An investigation by Verity News has uncovered a damning internal audit report, exposing extensive financial irregularities, systemic governance failures, and noncompliance under former LEC CEO Monie Captan. The classified report, which is yet to be made public, revealed, “A total of US$5.2 million and L$3.4 million were disbursed without any supporting documentation.”
The audit, conducted by the Internal Audit Agency (IAA), exposes the mismanagement of millions of U.S. dollars and Liberian dollars at the state-owned utility, the Liberia Electricity Corporation (LEC), painting a picture of significant fiscal indiscipline and improprieties that plagued the corporation in recent years.
At the center of the controversy is Mr. Monie R. Captan who held unprecedented dual roles of Board Chairman and Acting CEO of the LEC from July 2022 until his removal in November 2024. Captan was deputized by a Ghanaian, Mr. Kwame Kpekpena, who served as Chief Operating Officer according to the report.
Following the departure of ESBI, the international management service firm that previously ran the LEC, Mr. Captan allegedly consolidated power and brought in loyalists, many of whom had worked with him under the Millennium Challenge Corporation (MCC) Compact.
Sources within the LEC who worked under Mr. Captan have alleged that the former LEC Chief Executive Officer (CEO) transformed the LEC into a ‘personal financial machine,’ using the institution as a means to generate income with little oversight during the Weah administration.
Despite growing concerns of mismanagement and weak internal controls, his tenure was left largely unchecked until President Joseph Boakai assumed office in January 2024. Upon President Boakai’s ascendancy, the LEC’s governing board moved swiftly to remove Captan.
An interim management team led by seasoned engineer Thomas Z. Gonkerwon was installed to stabilize the situation and initiate reforms. But what they inherited was a corporation teetering on the edge of financial collapse.
The Audit Findings: A Breakdown of Financial Mismanagement
According to the Internal Audit Agency’s leaked report, the scale of dysfunction at LEC was staggering:
The Corporation received US$4.5 million through three credit facilities without approval from the LEC Board, violating public financial management (PFM) regulations.
A total of US$5.2 million and L$3.4 million were disbursed without any supporting documentation.
Tax & Pension Evasion:
LEC withheld US$5.8 million in GST from customers and US$640,606 in employee social security deductions but failed to remit them to the Liberia Revenue Authority (LRA) and NASSCORP.
Additional taxes withheld from salaries and vendor payments, totaling over US$2.5 million, were also unremitted.
Unresolved Bank Discrepancies:
Reconciling items worth US$663,747 and L$68 million remained unresolved, while US$1.5 million and L$5.7 million in unexplained entries appeared in bank records. Cheques worth US$3 million, long expired, were never voided.
Revenue Loss: Approximately US$7.5 million in postpaid electricity bills were left uncollected in 2024 alone, representing 64% of billed revenue.
Payroll Fraud: Multiple individuals were paid despite having no attendance records. The audit found no system in place to verify staff presence.
Weak Asset Control:
The corporation had no reliable inventory system; assets were not tagged or tracked, and inventory was poorly stored.
Contract Noncompliance: Significant breaches were found in agreements with POWERCOM and LIBANGO, with expired terms and no modifications reviewed.
Recommendations
The IAA issued a series of urgent recommendations to the interim management, including: Immediate investigation into the US$4.5 million in unapproved loans, Remittance of all withheld taxes and pension contributions, Recovery and proper documentation of the US$5.2 million in undocumented disbursements, voiding of expired cheques and proper reconciliation of all outstanding balances, and strengthening of debt collection efforts.
Other recommendations included review and compliance enforcement of all third-party contracts, payroll cleanup and stricter attendance tracking, and full overhaul of the asset and inventory management system,
Since taking over in December 2024, the then interim CEO Thomas Gonkerwon reportedly began implementing reforms, but the magnitude of the problem has led to calls for broader accountability.
Civil society groups are demanding criminal investigation and prosecution for what many are calling “unprecedented economic sabotage on a national scale.”
The Boakai administration has pledged to prioritize anti-corruption efforts, and the LEC case may become a litmus test of that commitment.
As investigation continues and the spotlight sharpens on Liberia’s utility sector, the future of the LEC remains uncertain, but this audit has made one thing clear: reform is not optional; it is essential.
