Monrovia – Allegations have surfaced that Liberia’s Justice Minister, Oswald Tweh, interfered with the Liberia Revenue Authority’s (LRA) efforts to collect lawful revenues from state-owned enterprises (SOEs), including the Liberia Petroleum Refining Company (LPRC), raising concerns over fiscal accountability and national budget credibility.
“SOEs continue to fall short of their revenue contribution commitments. Their persistent failure to meet their obligations remains a major constraint to our collective fiscal goal. We took LPRC to court, but the Justice Minister intervened, saying it was a conflict of interest and that we should come along with it,” said Gabriel Y. Montgomery, Sr., Deputy Commissioner General for Technical Services at the LRA.
By Obediah Johnson and Gerald C. Koinyeneh
Montgomery explained that the LRA filed a lawsuit against LPRC under powers granted by the Public Financial Management (PFM) law, which empowers the agency to take legal action against SOEs that fail to pay legitimate taxes or remit revenues to the government. However, Minister Tweh reportedly prevented the suit, citing a conflict of interest because he cannot act as a lawyer for both government entities involved in opposing positions.
Speaking during the opening of the Senate Budget Hearing, Montgomery emphasized that SOEs’ failure to fulfill their financial obligations continues to hinder the country’s revenue mobilization goals. He added that the LRA would be closer to achieving its domestic revenue target if SOEs contributed fully to the national budget.
“SoEs’ compliance is not only the concern of the LRA; it is a national priority that must be addressed adequately,” Montgomery said. He also disclosed that, as of November 17, 2025, the LRA had collected US$715.3 million in domestic revenue, surpassing FY2024’s historic US$698.6 million, and expressed confidence that ongoing reforms would help exceed the 2025 domestic revenue target.
Calls for transparency and accountability are growing, with lawmakers urging a review of the Justice Ministry’s role in ensuring SOEs meet their budgetary obligations. Senators have requested the appearance of Minister Tweh to explain why he allegedly blocked the LRA from collecting legitimate dividends, particularly from LPRC, for the benefit of the Liberian people.
The issue also touches on budget projections, with US$200 million in contingency funds tied to post-ratification signature bonuses from the third amendment of the ArcelorMittal Liberia agreement yet to be accounted for.
During the Senate hearing, Deputy Minister for Fiscal Affairs at the Ministry of Finance and Development Planning, Anthony Myers, stressed the need to revisit oversight mechanisms to ensure SOEs meet their budget targets. He noted that financial estimates of SOEs for FY2025 have not been realized, citing the National Port Authority (NPA) as an example, which failed to declare contributions for FY2026 despite commitments in previous years.
Myers highlighted that new revenue streams, such as the US$0.11-per-gallon storage fee by LPRC, could boost contributions to the national budget. He also emphasized the need for stronger tax administration, mandatory reporting, and monitoring of SOEs’ financial activities to ensure transparency.
Senate Committee Chairman Prince Moye reinforced the importance of the hearings, noting that verifying revenue projections is essential for maintaining public trust and budget credibility. “This process is not about numbers alone; it is about trust, discipline, and national responsibility,” he said.
Up to the time of publication, Justice Minister Tweh had not responded to the allegations.
‘SOEs’ contributions crucial’
Analysts say State-Owned Enterprises should play a critical role in Liberia’s historic US$1.2 billion budget as failure to remit their contributions would create serious challenges.
They warned that shortfalls from SOEs like the Liberia Petroleum Refining Company (LPRC) and the National Port Authority (NPA) can reduce funds for salaries, infrastructure, healthcare, and education.
Meanwhile, following the first day of Senate Ways and Means Committee hearings on Liberia’s proposed FY2026 Budget, Senator Amara Konneh, Chairman of the Public Accounts Committee, highlighted the country’s growing fiscal potential. He noted that Liberia could achieve over $1 billion in revenue next year even without the anticipated $200 million ArcelorMittal windfall, if strategic policy actions are implemented.
Senator Konneh identified key drivers of growth, including expansion in the mining sector, increased domestic revenue, better compliance and contribution from State-Owned Enterprises (SOEs), and targeted fiscal reforms. Specific measures such as raising the General Sales Tax from 12% to 13% and introducing a 2% presumptive Corporate Income Tax (CIT) on major concessions are expected to strengthen revenue streams. Additionally, property income, largely from royalties, is projected to rise substantially.
He named k𝗲𝘆 d𝗿𝗶𝘃𝗲𝗿𝘀 𝗼𝗳 g𝗿𝗼𝘄𝘁𝗵 as the mining sector CIT (+$35M–$57M) driven by ArcelorMittal, Bea Mountain, and China Union operations, domestic Revenue Growth (+$45M) boosted by GDP growth from 4.6% to 5.5%, increasing consumption taxes, excise, and income taxes.
Konneh projected SOE Contribution at $30M plus and this can be generated through improved profitability and compliance from state-owned enterprises.
He named strengthened policy measures (+$14M) – GST and CIT adjustments to enhance efficiency and broaden the tax base, external resources (+$72M) – continued support from development partners sustains key programs.
𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗰𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲 𝗦𝘂𝗽𝗽𝗼𝗿𝘁
To achieve these projections, Senator Konneh emphasized the need for completion of port infrastructure (Bao Chico) for export readiness, expansion of rail and road corridors to support 20M tons of mining exports, reactivation of China Union operations and review of TotalEnergies fiscal agreements. He also called for the revitalization of the forestry sector and unlocking carbon credit revenue, compliance by Bea Mountain with royalty and CIT obligations as gold output rises, strengthening corporate governance of SOEs and ensuring their budget contributions.
He said if implemented, these measures could deliver $931 million in domestic revenue and $72 million from external resources, totaling $1.003 billion without relying on ArcelorMittal’s $200 million bonus.
Senator Konneh warned that achieving the $1 billion mark is not automatic, calling for adequate funding for the Liberia Revenue Authority (LRA), upgraded enforcement technologies, and political will to hold both private-sector and SOE actors accountable for their contributions.
“We must look beyond political friendships and commercial interests to ensure all contributors meet their obligations,” he said, urging stakeholders and citizens to engage with the budget process and provide feedback.
Support Independent Journalism
Your support helps FrontPage Africa continue delivering independent, credible, and impactful journalism. Every contribution strengthens our ability to investigate, inform, and hold power accountable while keeping quality journalism accessible to our readers.
Support our journalism or subscribe to receive the latest FrontPage Africa stories and updates.
