After nearly a decade of dispute, the Liberia Electricity Corporation (LEC) has formally acknowledged owing more than US$415,000 to ELTEL Network-Liberia, a Swedish engineering firm, for electrical materials supplied under a 2016 agreement. The admission, made during proceedings at the Debt Court on Tuesday, marks a significant turning point in a case that has tested the credibility of public-sector contract enforcement and investor confidence in Liberia.
According to the court, the total liability now stands at US$415,327.08, following the addition of statutory interest, legal fees, and court costs to the principal judgment amount of US$364,322. The breakdown includes US$21,859.32 in interest at six percent per annum, US$7,286.44 in attorney's fees, and US$21,859.32 in court costs.
The debt stems from a 2016 supply contract under which ELTEL Network provided LEC with Low Voltage (LV) electrical materials, widely used in power distribution systems, control rooms, lighting infrastructure, and security networks. Court-appointed arbitrators found that the materials were delivered and received, but never fully paid for.
A Long Road Through the Courts
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The case has dragged on for years amid repeated challenges by LEC, which disputed both the validity and origin of the debt. At various points, the corporation argued that the obligation was linked to an older 2011 contract and claimed that current management was not responsible for the transaction -- arguments that the arbitration panel and the Debt Court ultimately rejected.
After a four-month arbitration process, during which invoices, purchase requests, and delivery notes were reviewed, the panel ruled on September 30 that LEC was liable for the unpaid balance. The ruling prompted the Debt Court to order drastic enforcement measures, including the temporary closure of LEC's headquarters, the seizure and sale of assets, and even the possible arrest of Managing Director Mohamed Sheriff should the corporation continue to refuse payment.
That order was briefly halted by the Supreme Court, which issued a stay on January 6, 2026. However, Associate Justice Jamesetta H. Wolokollie lifted the stay on January 20, clearing the way for the Debt Court to resume enforcement actions.
LEC later clarified that the closure affected only its Waterside Customer Service Center, which has since reopened, and reiterated its commitment to "transparency and accountability," promising to keep the public informed as the matter progresses.
For ELTEL Network, the court's latest ruling represents long-awaited validation. The firm, through its Attorney-in-Fact Hans Armstrong, had initially sought US$434,459 in unpaid obligations. During arbitration, ELTEL agreed to reduce its claim to US$364,322, a figure accepted by the panel.
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Court records also reveal that ELTEL made repeated attempts to settle the matter amicably. Between 2019 and 2020, the company reportedly offered to accept a direct payment of US$360,000, effectively waiving more than US$74,000 in outstanding claims. Those overtures, according to ELTEL, went unanswered.
In a January 1, 2020, letter to then LEC Chief Executive Officer, assumed to be Monie Captan, ELTEL reminded the corporation of earlier commitments to settle the debt. When no response came, the company said it had no option but to seek legal redress.
However, Captan recently told the Daily Observer that he "was not CEO of LEC in 2020. I was CEO of Millennium Challenge Account," he said. "The debt they are referring to was incurred in 2016."
Beyond the immediate financial liability, the case raises broader concerns about contract enforcement, governance, and Liberia's attractiveness to foreign investors. ELTEL's experience underscores the risks faced by international firms doing business with state-owned enterprises in environments where payment disputes can linger for years.
Legal analysts note that the court's insistence on enforcement sends a strong signal that contractual obligations -- even those involving public institutions -- must be honored.
For now, ELTEL Network appears closer than ever to recovering its funds, while LEC faces renewed pressure to resolve the matter and restore confidence in its operations. As the Debt Court proceedings continue, the case stands as a cautionary tale on the cost of delayed accountability -- and the legal and reputational price of unpaid debts.
