MONROVIA – The U.S. Department of State’s 2024 Investment Climate Statements have highlighted systemic corruption in Liberia as a key reason for the country’s inability to attract foreign investors, create jobs, and maintain stability. The report underscores that the Liberian government has failed to effectively implement anti-corruption laws or apply them fairly, leading to widespread corruption that permeates both the public and private sectors.
“Liberia has laws to combat corruption, bribery, and economic sabotage by public officials, but the government does not implement these laws effectively or apply them in a non-discriminatory manner,” the U.S. Department of State asserted in the report. While there are legal frameworks in place, such as the Public Procurement and Concessions Act, their enforcement remains inconsistent and weak. The report also pointed out that these laws do not generally cover the family members of officials or political parties unless these entities directly benefit from corrupt practices.
The U.S. report noted that while private companies operating in Liberia are required to establish internal codes of conduct prohibiting bribery, these regulations are often poorly enforced. Many private companies lack internal controls, ethics, or compliance programs to prevent bribery of public officials, further contributing to a culture of corruption.
The report concluded that corruption is a significant reason for Liberia’s stagnation in economic growth, noting that few investors are willing to enter the Liberian market, job creation remains sluggish, and the risk of instability continues to loom over the country. “Private companies do not have generally agreed and structured internal controls, ethics, or compliance programs to detect and prevent bribery of public officials,” the report added.
Despite Liberia being a signatory to multiple international anti-corruption conventions, such as the Economic Community of West African States (ECOWAS) Protocol on the Fight against Corruption, the African Union Convention on Preventing and Combating Corruption, and the United Nations Convention against Corruption, the U.S. report said these affiliations have done little to curb government corruption.
In addition to challenges in the private sector, the report highlighted that non-governmental organizations (NGOs) investigating corruption face significant threats. Many NGOs, both local and international, report being extorted by government officials through the solicitation of bribes, threats to cancel employment and resident visas, and other baseless legal actions. The report also noted that Liberia lacks explicit legal protections for NGOs investigating corruption, leaving them vulnerable to retaliation.
Foreign investors, including U.S. firms, have identified corruption as a substantial barrier to doing business in Liberia. Corruption is most rampant in government procurement processes, contract and concession awards, customs and tax systems, regulatory systems, and government payment mechanisms. Many multinational companies have reported being forced to pay unofficial fees beyond what was stipulated in their investment agreements, with anecdotal evidence suggesting that bribery and extortion are widespread at all levels of government.
The report also referenced a series of high-profile U.S. sanctions imposed on prominent Liberian officials due to corruption and human rights abuses. On December 9, 2020, the U.S. Treasury Department sanctioned Senator Varney Sherman for judicial bribery, followed by sanctions on Senator Prince Yormie Johnson in 2021 for corrupt “pay-for-play” schemes. In 2022, then-Minister of State for Presidential Affairs Nathaniel McGill, Solicitor General Sayma Syrenius Cephus, and National Port Authority Managing Director Bill Twehway were sanctioned for their involvement in ongoing public corruption. Most recently, in December 2023, then-Minister of Finance Samuel Tweah, Senate President Pro Tempore Albert Chie, and Senator Emmanuel Nuquay were sanctioned for manipulating legislative processes and public funding through bribery. On December 8, 2023, the U.S. Treasury also sanctioned then-Monrovia City Mayor Jefferson Koijee for serious human rights abuses and corruption.
Despite widespread public support for these U.S. sanctions, no formal investigations have been launched in Liberia to address the allegations, leading to increased frustration among citizens who seek greater accountability from their leaders.
The U.S. Department of State’s report highlights the urgent need for reform, noting that without effective anti-corruption measures, Liberia’s potential for attracting investment and fostering economic growth remains severely compromised.
