– Collect Millions but Miss Targets as Executives Enjoy High Pay, TLP Analysis Finds
MONROVIA, Liberia – Several of Liberia’s most powerful State‑Owned Enterprises (SOEs) are failing to meet their revenue‑remittance obligations to the national budget while paying senior executives hefty salaries and benefits, according to a detailed analysis by The Liberian Post (TLP), drawing heavily on testimony from the Liberia Revenue Authority (LRA) and senior fiscal officials at ongoing Senate budget hearings.
During a recent appearance before the Senate Committee on Ways, Means and Finance, Gabriel Y. Montgomery, LRA Deputy Commissioner General for Technical Services, bluntly told lawmakers that persistent non‑compliance by SOEs remains “a major constraint” to Liberia’s fiscal performance.
“SOEs’ compliance is not only the concern of the LRA; it is a national priority that must be addressed adequately,” Montgomery said.
He revealed that as of November 17, 2025, the LRA had collected US$715.3 million in domestic revenue—already surpassing the FY2024 record of US$698.6 million—and expressed confidence that reforms could push collections higher. But he stressed that full compliance by SOEs would move the country “even closer” to its domestic revenue targets.
Big Players, Small Contributions
Liberia currently has about 20 State‑Owned Enterprises, operating in strategic sectors such as ports, electricity, aviation, oil and gas, water and sewage, telecoms, agriculture, forestry and maritime.
Major SOEs include the National Port Authority (NPA), Liberia Electricity Corporation (LEC), Roberts International Airport (RIA), Liberia Civil Aviation Authority (LCAA), National Oil Company of Liberia (NOCAL), Forestry Development Authority (FDA), Liberia Maritime Authority (LiMA), Liberia Petroleum Refining Company (LPRC), Liberia Water and Sewer Corporation (LWSC), Liberia Telecommunications Authority (LTA) and the Liberia Telecommunications Corporation (LIBTELCO).
TLP notes that, by law, these entities are required under the Public Financial Management (PFM) Act of 2009 to pay taxes, declare surpluses and remit agreed dividends to the national treasury. Yet many continue to miss their remittance targets, even as they collect millions of dollars annually.
“Ironically, over the past decades, a lot of these SOEs have found themselves on the receiving end of allegations of corruption and mismanagement, while their hierarchies are paid huge sums in salaries and benefits,” the TLP analysis observes. “They are on the record books for reneging on contributing handsomely to the national budget.”
LRA vs. LPRC – and the Justice Ministry’s Role
Montgomery disclosed that the LRA had previously initiated legal action against the Liberia Petroleum Refining Company (LPRC) over alleged failure to meet its revenue‑remittance obligations, invoking enforcement powers granted by the PFM law.
However, according to TLP and sources at the hearings, those efforts were reportedly derailed by the Ministry of Justice, led by Cllr. Oswald Tweh, who is said to have raised a conflict‑of‑interest concern about representing two government entities on opposing sides of the same case.
Critics, including some lawmakers and fiscal analysts, view this as the Ministry effectively shielding LPRC from accountability.
In the eyes of the LRA and its supporters, TLP writes, the Justice Minister was seen “as blocking lawful revenue collection” and “shielding LPRC from national budget obligations,” raising fresh doubts about fiscal transparency and credibility.
Lawmakers Demand Answers
During the hearings on Capitol Hill, senators called for greater transparency and accountability in how the Ministry of Justice handles cases involving SOEs.
Members of the Senate requested the appearance of Minister Tweh to explain why he allegedly blocked the LRA from pursuing the LPRC case and what legal options remain for enforcing SOEs’ obligations going forward.
Finance Ministry: Oversight Must Be Strengthened
Deputy Finance and Development Planning Minister for Fiscal Affairs Anthony Myers told senators that financial projections from SOEs for FY2025 “have not been realized,” singling out the National Port Authority as an example.
Despite earlier commitments, Myers said, NPA failed to declare contributions for FY2026.
He pointed to new revenue streams that could help close gaps, including a US$0.11‑per‑gallon storage fee at LPRC, but stressed that these will only matter if the government enforces compliance.
“We need stronger tax administration, mandatory reporting, and closer monitoring of SOEs’ financial activities to ensure transparency,” Myers said.
“Not Just About Numbers; It’s About Trust”
Senate Ways and Means Committee Chair Prince K. Moye underscored the importance of verifying revenue projections from SOEs.
“This process is not about numbers alone; it is about trust, discipline, and national responsibility,” Senator Moye said. “If SOEs fail to meet their obligations, the credibility of the entire budget is at stake.”
Konneh: Liberia Can Hit US$1 Billion Without Mittal Bonus—If SOEs Comply
Following the first day of hearings on the proposed US$1.2 billion FY2026 budget, Gbarpolu County Senator Amara Konneh, who chairs the Senate Public Accounts Committee, said Liberia could still achieve over US$1 billion in revenue in 2026 without the anticipated US$200 million ArcelorMittal signature bonus—but only if strategic reforms are implemented.
He identified key growth drivers:
- Mining sector Corporate Income Tax (CIT): an additional US$35–57 million from ArcelorMittal, Bea Mountain and China Union;
- Domestic revenue growth (+US$45 million): driven by GDP expansion (from 4.6% to 5.5%), higher consumption taxes, excise and income taxes;
- SOE contributions (US$30 million+): through improved profitability and full compliance with budget targets;
- Policy measures (+US$14 million): such as raising the General Sales Tax (GST) from 12% to 13% and introducing a 2% presumptive CIT on major concessions;
- External resources (US$72 million): continued support from development partners.
If implemented, Konneh argued, these measures could deliver US$931 million in domestic revenue plus US$72 million from external resources, totaling about US$1.003 billion without Mittal’s US$200 million bonus.
To get there, he called for completion of port and rail infrastructure (including Bao Chico), expanded road corridors to handle up to 20 million tons of mining exports, reactivation of China Union, review of TotalEnergies fiscal terms, revitalization of the forestry sector and monetization of carbon credits.
He also stressed the need to strengthen SOE corporate governance and ensure they meet their budget contributions.
“Achieving the US$1 billion mark is not automatic,” Konneh warned. “It requires adequate funding for the LRA, upgraded enforcement technologies, and political will to hold both private‑sector and SOE actors accountable.”
Pundits Call for Mandatory SOE Remittance Law
Political commentators, civil‑society actors and even some supporters of the government told TLP that SOEs are legally and morally bound to contribute to the national budget and that continued delays or refusals “pose a serious risk” to meeting the projected US$1.2 billion envelope.
Several stakeholders are now urging the Legislature to enact a dedicated law that would mandate high‑income‑generating SOEs—such as LPRC, NPA, FDA, LTA and others—to remit a defined share of their profits and revenues, backed by stiff penalties for non‑compliance.
They argue that while many SOEs claim financial distress when called to declare surpluses, their senior executives continue to enjoy “luxury‑level salaries, allowances, vehicles and benefits” that are out of step with their reported contributions to the treasury.
For TLP, the conclusion is stark: “SOEs cannot continue to sit on the fence of the national budget—collecting millions annually, paying executives handsomely, yet sending only crumbs to the treasury. In a US$1.2 billion budget era, their full compliance is no longer optional; it is indispensable to Liberia’s fiscal survival.”
