MONROVIA – FrontPage Africa has gathered that the decision not to renew the contracts of the Liberia Electricity Corporation’s (LEC) Chief Executive Officer, Monie Captan, and Kwame Kpekpena the Chief Operating Officer (COO) was reportedly submitted unilaterally by LEC Board Chair Emmanuel Tulay without full board approval.
By Gerald C. Koinyeneh, [email protected]
According to minutes from a recent board meeting, members had initially urged a comprehensive evaluation of the contracts and relevant performance data for the CEO and COO before any decisions were made. Yet, Tulay reportedly forwarded a recommendation for non-renewal directly to the President, without consulting the board or completing the evaluation process.
Excerpt, LEC Board Meeting Minutes: “The Board Chair informed the Board of the need to make a decision on the transition of the CEO and COO in view of the expiration of their contracts on November 30th and November 15th respectively. The Board discussed the need to have access to the contracts and other supporting documents in order to properly advise their decision. It was also discussed and agreed that retention or replacement of the CEO and COO needed to be done in a transparent and justified manner.”
Also, FPA gathered this recommendation appears to have been implemented even before it was officially submitted to the President’s office, raising questions about procedural integrity and transparency.
When board members became aware of the Chairman’s alleged unilateral actions, an emergency meeting was convened on November 5, 2024. During this meeting, Tulay reportedly apologized but justified his actions by claiming that he had the President’s endorsement. To support his position, he presented documents exchanged with the President’s office, although these contained inconsistencies in the timeline of events.
Notably, board members discovered that the notice of non-renewal was dated four days before the President’s office received the Chairman’s alleged recommendations. According to the documented timeline, the President had supposedly “approved” the non-renewal recommendation a day before the board had formally met to make any decisions, casting further doubt on the validity of Tulay’s actions.
The board’s response was divided, with the Ministers of Finance and Mines and Energy, both close allies of Captan, urging the board to accept an apology rather than pursue a formal investigation. Some board members, however, expressed determination to expose what they described as a potential plot to mislead the President, whom they believe was unwittingly involved.
Outside interference?
Sources reveal that Senate Pro Tempore Nyonblee Karngar-Lawrence previously blocked Tulay’s confirmation during a confirmation hearing. Allegedly, Senator Karngar-Lawrence had a vested interest in a Karpowership contract for which she had secured US$6 million in the 2024 budget but was reportedly rejected by LEC management.
Karpower is a Turkish company that owns a large fleet of powerships that dock at the harbors and connect to the national grid of coastal countries. Currently the company is providing electricity to several African countries including neighboring Sierra Leone.
For sometimes now, the company has been attempting to come to Liberia. During the Weah-Taylor administration, a controversial power proposal was presented to the government but drew strong condemnation from international stakeholders investing millions in the quest for stable electricity for Liberia. Upon the ascendancy of the UP-led government, the company returned, submitting a proposal and prevailing on the Boakai administration to have the ship brought to Liberia in hopes of easing the power needs for millions of Liberians craving electricity.
However, judging from past experience, Captan was not in favor of the deal. FPA gathered that the Pro Tempore may have struck a deal with Tulay to support his confirmation in exchange for his commitment not to renew the CEO and COO’s contracts and, instead, to appoint her brother-in-law, Emmanuel Lawrence, as Managing Director.
As the board considers its next steps, the controversy raises critical questions about governance at LEC and the influence of external political forces on its operations. President Boakai’s response to the allegations remains to be seen, as internal and public pressure mounts for greater accountability in LEC’s leadership decisions.
Critical Pathway Ahead for LEC
This month, the contracts for CEO Captan and COO Kwame Kpekpena will expire. Both were appointed under a World Bank procurement process, with their salaries and benefits funded through a tripartite agreement between the Government of Liberia, LEC, and the World Bank. Their pending departures raise significant questions about the future direction of LEC and Liberia’s electricity sector as a whole.
Concerns over the high salaries paid to Captan and Kpekpena have sparked debate, but experts argue that, given LEC’s scale—with over a billion dollars in assets and millions in monthly revenue—international-standard compensation is necessary to attract qualified leadership, especially when funded by global partners to maintain integrity and deter corruption. Captan and Kpekpena are widely viewed as the preferred leaders by LEC’s international stakeholders, and the uncertainty surrounding their contract renewals has created a critical juncture for LEC.
The Board Chair informed the Board of the need to make a decision on the transition of the CEO and COO in view of the expiration of their contracts on November 30th and November 15th respectively. The Board discussed the need to have access to the contracts and other supporting documents in order to properly advise their decision. It was also discussed and agreed that retention or replacement of the CEO and COO needed to be done in a transparent and justified manner.
Excerpt, LEC Board Meeting Minutes
Currently, LEC is engaged in multiple ambitious projects, including the SP2 solar-hydroelectric dam in Fuamah District, expected to generate 200 MW of power, and a 20 MW solar farm, along with the planned expansion of the Mount Coffee hydroelectric plant from 88 MW to 148 MW. Another 16.5 MW solar project along the Roberts International Airport (RIA) corridor is also in progress. However, the future of these initiatives may be jeopardized if LEC’s leadership is altered without considering partner expectations.
Implications of Non-Renewal on LEC and Liberia’s Power Sector
According to inside sources, high-level discussions among LEC’s partners have highlighted concerns about Captan and Kpekpena’s potential departure. If their contracts are not renewed, LEC could face a decline in financial stability, potentially affecting employee welfare and operational stability. The corporation’s growing wage bill could lead to workforce reductions, with contract employees and those in strategic roles facing potential layoffs to make room for politically motivated appointments—already a common practice.
Under Captan and Kpekpena, LEC has seen improvements in employee satisfaction, operational stability, and stronger partnerships, enhancing its reputation and donor confidence. A change in leadership that does not align with international partners’ preferences could risk these gains, placing LEC on a precarious path.
Beyond internal operations, the possible fallout could affect Liberia’s regional commitments. The CLSG (Côte d’Ivoire, Liberia, Sierra Leone, and Guinea) Power Purchase Agreement, which supplies Liberia with 25-50 MW of electricity annually, might be at risk if LEC’s financial situation deteriorates. Defaulting on these commitments could strain Liberia’s relations with neighboring countries and disrupt the nation’s power supply, pushing it back toward energy insecurity.
Broader Economic and Investment Risks
Uncertainty over LEC’s management future may deter international investors who have shown interest in Liberia’s energy sector, leading to a potential slowdown in infrastructure development. Should these projects stall, there could be wider economic consequences, including increased electricity tariffs, exacerbating power theft, and reducing public access to electricity.
In addition, millions of dollars in investments could be lost if LEC’s projects and partnerships collapse, potentially stalling growth across multiple industries as the cost of goods and services rises. A recovery from such a scenario could take years, threatening Liberia’s development.
