemented.
For more than five months since the final judgment was entered, and over a month after the reported presidential instruction, the debt remains unpaid, leaving a final court order unenforced.
Based on the continued non-payment, ELTEL has petitioned the Debt Court to hold LEC Managing Director Mohammed Sheriff and Finance Minister Augustine Ngafuan in willful contempt for allegedly failing to comply with a lawful court judgment.
The Bill of Information filed by ELTEL is a legal mechanism used to address situations where a party is allegedly obstructing or delaying enforcement of a final judgment.
Court records show that on July 3, 2026, the Debt Court summoned Managing Director Sheriff and other senior LEC officials to explain why they should not be held in contempt.
Legal experts say that if the court grants ELTEL’s request, the consequences could be severe.
Under Liberia’s Civil Procedure Law, contempt sanctions may include financial penalties, imprisonment until compliance is achieved, or other enforcement measures.
In extreme cases involving failure to satisfy court judgments, the court could consider drastic remedies, including closure of facilities—a measure previously recognized by the Supreme Court of Liberia in debt enforcement matters.
The Debt Court is expected to issue a ruling this week.
Possible outcomes include the issuance of a writ of contempt and arrest against responsible officials or the granting of a final deadline requiring the Ministry of Finance to deposit the full US$415,327.08 into the court’s escrow account.
For ELTEL Network Liberia, the case has become a test of Liberia’s commitment to contract enforcement, investor protection, and the credibility of public-sector obligations.
The dispute also places the Boakai Administration in a difficult position as it seeks to balance executive authority over public finances with the constitutional responsibility to respect and enforce final decisions of the judiciary.
The outcome of the case could have wider implications for government agencies carrying outstanding commercial debts and foreign investors seeking assurance that contractual obligations entered into with public institutions will be honored.
