Capitol Hill Monrovia — The Plenary of the Liberian Senate has rejected a request from President Joseph Nyuma Boakai to de-ratify the controversial Telecommunications Traffic Monitoring Agreement between the Government of Liberia (GOL) and the U.S.-linked firm, Telecom International Alliance (TIA).
The agreement, signed through the Liberia Telecommunications Authority (LTA), grants TIA responsibility for telecommunications traffic monitoring and revenue assurance services in Liberia. The contract was initially entered into in 2018 and later amended, expanded, and ratified by the Legislature in 2022.
Under the deal, TIA is tasked with installing equipment and managing systems to monitor voice, data, and mobile-money traffic, as well as combating fraud--while earning a significant share of revenues over an extended period.
On November 13, President Boakai informed the Senate that he had issued Executive Order No. 154, suspending implementation of the TIA-LTA concession. He cited alleged procurement fraud and statutory violations, arguing that the contract was awarded in contravention of the Public Procurement and Concession Commission (PPCC) Act of 2010.
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The President further maintained that TIA was incorporated in Delaware, United States, just four days after receiving bid documents and was registered in Liberia ten months after the contract was awarded. He also questioned the increase in TIA's revenue share from an initial bid of 35 percent to 49 percent.
However, following the submission of a report by its Joint Committee on Judiciary, Human Rights, Claims & Petitions and Post and Telecommunications, the Senate voted during its regular sitting on Thursday, February 5, to reject the President's request for de-ratification.
Prior to its recommendation, the Joint Committee held public hearings involving the Ministry of Justice, the General Auditing Commission (GAC), the Liberia Anti-Corruption Commission (LACC), the Liberia Telecommunications Authority (LTA), the Liberia Revenue Authority (LRA), and Telecom International Alliance.
The committee observed that the contract had been extended for an additional 20 years without clear evidence of value for money.
Findings
In its report, the Joint Committee noted that the President's decision to suspend the contract on grounds of alleged procurement fraud--claims denied by TIA--and his subsequent request for de-ratification amounted to a contractual dispute.
The committee pointed out that the TIA/LTA agreement, which was ratified by the Legislature, signed by the President, and published by the Ministry of Foreign Affairs, contains a dispute settlement clause under Section 21.2 that binds all parties.
It further stated that Liberia's Public Procurement Law provides remedies for disputes arising from procurement processes and emphasized that due process, as guaranteed under Article 20(a) of the 1986 Constitution, had not been followed in attempts to cancel the contract.
Article 20(a) states that no person shall be deprived of property or rights except through a hearing and judgment consistent with due process of law.
The report also cited Article 25 of the Constitution, which prohibits the impairment of contractual obligations, stressing that the Legislature cannot take actions that would violate a contractor's rights.
"The government should pursue the path of renegotiation rather than de-ratification," the committee recommended, citing existing laws and Supreme Court precedents.
Reasons for Renegotiation
The Joint Committee explained that renegotiation was necessary because TIA disputes allegations of procurement fraud, thereby triggering the contract's dispute resolution provisions.
Section 21.2 of the agreement stipulates that unresolved disputes must be settled through arbitration under the Rules of the International Chamber of Commerce in London--a process the committee warned would be lengthy and costly.
It concluded that respecting the contract and pursuing renegotiation would protect Liberia from expensive arbitration, boost investor confidence, and help attract foreign direct investment. Any move to de-ratify, the committee warned, could scare away investors.
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Use of PPCC Law
The committee further emphasized that the PPCC Act provides a Complaint, Appeal, and Review Panel (CARP) for addressing procurement disputes, whose decisions are final and binding.
Referencing the Supreme Court ruling in Atlantic Resources Inc. v. Government of Liberia and Euro Logging Company, the committee stressed that procurement disputes must be governed by the PPCC law.
"The government is therefore encouraged, should it wish to pursue this matter further, to revert to the procedures laid down in Section 10 of the PPCC Act," the report stated, adding that TIA must be accorded due process.
A motion calling for renegotiation of the contract was filed by Bomi County Senator Edwin Snowe.
Meanwhile, the Senate is expected to formally communicate its decision to President Boakai.
