Monrovia – Several high-profile members of the Liberian Senate have strongly criticized the unratified agreement signed between the Government of Liberia and Medtech Scientific Liberia Limited, labeling it as flawed and detrimental to the nation’s financial integrity.
By Gerald C. Koinyeneh, [email protected]
The rebuke came during a public hearing on Monday, prompted by a report from the General Auditing Commission (GAC), which revealed that the Liberia Revenue Authority (LRA) failed to remit $6.7 million collected from Medtech into the government’s consolidated account.
Medtech, a firm contracted for tracking and monitoring, destination inspection, verification of conformity, testing, and certification services, signed a ten-year agreement with the government on April 21, 2021. The deal, however, was never ratified by the Legislature—a major red flag for lawmakers.
A Compliance Audit Report released by the GAC covering July 1, 2022, to October 31, 2024, uncovered a series of financial and procedural breaches. Chief among them was the LRA failure to remit US$6,775,954.07—the government’s 20% revenue share from the agreement—into the Consolidated Revenue Account. Instead, the LRA allegedly diverted the funds for its own operations.
Said the GAC through Auditor General P. Garswa Jackson: “Non-remittance of GoL Revenue During the audit, we observed that the Liberia Revenue Authority (RA) did not remit US$6,775,954.07 into the consolidated revenue account, which was derived from the approved 20% fees related to the Destination Inspection agreement between the Government of Liberia and Medtech Scientific Limited. The non-remittance is a violation of Regulation B.8. (1) of the PFM Act of 2009 as Amended and Restated (2019). As the result of the non-compliance, the Government of Liberia is denied much needed revenue to fund its operations.”
Violations and Noncompliance
According to Auditor General P. Garswa Jackson, this act violated Regulation B.8. (1) of the Public Financial Management (PFM) Act of 2009, as amended in 2019. The GAC also reported that the LRA failed to deposit Destination Inspection (DI) fees into the transitory account at Ecobank, as stipulated in Section 9.1 of the contract, the GAC identified US$1.3 million in undocumented expenditures by both LRA and Medtech from the government’s revenue share.
Supporting financial documents such as vouchers, receipts, procurement records, and delivery notes were either incomplete or entirely absent.
The GAC added that Medtech did not consistently apply the approved service fees, violating Section 5.7 of the agreement, and key contract deliverables—including 3D scanners, closed-circuit televisions, forklifts, and IT infrastructure—were either not provided or lacked any documented evidence of delivery or implementation, in violation of Sections 5.5 and 5.6(a).
LRA’s Defense
In response, LRA Commissioner General Dorbor Jallah defended the agency’s actions, citing Section 1822 of the Liberia Revenue Code and relevant sections of the Destination Inspection Agreement. Jallah argued that the LRA was authorized to collect customs service fees directly for its operational activities.
He stated that the Boakai administration has acknowledged the contract’s flaws and is committed to renegotiating its terms.
“This is a decision that, under the President’s leadership, the Cabinet has made. We will enter negotiations to address all anomalies—be it the establishment of a transitory account or revising the agreement terms. However, legal proceedings involving Medtech at the Supreme Court have delayed the process.”
GAC Pushes Back
But the GAC disagreed, asserting that LRA’s justification lacked legal grounding.
“We observed no statutory mandate for the usage of DI fees by the LRA for operational purposes. Regulation B.8. (1) of the PFM Act mandates that all public funds collected be paid in gross into designated bank accounts, without any usage by public officials unless permitted by law.”
The audit further noted that from August 2021 to June 2024, the government’s revenue share was illegally held in Medtech’s account, contrary to the agreement’s terms. As of June 2024, those funds were reportedly transferred to the LRA–MTS Capacity Building Fund, housed at Ecobank.
Senate Outrage
The Senate’s Public Accounts Committee, led by Senator Amara Konneh of Gbarpolu County, launched a probe into the matter. During the committee’s hearing, senators expressed outrage and grilled Commissioner Jallah over the glaring irregularities.
Several Senators include the Amara Konneh, Dabah Vapilah, Darius Dillon criticized he contract.
Senator Momo Cyrus of Lofa County was among the most vocal critics:
“So, I hear all of the analysis being made, some of them are very troubling for our country, said Senator Cyrus. “And that’s why I always ask, why are we so poor in this country? And with all of these endowments, we’re still ranking among the poorest nation in the world. It’s sickening. And these are some of the reasons.”
The Committee Chairman Konneh announced that the probe will continue this week.
