The recent return of Chuckle Kardoe, CEO of K&K Corporation, to Liberia has sparked significant public concern, especially given his involvement in importing Liberia’s staple food, rice. This apprehension has been further fueled by ongoing discussions about potential rice price hikes.
Commerce Minister Amin Modad recently commented on the dominance of a ‘Rice Cartel’ in the Liberian market, which he claims is complicating the government’s efforts to stabilize rice prices. Independent Probe has learned that K&K Corporation, under Kardoe’s leadership, imported 34,000 metric tons of rice in May 2024 alone, positioning the company as a key player in the market.
The term ‘Rice Cartel’ used by Minister Modad remains somewhat ambiguous. However, historical context adds weight to the concerns. In July 2011, Chuckle was convicted of economic sabotage by a Liberian court. Despite this, he made a surprising return during former President George Weah’s administration without clearing his legal issues and resumed business activities under President Joseph Boakai’s government.
Kardoe was previously banned from importing rice and deported to his home country, Lebanon, after K&K Corporation was accused of creating an artificial rice shortage that nearly led to demonstrations. The Ministry of Justice, led by Frances Johnson Morris at the time, successfully prosecuted the case.
The government’s perceived leniency towards Kardoe has stirred discontent among Liberians, who believe local entrepreneurs should be empowered to participate in rice importation. Market vendors across Monrovia expressed their frustration, urging the government to support Liberian businesses in this sector.
Last month, President Joseph N. Boakai narrowly averted a national crisis by insisting that rice importers, primarily Lebanese merchants, refrain from increasing rice prices. His firm stance was conveyed in a statement by Presidential Press Secretary Kula Fofana, following a closed-door meeting with major importers on May 21, 2024.
The Ministry of Commerce had previously announced an agreement with the ‘Rice Cartel’ to raise the price of a 25kg bag of Indian rice from $16.50 to $20. Commerce Minister Amin Modad later confirmed at a press briefing that the government had settled on a price increase to $18.50 per bag.
President Boakai’s subsequent directive to maintain current prices contradicted Minister Modad’s earlier agreement, suggesting internal government conflicts over handling the rice market. Following Boakai’s meeting with importers, he mandated that rice prices remain unchanged, causing immediate fluctuations in market prices.
This situation recalls the historical memory of the 1979 rice riots, when the Progressive Alliance of Liberia’s peaceful protest against rice price increases turned violent, setting the stage for Liberia’s decade-long civil conflict.
On May 20, 2024, the government, through Minister Modad, justified the proposed price hike by highlighting a 20% surcharge imposed by India on parboiled rice and other geopolitical factors affecting freight and insurance costs. However, rice importers have been accused of leveraging these challenges to manipulate prices, despite the government’s attempts to mitigate impacts by suspending import tariffs.
Both former President George Weah and President Joseph N. Boakai have issued executive orders suspending import tariffs on rice to alleviate the burden on Liberians. Despite these efforts, the ‘Rice Cartel’ continues to exert undue influence, perpetuating economic hardships for ordinary citizens.
In light of these developments, public calls for transparency and local empowerment in rice importation have intensified. Many believe that enabling Liberian entrepreneurs to participate in this critical sector could break the stranglehold of the ‘Rice Cartel’ and ensure more stable and fair pricing for this essential commodity.
The government’s actions moving forward will be closely watched, as the need for decisive and transparent measures becomes increasingly urgent to protect the interests of the Liberian people.
