Liberia Electricity Corporation Workers’ Salary Slashed by 30 Percent

Monrovia – Employees of the Liberia Electricity Corporation (LEC) have been told that due to lack of revenue and commercial losses, their salaries will be cut by 30 percent beginning, November this year.

In a communication from to the employees on November 25, LEC’s Chief Executive Officer, Pashal Buckley said the 70 percent payment will continue with all subsequent salary disbursements until there is an improvement in the financial state of LEC.

Mr. Buckley, in the communication, added that for this month, the 70 percent payment will be done in United States Dollars, but payment for the proceeding months will be split in both Liberian and United States dollars.

Excerpt of CEO’s Buckley’s communication: “Please be informed that the due to the current financial and cash flow state of LEC, cause by a lack of revenue and commercial losses, that commencing this month (November 2019), the corporation will only be responsible to pay 70 percent of salaries.”

“This situation will continue with all subsequent salary disbursements until there is an improvement in the financial state of LEC. Until further notice, only 70% of salaries will be disbursed commencing with this month’s salary disbursement.”

“Please be informed that the due to the current financial and cash flow state of LEC, cause by a lack of revenue and commercial losses, that commencing this month (November 2019), the corporation will only be responsible to pay 70 percent of salaries.”

– Management, Liberia Electricity Corporation

Who Manages LEC?

LEC is being managed by the Ireland-based ESB International (ESBI). In late 2017 the Liberia Electricity Corporation (LEC) announced a Management Services Contract (MSC) with ESB International. 

This constituted a successful conclusion of a two-year process that began in October 2016 with the ratification of the US$257-million-dollar grant to the Government of Liberia, by the United States Government through the Millennium Challenge Corporation (MCC).

 The MCC funded LEC MSC defines roles for the MSC at senior and middle management levels in LEC.  These roles were selected by the LEC Board in conjunction with the Government of Liberia.

Under the terms of the agreement, the LEC MSC will be evaluated on four key performance indicators including an increase of new connections, a reduction of aggregate technical and commercial losses, a reduction of operational expenditure against KWh hour sold (Tariff reduction) and a reduction of system interruptions (SAIDI)

However, since the takeover by ESBI, LEC continues to be plagued by the menace of power theft.

According to management, the corporation loses about 65 percent of its income to power theft. Despite series of measure put in place to curtail the menace, it continues to be widespread in every part of Montserrado.