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ADNews-Monrovia,Liberia: Legal practitioner Cllr. Samuel S. Pearson has proposed a legislative amendment to strengthen the mandate of the Liberia Agency for Community Empowerment (LACE), positioning it as the central institution responsible for coordinating and monitoring Corporate Social Responsibility (CSR) and community development contributions made by State-Owned Enterprises (SOEs) and autonomous public corporations.
By Contributing Writer
The proposal seeks to amend Title 12, Chapter 50(B) of the Executive Law of Liberia to establish a comprehensive framework for the administration, oversight, and reporting of CSR expenditures nationwide.
Cllr. Pearson made the statement recently at the House of Representatives after receiving an invitation from the Committee on Governance and Government Reform, in collaboration with the Judiciary Committee, to provide stakeholders an opportunity to present their views, concerns, recommendations, and expert opinions on “An Act to Amend Chapter 50B of the New Executive Law, Title 12 of the Liberian Code of Laws Revised, creating the Liberia Agency for Community Empowerment (LACE),” submitted by President Joseph Nyuma Boakai and currently under consideration by the committees in the discharge of their legislative oversight and governance responsibilities.
According to Cllr. Pearson, the proposed amendment is grounded in constitutional, statutory, policy, and international best practices aimed at ensuring that corporate and public-sector development contributions directly benefit Liberian communities.
He argued that the Constitution of Liberia provides a strong legal basis for the reform, particularly Article 7, which mandates the State to manage the national economy and natural resources in a manner that advances the general welfare of the Liberian people.
Cllr. Pearson also cited Article 5(c) of the Constitution, which calls for the promotion of national unity and integration, noting that equitable distribution of community development projects across the country would help fulfill that constitutional obligation.
The legal expert emphasized that State-Owned Enterprises and autonomous public corporations are established by law to serve public interests and therefore have a responsibility to contribute to community development initiatives.
He identified institutions such as the Liberia Petroleum Refining Company, the National Port Authority, the Liberia Electricity Corporation, and the Liberia Water and Sewer Corporation as examples of public entities whose operations should generate direct benefits for local communities.
Pearson noted that while many public corporations already allocate funds for Corporate Social Responsibility activities, Liberia currently lacks a centralized national mechanism capable of tracking how those resources are spent.
He said the absence of such a framework has created accountability challenges and made it difficult to determine whether budgeted CSR funds are achieving their intended developmental objectives.
Under the proposed amendment, LACE would maintain a national database of CSR projects, monitor implementation, assess developmental impact, and ensure fair geographical distribution of benefits throughout the country.
The proposal further seeks to prevent duplication of projects and strengthen transparency in the use of community development funds.
Pearson maintained that the reform would align with Liberia’s existing public accountability architecture, including the Public Financial Management Act, the General Auditing Commission Act, and the Liberia Anti-Corruption Commission Act.
He stressed that the amendment would not create a new government institution but would instead strengthen an agency that already possesses the technical expertise and statutory authority to implement community-based development programs.
According to the proposal, LACE has long been engaged in poverty reduction, rural development, community empowerment, social infrastructure development, and local economic advancement initiatives across Liberia.
Pearson also pointed to international examples supporting mandatory corporate contributions to community development programs.
He referenced India’s Companies Act of 2013, which requires qualifying companies to dedicate a portion of their profits to CSR activities and publicly report such expenditures.
He further cited Nigeria’s Petroleum Industry Act of 2021, which established Host Community Development Trusts to support communities affected by petroleum operations.
South Africa’s corporate governance framework, which requires extensive social responsibility and sustainability reporting, was also highlighted as a model demonstrating international acceptance of structured CSR systems.
The proposal additionally argues that a centralized CSR mechanism would help Liberia advance several United Nations Sustainable Development Goals, including poverty reduction, quality education, health, clean water, infrastructure development, and sustainable communities.
Pearson asserted that the Legislature possesses full constitutional authority to amend the LACE Act and requires annual CSR contributions, reporting obligations, audits, and public disclosure measures for public corporations.
He also proposed the possible establishment of a National Community Development Fund to facilitate the transparent management of community development resources.
According to the legal brief, public corporations manage assets and resources that ultimately belong to the Liberian people, making it appropriate for a portion of generated revenues to be reinvested in underserved communities.
The proposed amendment would require State-Owned Enterprises, autonomous public corporations, and certain private entities designated by law to contribute a specified percentage of their annual profits or approved budgets toward community development initiatives administered through LACE.
Cllr. Pearson concluded that the amendment enjoys strong constitutional and policy support and would significantly enhance transparency, accountability, and equitable development throughout Liberia.
He said the reform represents an important opportunity to establish LACE as the country’s principal coordinating institution for Corporate Social Responsibility and community development initiatives nationwide.
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