The issue of budgetary alteration in the 2024 National Budget has sparked fresh concerns following revelations that a controversial payment of US$374,379 was made to KarPower as reflected in the Outturn despite the government’s rejection of the agreement.
The controversy has intensified scrutiny of discrepancies between the legislature’s approved budget and subsequent changes.
A specialized committee led by Speaker Cllr. J. Fonati Koffa had previously confirmed irregularities in the budget, but new concerns have emerged regarding the Karpower allocation. The funds were listed under the “outturn” section on page 278 of the budget, raising questions about their usage and whether they were actually disbursed.
The Ministry of Finance and Development Planning (MFDP) insists that no disbursement was made, but this assertion has created confusion, as many wonder why the funds were listed if they were never spent.
Media reports suggest that while a $6 million allocation initially designated for the Liberia Electricity Corporation (LEC) was reallocated, the $374,000 for Karpower remained. Officials have questioned how the money could appear as an outturn if it was not used for LEC. Senators have pressed the Finance Ministry for answers, but explanations that the funds were redirected to LEC have not satisfied lawmakers, who argue that an unauthorized allocation should not be recorded in the budget’s outturn.
Karpower, a private Turkish company operating floating power plants, has engaged the Liberian government multiple times in an effort to secure a contract. The company has implemented similar projects in African countries, including Sierra Leone. In 2024, Karpower executives presented their proposal to the Boakai administration, despite strong public opposition.
Reports indicate that LEC and Karpowership Global DMCC were expected to sign a Term Sheet to facilitate the project. Several top officials, including Minister of State for Presidential Affairs Sylvester Grisby, National Security Advisor Samuel Kofi Woods, and then LEC CEO Monie Captan, were reportedly involved in discussions. The revelation of the $374,000 allocation has renewed concerns over why the Boakai administration continued pushing a deal that had previously been rejected.
A similar attempt to introduce Karpower under former President George Weah faced opposition from international donors, including the Millennium Challenge Corporation (MCC), the European Union, and the World Bank. These organizations warned that such a deal could threaten Liberia’s energy sector reforms and discourage foreign investment.
International partners, including representatives from the United States, Norway, the United Kingdom, Germany, and the World Bank, raised concerns about the risks of a long-term Karpower deal. They argued that committing to a decade-long power purchase agreement with Karpower would be detrimental, especially as the government struggles to settle outstanding LEC utility bills. The international community urged Liberia to focus on completing the Côte d’Ivoire-Liberia-Sierra Leone-Guinea (CLSG) transmission project instead of entering an expensive agreement with Karpower.
