NPA, Others  Impede Budget Realization

11 Mins Read

 ADNews-Monrovia, Liberia: The Deputy Commissioner General for Technical Services at the Liberia Revenue Authority (LRA), Gabriel Y. Montgomery, recently during the Senate Budget Hearing on Capitol Hill, disclosed that several State-Owned-Enterprises (SOEs), including the Liberia Petroleum Refining Company (LPRC), National Port Authority (NPA) and others continue to fall short of their revenue contribution commitments as their persistent failure to meet their obligations remain a major constraint to LRA’s collective fiscal goal.

State Owned Enterprises (SOEs), remain a key part of Liberia’s economic growth responsible for generating millions, if not billions, in revenue annually. Some 20 SOEs are government-owned and make up several sectors including port services, airport and civil aviation, electricity supply, oil and gas, water and sewage, agriculture and forestry, maritime, petroleum importation and storage, and information/communications services.

The SOE sector remains a key part of Liberia’s economic development agenda and is guided by the Public Financial Management (PFM) Law of 2009, which sets out rules governing SOE management and operations.

Among the major contributors to the economy are the National Port Authority (NPA), Liberia Electricity Corporation (LEC), Roberts International Airport (RIA), Liberia Civil Aviation Authority (LCAA), National Oil Company of Liberia (NOCAL), Forestry Development Authority (FDA), Liberia Maritime Authority (LMA), Liberia Petroleum Refining Corporation (LPRC), Liberia Water and Sewer Corporation (LWSC), Liberia Telecommunication Authority (LTA), and the Liberia Telecommunications Corporation (Libtelco).

Ironically, over the past decades, a lot of these SOEs have found themselves on the receiving end of allegations of corruption and mismanagement, while their hierarchies are paid huge sums of monies in salaries and benefits amounting to hundreds of millions, and are on the record books of reneging to contribute handsomely to the National Budget of Liberia.

In his statement at the Senate during the week, LRA Deputy Commissioner General for Technical Services, Gabriel Y. Montgomery stated the LRA would be closer to achieving its domestic revenue target if SOEs contributed fully to the national budget.

According to the LRA deputy commissioner general, “SOEs’ compliance is not only the concern of the LRA; it is a national priority that must be addressed adequately.”

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.

However, in efforts by the LRA to ensure that SOEs live up to their revenue remittance obligations, the Authority at one point in time filed a legal suit against one of the SOEs – the Liberia Petroleum Company (LPRC), under powers granted by the Public Financial Management (PFM) law, which empowers the LRA to take legal action against SOEs that fail to pay legitimate taxes or remit revenues to the government. But noted, LRA’s efforts were allegedly thwarted by Justice Minister Cllr. Oswald Tweh with his interference in the legal suit that would have compelled LPRC in the court of law of live up to its revenue remittance obligation to the LRCA.

In the eyes of the LRA and critics, Minister Tweh was seen as blocking LRA lawful revenue collection, as he reportedly shielded LPRC from national budget obligations through his alleged interference in the legal suit, thus raising concerns over fiscal accountability and national budget credibility.

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.

Lawmakers Want Transparency and Accountability in MOJ’s Role in How SOEs Meet Budgetary Obligations

During the Senate Budget Hearing on Capitol Hill, there were calls for transparency and accountability grew, with lawmakers urging a review of the Justice Ministry’s role in ensuring SOEs meet their budgetary obligations. The 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.

Also, during the Senate hearing, Deputy Finance and Development Planning Minister for Fiscal Affairs, 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.

At the time, 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 averred.

SOEs’ Contributions Crucial to National Budget

In a related development, analysts say State-Owned Enterprises (SOEs) must play a critical role in Liberia’s historic US$1.2 billion budget realization, as failure to remit their lawful contributions would create serious challenges.

They have warned that shortfalls from SOEs like the Liberia Petroleum Refining Company (LPRC), the National Port Authority (NPA) can hamper and reduce funds for salaries, infrastructure, healthcare, and education as far as government’s priorities are concerned.

Similarly, following the first day of Senate Ways and Means Committee hearings on Liberia’s proposed FY2026 Budget, Gbarpolu County Senator, Amara Konneh, who chairs the Public Accounts Committee in Senate, highlighted the country’s growing fiscal potential. He noted that Liberia could achieve over US$1 billion in revenue in 2026 even without the anticipated US$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.

Senator Konneh 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.

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 US$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.

SOE’s Proxies Thrown out of House Budget Hearing Session

Meanwhile, on Tuesday, December 2. 2025 at its regular session at the House of Representatives, several proxies for the heads of most State-owned Enterprises (SOEs) were asked out of Session for failure of their bosses to appear at the hearing as previously request by the House to show reason why they are reneging to contribute their shares of the revenue to the national budget.

The House was split over the decision but in the end those proxies were escorted out of the House Session because according the lawmakers, it was a complete disrespect to them by those SOEs heads who were asked in be present and give account why they are not remitting their shares of revenue to the national budget as required by law.

Pundits’ Reaction to SOEs Reneging on their Revenue Obligation to LRA

For many political pundits and critics, an even to supporters of government, State-Owned Enterprises (SOEs) are obliged in keeping with the laws of Liberia to contribute to the revenue envelop of the National Budget. They have argued that the continuous delays or refusal for SOEs to remit their respective revenue obligations to the LRA poses a serious risk of the country not meeting its projected US$1.2 Billion National Budget which potentially could lead to a future budget shortfall.

In fact, other stakeholders in Liberia are urging the Legislature to enact a law that will make it mandatory for high-income generating SOEs to contribute handsomely to the National Budget envelop, instead of the peanuts being reported by SOEs like, LPRC, NPA, FDA, LTA, among several others.

They have argued most of the hierarchies at these SOEs amass wealth while a little contribution is made from them to the National Budget. “It is unthinkable that entities like LPRC, NPA, LTA only contribute few thousands of dollars to the national budget, but their heads are paid hugely in the hundreds of thousands with several benefits and allowances, while the country struggles to raise revenue for the national budget. This has got to stop,” one political pundit asserts.

Others have opined that it is unfair to Liberians for SOEs heads, directors, among others to reap huge salaries and benefits in the hundreds of thousands of dollars from revenue generated for the services they offer but yet remit a minute portion of that to the national budget. According to them, those monies being collected, significant portion should go to the national budget because these SOEs are under the auspices of the Liberian government. Pundits and critics are calling for legislation that will make it mandatory for SOEs to contribute handsomely to the national budget based on their income as per the services being provided to the public.