Liberia's Commerce Minister Amin Modad has resigned following weeks of controversies surrounding the purchase of a luxury vehicle for his official use at a cost of US98,000.
His resignation on Wednesday morning came just days after President Joseph N. Boakai returned from the UN General Assembly in the United States and a visit to France. Mr. Modad's resignation also comes at a time the President is holding an emergency cabinet meeting.
President Boakai, upon his return, voiced his anger at officials dreaming luxuries at the expense of the citizens, saying that he could even ride a wheel barrel to work-though he did not mention his Commerce Minister directly.
What happened?
For weeks, Mr. Modad had been accused of purchasing a luxurious SUV for his official use at the cost of US150K. The vehicle was initially alleged to be a gift from MedTech Scientific Liberia Limited, a Dubai-based subsidiary, to purchase a vehicle valued at US$150,000.
The Liberia Revenue Authority (LRA) and the Ministry of Commerce and Industry (MoCI) will later come to provide conflicting information regarding the controversy surrounding the purchase of the vehicle.
What did the LRA say?
The Liberia Revenue Authority (LRA), in its statement dated September 23, 2024, denied that US$150K was spent to buy the vehicle. Rather, the Customs Authority confirmed that it approved the MoCI's request for US$96,000.00 from its Customs Capacity Building Fund in early May 2024.
The money was requested under the Destination Inspection (DI) Contract held with MedTech Scientific Limited to purchase vehicles to support the MoCI.
Concerning bribery allegations, the LRA firmly denies involvement with bribes from MedTech or any other business or individual.
According to LRA, these vehicles are intended for trade-related activities in collaboration with Customs.
It added that the MoCI, not the LRA, determines the vehicles' specifications and deployment within the MoCI.
The LRA says this is the basis for the DI contract with MedTech, under which the LRA is entitled to a 20% share of the fees collected.
What did MoCI/Modad say?
According to Mr. Modad, the total cost, including shipping and everything else, is US98K instead of 96,000, as mentioned in the LRA clarification.
"It (vehicle) was around $82,000 plus shipping and other fees, making it $98,000." Mr. Modad said. Modad also denied that the vehicle in question was custom-made. He also denied that it was purchased for $150k.
Mr. Modad said the vehicle was not for "AMIN MODAD," and no money passed through the Ministry of Commerce or any individual. This means the LRA purchased the car for the Ministry.
The ruling Party's stance on allegations against Modad.
Modad's party, the ruling Unity Party, did not back him at all. Unlike other officials, such as the Minister of State, who has been linked to purchasing luxury vehicles, the party came down hard on Mr. Modad.
Unity Party chairman Rev. Luther Tarpeh told a Press conference on Tuesday, September 24, 2024, that the allegation against Mr. Modad will not be swept under the carpet.
Chairman Tarpeh noted that it would a great disturbance to all the partisans across the nation to remain silent on issues of such nature, while insisting that Minister Modad should speak to the public and clear his side.
"We do not question Minister Modad's competence and ability to lead the sector entrusted to him," Tarpeh said, "... but the public is alarmed] over the issue that has to do with the purchase of a vehicle by a private company for US$150,000."
Minister Modad played a pivotal role in the UP regarding the Unity Party's loss in 2017 and our subsequent win in 2023.
About Medtech Scientific Liberia Limited
Medtech Scientific Liberia Limited is a Special Purpose Vehicle of Medtech Scientific Limited based in Dubai.
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The company's sole intent is to conduct Destination Inspection on behalf of the Government of Liberia.
According to the agreement, Medtech Scientific Liberia Limited, jointly operated by Mr. Abou-Hassan and Madame Angela List, is entitled to 80% of the fees collected. At the same time, the Government of Liberia, through the Liberia Revenue Authority, gets 20%.
The Supreme Court placed a stay order on the MedTech account in July 2023 due to some internal wrangling among shareholders but lifted the stay in June this year.
As the Public Financial Management (PFM) Act requires, the LRA formally requested that the Ministry of Finance and Development Planning (MFDP) open an escrow account.
The essence is to deposit its 20% share, which had accumulated to US$3,381,035.99 at the time.
"The escrow account was opened on July 8, 2024, at Ecobank, and the funds were transferred from MEDTECH to the new account on July 11, 2024."
