The 2024 Investment Climate Statements of the U.S. Department of State on Liberia have identified corruption as an obstacle to foreign investment, growth, and development in Liberia. According to the report, foreign investors, including U.S. firms, said corruption is pervasive in government procurement, contract and concession awards, customs and taxation systems, regulatory systems, performance requirements, and government payments systems. The report claimed that investors face extortion and bribery by government officials at all levels.
The report claimed that investors face extortion and bribery by government officials at all levels. In practice, the government does little to encourage investment in Liberia. The report highlights that business leaders find it challenging to meet with government representatives to discuss new investments or policies to address climate change unless bribes are offered. The U.S. Investment Climate Report revealed that a weak legal and regulatory framework, lack of transparency in contract awards, and widespread corruption deter foreign direct investment.
The report disclosed that Government officials view foreign investors as opportunities for short-term graft rather than partners in creating long-term growth for the country’s benefit. The U.S. Climate Statement asserts that Government decisions affecting the business sector are driven more by political cronyism than investment climate considerations.
“Many businesses find it easy to operate illegally if the right political interests are being paid, whereas those that try to follow the rules at best find that they receive little if any assistance from government agencies, and at worst are targeted by government officials seeking direct or indirect bribes or other unofficial payments,” the report highlighted.
The 2010 Investment Act restricts market access for foreign investors, including U.S. investors, in specific economic sectors or industries. Liberia has laws to combat corruption, bribery, and economic sabotage by public officials, but the government does not implement the laws effectively or apply them non-discriminatorily.
Generally, these laws do not extend to family members of officials or their political parties except in cases where these auxiliaries benefit from the proceeds of corruption.
The report, among other things, revealed that the government requires private companies to establish internal codes of conduct that prohibit bribery of public officials.
The U.S. Climate report further highlights that Liberia’s democracy and economy are not strengthening due to corruption in both the public and private sectors. This widespread corruption is seen as the primary reason why few investors come to Liberia, why jobs are not being created, and why instability is a risk.
According to the report, Private companies do not have generally agreed and structured internal controls, ethics, or compliance programs to detect and prevent bribery of public officials.
“There are laws and regulations, such as the Public Procurement and Concessions Act, to counter conflicts of interest in government procurement but these are not always effectively enforced,” the report highlighted.
Liberia is a signatory to the ECOWAS Protocol on the Fight against Corruption, the African Union Convention on Preventing and Combating Corruption, and the UN Convention against Corruption. However, Liberia’s association with these conventions has done little to reduce rampant government corruption.
The U.S. Government Investment Climate Statement revealed that no laws explicitly protect NGOs that investigate corruption. Even long-established local and international NGOs report being extorted by government officials through the solicitation of bribes, threats to cancel employment and resident visas, and other unfounded legal allegations.
Foreign investors, including U.S. firms, have identified corruption as an obstacle to foreign investment in Liberia.
They report that corruption is most pervasive in government procurement, contract and concession awards, customs and taxation systems, regulatory systems, performance requirements, and government payment systems.
Multinational firms often report paying fees not stipulated in investment agreements.
Anecdotal reports indicate that foreign investors face instances of extortion and bribery by government officials at all levels.
On December 9, 2020, the United States Treasury Department sanctioned Liberian senator and prominent lawyer Varney Sherman for judicial bribery. On December 9, 2021, the Treasury Department sanctioned Nimba County Senator Prince Yormie Johnson under the Global Magnitsky Act for personally enriching himself through pay-for-play funding schemes with government ministries and organizations.
On August 15, 2022, the Treasury Department sanctioned then-Minister of State for Presidential Affairs, Nathaniel McGill, the Solicitor General and Chief Prosecutor of Liberia, Sayma Syrenius Cephus, and the Managing Director of the National Port Authority, Bill Twehway, for ongoing public corruption.
On December 12, 2023, the State Department sanctioned then-Minister of Finance and Development Planning Samuel Tweah, Senator Albert Chie, and Senator Emmanuel Nuquay under Section 7031(c) for their involvement in significant corruption by abusing their public positions through soliciting, accepting, and offering bribes to manipulate legislative processes and public funding.
On December 8, 2023, the U.S. Treasury Department sanctioned then-Monrovia City Mayor Jefferson Koijee under Executive Order 13818 for engaging or being a leader of an entity involved in severe human rights abuse and corruption.
The report asserts that Liberians have strongly supported these sanctions and urged that more be done to hold public officials to account.
No formal investigations, however, have been launched since the announcement of any of these sanctions.
