A major financial scandal investigated by this paper is brewing as investigators unravel how three checks worth millions of dollars were allegedly diverted into a dubious company’s account after being returned by the original payee. The Liberia Anti-Corruption Commission (LACC) and the Financial Intelligence Agency (FIA) are probing the matter, which involves the Bureau of State Enterprises (BSE), the Ministry of Finance and Development Planning (MFDP), and a mysterious firm known as “B-Flex” registered as a construction company.
At the center of the controversy is Flex Group Inc., a company contracted under the previous Government to develop a Management Information System for the BSE. The contract, valued at $239,662.50, was intended to computerize operations across State-Owned Enterprises (SOEs). However, following the transition to the Boakai administration, concerns arose that Flex Group had not fulfilled its contractual obligations. In response, Flex returned three checks, numbered 00000961, 00000967, and 00000963.
Yet, instead of properly reallocating funds, sources say they were funneled to another entity called B-Flex, an obscure company operating in Duazon, Margibi County. Documents reveal that B-Flex’s incorporation was riddled with irregularities, listing shareholders Peterson N. Ballah and Kaibeh J. Ballah under a variation of the original company name Flex B. The account in question was reportedly opened at the United Bank for Africa (UBA) Red Light branch, with branch manager Karl Sumo allegedly facilitating the transaction. The UBA account number is 53020550008835.
A source familiar with the investigation disclosed that Karl Sumo was later spotted at the BSE office, allegedly collecting a share of the misappropriated and diverted funds. This raises serious concerns about collusion between bank officials and those orchestrating the scheme.
The matter gained further attention after a letter, dated March 10, 2025, was addressed to Mohammed A. Nasser, Officer-In-Charge of the FIA. The letter detailed the LACC’s ongoing investigation into corruption and procurement fraud at the BSE. It specifically questioned how the checks, originally returned to the Government, ended up being diverted into a suspicious account.
Amid the unfolding scandal, the General Auditing Commission (GAC) has also turned its focus on the Bureau of State Enterprises. A letter dated March 3, 2025, and signed by Auditor General P. Garswa Jackson, Sr., was issued to Arthur Siaka Massaquoi Sr., Director-General of the BSE. The letter informed Massaquoi that the GAC intends to audit the BSE in line with Section 2.1.3 of the GAC Act of 2014.
As part of the audit process, the GAC scheduled a meeting with Massaquoi and key management team members on March 13, 2025. The purpose of the meeting is to determine the scope of the audit, pre-engagement planning activities, and the date for the official engagement letter. The GAC emphasized that the audit is part of efforts to promote accountability, transparency, and fiscal responsibility across the Government.
Further complicating the issue, a December 16, 2024, letter from the LACC to Emmanuel F. Isaiah, Business Manager of Flex Group Inc., requested his appearance for questioning regarding the missing funds. Investigators are keen to understand how the Ministry of Finance and Development Planning handled the returned checks and why funds that should have been recovered instead landed in an unauthorized account.
