On October 2, 2024, Verity News released an in-depth investigative report revealing unprecedented public waste, unmet key performance indicators, and contractual agreements at Liberia Electricity Corporation (LEC). Amid approximately US$20 million in debt and an unending energy crisis in Liberia, CEO Monie Captan received US$17,514, while COO Kwame Kpekpena earned US$26,655 in salary every month, excluding benefits.
The duo’s two-year contract ends on November 30, 2024. Verity News has received two separate leaked letters of termination dated October 31, 2024, captioned: Non-Renewal of Consultancy Contract. The communication stated, “…I am writing to formally notify you with the acquiescence of the President that we will not be renewing your consultancy contract entered into the 9th day of December 2022, which is set to expire on November 30, 2024. Please ensure that all outstanding deliverables and any necessary documentation are submitted to the Chairman of the Board.”
The leak in Verity’s possession further stated that the decision was made after careful consideration and in line with the Corporation’s plan for future governance changes. In the letter, the Government, through LEC, expressed gratitude for Mr. Kpekpena and Mr. Captan’s contributions throughout their tenure, recognizing their commitment to LEC’s goals and development.
The letter further outlined that Captan is required to ensure the submission of all outstanding deliverables and documentation to the Chairman of the LEC Board of Directors or his successor before the contracts’ expiration.
The Corporation has invited Mr. Kpekpena and Mr. Captan to address any questions or concerns regarding the transition process.
The non-renewal of Kpekpena and Captan’s consultancy contracts comes as the LEC re-aligns its strategic direction and governance framework to strengthen its operations in the coming years.
This paper reported that Monie Captan, Chief Executive Officer (CEO), and Kwame Kpekpena (COO) of the Liberia Electricity Corporation have a two-year contract now nearing its expiration date of November 30, 2024.
The dismal performance report in the possession of Verity News called for President Joseph Nyumah Boakai’s careful consideration of Kpekpena and Captan’s continuity at the country’s lone and underperforming energy provider.
In December of 2022, Captan was considered and given a contract by the Liberian Government to take over LEC and deliver the nation’s struggling Energy Company from repeated failures and onward collapse, but the CEO, who milks nearly US$20,000 in salary every month since then, has failed to deliver.
Verity’s sources, including documentary evidence, have it that the US$17,514 salary CEO has, over the months, operated LEC unilaterally, disobeying the founding principles of exchange of ideas with the Board of Directors, which has the authority to advise.
“Captan has been involved in decision-making processes independently, particularly on significant matters such as employment, salary changes, and organizational restructuring, without seeking or obtaining proper approvals from the Board. This undermines the established governance structure,” a highly placed unimpeachable source told Verity News.
Like it is at many public entities across the country where heads have become unguided and careless about working for the good of the public, Captan has fallen short of further enjoying the confidence of some Board members who think the latter should be replaced and asked to account for his stewardship in the period nearing its conclusion.
“He is bypassing the necessary approvals, demonstrating a disregard for the established decision-making protocols, which are critical for ensuring accountability, oversight, and adherence to organizational guidelines.”
Kpekpena and Captan’s contracts, which are in the possession of Verity News, call on them to prepare high-level briefs with relevant information on progress, achievements, bottlenecks, issues, and suggestions to the Board and stakeholders but has failed to accomplish in his nearly two years of service.
LEC was created by an Act of Legislation in 1973 with the mandate to produce and supply economical and reliable electric power to the entire nation while at the same time maintaining the Corporation’s financial viability
According to the contract, the CEO and CFO are to increase domestic and commercial connections by 7.5 percent per calendar year, reduce commercial losses by 2.5 percent per calendar year, and reduce technical losses by 2 percent per calendar year, but LEC’s performance results indicate failure to meet the demands.
Additionally, Captan, as CEO of LEC, was called upon to deliver a 5 percent increase in LEC received revenue per calendar year, maintain 75 percent generation reliability at Mount Coffee Hydro Power Plant as well, and provide the first utility-scale solar power plant within 36 months from appointment, but there is no evidence of his achievement of said indicators as per the contract’s arrangement.
According to our sources, having failed to comply with the regulations and legal frameworks that govern the operations of the Liberia Electricity Corporation, including provisions outlined in the LEC Act of 1973, the By-laws of 2009, and the 2015 Act, Captan consultancy contract will not be renewed.
Even though a US$238 Million Compact Challenge (MCC) facility was awarded to Liberia following the country’s passing of key governance indicators outlined by the U.S. government, the facility has fallen short of impacting lives regarding sustainable electricity supply.
USAID’s 2023 report on Liberia’s power supply efficiency has put the country at a flat failing rate due to the lack of meeting the target set for rebuilding and transforming the electricity grid, reaching a population of less than six million.
The MCC Liberia Compact of 2016 to 2021 was designated to encourage economic growth and reduce poverty by providing access to more reliable and affordable electricity. Still, the country has fallen short of achieving the goal, as most places continue to live in darkness and lose touch with modernity.
Mount Coffee Hydro Power plant has been and continues to be the country’s primary source of national power supply reliance, even though its 75 megawatts capacity remains unimproved due to lack of proper management and leadership.
Creating more woes for the country, Liberia has subscribed to Ivory Coast’s electricity supply line to serve people in Nimba, Bong, and the Southeastern Counties. Still, the Ivorian Electricity Management authorities called LEC to the public in August for failing to pay for the service delivery.
“We are writing to alert you to your institution’s situation in our books. To date, your outstanding bills amount to USD Nineteen Million Six Hundred and Ninety-one thousand six hundred and forty-seven United States Dollars (19,691,647) as of the end of June 2024,” the Ivorian electric grid management wrote LEC on August 26, 2024.
The notification continued: “This level of unpaid bills represents an unsustainable burden for the Ivorian Electricity Sector, which is currently experiencing financial difficulties exacerbated by increased electricity operation costs.
Furthermore, please note that during our last collection visit in February 2024, you informed us of a new clearance plan to reduce unpaid MV bills. To date, this plan has not been complied with, as no payment has been made since the start of the period covered by the plan.
Therefore, please note that, in the absence of a response from you within 15 days regarding the situations mentioned above, we will have no other choice than to implement the provisions of Article 11.4 and 21.3 of the Power Sale agreement, relating respectively to the suspension of power supply and termination in the event of default by the purchaser.”
Ivory Coast got its independence on August 7, 1960, compared to Liberia, which boasts of being independent since 1847 when no country on the continent of Africa could dare mention a wish to be independent lest mention declaring freedom amid imperialist control.
Captan, whose bank account number with United Bank Africa (UBA) Liberia is 53030250033130 with the swift code of UNAFLRLMXXX, is among the select few pocketing huge sums without service delivery as most people suffer.
The Ghanaian consultant, Kpekpena, receives a monthly salary of US$26,655. Like Captan, the Ghanaian has failed to deliver on his contract’s terms of reference, which calls for adequate expertise to alleviate the rotten and troubling situations of the company. The duo has miserably failed to meet all performance indicators according to detailed findings inscribed in an evocation brief of MCC.
A nation blessed with many natural resources, including flowing rivers, has failed to provide its people with a stable and sustainable power supply.
