On October 9, 2024, Liberia’s Commerce Minister Amin Modad resigned, embroiled in a scandal regarding the purchase of an expensive luxury vehicle for official use, originally reported to cost US$150,000. The controversy had been brewing for weeks, exacerbated by allegations that the vehicle was a gift from MedTech Scientific Liberia Limited, a subsidiary of MedTech Scientific based in Dubai, prompting fierce public scrutiny. Minister Modad’s resignation followed closely after President Joseph N. Boakai’s return from international engagements and an emergency cabinet meeting, during which the President expressed his dissatisfaction with officials prioritizing luxury over the well-being of citizens. Although he did not specifically mention Modad, his remarks highlighted a discontent that reverberated throughout the government.
Complicating the situation further, the Liberia Revenue Authority (LRA) and the Ministry of Commerce and Industry (MoCI) offered conflicting statements about the vehicle’s price, igniting doubts about transparency and accountability within the administration. The LRA, in a statement released on September 23, denied the claim that the vehicle cost US$150,000, confirming that a request for US$96,000 had been approved from the Customs Capacity Building Fund to purchase vehicles for MoCI’s operations. This approval stemmed from a contract related to Destination Inspection with MedTech Scientific, intended for trade-related activities. The LRA also firmly denied any allegations of bribery concerning the vehicle’s acquisition, instead emphasizing the purpose of the funding.
In contrast, Minister Modad contended that the total cost of the vehicle was actually US$98,000, including shipping fees. He categorically rejected the allegations that the vehicle was custom-made or intended specifically for his use, asserting that the LRA conducted the purchase on behalf of the Ministry of Commerce without any financial transaction running through his office. This public denial from Modad aimed to clarify his position amid rising suspicions about the ethicality of the purchase and its implications for the party’s image, particularly when public officials’ spending habits are under the spotlight in a nation where poverty remains rife.
Interestingly, the ruling Unity Party, of which Modad is a member, did not come to his defense as it typically might for a fellow official. Instead, the party’s chairman, Rev. Luther Tarpeh, openly expressed the need for transparency and accountability regarding Modad’s actions. The chair’s remarks underscored the party’s commitment to addressing the allegations rather than attempting to cover them up, which indicated broader discontent within the party sector regarding government conduct. Tarpeh emphasized that although the party continues to value Modad’s capability, addressing the issues surrounding the vehicle purchase was critical for maintaining public trust.
The backdrop to this controversy also includes details about MedTech Scientific Liberia Limited, the entity involved in the vehicle transaction. This company operates under a contract with the Government of Liberia, whereby it collects fees for conducting Destination Inspections. The agreement designates an 80% share of the collected fees to MedTech, while the government retains a 20% share, which had reportedly accumulated significant funds due to operations. Legal disputes surrounding the company had previously put a hold on some of its financial dealings, but a Supreme Court ruling had recently lifted those restrictions, allowing for new financial arrangements to take effect.
Ultimately, the case highlights concerning patterns regarding the usage of state resources and perceived mismanagement within Liberia’s government. The resignation of a key official like Modad can reflect broader systemic issues of accountability and governance that challenge public confidence. As the President and his cabinet navigate these intricacies, the dynamics within the Unity Party and their handling of such controversies will likely play a significant role in shaping the political landscape as they prepare for future governance challenges and electoral obligations.
