Monrovia — A major corruption scandal has rocked the Liberia Revenue Authority (LRA), with nearly 50 employees under investigation for alleged involvement in an insurance fraud scheme.
According to sources close to the matter, employees of the LRA are suspected of submitting fraudulent hospital receipts to claim reimbursements, defrauding the institution of thousands of U.S. dollars.
The fraud involves claims under an Emergency Medical Insurance Reimbursement Program set up by the LRA to address gaps in staff medical coverage following delays in the approval of the Fiscal Year 2024 budget.
The investigation into the matter is ongoing, and the LRA's Professional Ethics Division (PED) is leading the probe. Initial reports indicate that some employees submitted fake receipts for medical treatments, with some individuals allegedly receiving as much as US$300 in reimbursements - a sum that includes claims for themselves and three dependents, at a reimbursement rate of $75 per person.
This scandal comes amid a turbulent financial period for the LRA, with over 300 employees suspended due to their involvement in the alleged fraud. The suspensions stem from accusations of not only the insurance fraud but also other financial misconduct within the institution.
In an effort to address the medical insurance issue, the LRA had set up a temporary reimbursement mechanism in July 2024, after delays in the procurement process for a new insurance policy. Given that employees had been without medical insurance for several months, the administration decided to reimburse staff for medical expenses up to $75 per person, which was the same benefit level as the previous year's policy.
However, it wasn't long before discrepancies began to surface.
It was discovered that several employees had submitted false hospital receipts and, in some cases, filed multiple reimbursement claims for themselves and their dependents. This fraud has raised alarms about the effectiveness of internal controls within the LRA.
The LRA's Commissioner General, Cllr. Dorbor Jallah, is yet to comment publicly on the scandal, but sources indicate that the investigation is ongoing and that disciplinary actions are being considered.
The LRA is said to also be under pressure to ensure that such a scandal does not repeat itself in the future, with many demanding tighter oversight and better systems to prevent fraud. The investigation continues, and more details are expected to emerge in the coming weeks.
This scandal is the latest in a series of corruption-related issues in Liberia's public sector, underscoring the need for stronger mechanisms to combat fraud and ensure transparency in government institutions.
Liberia's Insurance Services
Insurance services in Liberia--such as health and vehicle coverage--are primarily provided by private companies, most of which are Liberian-owned. However, according to the whistleblower, under the fragile system, clients collude with medical facilities to defraud the government, either by accepting fake medical receipts or by providing medical services to relatives not covered under the insurance scheme.
The revival of the National Insurance Company of Liberia (NICOL) by the former Weah-Taylor administration has sparked mixed reactions. Originally established in the 1980s to support the country's emerging insurance sector, NICOL was designed to provide reinsurance services at a time when the market was dominated by foreign-owned firms. Back then, only five or six insurance companies operated in Liberia.
Today, Liberia's insurance landscape has transformed, with 10 out of 15 licensed companies owned and managed by Liberians. The industry remains one of the few sectors in which Liberians maintain a dominant stake.
Critics argue that NICOL's re-entry into the market could undermine local businesses and edge them out of competition. Others, however, believe that it could help boost government revenue and reinforce oversight in the sector.
Amid this debate, the Central Bank of Liberia (CBL) appears poised to address regulatory concerns. Speaking at the opening of a three-day Insurance Act Validation Workshop 2025--organized by the CBL in collaboration with the Law Reform Commission at the Executive Pavilion in Monrovia--Executive Governor Henry F. Saamoi called for the establishment of an independent National Insurance Commission.
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According to Governor Saamoi, the proposed body--Liberia Insurance Commission--will be a corporate entity owned by the Liberian Government and tasked with regulating all insurance activities in the country. The move, he said, is part of broader efforts to enhance transparency, efficiency, and accountability within the insurance sector.
Meanwhile, at the LRA, the ongoing investigation into alleged fraud involving nearly 50 employees accused of manipulating a temporary medical reimbursement scheme has raised concern. While it remains unclear whether the probe will result in criminal charges or internal disciplinary measures, a source told FrontPageAfrica that the LRA is taking the issue seriously due to its potential impact on the institution's integrity.
As the investigation continues, it has raised serious questions about the effectiveness of internal controls and oversight mechanisms within the Human Resources and Finance Departments, and whether the temporary reimbursement system was adequately monitored.
