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Kickbacks And Procurement Fraud Are Killing Liberian-Owned Businesses

Speaking to Verity News on condition of anonymity, multiple Liberian-owned firms have raised serious alarm over what they describe as a growing web of procurement fraud and kickback schemes within government contracting, a practice they say is destroying local businesses and discouraging fair competition.


Several small and medium-sized contractors told this paper that public procurement in Liberia has become “a pay-to-play system,” where competence and experience no longer matter.


“If you refuse to pay, you don’t win. We spend time, money, and effort to prepare quality bids, but everything boils down to who can pay the biggest kickback,” one contractor said.
According to the contractors, the rot begins at the bidding and award stage. Procurement officers allegedly demand a percentage of the contract’s value before even considering a proposal. Senior officials within ministries and agencies reportedly demand their own share before a contract is approved.


“This system punishes integrity. Even if you have the best proposal and track record, you’ll be disqualified if you don’t play along,” said Brown (Not his real name) a civil works contractor with a local construction firm in Monrovia.


According to some of the contractors who spoke to this paper on conditions of anonymity, asserted that once a contract is awarded, the challenges deepen, stating that many government agencies reportedly lack the technical expertise to monitor and evaluate projects.


They further intimated that approvals, variations, and site inspections often drag for months. “They ignore timelines and procedures. Their focus is on kickbacks, not project quality,” another contractor noted.


Contractors also complain of being asked for “upfront payments” even before receiving a single cent from the government. “Imagine being asked to pay before you get your mobilization or first disbursement,” a contractor said. “How do you buy materials or pay workers?”


These upfront demands, they say, cripple small firms that already struggle with limited access to credit and rising costs of materials. Many businesses are forced to borrow at high interest rates just to survive the delays.


When payments are finally processed, things reportedly get worse. At the Ministry of Finance and Development Planning, contractors claim they must “settle people” before their payments are released. “It’s our money, but we have to pay to get it,” one business owner said bitterly.


Even after funds are received, excessive deductions leave contractors with almost nothing, they added.


“By the time you’re done, the government has taken taxes, procurement takes 10%, finance takes 8%, and the entity head wants his share too. Then others come saying, ‘We weren’t part of that.’ It’s endless extortion,” another contractor explained.


These multiple layers of cuts, contractors argue, make it nearly impossible to deliver quality work or sustain operations. “People complain about poor infrastructure, but no one talks about how the system drains us before we even start,” said one project manager.
The cumulative effect, they say, is devastating. Many Liberian-owned construction companies have collapsed under financial pressure, while others operate at a loss just to maintain visibility in the industry.


“The government keeps saying it supports local content and empowerment, but how can we grow under this kind of corruption?” asked another contractor; stating: “We’re being suffocated from every direction.”


Some businesses have resorted to staying silent out of fear of retaliation. “If you speak out, you lose your next contract,” said one small firm owner. “They blacklist you quietly.”
Contractors are calling on the government, civil society, and the media to expose these practices and reform the procurement system. “We need transparency and fairness,” one group emphasized. “If this continues, Liberian contractors will disappear.”


They argue that ending kickbacks and enforcing procurement laws would not only save small and medium-sized businesses but also improve the quality of public infrastructure across the country. “We have the skills and capacity,” said a veteran contractor. “What we lack is a fair and honest system.”


Until that happens, many Liberian businesses say they remain trapped- drained by corruption, denied by bureaucracy, and discredited by the very system they are trying to serve.

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