JJohannesburg — Liberia is losing millions of dollars annually through smuggling, tax evasion, and illicit financial flows, a situation that threatens national development and undermines public trust, according to Mr. Harold Aidoo, Executive Director of Integrity Watch Liberia (IWL).
Speaking in an exclusive interview at the 13th Pan-African Conference on Illicit Financial Flows and Taxation in Johannesburg, South Africa, Aidoo warned that unless urgent reforms are implemented to strengthen governance, transparency, and fiscal compliance, Liberia's vision of mobilizing US$1 billion in annual revenue will remain far-fetched.
"We must act decisively to stop the bleeding of resources that continue to leave our shores," Aidoo said. "Illicit financial flows are not just a financial issue; they are a development and justice issue. If we fail to address them, we cannot talk about sustainable growth or reducing poverty."
The conference, organized by the Tax Justice Network Africa (TJNA) in partnership with the Economic Justice Network and the African Tax Administration Forum (ATAF), brought together policymakers, tax administrators, and civil society actors to reflect on progress made since the 2015 Mbeki Report, which exposed how Africa loses over US$88 billion annually through illicit outflows. The conference was also intended to renew commitments to tax justice, fair trade, and financial transparency across the continent.
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Aidoo noted that Liberia's situation mirrors many of the challenges discussed at the conference, citing the country's mining and extractive sectors as key sources of untracked revenue losses.
"Liberia is losing up to 90 percent of the gold mined by artisanal miners to smuggling and illicit exports," he said. "That's money we could use to build schools, hospitals, and roads. We cannot continue like this."
According to the Integrity Watch Liberia boss, several multinational and local companies have operated in Liberia's extractive industry for decades but continue to declare zero profits, avoiding corporate taxes through invoice mispricing and aggressive tax avoidance schemes.
"For over 20 years, some companies have declared no profit and paid no corporate income tax," Aidoo revealed. "This is an aggressive form of tax evasion that deprives Liberia of millions of dollars in much-needed revenue. We need to fix the system, not just talk about it."
He blamed the problem on weak oversight institutions, outdated fiscal policies, and a lack of coordination between key agencies such as the Liberia Revenue Authority (LRA), the Ministry of Mines and Energy, and the Ministry of Finance and Development Planning.
"Our institutional structures are fragmented, and our laws are outdated," he said. "If we modernize our fiscal regime, improve coordination, and invest in technology, we can significantly enhance domestic resource mobilization."
Aidoo further argued that Liberia's economic model -- dominated by the export of unprocessed natural resources -- is unsustainable and perpetuates dependency.
"For more than a century, Firestone has exported raw rubber from Liberia, yet we have no tire or rubber product manufacturing industry," he explained. "We continue to export iron ore, gold, and timber with little or no value addition. This structure must change if we want to create jobs and retain value at home."
To address these systemic issues, Aidoo called for a comprehensive review of fiscal laws, concession agreements, and royalty rates, alongside stronger anti-corruption mechanisms and citizen engagement in public finance monitoring.
He also outlined a series of initiatives led by Integrity Watch Liberia to improve fiscal transparency and accountability. These include the launch of the Illicit Financial Flow (IFF) Policy Tracker, developed in collaboration with the LRA, Finance Ministry, and other stakeholders, to monitor Liberia's progress on combating illicit flows.
"We have also been working with the National Legislature to strengthen its oversight role," he said. "Through the development of ABC Guidelines, we aim to help lawmakers review concession agreements and memoranda of understanding to ensure they comply with the law. Over 90 percent of past agreements were found to be non-compliant -- that must change."
Aidoo revealed that Integrity Watch Liberia currently serves as the technical secretariat for an upcoming Senate retreat focused on revenue generation and fiscal reform -- part of efforts to align legislative and executive branches in achieving the government's domestic revenue goals.
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"The Senate retreat is crucial to identifying reforms that can help Liberia reach its US$1 billion revenue target," he said. "We hope the insights from this Pan-African conference will inform those discussions."
He also stressed that tackling corruption is central to ending illicit financial flows, urging stronger enforcement and institutional integrity.
"When officials accept bribes or turn a blind eye to violations, the country loses far more than what individuals gain," Aidoo warned. "We need to build institutions that are not only strong but also trusted by the people."
Concluding, Aidoo underscored the need for multi-stakeholder collaboration -- bringing together government, civil society, and the private sector -- to promote accountability and fair taxation.
"We need to build partnerships, not walls," he said. "Civil society is not the enemy of the government. We can be critical, yes, but we must also offer solutions -- and the government must be willing to listen. The fight against illicit financial flows must be a national priority."
