Monrovia—A contentious issue has arisen surrounding the Liberia Traffic Management Inc. (LTMI) and its concession agreement with the government of Liberia, originally signed under the administration of former President George Weah for $50 million.
While President Joseph Boakai recognized the agreement upon taking office, tensions have escalated within the government, particularly between the Ministry of Transport and the Ministry of Justice.
The Ministry of Transport, led by Minister Sirleaf Tyler, has expressed dissatisfaction with the LTMI, arguing that the private firm is assuming responsibilities that should belong to the ministry itself. In a surprising move, the ministry has opened bids for traffic management services, which have already been contracted to LTMI, signaling potential disregard for the existing agreement.
In bid notice published on its website and some local dailies in Liberia, the Ministry of Transport announced it intends to award a contract, based on a partnership and revenue sharing arrangement with reputable individuals or a private firms/companies/garage to provide services and the infrastructure (adequate space for vehicle inspection) for Vehicle Road Worthiness Inspection for the Ministry of Transport.
It also announced that it is awarding a contract for the production and supply of license plates and stickers.
It is also awarding contracts for the purpose of the automation of its current operational and administrative processes of Motor Vehicle Registration and Drivers Licensing. The ministry noted that the duration of the project is five years in which the supplier will pre-finance the entire project and form a profit-sharing arrangement with the Ministry along with other key stakeholders.
Observers say if this goes through, it will undermine the LTMI agreement signed with the government. Despite the government backing the agreement, the Ministry under the Tyler administration has exhibited a hostile posture towards LMTI. At a Senate hearing in 2024, Justice Minister Cllr. Oswald Tweh and Transport Minister Tyler spar over the agreement. During the Senate Transport Committee hearing, Minister Tyler vocally opposed recognizing the LTMI agreement, asserting it would undermine the ministry’s core functions by outsourcing essential duties. He criticized a directive from the Ministry of Justice that mandates the transfer of significant responsibilities to LTMI, calling the arrangement “unfair.”
In response, Minister Tweh characterized Tyler’s statements as misleading and unproductive, urging the government to honor established agreements. “As a government, we must respect the rule of law,” Tweh stated, emphasizing the potential benefits the LTMI contract offers to the state and its citizens.
Following his election, President Boakai toured LTMI’s facility, which integrates multiple vehicle and driver services, including licensing and inspections. Boakai expressed hope that the center could become a vital revenue source for the government once legal issues are settled.
Despite indications that the Boakai administration supports the LTMI agreement, Minister Tyler remains skeptical, warning that transferring fundamental responsibilities to a foreign firm could compromise the ministry’s regulatory authority.
The LTMI facility, established in January 2019 with a $50 million investment, has remained idle due to ongoing legal disputes. Set to launch last January with fanfare, the event drew confusion and disappointment when key officials withdrew at the last minute.
After a heated exchange in the Senate, the Transport Committee has postponed further discussions, instructing both ministries to provide documentation to support their positions.
In the meantime, the Ministry of Transport continues to pursue bids for traffic management services, challenging the legitimacy of the existing concession agreement.
The MOT, through its minister, has made it clear that LTM, if allowed to operate, will take its responsibilities as enshrined in the act establishing the MOT.
However, it is giving these tasks up through a bidding process, leaving the public to wonder why it can’t allow the LTM to perform these tasks since it has a legally binding agreement with the government of Liberia.
