Liberia’s General Auditing Commission’s compliance audit has uncovered financial irregularities and evidence of significant revenue diversion in a high-profile contract with a United Arab Emirates-based firm, MedTech Scientific Limited.
The contract, intended to modernize the country’s customs and port inspection infrastructure and boost government revenues, instead resulted in millions of dollars in missing funds and an apparent windfall for both the company and key Liberian agencies, auditors say.
Millions in Government Revenue Unaccounted For
According to the audit report, the Liberia Revenue Authority (LRA) failed to remit a staggering US$6.8 million in destination inspection fees to the country’s consolidated revenue account—a clear violation of the amended Public Financial Management (PFM) Act and key terms of the government’s agreement with MedTech.
These funds represent Liberia’s 20% share of customs-related service fees, the remainder of which flowed directly to MedTech under an unusual revenue-sharing formula.
“These actions denied the Government of Liberia much-needed revenue to fund its operations and potentially enabled system abuses,” the GAC report said.
Contract Promised Modernization, Delivered Underperformance
The controversial ten-year contract, signed in 2021 by then-Ministers of Commerce, Finance, and Justice along with MedTech CEO Ramzi Abou-Hassan, was billed as a major step forward for Liberia’s customs operations.
MedTech was tasked to procure and deliver cutting-edge scanning and IT systems, upgrade inspection infrastructure at key entry ports, and implement a digital customs platform.
Yet, auditors found “no documented evidence” that MedTech delivered on any major supply or modernization commitments. Required equipment such as 3D scanners, closed-circuit cameras, forklifts, and IT platforms were never provided or installed, monthly asset and progress reports showed.
“The non-compliance with provisions of the agreement denied Liberia critical equipment and assets needed for transparent and efficient customs management,” the audit said.
Lack of Controls, Missing Documents, Inflated Payments
The auditors cited a pattern of weak recordkeeping and unsupported expenditures by both MedTech and the LRA. Over US$1.3 million in public funds—disbursed either by MedTech on Liberia’s behalf or directly by the LRA—lacked required supporting documents such as receipts, payment vouchers, contracts, or procurement approvals.
“This increased the risk of fraud and errors, compromising the reliability of financial information,” the GAC warned.
Additionally, MedTech and LRA failed to adhere to mandated procedures for fee handling. Inspection fees were frequently not deposited into the specified transitory account at EcoBank, as contractually required.
For prolonged periods (August 2021 to October 2024), government revenues were instead kept in a MedTech-controlled account, breaching transparency regulations and delaying eventual government access.
In another red flag, the audit found that the application of agreed service fees was “inconsistent,” with MedTech sometimes collecting more or less than allowed—potentially skewing revenue calculations.
Liberian officials argued that contract terms were altered at the government’s request to match previous customs fee structures, allegedly to address West African business concerns. Auditors, however, found no written modifications as contractually required, and warned that such changes lacked legal standing.
Official Responses and Ongoing Litigation
The LRA and other officials, responding to the audit, acknowledged lapses but claimed complications arose from transitioning away from a previous operator, fee structure confusion, and an ongoing court case with MedTech. They say steps have been taken to correct some issues, including moving more funds into government-controlled accounts and submitting procurement plans for 2025.
Still, the GAC found these explanations “did not adequately address the core issues,” and warned of a continued risk that public funds may have been misapplied or misappropriated.
Calls for Accountability Amid Fears of Systemic Abuse
The findings have triggered calls from civil society for further investigation and possible prosecutions. Watchdog groups warn that without full accounting and possible contract sanctions, Liberia risks repeating patterns of failed public-private partnerships that undermine critical development.
“This audit shows how the country’s financial management and accountability systems remain vulnerable to exploitation by foreign contractors and local enablers,” said one Monrovia-based anti-corruption advocate. “Millions of dollars that should benefit the Liberian people have quite literally gone missing.”
The GAC has recommended that future contract renewals or extensions with MedTech or similar firms be “based solely on satisfactory performance,” and that any future revenue-sharing or procurement arrangements adhere strictly to Liberian law and international best practices.
As of press time, MedTech Scientific Limited and the involved Liberian government agencies had not issued a public statement on the audit’s findings released since February this year.
Writes Festus Poquie
This story will be updated with additional comment from government and company sources as available.
