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Liberia: Commerce Ministry Shuts Down Chinese Firms Over Unauthorized Sales

The Ministry of Commerce and Industry has ordered the immediate suspension of operations by two Chinese-owned companies in Paynesville, citing unauthorized commercial activities that undermine government contracts and disadvantage local businesses.

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The Ministry of Commerce and Industry has ordered the immediate suspension of operations by two Chinese-owned companies in Paynesville, citing unauthorized commercial activities that undermine government contracts and disadvantage local businesses.

Following an inspection along ELWA Road in the Graystone Community, the Ministry’s Inspectorate Division halted the manufacturing of cement blocks and the sale of sand and crushed rocks by Yi Cheng Incorporated and East International Construction Company. The move comes after reports that East International, a road construction contractor, was engaging in activities outside its approved mandate.

Inspector General Miantor Gbatu explained that East International, which has been awarded major government road construction contracts and enjoys concessionary privileges for that purpose, was found selling rocks and sand allegedly allocated for public infrastructure projects. “The diversion of materials intended for road construction undermines the very purpose of the contract and adversely affects Liberian-owned construction businesses,” Gbatu said.

The inspection further revealed that Yi Cheng Incorporated was operating within the same compound, apparently in collaboration with East International. Yi Cheng was engaged in the commercial sale of rocks and sand, as well as the production and sale of cement blocks—activities conducted independently or jointly, but outside the scope of the companies’ primary mandate.

According to the Inspectorate Division, both firms had, in recent months, been manufacturing blocks and selling construction materials to the public. These materials were reportedly intended for the ongoing expansion of the Roberts International Airport Road project, a flagship government initiative. Officials stressed that such practices not only compromise the quality and timely completion of public works but also distort fair competition in Liberia’s construction sector.

Gbatu emphasized that the Ministry’s intervention was necessary to protect national interests and ensure accountability in the use of concessionary privileges. “Government contracts are awarded with specific expectations. When companies divert resources for private gain, they erode trust and place undue pressure on local enterprises struggling to compete,” he noted.

The suspension of Yi Cheng and East International highlights growing concerns about compliance among foreign contractors operating in Liberia. While international firms are often granted concessions to support large-scale infrastructure projects, regulators insist that these privileges must not be exploited for unrelated commercial ventures. The Ministry’s action signals a tougher stance on enforcement, particularly in sectors critical to national development.

Commerce officials indicated that further investigations are underway to determine the scale of the unauthorized sales and whether additional sanctions will follow. The Ministry also reaffirmed its commitment to supporting Liberian-owned businesses, stressing that fair competition is essential for sustainable economic growth.

The shutdown of operations at the Graystone compound serves as a warning to other concessionaires that government contracts come with obligations, not opportunities for unchecked profit. As Liberia pushes forward with ambitious infrastructure projects, regulators say strict oversight will remain central to safeguarding public resources and ensuring that development goals are met.

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