SOEs snubbed Boakai’s directive. – Liberia news The New Dawn Liberia, premier resource for latest news

Several State-Owned Enterprises here have refused to submit to management and compensation packages review amid huge salaries and bonuses.

By: Kruah Thompson 

Monrovia, September 5, 2024—Dozens of State-owned Enterprises here are said to have refused to submit their entities to the management and compensation package review conducted by the Bureau of State-owned Enterprises (BSE) as mandated by President Boakai.

BSE Director-General Arthur Siaka Massaquoi announced on Thursday that only nine out of 18 state-owned entities have complied with the recent review of their management compensation packages. 

This review was prompted by allegations of exorbitant salaries paid to certain government officials at state-run enterprises. It focused particularly on claims that officials at the Liberia Telecommunications Authority receive monthly salaries and allowances exceeding $15,000.

However, speaking at the Ministry of Information, Cultural Affairs, and Tourism (MICAT) press briefing on Thursday, September 5, 2024, Director General Massaquoi revealed that the report—covering 18 of the 46 operational state-owned enterprises has been concluded and submitted to the Office of the President, indicating that only nine entities were able to comply with the review process.

Consequently, the Liberia Electricity Corporation (LEC), Liberia Petroleum Refining Company (LPRC), National Oil Company of Liberia (NOCAL), Liberia Water and Sewer Corporation (LWSC), Liberia Telecommunications Authority (LTA), Liberia Trading Corporation (LTC), Food and Drugs Administration (FDA), Liberia Anti-Corruption Commission (LACRA), and National Social Security and Welfare Corporation (NASSCORP) were the only entities to comply with the review process.

On September 3, 2024, President Boakai requested the BSE to investigate reports of excessive salaries paid to certain government officials at state-run enterprises, particularly at the Liberia Telecommunications Authority, where claims suggest officials earn over $15,000 monthly.

The President also directed the BSE and the Governance Commission (GC) to collaborate on developing a new Corporate Governance Policy. This policy aims to address existing operational gaps and improve the efficiency of SOEs.

However, Massaquoi pointed out that the remaining SOEs’ level of non-compliance highlights key challenges that the BSE is striving to address through SOE sector reform initiatives. These initiatives aimed at strengthening the legal, regulatory, and governance frameworks for overseeing SOEs.

Mr. Massaquoi highlighted that the heads of these entities were requested to submit their management compensation packages, but many of them deliberately refused because they were not answerable to the Liberian people.

He says many of these SOE heads have not been accountable to the public, leading to a failure to submit the required reports. 

Meanwhile, Mr. Massaquoi explained that despite their refusal, the BSE is working on reforms to address these issues and improve SOE governance. “This includes collaborating with development partners and drafting new legislation to replace the current governing Decree.” He noted

To this end, he stated that the BSE has also requested all SOEs to submit their debt profiles and 2025 budget proposals by September 20 for further analysis and inclusion in the national budget. Edited by Othello B. Garblah.