Monrovia – The Chief Executive Officer of Medtech Dubai Ramsay Hassan has failed to appear before an Ad-Hoc Committee set up by the Liberian Senate to probe into the alleged “dubious and questionable” manner and form in which his company was awarded a contract worth US$18M with the Government of Liberia and the establishment of a secret financial account in Dubai unknown to the other parties involved with the deal.
By Obediah Johnson Sirleaf, [email protected]m
The Coalition for Democratic Change (CDC) led-government of ex-President George Manneh Weah, signed a 10-year contract with Medtech in July 2021 to conduct Destination Inspection of containers and to provide Verification of Conformity services at the Freeport of Monrovia. The company replaces BIVAC whose contract with the government expires in July 2021.
MedTech Scientific Dubai is the parent company for both local MedTech companies, including MedTech Scientific Liberia, Limited; the local Liberian registered Special Purpose Vehicle (SPV) executing company of the contract; and the CEO of MedTech Scientific Inspection Services, another Liberian registered company that implemented the same DI contract while the owners of the local SPV (MedTech Scientific Liberia, Limited) were in dispute.
The committee is tasked with the mandate to establish whether or not the two major contracts signed by the company and the government, during the administration of ex-President George Manneh Weah are valid or legal or went through the right processes in accordance with the laws of the country.
In April this year, the Liberian Senate mandated an ad hoc committee to establish whether or not the performance of the company is positively affecting the Liberian economy.
A probe was launched to also ascertain whether or not political corruption and potential money laundering led to the signing of the contract between MedTech and the Liberian government.
It was reported that the questionable manner and form in which the former ruling Coalition for Democratic Change (CDC) government of President George Manneh Weah signed a contract with a Qatari company Medtech Scientific that led to the establishment of a secret financial account in Dubai unknown to the other parties involved with the deal.
But public hearings on the Medtech investigation by the Ad-Hoc committee have suffered a series of setbacks ranging from the failure of the relevant authorities to provide sensitive documents and the intentional boycotting of the hearings by the Chief Executive Officer and General Manager of Medtech Scientific Liberia Limited, MTS and other shareholders.
At a scheduled hearing on Friday, June 21, Mr. Hassan failed to appear for the second as requested by the lawmakers.
Buying time?
Senator Amara Konneh, Chair of the Ad-Hoc committee disclosed that the two companies, including Medtech and MTS Inspection Services Liberia, through their legal representation Heritage Partners and Associates law firm, Ramsay Hassan, CEO of the company could not attend the hearing due to medical reasons.
The firm emphasized that a flight was arranged for its client to travel to Liberia to attend the just ended hearing as requested by the committee, but unfortunately, a medical emergency occurred and Mr. Hassan was taken to the hospital for a review.
“After medical examination, he was declared medically unfit to fly by his doctors for the next four to six weeks subject to a confirmation by the doctor,” the firm stated in a communication addressed to the committee, through the Secretary of the Liberian Senate.”
Mr. Hassan was reported to be seeking medical attention at the Emirates Specialty Hospital in the United Arab Emirates (UAE).
As a result of this, Medtech designated one Attorney Oliver N. Rogers to represent the two managements at the hearing.
But the lawmakers rejected the communication and prevented Attorney Rogers from representing the companies at the hearing following a concern raised concerning the notarization of the medical report from the Emirates hospital.
Senator Abraham Darius Dillon of Montserrado County observed that the communication from the law firm was intended to “backward the confirmation and invade the issues.
According to him, the consistent failure of the CEO of Medtech to appear and provide pertinent information to the committee is also “intent to impede the functions of the committee.”
“This communication should be rejected and appropriate action taken.”
Senator Alex Tyler of Bomi County observed that the two companies were not taking the “matter seriously.”
According to him, actions should be recommended to the Plenary of the Senate to hold in contempt heads of the various companies.
Issues with Medtech contract
The probe launched into the Medtech contract stemmed from concerns raised by some members of the Liberian Senate.
They include: Amara Konneh, Alex Tyler, Dabah Varpilah, Jonathan Sogbie, Edwin Snowe, Nathaniel McGill, Crayton Duncan, Abraham Darius Dillon and Albert Chie of Gbarpolu, Bomi, Grand Cape Mount, River Gee, Margibi, Sinoe, Montserrado and Grand Kru respectively.
The lawmakers are heads and members of the Senate Public Accounts and Commerce and Industry Committees.
In their dated April 16, 2024, copy which is in the possession of FrontPage Africa, the Senators observed the unauthorized establishment of a Liberian transitory revenue account in Dubai for the contract.
According to them, the determination of a transitory account by the LRA in Dubai without the necessary authority or consent from all contractual parties represents a “significant deviation” from the agreed contractual term.
“This action undermines the stipulated financial management protocols in line with our agreement.”
The Senators, however, called for an audit to be conducted by the General Auditing Commission (GAC) because MedTech has already positioned itself as a spending entity.
It justified that the audit must be conducted to ascertain whether or not expenditures made by MedTech align with the Public Procurement and Concession (PPCC) Act of Liberia.
Hiding shareholders
The lawmakers also observed the lack of transparency in the company’s partnership and affiliation with others.
They noted that despite consistent requests, the company has allegedly refused to disclose affiliation, partnership and the related entities involved with the contract.
They emphasized that such disclosure is significant to help it investigate the related parties that have relevant ties to the contract executed in Liberia.
“Given this critical issue, we recommend a comprehensive audit by the General Auditing Commission of all funds managed by MedTech on behalf of the republic.”
They further called for all relevant documents and findings to be forwarded to the Liberia Anti-Corruption Commission (LACC) for a thorough investigation into potential political corruption linked with this contract.
They want MedTech to adhere strictly to the contractual obligations, cooperate with the audit and investigation processes to ensure transparency and accountability for the proper use of public resources.
Under the MedTech contract, about 20% of monies collected from inspections go to the Government of Liberia. But the Chairman of the Public Accounts Committee (PAC) of the Liberian Senate Senator Amara Konneh observed that such monies have not been remitted into the Consolidated Account of the government.
The date of the signing of the MedTech contract by the Weah led-administration and its duration have not been established.
Charging exorbitant fees
However, the manner and form in which revenue was collected by the foreign company has also been questioned.
The company was reported to be charging exorbitant fees for the inspection of containers and others at the Freeport of Monrovia. It was widely reported that the company was charging the amount of US$450 from the previous US$250 that was being charged for the inspection of a container at the Freeport.
The failure of the past government to forward the contract to the National Legislature for ratification, continues to spark concerns in the public.
At the time, authorities of the Weah-led administration justified that the deal was a “service contract” that does not require passage by the National Legislature.
But there are contentions among current members of the National Legislature that the contract is in violation of the Public Financial Management Law of 2009.
The law, amongst other things, states that a contract worth more than US$10million should meet legislative approval.
Section One law, under General Rules and Regulations also underscores the need for openness and accountability in the use and management of public funds.